Hoff v. Lake County Abstract & Title Co.
2011 MT 118
| Mont. | 2011Background
- Hoff filed suit for contract and negligence against Countrywide and Lake County Title on June 23, 2009; Countrywide failed to answer within 20 days and default was entered August 25, 2009.
- Countrywide appeared November 2, 2009 and sought to set aside default via Rule 55(c) and then Rule 60(b); the court denied both, leading to a default judgment on September 10, 2010.
- Hoff disclosed Beebe’s life estate in the property at issue; closing documents and title policy showed the life estate, but Hoff was not informed.
- Countrywide loan documents required Hoff to own title in fee simple; Beebe life estate conflicted with loan terms and title insurance disclosed the life estate.
- Hoff notified Countrywide of the life estate and requested loan modification; Countrywide refused to modify and took no further action before default proceedings.
- Hoff sought attorney fees under the trust indenture and statutory reciprocal fees provision; the court denied fees before issuing the default judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether 55(c) setting aside is appropriate | Hoff | Countrywide | No; no good cause to set aside the default |
| Whether 60(b) relief from default judgment is proper | Hoff | Countrywide | No; procedural defect; no final judgment to relief from |
| Whether default judgment against Countrywide was proper | Hoff | Countrywide | Yes; default judgment affirmed |
| Whether attorney fees should be awarded to Hoff | Hoff | Countrywide | No; fees denied under indenture and statute |
Key Cases Cited
- Crib v. Matlock Commun., Inc., 236 Mont. 27, 768 P.2d 337 (1989) (Mont. 1989) (good cause and Cribb factors; standard for setting aside default)
- Essex Ins. Co. v. Jaycie, Inc., 2004 MT 278, 323 Mont. 231, 99 P.3d 651 (Mont. 2004) (flexible, courts consider prejudice and merits)
- Engelsberger v. Lake Co., 2007 MT 211, 339 Mont. 22, 167 P.3d 902 (Mont. 2007) (defining liberal good cause standard for 55(c))
- Sun Mt. Sports, Inc. v. Gore, 2004 MT 56, 320 Mont. 196, 85 P.3d 1286 (Mont. 2004) (slumber on rights; willfulness and diligence in default context)