Kreczmer v. Allied Construction Company

284 N.E.2d 869, 152 Ind. App. 665, 1972 Ind. App. LEXIS 1027
CourtIndiana Court of Appeals
DecidedJuly 10, 1972
Docket372A138
StatusPublished
Cited by26 cases

This text of 284 N.E.2d 869 (Kreczmer v. Allied Construction Company) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kreczmer v. Allied Construction Company, 284 N.E.2d 869, 152 Ind. App. 665, 1972 Ind. App. LEXIS 1027 (Ind. Ct. App. 1972).

Opinion

Hoffman, C.J.

The sole issue presented by this appeal is whether the granting by the trial court of defendantsappellees’ motion to vacate the default judgment entered in favor of plaintiff-appellant John J. Kreezmer was contrary to law.

On September 21, 1966, plaintiff-Kreczmer filed his complaint against Allied Construction Company (Allied) and William C. Severeid for loss of services of his wife and property damage. The complaint alleged, inter alia, that the plaintiff’s wife was negligently injured in a collision between a car driven by his wife and a truck driven by Severeid and owned by Allied. The complaint prayed for judgment in the sum of $25,000 for medical expenses and loss of services, and for judgment in the sum of $350 for property damage.

Summons was issued and duly served by the Sheriff of St. Joseph County. On October 25, 1966, defendants having failed to appear, were defaulted. The cause was submitted to the court for trial without intervention of a jury, and subsequently judgment was entered for plaintiff-Kerczmer in the amount of $4,300, plus costs.

Thereafter, defendants filed a motion to set aside the default judgment alleging, inter alia, that defendants’ failure to appear was due to the inadvertence and excusable neglect of defendants acting by and through their legal counsel and that the defendants have a good and meritorious defense. Evidence was heard by the trial court, and at the conclusion thereof the trial court granted the motion filed by defendants *667 to set aside the default judgment. Plaintiff-Kerczmer timely filed his motion to correct errors which was overruled by the trial court, and this appeal followed.

It is incumbent upon a party seeking to set aside a default judgment because of mistake, inadvertence, surprise or excusable neglect to show two things: 1) that the judgment was taken as a result of his mistake, inadvertence, surprise or excusable neglect, and 2) that he has a good and meritorious defense to the cause of action. Cantwell v. Cantwell (1957), 237 Ind. 168, 143 N. E. 2d 275 (cert. denied, 356 U.S. 225, 78 S. Ct. 700, 2 L. Ed. 2d 712); Hoag v. Jeffers (1928), 201 Ind. 249, 159 N. E. 753; Strickland v. O’Rear (1961), 134 Ind. App. 247, 176 N. E. 2d 902 (transfer denied); Swartz v. Swartz (1951), 121 Ind. App. 635, 101 N. E. 2d 822.

We will first consider whether the judgment was taken through the mistake, inadvertence, surprise or excusable neglect of the defendants.

The testimony contained in the record before us may be summarized as follows:

Defendant-Severeid testified that after receiving a copy of the complaint and summons he went to see Thomas Reed, Jr., the owner of Allied, to “find out just what it was' all about.” He testified that he left the summons and complaint with Reed.

Mr. Reed testified that although he didn’t truthfully remember whether the complaint and summons were taken or picked up, they were turned over to the State Farm Mutual Automobile Insurance Company, Allied’s insurance carrier.

The insurance adjuster for State. Farm testified that he received copies of the complaint from his insured. He testified that he told Severeid and Allied that “this will be given to our company attorney.” He testified that he called the company attorney, Arthur A. May, and asked him to make an appearance. He testified that he put the material in an envelope and mailed it to the attorney.

*668 Mr. May testified that it was a practice in his office to have one girl receive the mail and distribute it to the various attorneys to whom it was addressed. He testified that he was working on a case out of town and when he returned the file was not on his desk but had been filed away so that he was not aware of the appearances. He testified that in December of 1966 the manila envelope in question was found filed away in a file drawer without an appearance being entered. He testified that the envelope was very similar to other files which at the time were being transferred to him from previous counsel for State Farm.

In cases where the trial court has refused to vacate a judgment by default it has often been held that the negligence of an attorney does not relieve the client of the default. Sharp v. Grip Nut Co. (1945), 116 Ind. App. 106, 62 N. E. 2d 774; Delewski v. Delewski (1921), 76 Ind. App. 44, 131 N. E. 229. See also: 17 I. L. E., Judgment, § 188, at 295, and cases there cited.

This general rule, however, is not a steadfast rule of law. The particular facts of the individual case are controlling. The decision to set aside a default rests within the sound discretion of the trial court.

In Carty v. Toro (1944), 223 Ind. 1, at 4, 57 N. E. 2d 434, at 435, the Supreme Court of Indiana stated:

“As indicated in the beginning the trial court in ruling upon the petition was required to exercise a sound judicial discretion. 31 Am. Jur. Judgments, § 717, U.S. Fidelity, etc. Co. v. Poetker (1913), 180 Ind. 255, 268, 102 N. E. 372, 376. Its decision will be set aside only for an abuse of such discretion.”

Masten v. Ind. Car, etc. Co. (1900), 25 Ind. App. 175, 57 N. E. 148, was an appeal from an order of a trial court setting aside a default and vacating a judgment previously entered in favor of the appellant. The pertinent portions of the opinion of the Appellate Court of Indiana, at 179-182 of 25 Ind. App., at 150-151 of 57 N. E., read as follows:

*669 “The affidavit of Mr. Ketchum shows, among other things, * * * he was * * * called away from his office on the three days following the 8th day of May; * * * that on May 8th, he received a letter inclosing a copy of the summons and intending to send them to his private office asking his assistants to attend to the case, as was his custom in such matters; that he did not send the letter and summons, but left them on his desk where, either by the carelessness of the janitor or of some one unknown to the affiant, they became covered up with other papers and thenceforth escaped his attention; * * *. The court’s conclusion will not be disturbed if it is supported by any evidence and, unless there is a clear failure to prove, it must stand. Nash v. Cars, 92 Ind. 216; Carter v. Plate Glass Co., 85 Ind. 180; Williams v. Grooms, 122 Ind. 391, [24 N. E. 158]; Murrer v. Security Co., 131 Ind. 35, [30 N. E. 879]; Devenbaugh v. Nifer, 3 Ind. App. 379, [29 N. E. 923]; Wells v. Bradley, 3 Ind. App. 278, [29 N. E. 572].
“Whether or not the affidavits show mistake, inadvertence or excusable neglect is a question of fact.

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Bluebook (online)
284 N.E.2d 869, 152 Ind. App. 665, 1972 Ind. App. LEXIS 1027, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kreczmer-v-allied-construction-company-indctapp-1972.