LaFrance Architect v. Point Five Development South Burlington, LLC, 91 A.3d 364

2009 contract between LaFrance Architect (plaintiff) and Point Five Development South Burlington, LLC (defendant) for architectural services on a Walgreens project.
January 31, 2011 invoice issued for services; March 4, 2011 termination letter citing unspecified contract failures and design errors.
Plaintiff filed a mechanic’s lien; March 30, 2011 defendant bonded to discharge lien but failed to provide a copy of the bond to plaintiff.
June 16, 2011 plaintiff filed suit to perfect lien with attachment and damages; mediation/arbitration provisions triggered a potential stay.
Defendant was personally served June 27, 2011 but did not answer; August 10, 2011 attachment hearing held; September 22 damages hearing; September 30, 2011 default judgment for $69,024.90 against defendant; defendant did not participate.
March 9, 2012 defendant moved for relief from judgment under Rule 55/60; court denied; defendant appealed.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether the trial court properly considered meritorious defenses in a Rule 60(b) default-judgment context	LaFrance argues court should have weighed meritorious defenses tied to plaintiff’s claims	Point Five contends defenses exist (mediation/defective performance) and merits should be considered	Trial court erred by not considering meritorious defenses to the underlying claim
Whether defendant's Rule 60(b) motion established a prima facie meritorious defense	Plaintiff asserts defenses lack specificity and cannot constitute meritorious defense	Point Five asserts its defenses (deficient services, counterclaim, arbitration/mediation issues) are meritorious	Rule 60(b) motion did not plead a prima facie meritorious defense with sufficient particularity
Whether waiver of arbitration/mediation rights bars meritorious defenses under Rule 60(b)	Plaintiff relies on waiver to prevent defenses from prevailing	Defendant argues arbitration/mediation rights should negate or negate defenses	Waiver found; arbitration/mediation defenses not meritorious as a matter of law

Desjarlais v. Gilman, 143 Vt. 154 (1983) (Rule 60(b) relief; appellate review of discretion in default judgments)
Courtyard Partners v. Tanner, 157 Vt. 638 (1991) (meritorious defenses can justify setting aside defaults; factors include prejudice and culpability)
Town of Killington, 2003 VT 87A (2003) (excusable neglect standards; distinction from default-judgment context)
Lamell Lumber Corp. v. Newstress Int'l, Inc., 2007 VT 83 (2007) (waiver factors for arbitration; timing, participation, prejudice)
Menorah Insurance Co. v. INX Reinsurance Corp., 72 F.3d 218 (1995) (waiver by delay; prejudice and litigation costs as factors)
Gen. Star Nat’l Ins. Co. v. Administratia Asigurarilor de Stat, 289 F.3d 434 (2002) (waiver and arbitration-related considerations; prejudice and delay)
Pomfret Farms Ltd. P’ship v. Pomfret Assocs., 174 Vt. 280 (2002) (default judgments and compulsory counterclaims; res judicata effects)