Miro Tool & Mfg., Inc. v. Midland MacHinery, Inc.

556 N.W.2d 437, 205 Wis. 2d 650, 1996 Wisc. App. LEXIS 1349
CourtCourt of Appeals of Wisconsin
DecidedOctober 23, 1996
Docket95-2785
StatusPublished
Cited by6 cases

This text of 556 N.W.2d 437 (Miro Tool & Mfg., Inc. v. Midland MacHinery, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miro Tool & Mfg., Inc. v. Midland MacHinery, Inc., 556 N.W.2d 437, 205 Wis. 2d 650, 1996 Wisc. App. LEXIS 1349 (Wis. Ct. App. 1996).

Opinions

NETTESHEIM, J.

Miro Tool & Mfg., Inc. appeals from a nonfinal order which granted Midland Machinery, Inc.'s motion to reopen a default judgment previously awarded to Miro.1 The trial court ruled that the one-year time limitation of § 806.07(2), Stats., was tolled because of certain representations made by Miro to Midland at a meeting in February 1994. Alternatively, the court held that Miro was estopped by its conduct from asserting the one-year limitation. Miro claims the trial court lacked authority to reopen the judgment after the one-year limitation period. We agree and therefore reverse the trial court's order.

BACKGROUND

The relevant facts are not disputed. In 1993, Midland ordered fixtures and tooling from Miro. On January 26, 1994, Miro served a summons and [652]*652complaint upon Midland, seeking payment for the materials supplied. Because the parties' attorneys had previously been discussing the matter, Midland's personnel assumed that Miro's attorney would advise Midland's attorney that a lawsuit had been commenced. Therefore, Midland did not notify its attorney of the action. As a result, Midland did not appear in the action and on February 17,1994, the trial court awarded Miro a default judgment. Four days later, unaware that a default judgment had already been entered, Midland's attorney learned of the action and filed an answer. The answer alleged, inter alia, that the materials did not conform to the requirements of the purchase order and were not timely delivered.

On February 28, 1994, the parties met in an attempt to resolve their differences. During this meeting, Midland first learned that a default judgment had been awarded to Miro. According to an affidavit of Michael Ryan, a financial officer for Midland, Miro representatives advised Midland at this meeting that Miro would not pursue the default judgment and would, instead, seek to resolve the matter by negotiations. At this meeting, the parties agreed that the fixtures would be returned to Miro for testing to determine if they complied with the purchase order. Relying on this understanding, Midland took no immediate action to reopen or set aside the default judgment. Further negotiations between the parties proved fruitless.

On February 23, 1995, more than one year after the default judgment had been entered, Miro filed a garnishee summons and complaint against Midland and a banking institution. In response, on March 16, [653]*653Midland filed a motion to reopen and vacate the default judgment. Midland relied on § 806.07(l)(h), STATS.2

Following a hearing on Midland's motion, the trial court issued the first of three decisions in this matter. The court denied relief to Midland under § 806.07(l)(h), Stats., ruling that Midland had not satisfied the extraordinary circumstances test of State ex rel. M.L.B. v. D.G.H., 122 Wis. 2d 536, 363 N.W.2d 419 (1985). However, the court ruled that Midland was nonetheless entitled to relief under subsec. (l)(a) of the statute which allows the court to relieve a party from a judgment on grounds of "mistake, inadvertence, surprise, or excusable neglect."

The trial court reasoned that the representations made by Miro to Midland at the February 28, 1994, meeting satisfied § 806.07(l)(a), STATS. The court's written decision stated:

[Tjhis assumption was an honest mistake by the defendants, the kind a reasonably prudent person might make. Indeed, from the court's perspective and from a professional standpoint, information about the lawsuit should have been provided to [Midland's attorney] as well as information concerning the request for the default judgment.... [T]he officers of [Midland] made an honest an [sic] erroneous assumption concerning the professional courtesies lawyers would extend to each other.

[654]*654In response to this ruling, Miro moved for reconsideration. In support, Miro pointed out that relief under § 806.07(l)(a), Stats., must be sought within a reasonable time and, in any event, "not more than one year after the judgment was entered" pursuant to § 806.07(2). Noting that Midland's motion to reopen the judgment was brought beyond the one-year limitation, Miro asked the court to reverse its ruling.

In response, the trial court issued its second decision. The court first confirmed its earlier ruling that Midland had failed to meet the extraordinary circumstances test under subsec. (l)(h), but had satisfied the excusable neglect test under subsec. (l)(a). The court then addressed Miro's time limit argument. The court reasoned that Miro's conduct served to toll the time limits under § 806.07(2), STATS. Alternatively, the court held that Miro was estopped by its conduct from invoking the time limitations of the statute.

This ruling prompted Miro to seek further reconsideration. In support, Miro likened this case to Johnson v. Johnson, 179 Wis. 2d 574, 583, 508 N.W.2d 19, 22 (Ct. App. 1993), where this court held that the plaintiff had failed to demonstrate sufficient facts to estop the defendant from defending on the basis of a statute of limitations in a personal injury action. In its third decision, the court disagreed, ruling that Johnson actually supported the court's ruling. Miro appeals.

DISCUSSION

A motion to vacate a default judgment is addressed to the sound discretion of the trial court, and this court will not disturb the trial court's determination absent [655]*655an erroneous exercise of that discretion. Baird Contracting, Inc. v. Mid Wis. Bank, 189 Wis. 2d 321, 324, 525 N.W.2d 276, 277 (Ct. App. 1994). Here, however, the controlling question is one of statutory construction: whether a trial court may grant relief pursuant to § 806.07(1)(a), STATS., when such motion is filed beyond the one-year time limitation of § 806.07(2). Statutory construction presents a question of law which we review without deference to the trial court's holding. Goff v. Seldera, 202 Wis. 2d 601, 617, 550 N.W.2d 144, 151 (Ct. App. 1996).

We have searched unsuccessfully for any authority which allows a trial court to extend the time limit imposed by § 806.07(2), Stats., when the grounds for relief are mistake, inadvertence, surprise or excusable neglect. Nór has Midland directed us to any such authority. Moreover, the language of the case law in other contexts suggests that the circuit court has no such power.

Prior to the adoption of § 806.07, STATS., in 1976, the statute governing relief from judgments, § 269.46(1), Stats., 1973, provided that:

The court may, upon notice and just terms, at any time within one year after notice thereof, relieve a party from a judgment, order, stipulation or other proceeding against him obtained, through his mistake, inadvertence, surprise or excusable neglect.... [Emphasis added.]

Construing this predecessor statute, the Wisconsin Supreme Court held that "[i]t is clear under sec. 269.46(1), Stats., that a court does not have the authority to open or vacate a judgment on the grounds enumerated in the statute if more than one year has passed after notice of the judgment to the party seeking [656]*656relief." State ex rel.

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Miro Tool & Mfg., Inc. v. Midland MacHinery, Inc.
556 N.W.2d 437 (Court of Appeals of Wisconsin, 1996)

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Bluebook (online)
556 N.W.2d 437, 205 Wis. 2d 650, 1996 Wisc. App. LEXIS 1349, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miro-tool-mfg-inc-v-midland-machinery-inc-wisctapp-1996.