Union Lumber Co. v. Miller​​​​​

388 P.3d 327, 360 Or. 767, 2017 Ore. LEXIS 43
CourtOregon Supreme Court
DecidedJanuary 20, 2017
DocketCC 10-07-46539; CA A152241; SC S062459
StatusPublished
Cited by28 cases

This text of 388 P.3d 327 (Union Lumber Co. v. Miller​​​​​) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Union Lumber Co. v. Miller​​​​​, 388 P.3d 327, 360 Or. 767, 2017 Ore. LEXIS 43 (Or. 2017).

Opinion

BREWER, J.

The decision of the Court of Appeals is reversed. The order of the circuit court denying defendants’ motion to set aside the general judgment and the supplemental judgment awarding costs and attorney fees to plaintiff are affirmed.

*769 BREWER, J.

The question in this case is whether the trial court erred in denying defendants’ motion under ORCP 71 B(l) to set aside a general judgment entered against them on grounds of excusable neglect and mistake. The Court of Appeals reversed the trial court’s ruling, concluding that the judgment was entered as a result of mistakes made by plaintiff and a court-appointed arbitrator with respect to the service of case-related documents on defendants. Union Lumber Co. v. Miller, 263 Or App 619, 625, 328 P3d 1284 (2014). Because we conclude that defendants were not entitled to relief from the judgment on the grounds asserted, we reverse the decision of the Court of Appeals and affirm the trial court’s order denying defendants’ motion to set aside the judgment. 1

I. FACTS AND PROCEDURAL HISTORY

On review of an order denying a motion to set aside a judgment, we set out the undisputed facts in the light most favorable to the moving party. See Wershow v. McVeety Machinery, 263 Or 97, 103, 500 P2d 696 (1972) (so viewing facts on review of motion to set aside default judgment). However, we accept the trial court’s findings of disputed fact, if there is evidence to support those findings. See Hiatt v. Congoleum Industries, 279 Or 569, 576, 569 P2d 567 (1977) (“If grounds are apparent which could cause the trial court to suspect the uncontradicted statements in the affidavit, the trial court does not need to accept such statements as correct.”).

In June 2002, defendant Ron Miller entered into an open account agreement with plaintiff, the owner and operator of building supply stores, for the purchase of building supply materials. In July 2010, plaintiff filed an action for breach of contract and unjust enrichment against Ron Miller and his spouse Linda Miller, seeking $17,865 as the unpaid balance on the account. The complaint alleged that defendants’ son, Ean Miller, had purchased building *770 materials from plaintiff, charging those materials to the Miller account with his father’s authority. The complaint further alleged that the materials that Ean purchased were delivered to properties that defendants owned and were used to improve those properties and that, for several years, defendants had paid the charges that Ean had made on the account.

Plaintiff personally served Linda Miller with summons and complaint at defendants’ residence in Wisconsin, on August 3, 2010. After Linda was served with the summons and complaint, defendants each signed powers of attorney authorizing Ean “to answer the complaint filed in [this case].” On August 30, 2010, Ean filed an answer for defendants, attaching the two powers of attorney as exhibits. The answer denied that Ean had authority to charge building materials to his father’s account and denied that the materials that Ean had purchased were used to improve defendants’ properties. The answer affirmatively alleged that Ean had purchased the materials and incurred the charges for work done on other people’s property. In a counterclaim, the answer further alleged that collection of the account was stayed by Ean’s voluntary bankruptcy petition. The answer was signed “Ean Miller P.O.A.” and it designated defendants’ address as “2816 N 2nd St., La Grande, OR 97850.” Ean filed the answer in the circuit court, and the case was assigned to court-annexed arbitration pursuant to ORS 36.405(l)(a). 2

Ron was served with summons and complaint by substitute service on Linda at their Wisconsin residence address in November 2010. In April 2011, the court appointed an arbitrator, copying the notice of appointment to “Jonel Ricker [plaintiffs attorney], Ron Miller, etal [sic].” The arbitrator then sent notices of potential hearings dates, *771 his arbitration rates, and a hearing date and location to plaintiffs counsel and to “Ean Miller POA” at the La Grande address. Plaintiffs counsel sent a prehearing statement of proof to defendants at the La Grande address as well.

Neither defendants nor Ean participated in the arbitration proceeding. At the hearing, plaintiff orally moved to strike defendants’ answer on the ground that Ean was not licensed to practice law in the State of Oregon and, therefore, lacked authority to represent defendants in the action. The arbitrator granted that motion, then received plaintiffs evidence and heard testimony from plaintiffs witnesses. 3

The next day, the arbitrator issued a decision and award, which was mailed to plaintiffs counsel and to defendants at the La Grande address. In the decision and award, the arbitrator determined that plaintiff was entitled to recover the amount sought on its claims, and the arbitrator directed plaintiffs counsel to prepare a general judgment in accordance with findings of fact and conclusions of law that the arbitrator made in support of his decision. Plaintiffs counsel filed a proposed general judgment and money award, attorney fee statement, and statement of costs and disbursements with the court on June 16, 2011. Plaintiffs counsel mailed copies of those documents to defendants at the La Grande address. The court entered the general judgment and money award on July 14, 2011. On July 18, 2011, Ean received a notice of entry of judgment that the court had mailed to the La Grande address.

After receiving the notice of entry of judgment, Ean contacted defendants, who then obtained counsel and filed a motion to set aside the judgment under ORCP 71 B(l). 4 In *772 the motion, defendants generally asserted that the judgment should be set aside due to mistake, inadvertence, surprise, or excusable neglect that resulted in defendants’ failure to defend the action. 5 More particularly, defendants argued that they “should be excused from failing to appear” because (1) case-related documents were mailed to Ean’s address, not defendants; (2) Ean had moved his residence and had not received his mail; and (3) Ean was authorized only to file the answer on defendants’ behalf, not to otherwise defend them in this action. Because they had given Ean authority only to file the answer, defendants argued that case-related documents should have been mailed to them at their residence address in Wisconsin.

In support of their motion, defendants each filed declarations stating that they did not know that Ean could not lawfully file an answer for them. They further averred that the authority that they had granted to Ean under the powers of attorney extended only to filing the answer and that they otherwise had intended to personally defend the action.

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Cite This Page — Counsel Stack

Bluebook (online)
388 P.3d 327, 360 Or. 767, 2017 Ore. LEXIS 43, Counsel Stack Legal Research, https://law.counselstack.com/opinion/union-lumber-co-v-miller-or-2017.