M.W. v. SPCP Group V, LLC

163 So. 3d 518, 2015 Fla. App. LEXIS 1398, 2015 WL 445369
CourtDistrict Court of Appeal of Florida
DecidedFebruary 4, 2015
Docket14-0832
StatusPublished
Cited by10 cases

This text of 163 So. 3d 518 (M.W. v. SPCP Group V, LLC) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
M.W. v. SPCP Group V, LLC, 163 So. 3d 518, 2015 Fla. App. LEXIS 1398, 2015 WL 445369 (Fla. Ct. App. 2015).

Opinions

LOGUE, J.

M.W., a minor, (the “plaintiff’) appeals the decision of the trial court to set aside a clerk’s default and final judgment against SPCP Group V, LLC (the “defendant”). The plaintiff obtained the ex parte default even though he knew from pre-suit contacts with opposing counsel that the opposing party was represented by counsel and intended to defend on the merits. The issue before us is whether the trial court committed reversible error in vacating the ex parte default.

The governing standard of review allows for reversal only upon a finding of a “gross abuse of discretion.” This court has previously ruled that a trial court committed reversible error by failing to vacate a de- . fault in identical circumstances, namely where the plaintiff obtained an ex parte default even though it knew from pre-suit [519]*519contacts that the defendant was represented by counsel and intended to defend on the merits. Because we cannot say the trial court committed a gross abuse of discretion in light of the. case law that bound the trial court’s decision, we affirm.

FACTS AND PROCEDURAL HISTORY

The plaintiff was injured at an apartment building owned by the defendant. Before the lawsuit was filed, the plaintiffs attorney wrote the defendant two letters and demanded the policy limits. He received a letter in reply from the defendant’s attorney. Besides this correspondence, the plaintiffs attorney and the defendant’s attorney also engaged in a conference by telephone. From these contacts, the plaintiffs attorney learned that, the defendant was represented by counsel and intended to defend the suit on the merits.1 During the telephone conversation, however, the plaintiffs attorney found the defendant’s attorney to be uncooperative. As he explained, “given [the defendant’s attorney’s] lack of cooperation, I did not attempt to contact him again.”

The plaintiff proceeded to file a complaint and serve the defendant. The defendant failed to answer. At that point, even though the plaintiffs attorney knew that the defendant was represented by counsel and intended to. defend on the merits, the plaintiff obtained a clerk’s default without providing notice to the defendant or to the defendant’s attorney.

After the plaintiff had obtained the ex parte default and as the plaintiffs attorney was preparing to try the damages portion of the case uncontested, the defense attorney called his office to inquire about the status of the case and to ascertain whether the defendant’s insurance carrier was defending the lawsuit. Based upon his own affidavit filed in this case, the plaintiffs attorney instructed his assistant to “tell [the defendant’s attorney] to contact his insurance company. We don’t know what they are doing or not.” The plaintiff then proceeded to try the uncontested damages case to the jury. The plaintiff won a jury verdict of $1,250,000.

When the defendant learned of the verdict, it moved to vacate the judgment that had been entered on the jury verdict on the basis that the default was void for lack .of notice under Florida Rule of Civil Procedure 1.540(b)(4).2 The trial court vacated the judgment because the default was void for lack of notice. The plaintiff timely appealed.

ANALYSIS

A. Standard of Review:. “Gross Abuse of Discretion”

The plaintiff faces a high, almost insurmountable standard of review. When it comes to vacating defaults, Florida has a long and proud tradition of favoring adjudicating cases on the merits and setting aside defaults. As part of this tradition, Florida law holds that a trial judge’s decision to vacate a default can be overturned [520]*520only upon a showing of a “gross abuse of discretion.”

Over a half a century ago, the Florida Supreme Court explained the standard of review in these cases as follows: “this court held that a showing of gross abuse of a trial court’s discretion is necessary on appeal to justify reversal of the lower court’s ruling on a motion to vacate.” N. Shore Hosp., Inc. v. Barber, 143 So.2d 849, 852 (Fla.1962) (emphasis added) (reversing a district court’s holding that “a mere abuse of the trial judge’s discretion is a sufficient basis for reversal of his ruling on the motion to vacate”).

“Gross abuse of discretion” has remained the standard down through the decades to today. For example, this court has held that, based upon “Florida’s public policy of adjudicating cases on the merits ... a trial court’s vacatur of a default judgment should be reversed only if the vacatur' constitutes a gross abuse of discretion.” Gables Club Marina, LLC v. Gables Condo. & Club Ass’n, Inc., 948 So.2d 21, 23 (Fla. 3d DCA 2006).

Indeed, the Florida Supreme Court has emphasized that if there is “any reasonable doubt in the matter [of vacating a default], it should be resolved in favor of granting the application and allowing a trial upon the merits of the case.” N. Shore Hosp., Inc., 143 So.2d at 853; see also Ole, Inc. v. Yariv, 566 So.2d 812, 815 (Fla. 3d DCA 1990). The Fourth District has taken the position that appellate courts “should be as deferential to a trial judge’s decision vacating a default as [we] can possibly be, upsetting it very rarely and only with undeniable provocation.” NIV-CAB, Inc. v. Accord Ins. Network of Am., Inc., 24 So.3d 1204, 1204-05 (Fla. 4th DCA 2009) (quoting Bethesda Mem’l Hosp., Inc. v. Laska, 977 So.2d 804, 806 (Fla. 4th DCA 2008)). When this case is examined in light of the governing standard of review, it is clear the trial court did not commit a reversible error in setting aside the default.

B. Ex Parte Defaults Are Prohibited Where a Party Knows Opposing Party is Represented by Counsel and Intends to Defend.

The trial court was correct to set aside the ex parte default in this case. The default was obtained without notice to the opposing side, even though the plaintiff knew that the defendant was represented by counsel and intended to defend. This violates a well-established rule in Florida law that “default is not appropriate in cases where the plaintiff knows that a defendant is represented by counsel who intends to assert matters in defense of the cause of action.” Gulf Maint. & Supply, Inc. v. Barnett Bank of Tallahassee, 543 So.2d 813, 816 (Fla. 1st DCA 1989).

On all fours with the instant case is Apple Premium Finance Service Co. v. Teachers Insurance & Annuity Association of America, 727 So.2d 1089 (Fla. 3d DCA 1999). In Apple Premium, the plaintiff knew the defendant was represented by counsel and intended to defend on the merits. Exactly as occurred in this case, the plaintiff knew these facts only from pre-suit contacts with the defendant. Nevertheless, when the defendant did not timely answer the complaint, the plaintiff in Apple Premium obtained an ex parte default. This court reversed the trial court for refusing to set aside the default under those circumstances. In doing so, it focused on the fact that the plaintiff knew the defendant had counsel and intended to defend. Reversal was required, this court held, because “notice of an application for default should always be served when the plaintiff is aware that a defendant is being represented by counsel who has expressed an intention to defend on the merits.” Id. [521]*521at 1090 (quoting Ole, Inc., 566 So.2d at 815).

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Cite This Page — Counsel Stack

Bluebook (online)
163 So. 3d 518, 2015 Fla. App. LEXIS 1398, 2015 WL 445369, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mw-v-spcp-group-v-llc-fladistctapp-2015.