Skidmore v. Pacific Creditors, Inc.

138 P.2d 664, 18 Wash. 2d 157
CourtWashington Supreme Court
DecidedJune 10, 1943
DocketNo. 28985.
StatusPublished
Cited by13 cases

This text of 138 P.2d 664 (Skidmore v. Pacific Creditors, Inc.) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Skidmore v. Pacific Creditors, Inc., 138 P.2d 664, 18 Wash. 2d 157 (Wash. 1943).

Opinion

*158 Millard, J.

Summons and complaint were filed April 5, 1940, in an action instituted by plaintiff to recover, on the ground of fraudulent representations, against Pacific Creditors, Inc., a domestic corporation, and two of its officers and their wives, the purchase price of one hundred dollars paid by plaintiff to defendants for a collection agency and for damages and funds (“the exact amount of said expenditures being unknown to plaintiff”) expended in operation of the collection agency subsequent to the purchase. By a second cause of action, plaintiff sought recovery in the amount of twenty-five dollars upon an assigned account.

A demurrer to the complaint and a motion to make the complaint more definite and certain, filed April 10, 1940, by the then attorney for defendants, were never brought on for hearing. Plaintiff filed an amended complaint June 12, 1940, which is the same as the original complaint except for incorporation therein of a copy of the agreement for sale and purchase of the collection agency.

Plaintiff filed motion for default July 31, 1941, for want of answer or other pleadings by defendants. This motion was supported by affidavit of one of plaintiff’s attorneys that June 10, 1940, he caused to be served upon the then attorney of record for defendants an amended complaint by depositing same in the United States mail with postage regularly prepaid and addressed to said attorney, and that, after the lapse of more than one year since such service, defendants had failed to file or serve any pleading, notice, or matter of any kind in the action. Hearing on motion for default was noted for August 11, 1941. A new attorney for defendants served and filed an answer August 7, 1941, which is, in fact, an answer to the amended complaint though not so denominated.

At the hearing on the motion for default, the attorney then representing defendants contended that the *159 amended complaint had never been served upon either the then attorney or the former attorney for defendants. The court orally ruled that defendants were in default for want of answer to the amended complaint.

No further steps were taken by any of the parties until entry September 29, 1942, of an order of default and a judgment awarding plaintiff recovery against defendants in the amount of $375. Attorneys who represent defendants on appeal joined with two other attorneys for defendants October 3, 1942, in motion to reopen the default and vacate the judgment entered thereon. An affidavit of the president of defendant corporation and the two former attorneys of defendants, filed October 3, 1942, in support of the motion, avers that affiants never received a copy of the amended complaint and never had knowledge thereof until July 31, 1941, when plaintiff’s motion for default was served and filed. Affiants further averred that, if they were mistaken as to their averment of nonreceipt of the amended complaint and that same may have been misplaced by them, their answer filed August 7, 1941, was an answer to the amended complaint. There is an additional averment that an order of default was entered September 29, 1942, without notice to defendants. A controverting affidavit avers that one of the attorneys for defendants acknowledged service of motion for default, hearing on which was set for and had August 11, 1941.

At the hearing upon defendants’ motion filed October 3, 1942, to reopen default and vacate the judgment entered thereon, plaintiff admitted that neither the order of default nor judgment entered September 29, 1942, had been presented to defendants or their counsel and, also, that no evidence was taken at any time in support of the allegations of the complaint. This appeal is prosecuted by defendants from an order denying their motion to set aside the judgment taken by default against them.

*160 Appellants contend that they timely pleaded by demurrer and motion to the original complaint, which respondent abandoned; and that, immediately following service upon them of motion for default, they served and filed an answer to the amended complaint, which had never been served upon appellants and of the existence of which they were not aware until served with motion for default; therefore, it constituted an abuse of discretion by the trial court to grant the motion for default August 11, 1941.

True, appellants duly appeared, demurred to and moved against the original complaint. The demurrer and motions were never brought on for hearing. The filing by respondent of an amended complaint constituted an abandonment of the original complaint, and the action rests on the amended complaint. Appellants did not, until the. lapse of more than a year after the filing of the amended complaint, when respondent moved for a default and noted the motion for hearing, answer the amended complaint. Whether, prior to this time, the amended complaint was served upon appellants is a question of fact. The trial court was convinced, as are we by our examination of the record before us, that copy of the amended complaint was duly served upon one of former counsel for appellants. No showing has been made which would excuse the failure of appellants to answer within the prescribed statutory period.

Appellants concede that the power to set aside a default is discretionary with the trial court but urge that in the case at bar the court abused its discretion in refusing to vacate the default judgment. Appellants made no showing which would justify their failure to answer the amended complaint until after notice of default. In Haynes v. Schwartz Co., 5 Wash. 433, 32 Pac. 220, we held that it is not an abuse of discretion for the trial court to refuse to set aside a default against a defendant who has failed to file his answer *161 until after notice of default, where no showing is made which would justify or excuse the failure of the defendant to answer within the time prescribed by statute, although the answer, as filed, may set up a meritorious defense. See, also, to the same effect, Jordan v. Hutchinson, 39 Wash. 373, 81 Pac. 867; and General Lithographing & Printing Co. v. American Trust Co., 55 Wash. 401, 104 Pac. 608.

Appellants next contend that the motion of the appellants to vacate the order of default and the judgment based thereon should have been granted for the reason that they were not given, as required by the statute (Rem. Rev. Stat., § 241 [P. C. § 8451]), notice of application of respondent for judgment. The statute (Rem. Rev. Stat., § 241) provides that a defendant appears in an action when he answers, demurs, makes any application for an order thereon, or gives the plaintiff written notice of his appearance, and that after appearance a defendant is entitled to notice of all subsequent proceedings.

After granting of motion for default for failure to appear and answer in time, the defendant is not entitled by reason of later appearance to notice of application for judgment under Rem. Rev. Stat., § 411 [P. C. § 8109], entitling him to five days’ notice of subsequent proceedings if he gives notice of appearance before the time of answering expires.

The action of the court, as held in Haynes v. Schwartz Co., 5 Wash. 433, 32 Pac.

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Cite This Page — Counsel Stack

Bluebook (online)
138 P.2d 664, 18 Wash. 2d 157, Counsel Stack Legal Research, https://law.counselstack.com/opinion/skidmore-v-pacific-creditors-inc-wash-1943.