Lawrence-Allison & Associates West, Inc. v. Archer

767 P.2d 989, 1989 Wyo. LEXIS 16, 1989 WL 1597
CourtWyoming Supreme Court
DecidedJanuary 13, 1989
Docket87-184
StatusPublished
Cited by24 cases

This text of 767 P.2d 989 (Lawrence-Allison & Associates West, Inc. v. Archer) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lawrence-Allison & Associates West, Inc. v. Archer, 767 P.2d 989, 1989 Wyo. LEXIS 16, 1989 WL 1597 (Wyo. 1989).

Opinions

BROWN, Chief Justice, Retired.

Appellant Lawrence-Allison & Associates West, Inc., appeals a judgment awarding damages and costs to appellee Brian Lorensen. Underlying this dispute is a tort action based on the termination of appel-lee’s employment contract with appellant. This appeal addresses the propriety of the trial court’s entry of default on liability against appellant for failure to appear at trial with counsel. Appellant also challenges an order of partial summary judgment collaterally estopping it from litigating certain factual issues raised in an April 1984 administrative decision concerning ap-pellee’s eligibility for unemployment compensation benefits. Appellant frames the issues as:

1. Were the issues decided at the administrative hearing identical to the issues to be decided by the trial court in order for the trial court to properly apply collateral estoppel to prevent Appellant from defending the allegations?
2. Did the burden of proof in the two proceedings remain the same; or was the burden of proof upon the Appellant at the administrative proceeding and upon the Appellee, as a party Plaintiff, in his civil lawsuit? If so, does such shift in burden of proof prevent application of principles of collateral estoppel?
3. Was it error for trial court to permit withdrawal of counsel and then hold Appellant in default?
4. Was it abuse of discretion in refusing to set aside the default?
5.Are the awards for past lost wages, future lost wages, and loss on annuity supported by the evidence?
Appellee frames the issues in this way:
1. Did the Trial Court Err in Failing to set aside the Default Entered against Appellant?
2. Did the Trial Court Erroneously Apply Collateral Estoppel to the Employment Security Commission Administrative Hearing?
3. Is the Judgment Supported by the Competent Evidence?

While we seriously question the trial court’s application of collateral estoppel in this case, we' reverse on the issue of entry of default and remand, the case for further proceedings.

FACTS

Appellant was the prime contractor with the United States Department of Energy for management of certain activities on the United States Petroleum Reserve No. 3, north of Casper, Wyoming. Appellant subcontracted work projects on the Reserve to oil field service companies, including a subcontract under which appellee was employed as a tool pusher. The subcontract specified that all employees on the Reserve would use Government Service Administration (GSA) vehicles, and that the vehicles would be used only for business purposes. Hunting on the Reserve was also prohibited.

During the 1983 antelope hunting season, appellee allegedly violated these terms of his employment contract by shooting an antelope on the Reserve and transporting it to Casper in a GSA pickup. After an investigation into the matter, appellee was terminated on October 20, 1983.

Appellee then applied for unemployment benefits, and appellant protested. After an April 3, 1984, hearing, the Wyoming Employment Security Commission (ESC) granted benefits. In an April 18 decision letter, the ESC found no evidence supporting the hunting violation and further found [991]*991that transporting the antelope carcass in the GSA pickup was not “misconduct” under ESC regulations sufficient to justify a denial of unemployment benefits. Appellant did not appeal from the ESC decision.

Appellee filed a complaint in district court on December 26, 1985, naming appellant and three individuals as defendants in an action for wrongful termination. The complaint included a jury demand. Appellant answered and also demanded a jury trial. Appellee moved for partial summary judgment on the issue of liability on the contract. A hearing was held on February 27, 1987. On March 2, the trial court issued an order finding the parties to be collaterally estopped from litigating issues determined in the ESC decision and denying appellee’s motion for partial summary judgment.

On March 1, 1987, appellant had a meeting with its counsel during which appellant apparently complained about the way its case was being prepared for trial, which was to begin March 2. The record is unclear concerning the outcome of this meeting; however, defense counsel apparently left the meeting with the initial impression that his attorney-client relationship with appellant had been terminated.

Acting on this belief, defense counsel participated in a telephone conference with plaintiffs counsel and the trial court on the afternoon of March 1, in which he moved to withdraw from the case. The trial court apparently questioned defense counsel about his motion, although no record of the conference was made, and then allowed the withdrawal. Defense counsel notified his client by telephone that afternoon, leaving appellant only Sunday evening to find new defense counsel for trial the next morning.

On the morning of March 2, a written motion to withdraw and a corresponding order were submitted to the court and filed. The motion to withdraw gave the following explanation of the circumstances leading up to the March 1 telephone conference:

2. On March 1, 1987 I came to Cas-per, Wyoming to prepare my client[’]s testimony and arrived in the early afternoon. Upon arrival at the office of Lawrence-Allison and Associates, I was greeted by the general manager, Jim Watson, and after discussing the status of the case with Mr. Watson he informed me that as the representative of the corporate defendant and speaking on behalf of the individual defendants that my services as the attorney for all of the defendants were no longer desired and they wished to obtain other counsel to represent them in this matter.

Appellant’s general manager, Mr. James Watson, appeared that morning for the beginning of trial without replacement counsel and unable to proceed. The trial began with the following colloquy:

THE COURT: As I understand it the corporate defendant here has discharged their attorney. Do you have another attorney to represent the company?
MR. WATSON: No, sir, I do not, and I would like to make a statement about discharging Mr. Horn. This is the first time I have seen the Motion here from Mr. Horn, and I really have to disagree with it, Your Honor.
We disagreed, expressed our lack of confidence in Mr. Horn in representing us, discussed the possibility of changing attorneys, the possibility of bringing in other attorneys, to give him additional support. Mr. Horn said, if you don’t have confidence in me as your attorney, I don’t want to represent you, got up, took his box of files and left. And he filed this motion, which I say, we had not seen until this morning. So I had assumed at this point his Motion to Withdraw was based upon the disagreement and not the fact that said we had discharged him, which is not the case, Sir.
I expressed a serious concern for his ability to represent us and have listed several reasons that were stated to him, if I may give them to you, Sir.

After Mr. Watson explained his impressions of the March 1 meeting with original defense counsel, the trial court gave the following reply:

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Bluebook (online)
767 P.2d 989, 1989 Wyo. LEXIS 16, 1989 WL 1597, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lawrence-allison-associates-west-inc-v-archer-wyo-1989.