Patricia Robertson v. Charles Rosner

CourtMissouri Court of Appeals
DecidedFebruary 22, 2022
DocketWD84647
StatusPublished

This text of Patricia Robertson v. Charles Rosner (Patricia Robertson v. Charles Rosner) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Patricia Robertson v. Charles Rosner, (Mo. Ct. App. 2022).

Opinion

IN THE MISSOURI COURT OF APPEALS WESTERN DISTRICT PATRICIA ROBERTSON, ) Respondent, ) ) v. ) WD84647 ) CHARLES ROSNER, ) FILED: February 22, 2022 Appellant. ) Appeal from the Circuit Court of Jackson County The Honorable Bryan E. Round, Judge Before Division Two: Alok Ahuja, P.J., and Edward R. Ardini, Jr., and Janet L. Sutton, JJ. Charles Rosner appeals from a default judgment entered against him in the

Circuit Court of Jackson County. Rosner claims that the default judgment is void,

because the circuit court lacked subject matter jurisdiction based on deficiencies in

the plaintiff’s petition, and because the court lacked jurisdiction to enter a default

judgment awarding greater relief than that prayed for in the petition. We conclude

that Rosner’s arguments do not raise “jurisdictional” issues which can be asserted

in a direct appeal of a default judgment. We accordingly dismiss Rosner’s appeal.

Factual Background Prior to 2016, Patricia Robertson was employed by Ruiz & Associates, P.C.,

which provided accounting and other financial services in Kansas City. Robertson

is a Kansas resident. She filed suit against Ruiz & Associates in the District Court

of Johnson County, Kansas, alleging that her employment had been wrongfully

terminated. On September 6, 2016, judgment was entered in favor of Robertson and against Ruiz & Associates in the Kansas action, for $285,172.76, plus post-

judgment interest.

Robertson filed the present action in the Circuit Court of Jackson County on

January 31, 2019. Robertson’s petition named Rosner as a defendant, along with

Ruiz & Associates, Ruiz & Company, Inc., and Eugene Ruiz and Genette Ruiz.

Robertson’s petition identified Rosner and Eugene Ruiz as the owners, officers and

directors of Ruiz & Associates; the petition also identified Rosner and Genette Ruiz

as the sole shareholders of Ruiz & Company. The petition alleged that Ruiz &

Company was formed on February 8, 2016, “while the Kansas Lawsuit was

pending” against Ruiz & Associates. The petition alleged that defendants Eugene

Ruiz, Genette Ruiz, and Ruiz & Company “participated in or contributed to a

scheme to avoid paying [Robertson] on the [Kansas] Judgment,” including by

“transferr[ing] assets from Defendant Ruiz & Associates to Defendant Ruiz [&]

Company.” Among other relief, the petition prayed for the avoidance of fraudulent

transfers made by Ruiz & Associates to Eugene Ruiz, Genette Ruiz, and Ruiz &

Company. The petition also prayed for entry of a money judgment against Eugene

Ruiz, Genette Ruiz, and Ruiz & Company in the amount of the Kansas judgment,

“with post-judgment interest [in] such amount that may be proved at trial,” as well as “substantial punitive damages to serve as a deterrent for similarly situated

defendants from engaging in similar fraudulent transfers.”

Although the petition did not allege specific wrongful acts by Rosner, or

specifically pray for relief against him, it alleged that, “[b]y virtue of participating in

these fraudulent transfers and conspiring in furtherance of them, as described

above, all of the Defendants are jointly and severally liable.”

Rosner filed an affidavit in the circuit court in which he acknowledged that

he was served with the petition and a summons on June 17, 2019. The summons advised Rosner that he was required to appear and file a response to Robertson’s

2 petition; the summons warned that, “[i]f you fail to file your pleading, judgment by

default may be taken against you for the relief demanded in the petition.”

In his affidavit, Rosner stated that he reviewed the petition and summons

“and saw that, . . . although I was named as a defendant in the Petition, the

Plaintiff had not alleged that I did anything wrong and that the Plaintiff was not

asking for any relief against me.” Rosner stated that he “scanned the paperwork

and forwarded the digital copy via email to Eugene Ruiz, who was handling this

legal matter for the named company defendants.” Rosner took no other action to

defend the case, and did not file an answer to the petition.

On July 23, 2019, Robertson filed a motion for entry of default judgments

against Rosner, Ruiz & Associates, and Ruiz & Company – none of whom had

responded to the petition, although properly served. In his affidavit, Rosner

acknowledged receiving a copy of Robertson’s motion for entry of default judgment

by mail “[o]n or shortly after July 23, 2019.” Rosner’s affidavit stated that he read

the motion, and saw that it “asked for ‘Judgment by Default’ against three

defendants, including me personally.” Although Rosner recognized that the motion

sought relief against him, his affidavit stated that he once again simply scanned the

document and forwarded a digital copy to Eugene Ruiz, but took no other action. On July 29, 2019, the circuit court entered judgment by default against

Rosner, Ruiz & Associates, and Ruiz & Company. Judgment was entered in the

total amount of $457,806.24, consisting of the principal sum of the Kansas judgment

($285,172.76), interest on the Kansas judgment of $72,633.48, and punitive

damages of $100,000.

On August 9, 2019, Rosner filed a Motion to Set Aside Default Judgment.

Rosner’s motion did not seek to set aside the default judgment based on the

assertion of “facts constituting a meritorious defense and for good cause shown,” as contemplated by Rule 74.05(d). Instead, his motion invoked Rule 74.06(b), and

3 argued that the judgment was void, irregular, and the result of Robertson’s fraud,

misrepresentation and misconduct, because the petition did not assert a claim or

seek relief against Rosner, and therefore failed to give him adequate notice.

The circuit court denied Rosner’s motion to set aside the default judgment in

an order entered on October 10, 2019.

Because the circuit court’s default judgment did not resolve the claims

against Eugene or Genette Ruiz, the litigation continued. On June 29, 2021, the

circuit court dismissed Robertson’s claims against the Ruizes, and Rosner then filed

the present appeal.

Discussion

Rosner argues that the default judgment entered against him should be

reversed, because the circuit court awarded relief beyond that prayed for in

Robertson’s petition, and because the petition failed to state a claim for relief

against him.

“Generally, a party may not appeal a default judgment until it has proceeded

with a motion to set aside the judgment as provided under Rule 74.05(d).” AMG

Franchises, Inc. v. Crack Team USA, Inc., 289 S.W.3d 655, 657 (Mo. App. E.D.

2009). Under Rule 74.05(d), a party may seek to set aside a default judgment by demonstrating “facts constituting a meritorious defense and for good cause shown.”

Rule 74.05(d) requires that the motion be “made within a reasonable time not to

exceed one year after entry of the default judgment.” Thus, “[i]n order to set aside a

default judgment under Rule 74.05(d), the moving party must establish: (1) a

meritorious defense to the suit; (2) good cause for failing to respond to the petition;

and (3) that the motion was filed within a reasonable time not to exceed one year.”

Irvin v. Palmer, 580 S.W.3d 15, 23 (Mo. App. E.D. 2019) (citing Bryant v. Wahl, 502 S.W.3d 9, 13 (Mo. App. W.D.

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