Sax v. Superior Court

711 P.2d 657, 147 Ariz. 518, 1985 Ariz. App. LEXIS 745
CourtCourt of Appeals of Arizona
DecidedNovember 27, 1985
DocketNo. 2 CA-SA 0296
StatusPublished
Cited by3 cases

This text of 711 P.2d 657 (Sax v. Superior Court) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sax v. Superior Court, 711 P.2d 657, 147 Ariz. 518, 1985 Ariz. App. LEXIS 745 (Ark. Ct. App. 1985).

Opinion

OPINION

FERNANDEZ, Judge.

Petitioner has brought this special action from the trial court’s order setting aside a default. An order vacating an entry of default is not an appealable order, Richas v. Superior Court, 133 Ariz. 512, 652 P.2d 1035 (1982), and because we believe the trial court abused its discretion in entering the order, we assume jurisdiction and grant relief.

The real parties in interest were served with a summons and complaint on January 24, 1985. They were required to file an answer by February 13. Rule 12(a), Rules of Civil Procedure, 16 A.R.S. On February 15 they had not filed an answer and default [519]*519was entered. Thereafter, counsel for the parties spoke by telephone regarding the default. On March 6 counsel for petitioner sent counsel for the real parties in interest a letter that stated:

“I received a copy of your answer on March 1, 1985. I took a default against you on February 15, 1985. I enclose a copy for your reference. My understanding from our conversation was. that you would file a motion to set aside the default. If you do not intend to file that motion, I will enter judgment on the default.”

The real parties in interest did not move to set aside the default, and on April 19 petitioner gave Notice of Intent to take Default Judgment on May 2. On May 1, however, the real parties in interest filed their motion to set aside default. The motion was supported only by the affidavit of their attorney. It did not attempt to establish a defense. Petitioner filed an opposition to the motion, urging that it be denied because of the delay in filing the motion and because the real parties in interest had not established a meritorious defense. On July 17, the real parties in interest filed a reply to the opposition in which they outlined a meritorious defense. Their explanation for the delay in filing the initial motion to set aside default was that counsel believed from the telephone conversation with petitioner’s counsel that the motion to set aside default would be filed after a judgment had been entered. On September 5, the respondent court set aside the default.

It is true that the law favors resolution of litigation on the merits; therefore, when considering a motion to set aside a default, all doubts are to be resolved in favor of the defaulted party. Richas v. Superior Court, supra; Union Oil Company of California v. Hudson Oil Company, 131 Ariz. 285, 640 P.2d 847 (1982). The trial court is given broad discretion, and its ruling is not to be disturbed unless a clear abuse of discretion is shown. Union Oil Company, supra. However, the trial court’s exercise of that discretion is to be based on legal criteria and is to be supported by substantial evidence. The legal criteria which a court is to consider on a motion to set aside a default are: 1) did the defendant act promptly in seeking relief from the entry of default; 2) was the failure to file a timely answer due to mistake, inadvertence, surprise or excusable neglect; and 3) did the defendant establish a meritorious defense? United Imports and Exports, Inc. v. Superior Court, 134 Ariz. 43, 653 P.2d 691 (1982); Addison v. Cienega, Ltd., 146 Ariz. 322, 705 P.2d 1373 (App.1985). Our supreme court stated in Richas:

“Thus, although the trial court has broad discretion to resolve all doubts in favor of setting aside the entry of default or the judgment by default, ‘the discretion thus vested in the court is a legal, and not an arbitrary or personal discretion. There must be some legal justification for the exercise of the power, some substantial evidence to support it.’ [citations omitted] Thus, a proper showing of facts is ‘a prerequisite to the exercise’ of the discretion given the trial court.” 133 Ariz. at 514, 652 P.2d at 1037.

We do not believe the facts of this case allowed the trial court to find that the failure of the real parties in interest to file a timely answer was due to mistake, inadvertence, surprise or excusable neglect.

The attempt to establish excusable neglect was based on the affidavits of counsel and his secretary. The secretary’s deposition was before the trial court at the hearing on the motion to set aside the default. She testified that the attorney hand-wrote the answer and gave it to her to type with no due date on it and no mention of when the answer was due. The handwritten answer was placed in a box with other papers to be typed for the attorney. The secretary, a legal secretary for eight years, had been working for the attorney for only a short time. Counsel, a sole practitioner, shared her with two other lawyers. Her duties were limited to typing and opening the mail. Each lawyer was responsible for maintaining his or her own calendar. The secretary testified that she was very busy at the time because she was only working [520]*520part-time and was training on a new word processor. It was established that there was no priority system given to the secretary to determine which papers should be typed first. It was brought out that she sometimes would not look through counsel’s typing box for up to five consecutive days. Counsel now avers that after this default, a priority system was set up to advise the secretary which items should be typed first. On February 27 the secretary discovered the handwritten answer and advised counsel. The answer was thereafter typed and filed. Counsel claims that his failure to notice that the typed answer did not arrive back on his desk for signature and verification and his apparent failure to instruct her on its due date were due to his being involved in two trials at the time.

Mere carelessness will not suffice to establish excusable neglect, nor will inadvertence or forgetfulness. Daou v. Harris, 139 Ariz. 353, 678 P.2d 934 (1984); Hirsch v. National Van Lines, Inc., 136 Ariz. 304, 666 P.2d 49 (1983). In order to establish excusable neglect, a moving party must show that he acted as a reasonably prudent person under the circumstances. Daou v. Harris, 139 Ariz. at 359, 678 P.2d at 940. Our supreme court stated in Hirsch:

“ ‘If a default judgment is acquired because of a party’s mere neglect, inadvertence or forgetfulness without any reasonable excuse therefor, the judgment will not be disturbed and the neglecting party must suffer the consequences. The general test of what is excusable is whether the neglect or inadvertence is such as might be the act of a reasonably prudent person under the circumstances’ ”. 136 Ariz. at 309, 666 P.2d at 54, quoting Coconino Pulp and Paper Co. v. Marvin, 83 Ariz. 117, 120, 317 P.2d 550, 552 (1957).

Neglect has sometimes been found to be excusable when it results from the mistake of a lawyer’s secretary.

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Bluebook (online)
711 P.2d 657, 147 Ariz. 518, 1985 Ariz. App. LEXIS 745, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sax-v-superior-court-arizctapp-1985.