Ryan v. Palmer

310 P.3d 1022, 130 Haw. 321, 2013 WL 4458764, 2013 Haw. App. LEXIS 488
Hawaii Intermediate Court of Appeals·Decided August 20, 2013·No. No. CAAP-12-0000697·Published·Cited by 11 cases

Opinion

[322] Opinion of the Court by

FOLEY, J.

Plaintiff/Appellant Karen Ryan (Plaintiff) appeals from a July 17, 2012 final judgment entered in the Circuit Court of the Second Circuit1 (circuit court) dismissing Plaintiffs complaint and entering judgment in favor of Defendants/Cross-Claim Defendants/Appel-lees Terrence D. Palmer, Mary Lynne Bo-land, and Kahana Manor AOAO; and Defendants/Cross-Claim Plaintiffs/ Cross-Claim Defendants/Appellees Alpha Executive Security, Inc. and Lowson and Associates (collectively, Defendants).

I. BACKGROUND

This appeal arises out of a tort lawsuit Plaintiff filed for injuries she allegedly suffered while in her apartment unit. On December 29, 2010, Plaintiff filed a complaint asserting various tort claims against Defendants, and the parties engaged in discovery between March and August 2011. On July 29, 2011, Plaintiff filed a request to admit the case into the Court Annexed Arbitration Program (CAAP). The circuit court granted the request on August 30/2011.

On September 20, 2011, the circuit court entered an “Order Of Dismissal” dismissing Plaintiffs complaint pursuant to Rule 12(q) of the Rules of the Circuit Courts of the State of Hawaii (RCCH). RCCH Rule 12(q) states:

(q) Dismissal for Want of Prosecution. An action maybe dismissed sua sponte with written notice to the parties if a pretrial statement has not been filed within 8 months after a complaint has been filedf.] ... Such dismissal may be set aside and the action reinstated by order of the court for good cause shown upon motion duly filed not later than ten (10) days from the date of the order of dismissal.

At the time the circuit court entered its dismissal order, eight months and twenty-two days had passed since the complaint’s filing, and Plaintiff had not submitted a pretrial statement.

On September 30, 2011, Plaintiffs attorney Joseph T. Toma (Toma) filed a “Motion To Set Aside Order Of Dismissal” and a supporting declaration by Toma. Toma stated he had “just overlooked” the pretrial statement and noted the ease had been admitted into the CAAP, and he requested additional time to file a pretrial statement. The circuit court orally denied Plaintiffs motion at a hearing on October 27,2011.

The circuit court entered its “Order Denying Plaintiffs Motion To Set Aside Order of Dismissal, Filed 09/30/11” on November 4, 2011, and Plaintiff filed a motion for reconsideration on November 14, 2011. The motion included a declaration by Toma’s co-counsel, Thomas Kolbe, stating he had been in the process of closing his private law practice and had miscommunieated with Toma regarding the pretrial statement. The circuit court held a hearing on December 6, 2011, concluding in its oral denial of Plaintiffs motion. The circuit court entered its order denying the motion for reconsideration on December 22, 2011 and its final judgment dismissing Plaintiffs complaint on July 17, 2012. Because the circuit court’s order of dismissal did not specify otherwise, the circuit court’s dismissal was with prejudice. See Hawaii Rules of Civil Procedure (HRCP) Rule 41(b)(3).2

On appeal, Plaintiff contends the circuit court abused its discretion when it denied Plaintiffs “Motion To Set Aside Order Of Dismissal” and her motion for reconsideration.

[323] II. STANDARD OF REVIEW

“[W]here a court sua sponte issues an order of dismissal for want of prosecution, its action is reviewable on appeal for abuse of discretion.” Compass Dev., Inc. v. Blevins, 10 Haw.App. 388, 397-98, 876 P.2d 1335, 1340 (1994).

III. DISCUSSION

Preliminarily, the parties disagree as to whether ease law regarding dismissals under HRCP Rule 41(b)(2) applies to the circuit court’s dismissal based on RCCH Rule 12(q). In interpreting the circuit court’s authority under HRCP Rule 41(b)(2), our courts have cautioned that a dismissal with prejudice is a “severe sanction” of “last resort” that cannot be affirmed “absent deliberate delay, contumacious conduct, or actual prejudice.” In re Blaisdell, 125 Hawai'i 44, 49, 252 P.3d 63, 68 (2011); see also Shasteen, Inc. v. Hilton Hawaiian Village Joint Venture, 79 Hawai'i 103, 107, 899 P.2d 386, 390 (1995). Defendants contend authorities regarding HRCP Rule 41(b) are inapplicable because RCCH 12(q) is a separate and distinct rale permitting dismissal. We disagree.

RCCH Rule 12(q)’s language is patterned after HRCP Rule 41(b)(2). Both rales provide that a court may dismiss an action sua sponte for failure to prosecute, and the rules contain substantially identical language regarding the manner of seeking relief from each section. See HRCP Rule 41(b)(2); RCCH Rule 12(q) (“Such dismissal may be set aside and the action reinstated by order of the court for good cause shown upon motion duly filed not later than ten [ (10) ] days from the date of the order of dismissal.”). RCCH Rule 323 further provides that the RCCH rales cannot conflict with the HRCP rules and that the latter prevails to the extent there is any conflict. Defendants’ interpretation of RCCH Rule 12(q) as authorizing a circuit court to sua sponte dismiss an action with prejudice even “absent deliberate delay, contumacious conduct, or actual prejudice” puts the rule in conflict with the HRCP by expanding the circuit court’s authority beyond that which it possesses under HRCP Rule 41(b).

Defendants rely primarily on Lim v. Harris Const., Inc., 65 Haw. 71, 647 P.2d 290 (1982) in support of their argument that HRCP Rule 41(b) and RCCH Rule 12(q) are distinct rules. At the time Lim was decided, the predecessor rule to the current RCCH Rule 12(q) specified that the circuit court could dismiss a case if there was a default in filing a statement of readiness. See Rule 12(f) of the Rules of the Circuit Courts (RCC).4 Because the plaintiff in Lim had filed a timely statement of readiness, the supreme court concluded RCC Rule 12(f) did not apply, and the dismissal must have been made pursuant to HRCP Rule 41(b). Lim, 65 Haw. at 72-73, 647 P.2d at 291-92. The court accordingly focused its analysis solely on whether the dismissal was appropriate under HRCP Rule 41(b). Therefore, Urn’s reference to GLA, Inc. v. Spengler, 1 Haw.App. 647, 623 P.2d 1283 (1981) and its treatment of dismissals under RCC Rule 12(f) was dicta and is not controlling.

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Ryan v. Palmer, 310 P.3d 1022, 130 Haw. 321, 2013 WL 4458764, 2013 Haw. App. LEXIS 488 (hawapp 2013).

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