Walker & Zanger (West Coast) Ltd. v. Stone Design S.A.

4 F. Supp. 2d 931, 41 Fed. R. Serv. 3d 687, 1997 U.S. Dist. LEXIS 23047, 1997 WL 879579
CourtDistrict Court, C.D. California
DecidedMay 1, 1997
DocketCV 95-2775 RAP (JGX)
StatusPublished
Cited by4 cases

This text of 4 F. Supp. 2d 931 (Walker & Zanger (West Coast) Ltd. v. Stone Design S.A.) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Walker & Zanger (West Coast) Ltd. v. Stone Design S.A., 4 F. Supp. 2d 931, 41 Fed. R. Serv. 3d 687, 1997 U.S. Dist. LEXIS 23047, 1997 WL 879579 (C.D. Cal. 1997).

Opinion

ORDER DENYING DEFENDANT’S MOTION FOR RELIEF FROM VOID JUDGMENT

PAEZ, District Judge.

I.

FACTUAL AND PROCEDURAL BACKGROUND

This breach of contract action arose from plaintiff Walker & Zanger (West Coast) Ltd.’s (“Walker Zanger”) purchase of limestone products from defendant Stone Design S.A., a French corporation. From 1988 to 1994, plaintiff bought limestone products from defendant on numerous occasions. In 1995, plaintiff brought this action to recoup losses for ten shipments of allegedly unmer-chantable limestone for which Stone Design did not accept plaintiffs debit memo. Plaintiff alleged causes of action for (1) breach of contract; (2) breach of express warranty; (3) breach of implied warranty of merchantability; (4) breach of implied warranty of fitness; and (5) money had and received. Plaintiff alleged total damages in the amount of $131,-556.13, comprised of net general damages in the amount of $33,977.03 and lost profits in the amount of $97,579.10. Plaintiff further requested an award of costs incurred in the amount of $3,293.63.

Defendants were served with the complaint on or about June 23, 1995, and the proof of service was filed with the Court on August 2, 1995. Stone Design failed to appear in the action, and the clerk of the Court entered default on August 8, 1995. On November 30, 1995, plaintiff filed an application for default judgment. The Court granted plaintiffs, application, and a default judgment was entered. On January 22, 1997, the Court granted plaintiff’s request to appoint a private process-server to serve the writ of execution on defendant.

According to defendant, plaintiff attempted to satisfy a portion of its judgment with the assistance of another corporation, Sherman-Loehr Custom Tile Works (“Custom Title”). According to defendant, Custom Tile ordered approximately $75,000 worth of limestone from Stone Design and then refused to pay, stating that it had an assignment from Walker Zanger for a portion of the judgment.

Pending before the Court is Stone Design’s Motion for Relief from Void Judgment pursuant to Fed.R.Civ.P. 60(b). Stone Design contends the judgment is void for lack of subject-matter jurisdiction because (1) pursuant to the parties’ arbitration agreement the dispute had to be arbitrated in France; (2) *934 France’s Civil Code gives French courts exclusive jurisdiction over this action because the defendant is a French national; and (3) the Court lacked personal jurisdiction over Stone Design. Defendant argues that because the judgment is void, the Court must vacate the partial execution of the judgment.

Upon consideration of the parties’ moving, opposition and reply papers, defendant’s motion for relief from void judgment is denied.

II.

DISCUSSION

A. Legal Standard

As- a general rule a judgment is “void” if the party against whom default was entered was never properly served or received no actual notice of the action before the answer was due; if the court lacked jurisdiction over the parties; or if the court lacked subject-matter jurisdiction. See Sehwarzer, Tashima & Wagstaffe, CalPrao. Guide: Fed.Civ.PRO. Before Trial § 6:178-6:182 (The Rutter Guide 1997) (hereinafter Sehwarzer).

Federal Rule of Civil Procedure 60(b)(4) provides, in pertinent part:

[o]n motion and upon such terms as are just, the court may relieve a party or a or a party’s legal representative from a final judgment, order, or proceeding for the following reasons ... (4) the judgment is void[.]

Fed.R.Civ.P. 60(b). Certain procedural or jurisdictional defects in obtaining a default judgment render the judgment “void” within the meaning of Fed.R.Civ.P. 60(b)(4). Unlike other bases for relief under Fed.R.Civ.P. 60, no time limit exists to bring a motion to vacate a judgment as void. Charles Alan Wright, Arthur R. Miller, Mary Kay Kane, Federal Rules Of Civil Prooedure § 2862 (West 1995, 1996). Moreover, although Fed. R.Civ.P. 60(b)(4) appears to require a motion to vacate for lack of jurisdiction to be made within a “reasonable time,” court have consistently held that there is no time limit for such a motion. See e.g. United States v. Williams, 109 F.Supp. 456 (D.C.Ark.1952) (finding that a delay of twenty-two years after entry of judgment did not preclude motion to vacate as void under Fed.R.Civ.P. 60(b)(4)). Courts do not have discretion to decline to vacate a void judgment.

Relief is not available under Fed. R.Civ.P. 60(b) merely because the disposition was erroneous. Combs v. Nick Garin Trucking, 825 F.2d 437, 442 (D.C.Cir.1987) Instead, “it must be determined that the rendering court was powerless to enter it.” Id. For example, where the court lacked personal jurisdiction over the defendant or the requirements for effective services were not satisfied, the default judgment is void and must be vacated. Id.

B. Service

Judgment entered subsequent to defective service of the summons and complaint is void. Sehwarzer, § 6:181. Once the validity of service of process is contested, the plaintiff bears the burden of establishing its validity. See Carimi v. Royal Carribean Cruise Line, Inc., 959 F.2d 1344, 1346 (5th Cir.1992). Here, there is no dispute regarding the validity of service of the summons and complaint. 1

Under Fed.R.Civ.P. 55(b)(2), plaintiff need only serve the defendant with notice of the application for default if the defendant has appeared in the action. Sehwarzer, § 6:89. “Normally, an appearance in an action involves some presentation or submission to the court. [ ] But because judgments by default are disfavored, a court usually will try to find that there has been an appearance by defendant.” Direct Mail Specialists, Inc. v. Eclat Computerized Tech., Inc., 840 F.2d 685, 689 (9th Cir.1988) (internal quotation marks and citations omitted) Thus, a defendant who has not formally appeared, for ex *935 ample by filing a responsive pleading, may be deemed to have appeared for purposes of Fed.R.Civ.P.

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4 F. Supp. 2d 931, 41 Fed. R. Serv. 3d 687, 1997 U.S. Dist. LEXIS 23047, 1997 WL 879579, Counsel Stack Legal Research, https://law.counselstack.com/opinion/walker-zanger-west-coast-ltd-v-stone-design-sa-cacd-1997.