Shamrock Plumbing v. Silver Baron Partners
277 P.3d 649
| Utah Ct. App. | 2012Background
- Shamrock obtained a March 5, 2009 default judgment against Silver Baron Partners, LC and Daedalus USA, Inc. for a contract dispute.
- A later March 18, 2009 Corrected Judgment followed after Shamrock sought correction of the default.
- Defendants had a January 9, 2009 Notice of Withdrawal of Counsel; Shamrock served a Notice to Appear or Appoint Counsel on January 12, 2009.
- Defendants failed to secure new counsel; Shamrock mailed default certificates and supporting papers on February 6, 2009, with a Notice to Submit for Decision on March 2, 2009.
- Defendants’ current counsel filed an Entry of Appearance and a Motion to Set Aside Judgment on March 19, 2009; the trial court later set aside the judgment.
- On appeal, the Utah Court of Appeals reversed, reinstating the March 5, 2009 default judgment due to lack of due diligence supporting excusable neglect.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether excusable neglect was shown to set aside the default | Shamrock argues no due diligence; no excusable neglect existed | Defendants contend irregular mail and counsel withdrawal justify excusable neglect | No; excusable neglect failed due diligence requirement |
| Whether the trial court abused its discretion in granting relief from default | Relief was not warranted given prior defaults and disregard for notices | Discretion should allow relief due to counsel issues and lack of personal contact | Reversed; trial court exceeded discretion; default reinstated |
Key Cases Cited
- Jones v. Layton/Okland, 214 P.3d 859 (Utah 2009) (excusable neglect requires diligence)
- Swallow v. Kennard, 183 P.3d 1052 (Utah App. 2008) (excusable neglect involves diligence under Utah law)
- Mini Spas, Inc. v. Industrial Comm'n, Dep't of Emp't Sec., 733 P.2d 130 (Utah 1987) (excusable neglect defined as due diligence)
- Menzies v. Galetka, 150 P.3d 480 (Utah 2006) (broad but bounded discretion for Rule 60(b) relief)
- Davis v. Goldsworthy, 184 P.3d 626 (Utah App. 2008) (default judgments disfavored; diligence required)