331 S.W.3d 704
Mo. Ct. App.2011Background
- Saturn sued to vacate an arbitration award in Clay County, claiming the arbitrator exceeded powers and that arbitration procedures were not followed.
- McDaris, Saturn’s former employee, previously obtained an arbitration award in his favor on sexual harassment claims.
- Saturn served the petition to vacate on February 10, 2010; a default judgment was entered March 24, 2010 for McDaris’s failure to timely answer.
- McDaris filed an untimely answer March 30, 2010 and later moved to set aside the default, arguing good cause and a meritorious defense.
- The trial court granted the motion to set aside the default on May 12, 2010, concluding good cause and a meritorious defense existed.
- Saturn appeals, arguing lack of good cause and lack of a meritorious defense, and challenging reliance on an untimely, unaffirmed motion to set aside.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did McDaris show good cause to set aside the default? | McDaris: inadvertent delay due to ongoing consolidation talks and other suits; not intentional to impede. | Saturn: delay was not excusable; default should stand. | Yes; good cause found. |
| Did McDaris have a meritorious defense to Saturn's petition? | McDaris: dispute over enforceability of arbitration award; proceedings questioned by procedures under the arbitration agreement. | Saturn: defense insufficient or unfounded. | Yes; meritorious defense established. |
| Must a motion to set aside a default be verified or supported by sworn evidence? | McDaris did not verify and lacked affidavits, but the record contained supporting live testimony at the hearing. | Saturn: lack of verification/affidavits requires reversal. | Not reversible here; record supported the court's discretion given missing transcript and record deficiencies. |
Key Cases Cited
- Barsto Constr., Inc. v. Gladstone Senior Partners, L.P., 270 S.W.3d 440 (Mo. App. W.D. 2008) (trial court has broad discretion to set aside default judgments)
- Agnello v. Walker, 306 S.W.3d 666 (Mo. App. W.D. 2010) (good cause and meritorious defense required; lack of notice relevant)
- Gorzel v. Orlamander, 352 S.W.2d 675 (Mo. 1961) (motion to set aside must be proven by verification or testimony)
- In re Marriage of Callahan, 277 S.W.3d 643 (Mo. Banc. 2009) (motion to set aside requires affidavits/sworn testimony; evidentiary hearing if pleading requirements met)
- Brungard v. Risky's Inc., 240 S.W.3d 685 (Mo. Banc. 2007) (discretion to grant set aside is broad; deference to trial court)
- Hoskin v. Younger Cemetery Corp., 838 S.W.2d 476 (Mo. App. E.D. 1990) (consideration of untimely answer in evaluating motion to set aside)
- Court of Gardens Condominium Ass'n v. 10330 Old Olive, LLC, 326 S.W.3d 834 (Mo. App. E.D. 2010) (note on need for proper record in reviewing motion to set aside)
- Wilderman v. Drawbond, 267 S.W.3d 772 (Mo. App. S.D. 2008) (default judgments favored setting aside on the merits)