McCleery v. Wally's World, Inc.

2007 VT 140, 945 A.2d 841, 183 Vt. 549, 2007 Vt. LEXIS 300
CourtSupreme Court of Vermont
DecidedDecember 31, 2007
Docket06-491
StatusPublished
Cited by13 cases

This text of 2007 VT 140 (McCleery v. Wally's World, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCleery v. Wally's World, Inc., 2007 VT 140, 945 A.2d 841, 183 Vt. 549, 2007 Vt. LEXIS 300 (Vt. 2007).

Opinion

Cohen, J.

¶ 1. December 31, 2007. Defendants appeal from the trial court’s order granting plaintiffs’ request for relief from judgment under Vermont Rule of Civil Procedure 60(b). We reverse the court’s decision.

¶ 2. The record indicates the following. In February 2004, plaintiffs filed a pro se complaint against defendants, raising claims of negligence and loss of consortium. The claims were based on injuries allegedly sustained by Mrs. McCleery in February 2001 when she slipped and fell on ice in defendants’ parking lot. The parties, represented by counsel, mediated their dispute and reached an oral settlement agreement in November 2004. They agreed that defendants would pay plaintiffs $14,000 and, in exchange, plaintiffs would execute general release forms. Plaintiffs subsequently refused to sign the release forms, and in January 2005, defendants moved to enforce the settlement agreement. At the enforcement hearing, plaintiffs, who were then proceeding pro se, argued that they had agreed to the settlement offer on the condition that defendants pay them within ten days of the mediation session. They asserted that they did not sign the release forms because this condition was not met and because they now believed that the settlement offer was inadequate. Plaintiffs indicated that they wanted to try the case and “take their chances” in court.

¶ 3. The court rejected these arguments in a March 2005 order. It found no support whatsoever for plaintiffs’ assertion that the parties had agreed that payment would be made within ten days, and it found no grounds to invalidate the agreement. As the court explained, the evidence showed that plaintiffs had engaged in mediation while represented by experienced counsel; they had the opportunity to discuss the merits of their case; their positions were conveyed by the mediator to defendants; they made compromises in order to settle all matters between them; and they freely agreed to the essential terms of the settlement. The court therefore granted defendants’ motion to enforce.

¶ 4. In April 2005, Mr. McCleery filed a motion for reconsideration, alleging that his wife had been “functioning in a diminished capacity” during the mediation process, which had given defendants “an unconscionable advantage.” The court denied the motion, concluding that Mr. McCleery failed to identify any errors of fact or law based on evidence presented at the hearing. It noted that both plaintiffs had been given the opportunity at the enforcement hearing to raise any arguments as to why the agreement should not be enforced, and Mr. McCleery was raising his wife’s alleged incapacity for the first time. Plaintiffs then filed a second motion for reconsideration, in which Mr. McCleery asserted that he had learned only recently that his wife had been functioning in a diminished capacity during the mediation session, and that if he had been aware of her condition, he would not have been so passive in accepting the settlement offer. The court denied the motion in June 2005.

¶ 5. In August 2005, defendants moved to dismiss the action, explaining that plaintiffs continued to refuse to comply *550 with the settlement agreement and the court’s order enforcing that agreement. Defendants argued that they had done all that they reasonably could under the circumstances to resolve the case, and in light of plaintiffs’ actions, the only remaining recourse was to dismiss the action with prejudice under V.R.C.P. 41(b)(2). In late September 2005, the court issued an order dismissing the action “without prejudice” based on defendants’ motion to dismiss.

¶ 6. In October 2005, Mr. McCleery filed a motion to reconsider, reiterating many of the same arguments raised in his earlier motions. While this motion was pending, Mr. McCleery also filed a notice of appeal, as well as a second motion to reconsider. The trial court did not rule on the motions to reconsider in light of the notice of appeal. On December 13, 2005, Mr. McCleery’s appeal was dismissed due to his failure to comply with an order of this Court.

¶ 7. Shortly thereafter, on December 23,2005, plaintiffs filed a motion to reopen in the trial court. Plaintiffs explained that they had contacted defendants’ attorney on December 16, and informed him that they were now willing to abide by the mediation agreement, and they would sign the release forms in exchange for $14,000. Defendants’ attorney refused to provide them with a check, noting plaintiffs’ repeated refusal to abide by the terms of the agreement and the subsequent dismissal of their case. Defendants’ attorney indicated that due to plaintiffs’ behavior, defendants had not received the benefit of then’ bargain, and it was defendants’ position that plaintiffs breached the agreement and defendants were no longer bound by it. In light of this exchange, plaintiffs asked the trial court to reopen the ease and set the matter for trial. In February 2006, Mr. McCleery filed another motion to reconsider the dismissal order, enclosing a letter from his doctor who indicated that Mr. McCleery had been taking medication that could have impaired his ability to participate fully in court proceedings. Several weeks later, plaintiffs filed a motion to enforce the settlement agreement. They reiterated their belief that defendants had breached the agreement by failing to tender payment within ten days of the mediation session, and they stated that defendants had also breached the agreement by refusing to pay them the agreed-upon sum.

¶ 8. In an April 2006 entry order, the trial court granted plaintiffs’ motion to reopen under VR.C.P. 60(b). Although it found plaintiffs’ motion unclear, it concluded that the case should be reopened to determine the precise effect of the September 2005 dismissal order. The court explained that in moving to dismiss, defendants had not argued that plaintiffs breached the settlement agreement or that they would no longer be bound by the agreement if the case were dismissed, and the dismissal order did not contain any language to this effect. Refusing to reopen the case, the court reasoned, would unfairly allow defendants to impose their interpretation of the dismissal order on plaintiffs, even though the effects that defendants sought had not been specifically stated in the order. The court thus reinstated the case at its status prior to the dismissal, subject to any arguments that defendants might have that they were deprived of the benefit of their bargain. This interlocutory appeal followed.

¶ 9. As an initial matter, we reject defendants’ assertion that the trial court lacked jurisdiction to consider plaintiffs’ post-appeal Rule 60(b) motion. Plaintiffs filed their motion to reopen after Mr. McCleery’s appeal was dismissed, and it is well-settled that trial courts have jurisdiction to consider such motions without first seeking leave from appellate courts. See 12 J. Moore, et al., Moore’s Federal Practice § 60.61, at 60-215 (3d ed. 2007) (discussing identical federal rule and ex *551 plaining that Rule 60(b) motions are considered a continuation of original proceedings, and if trial court had jurisdiction when suit was filed, it has jurisdiction to entertain a Rule 60(b) motion); Standard Oil Co. of Cal. v. United States, 429 U.S. 17, 18-19 (1976) (trial court has authority to consider post-appeal motions to set aside judgment without first obtaining leave from appellate court); 11 C.

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Bluebook (online)
2007 VT 140, 945 A.2d 841, 183 Vt. 549, 2007 Vt. LEXIS 300, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccleery-v-wallys-world-inc-vt-2007.