Teton Builders v. Jacobsen Construction Co. ex rel. FS Jackson Hole Development Co.

2004 WY 147, 100 P.3d 1260, 2004 Wyo. LEXIS 191, 2004 WL 2690789
CourtWyoming Supreme Court
DecidedNovember 29, 2004
DocketNo. 03-230
StatusPublished
Cited by4 cases

This text of 2004 WY 147 (Teton Builders v. Jacobsen Construction Co. ex rel. FS Jackson Hole Development Co.) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Teton Builders v. Jacobsen Construction Co. ex rel. FS Jackson Hole Development Co., 2004 WY 147, 100 P.3d 1260, 2004 Wyo. LEXIS 191, 2004 WL 2690789 (Wyo. 2004).

Opinion

LEHMAN, Justice.

[¶ 1] This is an appeal from the district court order refusing to reopen a matter involving the validity of a construction lien. In particular, appellant Teton Builders contends that it was not afforded due process with respect to the hearing regarding appellee Jacobsen Construction’s petition to strike and release Teton Builders’ lien. We affirm.

ISSUES

[¶ 2] Teton Builders sets forth the issue on appeal as:

Whether the district court erred in refusing to reopen a judgment under Rule 60(b)(4) of the Wyoming Rules of Civil Procedure for denial of due process when the judgment was based [on] argument and evidence presented in a hearing held on three and a half hours’ notice to Teton Builders and its counsel and at that hearing Teton Builders’ counsel was unable effectively to cross-examine witnesses appearing telephonically because those witnesses claimed not to have documents related to Teton Builders’ lien.[1]

Jacobsen Construction phrases the issues:

I. Whether this Court has subject matter jurisdiction to decide this appeal when Appellant failed to file a timely Notice of Appeal pursuant to Wyo.R.App.P. 2.01.
II. Whether Appellant was deprived of due process when afforded an opportunity to challenge Jacobsen’s Petition to Strike and Release Lien.

FACTS

[¶ 3] Teton Builders acted as a subcontractor for Jacobsen Construction on a construction project located in Jackson, Wyoming. Thereafter, when Teton Builders threatened to file a mechanic’s lien concerning its work on the project, counsel for Ja-cobsen Construction sent a letter to Teton Builders’ counsel advising that if a lien was filed, Jacobsen Construction would seek to have the lien stricken and released as a frivolous lien under Wyo. Stat. Ann. § 29-1-[1262]*1262311 (LexisNexis 2003).2 Despite this letter, Teton Builders filed its lien on April 9, 2003. True to its word, on April 28, 2003, Jacobsen Construction filed a Petition for Expedited Proceedings to Strike and Release Lien.

[¶ 4] The district court entered an order setting a hearing on the matter for May 14, 2003, at 1:30 p.m. The hearing was conducted telephonically before a district court commissioner wherein Jacobsen Construction offered the testimony of two witnesses. Teton Builders presented no witnesses. Ultimately, the district court entered an order striking and releasing the lien on May 23, 2003. This order also required Teton Builders to pay Jacobsen Construction the sum of $1,000.00 as damages and awarded Jacobsen Construction its attorney fees and costs.3 Also, on May 22, 2003, Jacobsen Construction gave notice that it had recorded a corporate surety bond in an amount equal to one and one half times the amount of the lien filed by Teton Builders with the Teton County Clerk.4

[¶ 5] On June 16, 2003, Teton Builders filed a Motion for New Trial. In this motion Teton Builders asserted it received insufficient notice of the hearing on the petition to strike and release the lien and that the telephonic hearing conducted did not allow Teton Builders an adequate opportunity to cross-examine the witnesses presented. Following hearing, the district court denied the motion finding that it was not timely filed. On August 25, 2003, Teton Builders then filed a Motion to Reopen Judgment pursuant to W.R.C.P. 60(b)(4). This motion asserted the same arguments made in Teton Builders’ Motion for New Trial. The district court also denied this motion. Teton Builders appealed the denial of this motion and filed its Notice of Appeal on October 7, 2003.

[1263]*1263 STANDARD OF REVIEW

[¶ 6] In DMM v. DFH, 954 P.2d 976, 978 (Wyo.1998), we stated:

“The granting or denying of relief pursuant to W.R.C.P. 60(b) is a matter within the discretion of the trial court, and our review is limited to the question of whether there has been an abuse of discretion.” State ex rel. TRL by Avery v. RLP, 772 P.2d 1054, 1057 (Wyo.1989). When a judgment is attacked pursuant to Rule 60(b)(4), however, there is no question of discretion in granting or denying relief — either the judgment is void, or it is valid. Id. Once that determination is made, the trial court must act accordingly. Id. “A judgment is not void merely because it is erroneous. It is void only if the court that rendered it lacked jurisdiction of the subject matter, or of the parties, or if it acted in a manner inconsistent with due process of law.” Wright, Miller & Kane, Federal Practice and Procedure: Civil 2nd § 2862, at 326-29 (1995) (footnotes omitted); see also, In Interest of WM, 778 P.2d 1106, 1110 (Wyo. 1989).

Upon application, the court in Orner v. Shalala, 30 F.3d 1307, 1310 (10th Cir.1994) recognized:

This court has indicated on a number of occasions that a judgment may be void for purposes of Rule 60(b)(4) if entered in a manner inconsistent with due process. See, e.g., V.T.A., Inc., 597 F.2d at 224-25; Arthur Andersen & Co. v. Ohio (In re Four Seasons Sec. Laws Litig.), 502 F.2d 834, 842 (10th Cir.), cert. denied, 419 U.S. 1034, 95 S.Ct. 516, 42 L.Ed.2d 309 (1974). We ultimately rejected the due process arguments asserted in the cited cases because fundamental procedural prerequisites — particularly, adequate notice and opportunity to be heard — were fully satisfied. Here, in contrast, the Secretary was not given any notice that her EAJA liability, already resolved by stipulated order, would be redetermined in the proceeding on plaintiffs second motion for attorney fees and, given plaintiffs express reliance on § 406(b), had no reason whatsoever to anticipate this development. Accordingly, the Secretary did not oppose the motion, which to all appearances was primarily a matter between plaintiff and counsel. Under the circumstances, entry of the resultant order under the EAJA, which everyone involved concedes was an improbable mistake, cannot be deemed consistent with due process. Therefore, relief was not only appropriate but mandatory under Rule 60(b)(4).

DISCUSSION

Jurisdiction

[¶ 7] In its appellate brief, Jacobsen Construction contends that this court does not have proper jurisdiction to review this case because Teton Builders did not timely file its notice of appeal. Previously during this appeal, Jacobsen Construction filed with this court a Motion to Dismiss Appeal for Lack of Jurisdiction. After careful review of the motion, this court denied the motion, entering its order on May 17, 2004. As this court has already made its determination concerning Jacobsen Construction’s jurisdictional claim, this court will not further address the issue.

Due Process

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2004 WY 147, 100 P.3d 1260, 2004 Wyo. LEXIS 191, 2004 WL 2690789, Counsel Stack Legal Research, https://law.counselstack.com/opinion/teton-builders-v-jacobsen-construction-co-ex-rel-fs-jackson-hole-wyo-2004.