Quantum Electric, Inc. v. Schaeffer

2003 MT 29, 64 P.3d 1026, 314 Mont. 193, 2003 Mont. LEXIS 29
CourtMontana Supreme Court
DecidedFebruary 20, 2003
Docket01-178
StatusPublished
Cited by19 cases

This text of 2003 MT 29 (Quantum Electric, Inc. v. Schaeffer) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Quantum Electric, Inc. v. Schaeffer, 2003 MT 29, 64 P.3d 1026, 314 Mont. 193, 2003 Mont. LEXIS 29 (Mo. 2003).

Opinions

JUSTICE NELSON

delivered the Opinion of the Court.

¶1 Appellants Richard and Victoria Schaeffer (Schaeffers) appeal an order of the Eleventh Judicial District Court, Flathead County, denying their motion to set aside the court’s previous judgment. We reverse.

¶2 We address the following issue on appeal: Did the District Court err in concluding that the plaintiffs failure to comply with § 37-61-405, MCA, and Uniform District Court Rule 10 (Rule 10, U.Dist.Ct.R.), was harmless error because the court’s order fulfilled the notice requirement and because the defendants had actual notice of the proceedings?

I. FACTUAL AND PROCEDURAL BACKGROUND

¶3 The facts underlying the present issue on appeal are not in dispute. In order to properly address this issue, the following discussion relays the proceedings in chronological order. On or about October 19, 1999, Quantum Electric attended a trustee’s foreclosure sale and purchased real property in Flathead Comity. After purchase, Quantum Electric served a notice on the Schaeffers to vacate the property. The Schaeffers refused as they claimed some right to the property. Consequently, about a month after purchase, Quantum Electric brought an action against the Schaeffers and any other interested parties in order to quiet title to the property. The Schaeffers then retained attorney Richard DeJana (DeJana).

¶4 On January 28, 2000, the District Court issued a Rule 16, M.R.Civ.P., scheduling order which laid out deadlines for the pretrial proceedings in the case.1 The first scheduled activity required the [196]*196parties to file any objections to assignment of the case to a special master by April 14. The second scheduled activity set the deadline for amending the pleadings and joining additional parties by April 28. However, on February 11, DeJana made a motion to withdraw based on the fact that he had been unable to secure the cooperation of his clients in proceeding with the case. DeJana also submitted a proposed order allowing his withdrawal.

¶5 On March 8, Quantum Electric filed notices to take depositions of both the Schaeffers on March 27. On March 13, 2000, Judge Ted Lympus signed De Jana’s proposed order and allowed him to withdraw from the case. The order reads as follows:

Based upon the motion of Richard DeJana, and upon hearing2 heard on this date, the Court finds:
1. Counsel has good cause to withdraw;
2. Counsel should be allowed to withdraw.
Therefore, it is hereby ordered adjudged and decreed:
1. That Richard DeJana his [sic] relived [sic] as counsel in this matter;
2. That within 30 days of this Order, the Defendants will advise the court and opposing counsel, if they have secured new counsel. The failure to so advise will be deemed notice that they intend to proceed pro se.
3. The clerk will mail a copy of this order to all parties as listed below.

The following day, this order was sent to the Schaeffers by “regular mail and certified return receipt.”

¶6 On March 31, Quantum Electric objected to the use of a special master. On April 7, the court issued deposition and subpoena duces tecum for both the Schaeffers on April 19. On April 10, Quantum Electric filed notices of these depositions. On April 19, the court again issued deposition and subpoena duces tecum, this time for April 26, and Quantum Electric filed notice of these depositions on the same day. Richard Schaeffer was also personally served with notice of his deposition on April 21. On April 26, Richard Schaeffer appeared at the deposition, asked for a continuance which was refused and then left without being deposed or presenting any records.

[197]*197¶7 On April 27, Quantum Electric made a motion for summary-judgment. On that same day, Quantum Electric also made a motion to hold Richard Schaeffer in contempt. On May 22, Quantum Electric filed its list of lay witnesses and exhibits pursuant to the scheduling order. On July 5, the District Court issued an order granting summary judgment, thereby quieting title, to Quantum Electric.

¶8 After Quantum Electric entered a notice of entry of judgment, it applied for and received a writ of execution for removal of the Schaeffers. When the writ was to be executed, the Schaeffers retained counsel. On January 10,2001, the Schaeffers, through counsel, made a motion under Rule 60(b), M.R.Civ.P., to set aside the court’s judgment. The Schaeffers based their argument on the fact that Quantum Electric failed to give the Schaeffers the notice required by § 37-61-405, MCA, when counsel withdraws. Quantum Electric responded and asserted that the motion to set aside judgment was not timely. Quantum Electric also asserted that the Schaeffers were given notice by the court’s order and that they had actual notice of the proceedings. Quantum Electric therefore argued that any failure to give the required notice was harmless because the failure did not prejudice the Schaeffers’ substantial rights.

¶9 The District Court found that the Schaeffers’ delay in making a motion to set aside judgment was “not necessarily unreasonable.” However, the court held that under the harmless error requirements of Rule 61, M.R.Civ.P., the Schaeffers’ substantial rights were not prejudiced because the court’s order allowing DeJana’s withdrawal provided the Schaeffers with notice. Therefore, the court denied the Schaeffers’ motion to set aside the judgment. From this order the Schaeffers now appeal.

II. STANDARD OF REVIEW

¶10 As mentioned above, the facts in this case are undisputed. Therefore, our review is confined to whether the District Court correctly interpreted whether the requirements of § 37-61-405, MCA, and Rule 10, U.Dist.Ct.R., were met. We review the District Court’s conclusions of law interpreting this statute to determine whether its conclusions are correct. Stanley v. Holms (1997), 281 Mont. 329, 333, 934 P.2d 196, 199.

III. DISCUSSION

¶11 Did the District Court err in concluding that the plaintiff’s failure to comply with § 37-61-405, MCA and Rule 10, U.Dist.Ct.R., was harmless error because the [198]*198court’s order fulfilled the notice requirement and because the defendants had actual notice of the proceedings?

¶12 Before we address the issue presented in this case, we note that Quantum Electric does not assert on appeal that the Schaeffers’ Rule 60(b), M.R.Civ.P., motion to set aside judgment was untimely. Consequently, Quantum Electric does not assert error in the District Court’s conclusion that the delay in making the motion to set aside judgment was “not necessarily unreasonable.” Therefore, our opinion does not address the timeliness of Schaeffers’ Rule 60(b), M.R.Civ.P., motion.

¶13 Next, in order to address the issue presented here, we begin by setting out the statute at issue. Section 37-61-405, MCA, regarding death or removal of an attorney reads:

When an attorney dies or is removed or suspended or ceases to act as such, a party to an action for whom he was acting as attorney must,

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Bluebook (online)
2003 MT 29, 64 P.3d 1026, 314 Mont. 193, 2003 Mont. LEXIS 29, Counsel Stack Legal Research, https://law.counselstack.com/opinion/quantum-electric-inc-v-schaeffer-mont-2003.