NCNB National Bank of North Carolina v. Thrailkill

856 S.W.2d 150, 1993 Tenn. App. LEXIS 106
Court of Appeals of Tennessee·Decided February 5, 1993·Published·Cited by 66 cases

Opinion

OPINION

LEWIS, Judge.

This is an appeal by plaintiff, NCNB National Bank of North Carolina (NCNB), from an order entered by the trial court setting aside a final judgment against the garnishee-appellee, Arthur’s, Inc. (Arthur’s).

This case arose out of the following facts and circumstances:

On 1 March 1990, judgment was entered in the Chancery Court for Davidson County against defendants, Walter W. Thrailkill and Sheila Thrailkill, in favor of NCNB in the sum of $116,277.78.

On 4 November 1991, a garnishment for the property of either or both of the defendants was issued by the Clerk and Master of the Chancery Court for Davidson County. The garnishment was served upon Arthur’s through its registered agent, Michael D. Brent, for service of process on 12 November 1991. On 15 November 1991, Mr. Brent, a Nashville lawyer, sent the garnishment to Mr. George Fehrmann, the secretary of, and also a shareholder in, Arthur’s. Mr. Brent sent the garnishment again to Mr. Fehrmann on 18 December 1991.

Mr. Fehrmann hand-delivered the garnishment to defendant, Walter W. Thrail-kill. Defendant Walter Thrailkill is president of, and also a forty percent shareholder in, Arthur’s. Mr. Fehrmann and Mr. Thrailkill discussed the garnishment, and it was decided that Mr. Thrailkill would “handle” the matter.

Arthur’s did not answer the garnishment. Subsequently, a conditional judgment was entered in the Chancery Court pursuant to Tennessee Code Annotated, Section 26-2-209 1 , against Arthur’s for $142,736.03.

Notice of the conditional judgment was issued by the clerk of the Chancery Court and served upon Arthur’s through its registered agent, Michael Brent, on 23 December 1991. The notice directed Arthur’s to appear before the Chancery Court on 13 January 1992 at 8:30 a.m. to show cause why the conditional judgment should not be made final. Mr. Brent forwarded the conditional judgment order to Mr. Fehrmann.

Arthur’s did not appear at the show cause hearing on 13 January 1992. Pursuant to Tennessee Code Annotated, Section 26-2-209, the trial court entered a final judgment against Arthur’s on 21 January 1992 for $142,736.03. No appeal was taken from that judgment.

On 20 February 1992, Arthur’s filed a motion, pursuant to Tennessee Rules of Civil Procedure 60.02(1) and 60.02(5), and sought to have the final judgment set aside. The motion was accompanied by affidavits of Mr. Brent and Mr. Fehrmann.

The hearing on Arthur's Tennessee Rule of Civil Procedure 60.02 motion was held on 28 February 1992. A supplemental affidavit of Mr. Fehrmann was filed by Arthur’s on the morning of 28 February 1992. No oral testimony or other evidence in sup *153 port of the motion, other than the affidavit of Mr. Brent and the affidavits of Mr. Fehrmann, were presented.

The court then granted Arthur’s Rule 60.02(1), Tennessee Rules of Civil Procedure, motion, finding that Arthur’s failure to respond to the conditional judgment order and the entry of final judgment was the result of “excusable neglect” of the corporation’s officers. The court further found that relief was justified under Rule 60.02(5), since Arthur’s was “not a proper garnishee, since it did not owe any money to or hold any property of either of the judgment debtors.”

Tennessee Rules of Civil Procedure 60.-02(1) and 60.02(5) provide as follows:

On motion and upon such terms as are just, the court may relieve a party or his legal representative from a final judgment, order or proceeding for the following reasons: (1) mistake, inadvertence, surprise or excusable neglect; ... or (5) any other reason justifying relief from the operation of the judgment.

Tennessee Rule of Civil Procedure 60.02 is not for use by a party that is merely dissatisfied with the results of his case. Toney v. Mueller Co., 810 S.W.2d 145, 146 (Tenn.1991). This rule is to be used only in those cases that meet one or more of the criteria set forth in the rule. Id. The principle of finality is firmly imbedded in the procedural rules and, therefore, Rule 60.02 is an “escape valve” that should not be easily opened. Id. The burden is upon the movant under a Tennessee Rule of Civil Procedure 60.02 motion to show that the movant is entitled to relief and there must be proof of the basis on which relief is sought. Banks v. Dement Constr. Co., 817 S.W.2d 16, 18 (Tenn.1991). The burden is on the party seeking relief from a judgment under Rule 60.02 to show the facts giving rise to the relief. Holt v. Holt, 751 S.W.2d 426, 428 (Tenn.App.1988).

This Court on appeal reviews the decision of the trial court on the basis of whether he abused his discretion. Toney v. Mueller Co., 810 S.W.2d 145 (Tenn.1991).

In the instant case, Arthur’s presented no oral testimony or other evidence in support of its motion, except the affidavit of Mr. Brent and the affidavits of Mr. Fehrm-ann.

While Tennessee Rule of Appellate Procedure 13(d) requires this Court to presume that the trial court’s findings of fact are correct unless the evidence preponderates against the finding, this presumption does not exist with regard to the trial court’s legal determination or when the trial court’s conclusions are based on un-controverted facts. Kelley v. Johnson, 796 S.W.2d 155, 158 (Tenn.App.1990). “[Mjere negligence or inattention of a party is no ground for vacating a judgment against him. Carelessness is not synonymous with excusable neglect.” Food Lion v. Washington County Beer Bd., 700 S.W.2d 893, 896 (Tenn.1985) (quoting 46 Am.Jur.2d Judgments § 718 (1969)).

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NCNB National Bank of North Carolina v. Thrailkill, 856 S.W.2d 150, 1993 Tenn. App. LEXIS 106 (Tenn. Ct. App. 1993).

856 S.W.2d 150 (NCNB National Bank of North Carolina v. Thrailkill) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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