Matia Inv. Fund, Inc. v. City of Tacoma

119 P.3d 391
CourtCourt of Appeals of Washington
DecidedSeptember 13, 2005
Docket32189-1-II
StatusPublished
Cited by1 cases

This text of 119 P.3d 391 (Matia Inv. Fund, Inc. v. City of Tacoma) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Matia Inv. Fund, Inc. v. City of Tacoma, 119 P.3d 391 (Wash. Ct. App. 2005).

Opinion

119 P.3d 391 (2005)

MATIA INVESTMENT FUND, INC., a Washington corporation, d/b/a Norpoint Communities, Appellant,
v.
The CITY OF TACOMA, a municipal corporation, Respondent.

No. 32189-1-II.

Court of Appeals of Washington, Division 2.

September 13, 2005.

*392 Thomas F. Gallagher, Law Offices of Watson & Gallagher, Milton, WA, for Appellant.

Anne Louise Spangler, Tacoma City Attorneys Office, Tacoma, WA, for Respondent.

VAN DEREN, A.C.J.

¶ 1 Matia Investment Fund, Inc., doing business as Norpoint Communities (Matia), appeals an order vacating a default judgment it obtained against the City of Tacoma. Finding that there was an informal appearance by the City and that the City was entitled to an order vacating the default order and judgment, we affirm.

BACKGROUND FACTS

¶ 2 On April 1, 2002, the City issued a Request for Proposal (RFP) to sell a 10-acre parcel of property owned by the City's Department of Public Utilities, Water Division, doing business as Tacoma Water. Tacoma Water explained the bid process and informed interested bidders that it would form a Selection Advisory Committee (Committee) to recommend a proposal to the Public Utility Board (Board) for its approval.

¶ 3 Section 1.06.266 of the Tacoma Municipal Code (TMC) sets out the process the Board uses when deciding to reject or accept a bid. TMC § 1.06.266(D) states that the Board may reject all bids or recommend the approval of a bid to the City Council (Council). Following a public hearing, the Council has the authority to approve or reject the bid, or to remand the matter back to the Board. TMC § 1.06.266(D).

¶ 4 The Committee recommended Matia's proposal to purchase the property. The Board subsequently passed a resolution declaring the 10-acre property as surplus and authorizing Matia's purchase. Tacoma Water and Matia entered into a purchase and sale agreement on August 2, 2002. The agreement included the condition that the sale of the property was subject to final approval by the Board and the Council.

¶ 5 When the property purchase came before the Council, it invalidated the entire bidding and selection process.[1] The Council then adopted Substitute Resolution No. *393 35649, in which the City directed Tacoma Water staff to revise and readvertise its RFP.

¶ 6 On February 18, 2003, Matia filed a claim with the City, claiming damages of $108,758.95, to reimburse it for expenditures it incurred in preparing its bid for the property. On April 4, 2003, Mark Bubenik, Assistant City Attorney for Public Utilities, sent a written denial of the claim to Matia's attorney detailing the reasons for the denial.

¶ 7 On June 5, 2003, Matia served a summons and complaint on the Tacoma City clerk's office. Then on June 26, without notifying the City, Matia filed an ex parte motion and affidavit claiming the $108,758.95 as damages and obtained an order of default and a default judgment against the City for the entire sum.

¶ 8 The clerk's office never forwarded the summons and complaint to the City attorney's office. Matia did not notify either the City attorney's office or any other City staff of the default judgment, nor did Matia make an attempt to collect the judgment until June 29, 2004, which was one year and three days after the entry of the default judgment. At that time, Matia requested a meeting with the water division superintendent and the City attorney staff and informed the City of the default judgment.

¶ 9 The City filed a motion to vacate the default judgment on July 7, 2004. It attached three declarations from City employees explaining the City's long-standing procedures for documenting and handling incoming litigation. The superior court heard the motion on July 30, and, without stating a basis for its ruling, granted the City's motion to vacate the default order and judgment. Matia filed this timely appeal.

I. CR 55 AND INFORMAL APPEARANCE

¶ 10 The City asserts that it entered an informal appearance when it sent a letter responding to Matia's claim for expenses and explaining why Matia's claim was improper.[2] The City maintains that because it informally appeared, it was entitled to notice of Matia's motion for default under CR 55(a)(3). We agree.

¶ 11 Informal appearance is a factual question the trial court answers by reviewing the parties' submitted evidence. Smith v. Arnold, 127 Wash.App. 98, 105, 110 P.3d 257 (2005). Where a trial court finds that a party has informally appeared, that finding must be supported by evidence of actions manifesting "an unquestionable intent to appear and defend the matter in court." Arnold, 127 Wash.App. at 105, 110 P.3d 257.

¶ 12 Civil Rule 55(c)(1) states: "For good cause shown and upon such terms as the court deems just, the court may set aside an entry of default, and, if a judgment by default has been entered, may likewise set it aside in accordance with rule 60(b)." A party who appears before an opposing party files a motion for default is entitled to notice of the motion for default. CR 55(a)(3).

¶ 13 As a matter of law, a defendant who appears in an action but is not given notice of a plaintiff's intention to seek an order of default is entitled to have the order vacated. CR 55(a)(3); Tiffin v. Hendricks, 44 Wash.2d 837, 847, 271 P.2d 683 (1954); Arnold, 127 Wash.App. at 105, 110 P.3d 257. A default judgment entered without notice to an appearing party is void, and we need not consider the passage of time or whether a meritorious defense exists. Colacurcio v. Burger, 110 Wash.App. 488, 497-98, 41 P.3d 506 (2002), review denied, 148 Wash.2d 1003, 60 P.3d 1211 (2003); Allstate Ins. Co. v. Khani, 75 Wash.App. 317, 323-25, 877 P.2d 724 (1994).

¶ 14 RCW 4.28.210 provides that a party "appears" in an action at the time the party "answers, demurs, makes any application for an order therein, or gives the plaintiff written notice of his appearance." The *394 methods outlined in RCW 4.28.210 are not exclusive and courts may view other informal acts as an appearance. Skilcraft Fiberglass, Inc. v. Boeing Co., 72 Wash.App. 40, 45, 863 P.2d 573 (1993). Whether a party has appeared informally is generally a question of intent. Skilcraft, 72 Wash.App. at 45-46, 863 P.2d 573 (quoting Gage v. Boeing Co., 55 Wash.App. 157, 161, 776 P.2d 991 (1989)).

¶ 15 In Arnold, we held that whether a party has appeared for the purpose of invoking the right to notice of a default judgment was a question of fact the court should narrowly construe. 127 Wash.App.

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119 P.3d 391, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matia-inv-fund-inc-v-city-of-tacoma-washctapp-2005.