Manning-Dow v. Fox

784 N.E.2d 1016, 2003 Ind. App. LEXIS 368, 2003 WL 1091070
CourtIndiana Court of Appeals
DecidedMarch 13, 2003
DocketNo. 49A05-0204-CV-181
StatusPublished

This text of 784 N.E.2d 1016 (Manning-Dow v. Fox) 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
Manning-Dow v. Fox, 784 N.E.2d 1016, 2003 Ind. App. LEXIS 368, 2003 WL 1091070 (Ind. Ct. App. 2003).

Opinion

OPINION

RATLIFF, Senior Judge.

STATEMENT OF THE CASE

Plaintiff-Appellant Joni L. Manning, Dow ("Dow") appeals the trial court's grant of a motion to set aside default judgment filed by Defendant-Appellant Natasha M. Fox ("Fox").

We affirm.

ISSUE

Dow raises one issue for our review, which we restate as: Whether the trial court abused its discretion in determining that a default judgment against Fox should be set aside.

FACTS AND PROCEDURAL HISTORY

On May 4, 1999, Thomas Stevens ("Stevens") turned his vehicle into the path of a vehicle driven by Fox. A collision between the two vehicles resulted, and Stevens' vehicle ended up hitting a vehicle occupied by Dow. An eyewitness noted that Fox was not at fault, and the police report did not ascribe any fault to her.

Both Fox and Stevens were insured by State Farm Mutual Automobile Insurance Company ("State Farm") at the time of the accident. As a result of the accident, Dow made a personal injury claim against Stevens. This claim was handled by Jennifer Blissit, as State Farm's representative for Stevens. Fox also made a personal injury claim against Stevens.

(On December 8, 2000, Dow's counsel, James Ludlow, provided Blissit with a settlement demand letter. The letter informed State Farm that Dow would include both Stevens and Fox in any lawsuit, thus making it necessary for State Farm to hire separate counsel. Blissit responded to the demand letter with a settlement offer that Dow considered inadequate.

On December 22, 2000, Dow filed a complaint against Stevens and Fox. Service on Fox was achieved via certified mail on December 28, 2000.

On January 2, 2001, Fox called Blissit and informed her that she had received "papers" from Dow's counsel. Blissit told Fox to forward the papers to the claims representative that had been assigned to represent her.

On the same day, knowing that she was not at fault in the accident which caused Dow's injuries, Fox called Ludlow to ascertain why she had been named as a defendant. As a result of her discussion with Ludlow and her receipt of Ludlow's January 3, 2001 letter to Blissit, Fox concluded that she would "be dismissed from the [1018]*1018litigation and need take no further action." Appellant's App. at 119.

The January 8, 2001 letter was sent to Blissit with a copy of the complaint. In the letter, Ludlow indicated that Fox had been named as a defendant "for the reason that in my experience your company would likely name her as a non-party if she was not a defendant in my original complaint." Appellant's App. at 302. The letter further indicated that "if your company and Mr. Stevens will stipulate that Ms. Fox has no comparative fault for the occurrence of this accident, I am willing to dismiss her from this lawsuit with prejudice. Please contact me if this offer is of any interest to you." Id. Blissit did not respond to the letter.

On January 80, 2001, Ludlow filed a motion for default judgment against Fox. The trial court thereafter entered a default judgment, and after a hearing entered a final judgment of $84,292.00 against Fox.

On April 30, 2001, Fox received a letter from Ludlow informing her he had obtained the default judgment. The letter informed Fox that "my options as [Dow's] attorney seem to be two. One option would be to commence garnishing any income from your employer and/or proceed with the sale of personal assets until this judgment is satisfied." Appellant's App. at 121. The letter also offered to forgo any action against Fox if she would sign an attached document that assigned her rights to "any legal rights which you might have against State Farm for its failure to defend you in this claim." Appellant's App. at 122.

Fox responded to the letter by filing a motion to set aside the default judgment. The motion stated that she should be relieved from the entry of default judgment because of, inter alia, "mistake, surprise, or excusable neglect" under Indiana Trial Rule 60(B)(1). The motion also alleged that Fox had a meritorious defense. The motion was initially denied, but upon reconsideration the trial court set aside the judgment. Dow now appeals.

DISCUSSION AND DECISION

Dow contends that the trial court abused its discretion in setting aside the default judgment against Fox. Dow classifies this case as a "breakdown in communications" case, and she cites Mason v. Ault, 749 N.E.2d 1288, 1291-92 (Ind.Ct.App.2001), trams. denied, and related cases for the proposition that neglect is not excusable if the defaulted party or parties "did not do all that they were required to do." Dow also cites Rogers v. Lockard, 767 N.E.2d 982, 987 (Ind.Ct.App.2002) and Whitaker v. St. Joseph's Hospital, 415 N.E.2d 737, 744 n. 6 (Ind.Ct.App.1981) for the proposition that "cireumstances must not be the result of any fault or negligence on the part of the movant." Dow emphasizes that Fox did not follow Blissit's advice to forward the complaint to a State Farm claims representative.

Whether the facts and inferences of a particular case constitute excusable neglect is a determination generally left to the discretion of the trial court. Lehnen v. State, 693 N.E.2d 580, 581 (Ind.Ct.App.1998), trans. denied. Our review of a trial court's decision on a motion for relief from judgment under TR. 60(B) is limited to whether the trial court abused its disceretion. Id. An abuse of discretion occurs where the trial court's ruling is clearly against the logic and effect of the facts and inferences before the court. Weppler v. Stansbury, 694 N.E.2d 1173, 1176 (Ind.Ct.App.1998).

In reviewing the decision to grant relief under TR. 60(B), we will not reweigh the evidence or substitute our judgment for that of the trial court. Pro[1019]*1019fessional Laminate & Millwork, Inc. v. B & R Enterprises, 651 N.E.2d 1158, 1157 (Ind.Ct.App.1995). There are no fixed standards to determine the parameters of mistake, surprise, or excusable neglect. Id. The trial court must balance the need for an orderly and efficient judicial system with the judicial preference for deciding disputes on the merits. Id. A trial court's decision to set aside a default judgment will be upheld upon "slight" evidence. Kreczmer v. Allied Construction Co., 152 Ind.App. 665, 284 N.E.2d 869, 870 (1972). It is incumbent upon a party seeking to set aside a default judgment under TR. 60(B)(1) to show (1) that the judgment was taken as a result of her mistake, surprise, or excusable neglect, and (2) that she has a meritorious defense to the cause of action.1 Id.

Here, Fox acknowledges that she received service of process and that she did not act upon Blissit's suggestion that she forward the complaint to a State Farm representative.

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Related

Smith v. Johnston
711 N.E.2d 1259 (Indiana Supreme Court, 1999)
Condon v. Patel
459 N.E.2d 1205 (Indiana Court of Appeals, 1984)
Whitaker v. St. Joseph's Hospital
415 N.E.2d 737 (Indiana Court of Appeals, 1981)
Burbach v. Burbach
651 N.E.2d 1158 (Indiana Court of Appeals, 1995)
Gallant Insurance Co. v. Toliver
695 N.E.2d 592 (Indiana Court of Appeals, 1998)
Carvey v. Indiana National Bank
374 N.E.2d 1173 (Indiana Court of Appeals, 1978)
Lehnen v. State
693 N.E.2d 580 (Indiana Court of Appeals, 1998)
Rogers v. Lockard
767 N.E.2d 982 (Indiana Court of Appeals, 2002)
Mason v. Ault
749 N.E.2d 1288 (Indiana Court of Appeals, 2001)
Kreczmer v. Allied Construction Company
284 N.E.2d 869 (Indiana Court of Appeals, 1972)
Weppler v. Stansbury
694 N.E.2d 1173 (Indiana Court of Appeals, 1998)

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Bluebook (online)
784 N.E.2d 1016, 2003 Ind. App. LEXIS 368, 2003 WL 1091070, Counsel Stack Legal Research, https://law.counselstack.com/opinion/manning-dow-v-fox-indctapp-2003.