Xtra Lease, LLC v. Pigeon Freight Services, Inc.

CourtMissouri Court of Appeals
DecidedFebruary 7, 2023
DocketED110391
StatusPublished

This text of Xtra Lease, LLC v. Pigeon Freight Services, Inc. (Xtra Lease, LLC v. Pigeon Freight Services, Inc.) 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
Xtra Lease, LLC v. Pigeon Freight Services, Inc., (Mo. Ct. App. 2023).

Opinion

In the Missouri Court of Appeals Eastern District DIVISION TWO

XTRA LEASE, LLC, ) ED110391 ) Respondent, ) Appeal from the Circuit Court of ) St. Louis County v. ) 21SL-CC01024 ) PIGEON FREIGHT SERVICES, INC., ) Honorable John N. Borbonus ) Appellant. ) Filed: February 7, 2023

Pigeon Freight Services Inc., (hereinafter “Pigeon Freight”) appeals the judgment denying

its motion to set aside a default judgment entered in favor of Xtra Lease LLC (hereinafter “Xtra

Lease”). Pigeon Freight failed to preserve its argument that there was good cause to set aside the

default judgment because of confusion regarding the status of the litigation. The return of service

was facially valid and Pigeon Freight did not present clear and convincing evidence showing it

was not properly served. The circuit court did not abuse its discretion by denying Pigeon Freight’s

motion to vacate the default judgment. We affirm the judgment.

Factual and Procedural Background

On March 4, 2021, Xtra Lease filed a two-count petition against Pigeon Freight alleging

breach of contract and action on account. On March 15, 2021, before service of the summons and

petition, Pigeon Freight’s President, Sergiu Tintuic, (hereinafter “Tintuic”) emailed counsel for

Xtra Lease and stated it appeared “Xtra Lease filed a lawsuit in St. Louis and [Pigeon Freight] will be served soon.” Three days later, on March 18, 2021, Xtra Lease utilized a special process server

appointed by the circuit court to serve the summons and petition on Pigeon Freight at its office in

Lansing, Illinois. The process server executed an affidavit stating he served copies of both

documents by leaving them at Pigeon Freight’s Lansing, Illinois office with a man named “Sam,”

who accepted service and identified himself as the general manager. Within two hours of service,

Tintuic emailed Xtra Lease’s counsel to acknowledge receipt of the summons and ask for

information regarding settlement.

Over the next few weeks, Tintuic and Xtra Lease’s counsel exchanged emails attempting

to negotiate a settlement. On April 27, 2021, Xtra Lease filed the return of service with the special

process server’s affidavit.

On April 28, 2021, Xtra Lease’s counsel emailed Tintuic a final settlement offer. He

informed Tintuic that if the offer was not accepted, “Xtra Lease will move forward with its case.”

Tintuic responded but did not accept the offer. Pigeon Freight never filed a responsive pleading

or requested an extension of time to do so.

On May 26, 2021, Xtra Lease filed a motion for default judgment. A hearing was set for

June 15, 2021. Pigeon Freight did not respond or appear at the hearing. The circuit court entered

a default judgment against Pigeon Freight for $99,899.97, plus interest.

On September 23, 2021, Pigeon Freight filed a motion to vacate the default judgment

alleging the circuit court lacked jurisdiction because of improper service. The circuit court held

an evidentiary hearing on October 12, 2021. Tintuic and Sam testified on behalf of Pigeon Freight.

They testified Sam was not Pigeon Freight’s general manager and that it did not maintain the

Lansing, Illinois office on the date of service. Xtra Lease introduced evidence showing Pigeon

Freight maintained offices in Lansing, Illinois, that Tintuic received service, and that Sam was

2 authorized to accept service on behalf of Pigeon Freight. On October 18, 2021, the circuit court

entered an order and judgment denying the motion to vacate and finding Xtra Lease effectuated

proper service by delivering a copy of the summons and petition to Pigeon Freight’s Lansing,

Illinois business office to Sam who, as an “independent contractor, was in fact “the person in

charge of” the office.

Pigeon Freight asserts three points on appeal. 1 It claims: (1) the circuit court abused its

discretion by denying the motion to vacate because it was filed timely, based on good cause, and

raised a meritorious defense; (2) the return of service was facially deficient, rendering the judgment

void; and (3) the proof of service was deficient because Xtra Lease offered no evidence showing

Sam was in charge of its Lansing, Illinois office or that it maintained an office there.

This Court generally reviews the circuit court’s denial of a motion to set aside a default

judgment for abuse of discretion. Jones v. Riley, 560 S.W.3d 540, 544 (Mo. App. E.D. 2018).

“However, we review de novo whether a judgment should be vacated because it is void.”

Morris v. Wallach, 440 S.W.3d 571, 575 (Mo. App. E.D. 2014).

1 Pigeon Freight’s brief violates Rule 84.04(d) regarding points relied and Rule 84.04(e) regarding the argument. Despite Pigeon Freight’s noncompliance with Rule 84.04, this Court “has discretion to review noncompliant points gratuitously, overlooking the technical deficiencies in the points relied on, when the deficiencies do not impede review on the merits.” Lexow v. Boeing Co., 643 S.W.3d 501, 508 (Mo. banc 2022) (electing to not exercise discretion to review noncompliant points and dismissing the appeal). We exercise our discretion to review the merits because Pigeon Freight’s briefing sufficiently apprises this Court of the factual and legal bases of its allegations of error. See Tauvar v. Am. Fam. Mut. Ins. Co., 269 S.W.3d 436, 438 (Mo. App. W.D. 2008) (reviewing an appeal on the merits because the technically noncompliant brief “sufficiently apprises this court of the facts and argument necessary for this court to address the merits of the claim”). We remind counsel that within the last year, both this Court and the Missouri Supreme Court have repeatedly dismissed appeals or individual points relied on due to counsel’s noncompliance with the clear, unequivocal, and mandatory briefing requirements in Rule 84.04. See eg., Lexow v. Boeing Co., 643 S.W.3d 501, 510 (Mo. banc 2022); Wilson v. Schmelzer, 653 S.W.3d 913, 917 (Mo. App. E.D. 2022); Gan v. Schrock, 652 S.W.3d 703, 711 (Mo. App. W.D. 2022); Young v. Missouri Dep't of Soc. Servs., 647 S.W.3d 73, 78 (Mo. App. E.D. 2022); Jefferson v. Missouri Dep't of Soc. Servs., 648 S.W.3d 50, 55 (Mo. App. E.D. 2022); Schultz v. Bank of Am. Merrill Lynch Credit Corp., 645 S.W.3d 689, 697 (Mo. App. E.D. 2022) (dismissing appellant’s first point relied on). Counsel can avoid the risk of dismissal by complying with Rule 84.04.

3 When applying the abuse of discretion standard to a decision denying a motion to set aside

a default judgment, this Court favors a decision on the merits and, therefore, affords the circuit

court “narrowed discretion” to deny a motion to set aside a default judgment. Brungard v. Risky's

Inc., 240 S.W.3d 685, 687-88 (Mo. banc 2007). The general policy favoring disposition on the

merits, however, “must be carefully applied to the facts of each case in the interest of justice; for,

the law defends with equal vigor the integrity of the legal process and procedural rules and, thus,

does not sanction the disregard thereof.” Sprung v. Negwer Materials, Inc., 775 S.W.2d 97, 100

(Mo. banc 1989).

Analysis

1. Pigeon Freight did not preserve its first point relied on.

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