Stout v. KanEquip, Inc.

551 P.3d 260
CourtCourt of Appeals of Kansas
DecidedJune 28, 2024
Docket126501
StatusPublished
Cited by1 cases

This text of 551 P.3d 260 (Stout v. KanEquip, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stout v. KanEquip, Inc., 551 P.3d 260 (kanctapp 2024).

Opinion

No. 126,501

IN THE COURT OF APPEALS OF THE STATE OF KANSAS

JOSEPH STOUT and KATELYN STOUT d/b/a STOUT CONSTRUCTION CO., Appellants,

v.

KANEQUIP, INC., Appellee.

SYLLABUS BY THE COURT

1. On motion and just terms, the court may relieve a party from a final judgment for any of the reasons set forth in K.S.A. 60-260(b)(1)-(6).

2. K.S.A. 60-260(b)(1) permits relief by a party because of mistake, inadvertence, surprise, or excusable neglect. The motion must be filed within a reasonable time not more than one year from the date of judgment.

3. K.S.A. 60-260(b)(6) is a catchall provision providing relief from final judgment for any other reason justifying it. This provision is to be liberally construed to preserve the delicate balance between the conflicting principles that litigation be brought to an end and that justice be done in light of all the facts.

4. A ruling on a motion for relief from judgment under K.S.A. 60-260(b) rests within the sound discretion of the district court. Abuse of discretion occurs when the district

1 court's decision is based on a legal or factual error or if no reasonable person would agree with it.

5. When ruling on a motion to set aside an order under K.S.A. 60-260(b), the district court should consider all the facts, including (1) whether the motion was filed within a reasonable time, (2) whether the motion will prejudice the other party, and (3) whether the moving party has good cause to move to set aside an order.

Appeal from Ford District Court; ANDREW STEIN, judge. Submitted without oral argument. Opinion filed June 28, 2024. Reversed and remanded.

Peter J. Antosh, of Garcia & Antosh, LLP, of Dodge City, for appellants.

Patric S. Linden, Trevor Bond, and Ellen C.T. Mathis, of Case Linden Kurtz Buck P.C., of Kansas City, Missouri, for appellee.

Before COBLE, P.J., GREEN, J., and TIMOTHY G. LAHEY, S.J.

LAHEY, J.: Joseph Stout and Katelyn Stout d/b/a Stout Construction Co. (the Stouts) sued KanEquip, Inc., over a dispute involving KanEquip's unsuccessful attempts to repair the Stouts' skid steer. When the Stouts' expert witness failed to appear for his deposition, KanEquip sought discovery sanctions, including that the Stouts' case be dismissed with prejudice. Between the time the motion was filed and the scheduled hearing date, the Stouts' attorney, Terry J. Malone was suspended from the practice of law by the Kansas Supreme Court. He mailed written notice of his suspension to the Stouts and defense counsel as required by Supreme Court Rule 231, and he withdrew from the case six days before the hearing. When neither Malone nor the Stouts appeared at the sanction hearing, the district court granted KanEquip's motion and dismissed the case with prejudice. Contending they were unaware of the motion or hearing date, the

2 Stouts asked the district court to set aside the dismissal under K.S.A. 2022 Supp. 60- 260(b)(1) and (b)(6). Although no evidence was presented refuting the Stouts' lack of actual knowledge of the hearing, the district court denied their motion, concluding that Malone's knowledge of the motion and hearing must be imputed to them. This appeal follows.

Based on the unusual factual circumstances of the case in which the Stouts became involuntarily pro se shortly before the sanctions hearing, along with the unrefuted evidence that the Stouts had no actual knowledge of the existence of the motion or hearing date, we find the district court erred by denying the Stouts' motion to set aside the judgment. We reverse the decision of the district court and remand the case for further proceedings.

FACTUAL AND PROCEDURAL BACKGROUND

The Stouts brought their skid steer to KanEquip, Inc., a mechanical repair shop, hoping to have engine problems fixed, which they believed were caused by contaminated diesel fuel. The Stouts later retrieved their skid steer from the repair shop—believing that KanEquip had repaired it—and they paid KanEquip $8,952.85 for its work. Almost immediately, though, the Stouts knew that KanEquip had not resolved the engine problems. So a few months later, the Stouts took the skid steer to a different repair shop, which made some additional repairs, though none involved the engine issues that KanEquip had been tasked with.

Since the skid steer still had engine problems, the Stouts brought it back to KanEquip. After looking at the machine, and attempting to repair it, KanEquip contacted the Stouts, explaining (1) that it could not fix the skid steer and (2) that the Stouts owed $9,007.19 for its attempted repair.

3 The Stouts initially refused to pay KanEquip, but they ended up paying their outstanding bill and reclaiming their skid steer. Soon after, the Stouts discovered that KanEquip could have fixed their skid steer with "only a simple repair." The Stouts hired Malone as their attorney and, in March 2021, filed this lawsuit against KanEquip for breach of contract, violation of the Kansas Consumer Protection Act (KCPA), fraud, and conversion. For each claim, the Stouts asserted that they sustained damages in excess of $75,000. KanEquip denied the Stouts' claims and raised several affirmative defenses.

KanEquip filed a motion for judgment on the pleadings in June 2021. It was initially granted—Malone filed no response to the motion and failed to appear for the motion hearing. But ultimately, Malone was allowed to file a response out of time, and the motion to dismiss was resolved in January 2022. A status conference was held shortly after.

In June 2022, KanEquip filed a motion to strike expert disclosure for the Stouts' failure to comply with the expert witness disclosure requirement in K.S.A. 2021 Supp. 60-226. In line with KanEquip's request, the district court ordered sanctions against the Stouts on September 12, 2022, in the sum of $1,572.50 in attorney fees and costs to be paid within 30 days.

Less than a month later, on October 5, KanEquip again asked the district court to sanction the Stouts for another discovery violation. According to KanEquip's attorney, after traveling to Colorado Springs, Colorado, for a scheduled deposition of the Stouts' expert mechanic, the expert never appeared. KanEquip explained that the testimony of the expert mechanic involved "a dispositive issue in the case." And it stressed that "alternate sanctions [had] proven ineffective, and [that the expert's] testimony [was] not cumulative nor corroborative." Then KanEquip cited K.S.A. 2022 Supp. 60- 237(b)(2)(A)(v), which states that the district court may "dismiss[] the action or proceeding in whole or in part" for discovery violations, and it asked the court to dismiss

4 the Stouts' case for the discovery violations or award them costs and fees related to the Stouts' expert failing to appear at his deposition.

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551 P.3d 260, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stout-v-kanequip-inc-kanctapp-2024.