McLeod, Alexander, Powel & Apffel, P.C. v. Quarles

31 Va. Cir. 513, 1992 Va. Cir. LEXIS 122
CourtCharlottesville County Circuit Court
DecidedMarch 5, 1992
DocketCase No, (Chancery) 7580
StatusPublished

This text of 31 Va. Cir. 513 (McLeod, Alexander, Powel & Apffel, P.C. v. Quarles) is published on Counsel Stack Legal Research, covering Charlottesville County Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McLeod, Alexander, Powel & Apffel, P.C. v. Quarles, 31 Va. Cir. 513, 1992 Va. Cir. LEXIS 122 (Va. Super. Ct. 1992).

Opinion

By Judge Jay T. Swett

On October 18,1991, a copy of the default judgment entered against Fred H. Quarles, III, in the United States District Court of the Southern District of Texas, Galveston Division, was filed in this court pursuant to Va. Code § 8.01-465.3. The Clerk of this Court sent Notice of this filing to Mr. Quarles on October 24,1991, at his last known address as stated in Mr. Hewitt’s affidavit. It is alleged that the letter was not received by Mr. Quarles, being returned by the post office for the reason of unknown address on October 30, 1991.

On January 30, 1992, Mr. Quarles filed Motions to Reopen and to Set Aside Judgment by Default alleging the inadequate notice gave him no opportunity to challenge the docketing of the default judgment or the lack of jurisdiction of the Texas court.

For purposes of ruling on these motions, I ask the parties to address the following issues.

1. What are the time limits, if any, under Va. Code §§ 8.01-465.2 and 8.01-465.3 as to when a debtor may move to reopen, vacate, or respond to the filing of a foreign judgment?

[514]*5142. If a debtor can show he had no notice of the filing of the foreign judgment, may he move to , reopen or vacate under Va. Code § 8.01-428(A)(ii) on grounds that the Texas judgment was void for lack of personal jurisdiction even if the creditor can show he properly followed the requirements of § 8.01-465.3 of the Uniform Enforcement of Foreign Judgments Act?

April 1, 1992

Having reviewed the responses to my letter of March 5,1992,1 have determined that this action shall proceed as follows.

The “Motion to Set Aside Judgment by Default” filed on behalf of defendant Quarles is deemed to be a motion filed under Va. Code § 8.01-428(A) in which defendant Quarles seeks to set aside a judgment entered by default. The default judgment was entered on August 23, 1990, by the United States District Court for the Southern District of Texas. The default judgment was thereafter docketed in the Charlottesville Circuit Court Clerk’s Office under the Virginia Uniform Enforcement of Foreign Judgments Act, § 8.01-465.1 et seq. Section 8.01-465.2 provides that any foreign judgment filed is to be given the same effect and shall be “subject” to the same procedures, defenses, and procedures for reopening, vacating, or staying” as any judgment of this circuit court. This includes the right of the judgment debtor to initiate an action to set aside the default judgment under § 8.01-428(A).

I further conclude that plaintiff, McLeod, Alexander, Powel & Apffel has complied with the filing requirements of Va. Code § 8.01-465.3.1 make no determination at this time of the significance, if any, that the notice sent by the Clerk of this Court dated October 24, 1991, was not sent to an address defendant Quarles used at the time the notice was sent. I further find that there are no time limitations pursuant to the Uniform Enforcement of Foreign Judgments Act that would bar the judgment debtor from invoking relief under § 8.01-428. However, the filing of a request for relief under § 8.01-428 does not, of itself, require this Court to take any action with regard to the filing of the foreign judgment in the Clerk’s Office of this Court.

July 1, 1992

The issue before the court is whether the defendant, Fred H. Quarles, has set forth proper grounds to proceed with a motion to set aside a default judgment rendered against him by a Texas court. The [515]*515Texas judgment was docketed in the Clerk’s Office of this court pursuant to the Uniform Enforcement of Foreign Judgments Act, Va. Code § 8.01-465.1 et seq. In a letter opinion dated April 1, 1992, this court previously ruled that Quarles’s motion to set aside the Texas judgment docketed in the Charlottesville Clerk’s Office was a motion filed under Va. Code § 8.01-428(A). Evidence was taken on June 15, 1992. The testimony presented and the exhibits admitted into evidence established the following.

Sometime in the early 1980’s, Fred H. Quarles was involved in the formation of Commonwealth Airlines, Inc. For reasons not relevant to this proceeding, Commonwealth Airlines, Inc., was named in a civil suit brought in a Texas court. The corporation retained the Galveston, Texas, firm of McLeod, Alexander, Powel & Apffel, P.C. (hereafter “McLeod, Alexander”). When McLeod, Alexander did not receive payment for its legal fees for representing Commonwealth Airlines, it filed suit to collect the fees in the District Court of Galveston County, Texas, and named Commonwealth Airlines, Inc., and Fred H. Quarles as defendants. Quarles filed an answer pro se in which he asserted that the Texas court was without personal jurisdiction over Quarles on the grounds that Quarles had insufficient contacts with the State of Texas and had never subjected himself to the jurisdiction of the Texas courts. In addition, Quarles removed the case to the United States District Court for the Southern District of Texas on the basis of diversity of citizenship.

After the case was removed to federal court, Mr. Gerson D. Bloom, a Galveston attorney, entered an appearance on behalf of Quarles. From July of 1987 to April of 1989, most of the activity in the federal suit involved disputes over discovery. The discovery disputes were referred by the District Court Judge to a Magistrate who eventually recommended that default judgment be entered in favor of the plaintiff and against Quarles for his failure to respond to the plaintiff’s discovery requests. That opinion was affirmed by the United States District Court which entered a default judgment against Quarles in the amount sued for, $11,725.97, the amount claimed as unpaid attorney fees. The order on April 26, 1989, also stated that “All pending motions, if any, are denied as moot.”

Quarles appealed the judgment to the United States Court of Appeals for the Fifth Circuit. In a published opinion, the Fifth Circuit affirmed [516]*516the default judgment. McLeod, Alexander, Powel & Apffel, P.C. v. Quarles, 894 F.2d 1482 (5th Cir. 1990).

The case was remanded to the District Court. Quarles then filed a motion to vacate the judgment pursuant to Federal Civil Procedure Rule 60(b). That motion was denied. The District Court entered another order affirming the initial judgment and awarded an additional amount of $31,537.50 for attorney’s fees and costs. This judgment was also appealed to the Fifth Circuit which again affirmed the District Court judgment. McLeod, Alexander, Powel & Apffel, P.C. v. Quarles, 925 F.2d 853 (5th Cir. 1991).

The issue here is a limited one. Under § 8.01-428(A), a default judgment may be set aside if the judgment is void. In Virginia, a judgment rendered over a defendant where the court is without personal jurisdiction over the defendant is a void judgment. Dennis v. Jones, 240 Va. 12, 19 (1990).

The Full Faith and Credit Clause of the Constitution of the United States requires that this Court respect, and, if requested, enforce a judgment entered in another state if the other state had jurisdiction over the parties and the subject matter of the case. Bloodworth v. Ellis, 221 Va. 18, 21 (1980).

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31 Va. Cir. 513, 1992 Va. Cir. LEXIS 122, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcleod-alexander-powel-apffel-pc-v-quarles-vacccharlottesv-1992.