Varghese v. LBM Financial, LLC

28 Mass. L. Rptr. 524
CourtMassachusetts Superior Court
DecidedJuly 25, 2011
DocketNo. MICV201001268
StatusPublished

This text of 28 Mass. L. Rptr. 524 (Varghese v. LBM Financial, LLC) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Varghese v. LBM Financial, LLC, 28 Mass. L. Rptr. 524 (Mass. Ct. App. 2011).

Opinion

Connolly, Thomas E., J.

This matter came on before this Court on defendant’s Motion for Relief from Judgment Pursuant to Mass.R.Civ.P. 60(b)(6) and 60(b)(1).1

The default which is the subject of this motion appears to be the preliminary default for failure to file answers to Counts VII and IX to the plaintiffs Complaint. It is not a final judgment as that term is used in Mass.R.Civ.P. 60(b) as a hearing on an assessment of damages would need to be held. The default which is the subject of this motion was entered for failure to file an answer to Counts VII and IX and was entered on June 29, 2010, soon followed by the filing of plaintiffs request for an assessment of damages on Counts VII and IX on July 8, 2010.

The key dates concerning this defendants’ motion to remove default are as follows:

April 2, 2010; Civil Action commenced.

April 14, 2010: Counsel for defendant accepts service on behalf of all three defendants.

May 5, 2010: Application by plaintiffs to default defendants for failure to answer or otherwise plead. Defendants defaulted.

May 25, 2010: Assented to Motion to Remove Default filed by defendants.

Defendant files motion to dismiss under Mass.R.Civ.P. 12(b)(6), except as to Counts Vil and IX.

June 10, 2010: Default removed.

June 29, 2010: Plaintiffs file another application to default the defendants for failure to answer or otherwise plead as to Counts VII and IX.

[525]*525July 8, 2010: Plaintiff files an application to assess damages on Counts VII and IX.

July 29, 2010: Defendant files Motion to Vacate the Default as to Counts VII and IX.

August 11, 2010: Court denies defendants motion to vacate default as to Counts VII and IX.

Sept. I, 2010: Defendants attempt to file an answer as to Counts VII and IX, and it is returned, by Clerk to defendants’ counsel due to default.

Sept. 20, 2010: Defendants’ Motion to Vacate default and file answers for Counts VII and IX.

Nov. 5, 2010: Plaintiffs’ Request for Entry of Final Judgment in sum certain $2,695,530.75.

Nov. 17, 2010: Hearing on Motion to Dismiss all counts except VII and IX.

Hearing on defendants’ Motion to Remove Default on Counts VII and IX (docket #11) before a different judge.

Nov. 24, 2010: Court denies Motion to Remove Default on Counts VII and IX (docket #11).

Feb. 3, 2011: Defendants file answer to all counts except as to Counts VII and IX.

March 15, 2011: Defendant flies Motion for Relief from Default Judgment Pursuant to Mass.R.Civ.P. 60(b).

July 14, 2011: Hearing held on defendants’ Motion for Relief from Default Judgment Pursuant to Mass.R.Civ.P. 60(b) (Connolly, J.) which is taken under advisement.

Court continues hearing on assessment of damages on Counts VII and IX, pending Court’s action on Motion to Vacate Judgment.

DISCUSSION

The above time record indicates that this civil action was commenced, that is, filed with the Clerk, on April 2, 2010. Counsel for the three defendants “accepted” service in writing for the three defendants on April 14, 2010. The plaintiffs filed an application to default the three defendants on May 5, 2010. The plaintiffs assented to the defendants’ motion to remove the default on May 25,2010, and the defendants filed their motion to dismiss pursuant to Mass.R.Civ.P. 12(b)(6) on Counts 1, 2, 3, 4, 5, 6, 8, 10, 11 and 12 (specifically not including Counts 7 and 9) on May 25, 2010.

Defendants’ counsel did not file an answer to Counts 7 and 9, because, as he has represented to the Court, he thought that he didn’t have to until the Court acted on his pending Motion to Dismiss. Then, on June 29, 2010, plaintiffs’ counsel then proceeded to file another application to default the defendants for failure to file their answers to Counts 7 and 9 and on July 8, 2010 filed an application to assess damages on Counts 7 and 9.

Thereinafter, the defendant has been trying unsuccessfully to remove the default as to Count 7 and 9 by filing two motions to vacate the default. Both motions were heard by the Court and denied by the Court. The first motion was filed July 27, 2010 and denied on August 11, 2010 (by a now retired judge) and the second motion was filed on July 27, 2010 and denied on November 24, 2010 by a different judge.

On March 15, 2011, the defendants again filed a motion for relief from judgment under Mass.R.Civ.P. 60(b). The plaintiffs’ motion for an assessment of damages and the defendants’ motion for relief from judgment were set down for a hearing on July 14,2011 at 2:00 p.m.

The Court had read all the papers in the case prior to the hearing. The Court held a hearing on the motion for relief from default judgment and took it under advisement. The Court did not take any action on the motion for an assessment of damages, as the Court’s action on the motion for relief from judgment will determine what, if any, action will need to be taken on the plaintiffs’ Motion for an Assessment of Damages.

The question presented is as follows:
Does the filing of a partial motion to dismiss certain Counts (here, Counts 1, 2, 3, 4, 5, 6, 8, 10, 11, and 12) stay the time period of filing an answer as the remaining counts (here, Counts 7 and 9)?

The Supreme Judicial Court has indicated that “[w]e generally follow the Federal Courts’ interpretation of Federal rules of civil procedure in construing our own identical rules . . . Solimene v. B. Gravel & Co., KG, 399 Mass. 790, 800 (1987) (’Because the Massachusetts Rules of Civil Procedure are patterned after the Federal rules, we interpret our rules consistently with the construction given their Federal counterparts . . .’)” Hermanson v. Szafarowicz, 457 Mass. 39, 49 (2010).

The defendants’ counsel in his submitted memorandum cites only one case in support of its position that the filing of a partial motion to dismiss does not stay the filing of an answer as to the remaining counts, namely, Gerluch v. Michigan Bell Telephone Co., 448 F.Sup. 1168 (E.D.Mich. 1978).

Gerluch “considered whether the filing a partial motion to dismiss certain Counts stayed the time period for filing an answer as to the remaining Counts. Reasoning that separate counts form independent losses of liabilify, the Court in Gerluch found "no reason for delaying the progress of the litigation with respect to those Counts of a Complaint which are not addressed by a motion filed under Rule 12(b). Gerluch at 448 F.Sup. at 1174.” Timgley Systems, Inc. v. CSC Consulting, Inc., 152 F.Sup.2d 95, 122 (D.Ma., 2001, Lindsey, J.). The Court in Timgley, supra at 122, stated in criticism of Gerluch decision as follows:

Since the issuance of the Gerluch decision, no court has relied on its reasoning or followed its rulings. In fact, one court explicitly rejected its reasoning. Brocksopp Engineering, Inc. v. Bach-Simpson Ltd., [526]*526136 F.R.D. 485 (E.D.Wis. 1991). Relying on the language of Rule 12(a) and criticizing the Gerluch approach, the court in Brocksopp determined that, “a partial 12(b) motion enlarges the time to file an answer” with respect to the claims not addressed in the motion to dismiss.

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Related

Ashby v. McKenna
331 F.3d 1148 (Tenth Circuit, 2003)
Solimene v. B. GRAUEL & CO., KG
507 N.E.2d 662 (Massachusetts Supreme Judicial Court, 1987)
Hermanson v. Szafarowicz
927 N.E.2d 982 (Massachusetts Supreme Judicial Court, 2010)
Brocksopp Engineering, Inc. v. Bach-Simpson Ltd.
136 F.R.D. 485 (E.D. Wisconsin, 1991)
Finnegan v. University of Rochester Medical Center
180 F.R.D. 247 (W.D. New York, 1998)

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Bluebook (online)
28 Mass. L. Rptr. 524, Counsel Stack Legal Research, https://law.counselstack.com/opinion/varghese-v-lbm-financial-llc-masssuperct-2011.