Pierce v. ASSOCIATED TAX RELIEF, INC.

298 S.W.3d 575, 2009 Mo. App. LEXIS 1649, 2009 WL 4223862
CourtMissouri Court of Appeals
DecidedNovember 30, 2009
DocketSD 29495
StatusPublished

This text of 298 S.W.3d 575 (Pierce v. ASSOCIATED TAX RELIEF, INC.) 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
Pierce v. ASSOCIATED TAX RELIEF, INC., 298 S.W.3d 575, 2009 Mo. App. LEXIS 1649, 2009 WL 4223862 (Mo. Ct. App. 2009).

Opinion

NANCY STEFFEN RAHMEYER, Judge.

Todd Pierce (“Respondent”) brought suit against Associated Tax Relief, Inc. (“Appellant”), for conversion and unjust enrichment; he received a default judgment for the entire amount requested as actual damages, $6,900, plus $25,000 in punitive damages. The judgment did not indicate on which ground the court granted a judgment. Approximately two and a half weeks later, Appellant brought a motion to set aside the default judgment. The trial court heard arguments on the motion and ordered that Appellant be given ten days to “supplement Motion to Set Aside to allege an[y] meritorious defenses [Appellant] may have.” The court ultimately denied Appellant’s motion finding that good cause was shown, but Appellant “failed to offer proof of a meritorious defense as required by Rule 74.05(d).” 1 Appellant brings three points on appeal. We find no merit and affirm.

Missouri appellate courts have traditionally afforded significant deference to the circuit court’s decision to set aside a default judgment because of the public policy favoring the resolution of cases on the merits and the “distaste our system holds for default judgments.” Continental Basketball Ass’n v. Harrisburg Professional Sports Inc., 947 S.W.2d 471, 473 (Mo.App.1997), quoting, Gibson by Woodall v. Elley, 778 S.W.2d 851, 854 (Mo.App.1989). Rather than applying the Murphy standard applied to court-tried cases, appellate courts have generally applied an abuse of discretion standard in determining whether the trial court erred in setting aside a default judgment. Bell v. Bell, 849 S.W.2d 194, 197 (Mo.App.1993); Klaus v. Shelby, 42 S.W.3d 829, 831 (Mo.App.2001); CBD Enterprises, Inc. v. Braco Manufacturing, Inc., 181 S.W.3d 129, 131 (Mo.App.2005). Broad discretion is afforded to trial court decisions granting motions to set aside a default judgment while the trial court has narrowed discretion in decisions denying a motion. Hopkins v. Mills-Kluttz, 77 S.W.3d 624, 626 (Mo.App.2002). Such deference has been afforded whether the evidence supporting the motion to set aside the default was presented through exhibits and affidavits or through live testimony. See Beckmann v. Miceli Homes, Inc., 45 S.W.3d 533, 542 (Mo.App.2001) (applying abuse of discretion standard where the motion to set aside a default judgment was supported solely by affidavit).

Brungard v. Risky’s Inc., 240 S.W.3d 685, 686-87 (Mo. banc 2007).

The party moving to set aside the default judgment has the burden to prove good cause for setting aside the judgment. In re Marriage of Pierce, 867 S.W.2d 237, 238 (Mo.App.1993). “Good cause” is defined under Rule 74.05(d) as including “a mistake or conduct that is not intentionally or recklessly designed to impede the judicial process.” Great Southern Savings & Loan Assoc, v. Wilburn, 887 S.W.2d 581 (Mo. banc 1994).

Id. at 688.

Appellant first contends that it was not required to state a meritorious defense because the motion was filed within thirty days of the entry of the default judgment and, under Rule 75.01, Appellant was only *577 required to show “good cause” to set aside the judgment. Appellant argues that Rule 75.01 provides that the trial court retains control over its judgments during the 30-day period after the judgment and may, for good cause, vacate, reopen, correct, amend, or modify its judgment within that time. Because Appellant’s motion was heard within the thirty days, Appellant argues that Rule 75.01 controls and that Appellant did not have to show a meritorious defense.

Appellant cites to Young v. Safe-Ride Services, 23 S.W.3d 730 (Mo.App. W.D. 2000), overruled on other grounds by McElroy v. Eagle Star Group, Inc., 156 S.W.3d 392, 401 (Mo.App. W.D.2005), for the proposition that a motion filed within thirty days is controlled by Rule 75.01. Young, however, does not assist Appellant. The court in Young, did not reach the issue of whether Rule 75.01 or Rule 74.05(d) controlled the resolution of the matter because the “identical element of ‘good cause’ ” was present under both rules. Id. at 732. There was no question in Young as to the “meritorious defense” requirement contained in Rule 74.05. Id. In the present case, the issue is whether Appellant stated a meritorious defense in its motion to set aside the default judgment.

In contradiction to Appellant’s claim, Respondent directs us to our decision of In re Marriage of Coonts, 190 S.W.3d 590 (Mo.App. S.D.2006). In Coonts, we directly addressed the issue of whether a motion to set aside a default judgment, filed before the underlying default judgment becomes final, is an after-trial motion or an independent action. Id. at 601. We held that a motion to set aside a default judgment is an independent action pursuant to Rule 74.05(d). Id. at 603-04. Our decision is further buttressed by Appellant’s own motion, which was brought pursuant to Rule 74.05(d) and not as an after-trial motion for a new trial. Appellant did not raise this argument to the trial court. “We will not consider arguments not raised below and made for the first time on appeal.” Hagan v. Buchanan, 215 S.W.3d 252, 257 (Mo.App. W.D.2007). Appellant’s first argument fails.

Appellant next contends that the trial court erred in finding that a meritorious defense had not been established because an affidavit provided by Appellant establishes a defense for conversion. Specifically, Appellant contends that Respondent consented to the transfer of funds and, further, that the Petition does not allege facts that would constitute conversion because conversion lies only for a specific chattel that has been wrongfully converted and, therefore, a claim for money may not be asserted in conversion.

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Related

Pyle v. Firstline Transportation Security, Inc.
230 S.W.3d 52 (Missouri Court of Appeals, 2007)
CBD Enterprises, Inc. v. Braco Manufacturing, Inc.
181 S.W.3d 129 (Missouri Court of Appeals, 2005)
Beckmann v. Miceli Homes, Inc.
45 S.W.3d 533 (Missouri Court of Appeals, 2001)
Klaus v. Shelby
42 S.W.3d 829 (Missouri Court of Appeals, 2001)
Hagan v. Buchanan
215 S.W.3d 252 (Missouri Court of Appeals, 2007)
In Re the Marriage of Coonts
190 S.W.3d 590 (Missouri Court of Appeals, 2006)
Bell v. Bell
849 S.W.2d 194 (Missouri Court of Appeals, 1993)
Great Southern Savings & Loan Ass'n v. Wilburn
887 S.W.2d 581 (Supreme Court of Missouri, 1994)
Young v. Safe-Ride Services
23 S.W.3d 730 (Missouri Court of Appeals, 2000)
Hopkins v. Mills-Kluttz
77 S.W.3d 624 (Missouri Court of Appeals, 2002)
McElroy v. Eagle Star Group, Inc.
156 S.W.3d 392 (Missouri Court of Appeals, 2005)
Brungard v. RISKY'S INC.
240 S.W.3d 685 (Supreme Court of Missouri, 2007)
Continental Basketball Ass'n v. Harrisburg Professional Sports Inc.
947 S.W.2d 471 (Missouri Court of Appeals, 1997)
In Re Marriage of Pierce
867 S.W.2d 237 (Missouri Court of Appeals, 1993)
Gibson Ex Rel. Woodall v. Elley
778 S.W.2d 851 (Missouri Court of Appeals, 1989)

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Bluebook (online)
298 S.W.3d 575, 2009 Mo. App. LEXIS 1649, 2009 WL 4223862, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pierce-v-associated-tax-relief-inc-moctapp-2009.