RDG Oil & Gas, LLC v. Jayne Morton Living Trust
331 P.3d 1199
| Wyo. | 2014Background
- Morton bid on federal oil and gas leases; two development agreements were formed with RDG Oil and Gas, LLC.
- Trust filed 2012 breach-of-contract suit; RDG did not respond; district court entered default and later default judgment.
- Service of process was directed to RDG's registered agent; RDG did not receive the pleadings.
- RDG's registered agent failed to forward the complaint; RDG did not answer by the deadline.
- RDG moved to set aside default and default judgment six months after entry; district court held no excusable neglect and denied relief.
- Appellate review focuses on whether the district court abused its discretion in denying relief.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the district court abused its discretion in denying relief from default and default judgment. | Trust contends RDG failed to show good cause or excusable neglect. | RDG argues excusable neglect due to failed service by registered agent and ongoing settlement discussions. | No abuse of discretion; relief denied. |
Key Cases Cited
- Fluor Daniel (NPOSR), Inc. v. Seward, 956 P.2d 1131 (Wyo.1998) (establishes standard for discretionary relief from default)
- Nowotny v. L & B Contract Indus., 933 P.2d 452 (Wyo.1997) (defines abuse of discretion standard in setting aside default)
- Vanasse v. Ramsay, 847 P.2d 993 (Wyo.1993) (default entry is a clerical act; burden on movant to show relief justified)
- Multiple Resort Ownership Plan, Inc. v. Design-Build-Manage, Inc., 45 P.3d 647 (Wyo.2002) (no open-ended extension justifies neglect; time limitations are basic)
- Countrywide Home Loans, Inc. v. First Nat. Bank of Steamboat Springs, N.A., 144 P.3d 1224 (Wyo.2006) (affirmed district court's denial of default judgment relief for lack of timely response)
- Orosco v. Schabron, 9 P.3d 264 (Wyo.2000) (undiagnosed illness not sufficient for excusable neglect)
- Chevron U.S.A., Inc. v. Department of Revenue, 155 P.3d 1041 (Wyo.2007) (calendaring deadline mistake not excusable neglect)
- Platt v. Creighton, 150 P.3d 1194 (Wyo.2007) (default upheld where counsel failed to timely file without formal extension)
- United States v. Topeka Livestock Auction, Inc., 392 F. Supp. 944 (N.D. Ind. 1975) (federal standard cited regarding excusable neglect)
- Asso. Press v. J.B. Broadcasting, 54 F.R.D. 563 (S.D.N.Y.1972) (no adequate excuse shown for failure to refer matter to counsel)