UNIFUND CCR PARTNERS v. Rodgers

281 S.W.3d 881, 2009 Mo. App. LEXIS 428, 2009 WL 812697
CourtMissouri Court of Appeals
DecidedMarch 31, 2009
DocketWD 69660
StatusPublished

This text of 281 S.W.3d 881 (UNIFUND CCR PARTNERS v. Rodgers) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
UNIFUND CCR PARTNERS v. Rodgers, 281 S.W.3d 881, 2009 Mo. App. LEXIS 428, 2009 WL 812697 (Mo. Ct. App. 2009).

Opinion

VICTOR C. HOWARD, Judge.

Unifund CCR Partners appeals the trial court’s decree setting aside the default judgment entered against Patricia Rodgers. It contends that Ms. Rodgers failed to show good cause. The decree of the trial court is affirmed.

Facts

Unifund filed its petition for breach of contract against Ms. Rodgers in December 2006 in the associate circuit court. The petition contained two counts alleging that Ms. Rodgers failed to make payment of monies advanced to her through the credit card issued by Unifund. Unifund attempted service of summons and petition on Ms. Rodgers at 8904 Kentucky in Kansas City, Missouri, on August 22, 2007. The summons was returned “NON EST,” and the return of service specifically noted, “Neighbor said this person has not lived here for 6 months.” Ms. Rodgers was eventually served on November 10, 2007, at 6332 Kentucky in Kansas City, Missouri, where she lives with her son.

A few days later on November 18, 2007, Ms. Rodgers sent a letter to the court asking for a continuance. The letter was *883 addressed to the proper court and division, referenced the case caption and number, and was filed stamped by the circuit clerk. In the letter, Ms. Rodgers explained that she had been served late on a Saturday and did not have sufficient time to take off work for the hearing that was scheduled on November 20, 2007, ten days after she was served. Ms. Rodgers also asserted in the letter that she did not owe the debt. Finally, Ms. Rodgers asked to be contacted at her proper address at 6332 Kentucky.

The trial court continued the matter to December 18, 2007. Nothing in the record, however, shows that the trial court signed any order, filed any notice on the record, or mailed any notice to Ms. Rodgers. On November 27, 2007, Unifund’s attorney sent a letter to Ms. Rodgers informing her that the hearing had been reset for December 18. The letter, however, was sent to the same wrong address at 8904 Kentucky where service was originally attempted. The next day, Unifund sent its request for admissions, interrogatories and request for production of documents to Ms. Rodgers. Again, Unifund’s requests were sent to the wrong address at 8904 Kentucky.

Ms. Rodgers failed to appear at the December 18, 2007 hearing, and default judgment in the amount of $39,546.89 was entered against her pursuant to section 517.131, RSMo 2000, 1 which provides that a default judgment may be entered where a properly-served defendant fails to appear at trial.

On March 28, 2008, Ms. Rodgers filed her motion to set aside the default judgment. She asserted that she never agreed to open a credit card account with Uni-fund, she did not incur or authorize the charges alleged by Unifund, she never received statements or bills for the account, and she did not owe any money to Uni-fund. She further asserted that she was never given notice of the December 18, 2007 hearing at which default judgment was entered. Unifund filed its response to Ms. Rodgers’s motion. On April 7, 2008, the trial court set aside the default judgment against Ms. Rodgers. This appeal by Unifund followed.

Standard of Review

A trial court has broad discretion to set aside a default judgment because public policy favors resolution of cases on the merits rather than default. Brungard v. Risky’s Inc., 240 S.W.3d 685, 686-87 (Mo. banc 2007). Review of a trial court’s decision to set aside a default judgment is for abuse of discretion. Id. at 688.

Good Cause

In its sole point on appeal, Unifund contends that the trial court abused its discretion in granting Ms. Rodgers’s motion to set aside the default judgment because she failed to show good cause. 2

Rule 74.05(d) provides that a default judgment may be set aside “[ujpon motion stating facts constituting a meritorious defense and for good cause shown.” “ ‘Good cause’ includes a mistake or conduct that is not intentionally or recklessly designed to impede the judicial process.” Rule 74.05(d).

In her motion to set aside the default judgment and affidavit, Ms. Rodgers asserted that she was never notified of the December 18, 2007 hearing date and, therefore, did not have the opportunity to answer or otherwise respond to the claims against her. Unifund argues that Ms. *884 Rodgers’s assertion failed to establish good cause because once she was served, she was charged with notice of all subsequent healings. In support of this argument, Unifund cites Kocsis v. Kocsis, 28 S.W.3d 505 (Mo.App. E.D.2000). In that case, the husband in a dissolution action sought to set aside a default judgment entered against him. Id. at 508. Husband did not respond to the pleadings and did not appear at any court proceedings including the default hearing, which was held over one year after wife filed her petition. Id. at 507-08. To establish good cause for his default, Husband asserted that he did not receive notice of the default hearing. Id. at 508. The Eastern District recited the longstanding rule that “once properly served, a party who defaults is charged with notice of all subsequent proceedings in the case.” Id. 3 It concluded that husband failed to show good cause because wife had filed a notice of the hearing and he was in default and, thus, charged with notice of all subsequent proceedings in the case. Id.

The rule applied in Kocsis and other cases that no notice need be given to a defaulting party does not apply in this case because Ms. Rodgers was not in default. Chapter 517 sets out the procedure for civil cases originally filed before associate circuit judges. State ex tel. Burns v. Gillis, 102 S.W.3d 66, 71 (Mo.App. W.D.2003). Section 517.031.2 provides that after a written petition is filed, affirmative defenses, counterclaims, and cross claims shall be filed. “No other responsive pleading need be filed.” § 517.031.2. If no responsive pleading is filed, statements made in the petition shall be considered denied. Id. Although the summons noted that Ms. Rodgers was permitted to file a responsive pleading in the case, it and section 517.031.2 did not require her to do so. Ms. Rodgers did not file an answer; thus, the statements made in Unifund’s petition were considered denied under section 517.031.2. Additionally, in her letter to the court requesting a continuance, Ms. Rodgers specifically denied the claim against her asserting that she did not owe the debt.

Furthermore, chapter 517 permits continuation of a case. Gillis, 102 S.W.3d at 71. Section 517.051 provides, “Every case shall be tried upon the return date of the summons, when the summons has been duly and timely served, or on a date to which the case has been continued.”

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Related

State Ex Rel. Burns v. Gillis
102 S.W.3d 66 (Missouri Court of Appeals, 2003)
Robson v. Willers
784 S.W.2d 893 (Missouri Court of Appeals, 1990)
Barney v. Suggs
688 S.W.2d 356 (Supreme Court of Missouri, 1985)
Crain v. Crain
19 S.W.3d 170 (Missouri Court of Appeals, 2000)
Kocsis v. Kocsis
28 S.W.3d 505 (Missouri Court of Appeals, 2000)
Breckenridge Material Co. v. Enloe
194 S.W.3d 915 (Missouri Court of Appeals, 2006)
Brungard v. RISKY'S INC.
240 S.W.3d 685 (Supreme Court of Missouri, 2007)
Bredeman v. Eno
863 S.W.2d 24 (Missouri Court of Appeals, 1993)

Cite This Page — Counsel Stack

Bluebook (online)
281 S.W.3d 881, 2009 Mo. App. LEXIS 428, 2009 WL 812697, Counsel Stack Legal Research, https://law.counselstack.com/opinion/unifund-ccr-partners-v-rodgers-moctapp-2009.