AMERICAN COLLECTION SYSTEMS, INC., a Wyoming corporation v. LACY D. JUDKINS f/k/a LACY D. BERKEL
S-23-0216
THE SUPREME COURT, STATE OF WYOMING
June 18, 2024
2024 WY 66
APRIL TERM, A.D. 2024.
NOTICE: This opinion is subject to formal revision before publication in Pacific Reporter Third. Readers are requested to notify the Clerk of the Supreme Court, Supreme Court Building, Cheyenne, Wyoming 82002, of any typographical or other formal errors so that correction may be made before final publication in the permanent volume.
FENN, Justice.
[¶1] American Collection Systems, Inc. (ACS) filed a motion to revive a dormant judgment. The district court issued an Order for Revival of Judgment (underlying judgment) that revived the dormant judgment but declined to award post-judgment interest. ACS filed a motion to alter or amend the underlying judgment to include the post-judgment interest. The district court issued an Order on Plaintiff’s Motion for Amended Order of Revival (post-judgment order) which denied ACS’s motion. ACS appeals claiming the district court was required as a matter of law to award post-judgment interest. We reverse and remand.
ISSUES
[¶2] ACS raises three issues, which we rephrase and consolidate into a single issue:
-
Did the district court err as a matter of law in failing to allow post-judgment interest which accrued between the entry of the judgment and the date the judgment became dormant?
However, because ACS’s notice of appeal only designated the post-judgment order as the order being appealed, we raise the following issues:
- Does this Court have jurisdiction to review the underlying judgment?
- Did the district court abuse its discretion when it denied ACS’s motion to alter or amend the underlying judgment?
FACTS
[¶3] On October 20, 2010, the district court awarded ACS a default judgment against Lacy D. Berkel, aka Lacy D. Judkins (Ms. Judkins). When ACS failed to execute on that judgment for more than five years, it became dormant under
[ACS] filed a Motion for Entry of Revival of Judgment with supporting Affidavit and having reviewed the supplemental pleadings, the [c]ourt finds good cause to revive the original Judgment but not to order interest or costs given the information provided by [Ms. Judkins] about her location during the time in question and the fact that [ACS] acknowledges this issue to some extent seeking interest only to the date of dormancy.
[¶4] Rather than filing an appeal, ACS filed a motion to alter or amend the underlying judgment on July 25, 2023. The motion stated it was being filed under Rules
[¶5] The district court entered an Order on Plaintiff’s Motion for Amended Order of Revival (post-judgment order) on August 2, 2023, which denied ACS’s motion after finding there was no good cause to grant it. ACS filed its notice of appeal on September 1, 2023. The notice of appeal specifically identified the order being appealed as: “the Second Judicial District Court’s Order on Motion for Amended Order of Revival, entered August 2nd, 2023 in the above captioned matter.”
DISCUSSION
I. Does this Court have jurisdiction to review the underlying judgment?
[¶6] ACS asserts it took this appeal from both the underlying judgment entered on July 7, 2023, and the post-judgment order entered on August 2, 2023. Ms. Judkins did not file a brief. Although the parties did not raise the issue of whether we have jurisdiction to review the underlying judgment, we may do so sua sponte. Davidson-Eaton v. Iversen, 2021 WY 49, ¶ 9, 484 P.3d 23, 24–25 (Wyo. 2021) (citing Edsall v. Moore, 2016 WY 71, ¶ 10, 375 P.3d 799, 801 (Wyo. 2016)) (recognizing a challenge to jurisdiction can be raised by the Court at any time). “Whether we have jurisdiction is a question of law
[¶7] Rule
[¶8] Although ACS could have identified both orders in its notice of appeal, it only identified the post-judgment order as the order being appealed. We have recognized interlocutory orders merge into final orders, and a notice of appeal that names the final judgment is sufficient to support review of earlier orders. See In re RR, 2021 WY 85, ¶ 66, 492 P.3d 246, 264 (Wyo. 2021) (citing Kruckenberg v. Ding Masters, Inc., 2008 WY 40, ¶ 11, 180 P.3d 895, 899 (Wyo. 2008)). However, in this case, the underlying judgment was a final appealable order under
[¶9] The purpose of a notice of appeal “is to acquaint the appellee and the appellate court with the fact that an appeal has been taken from a specific judgment in a particular case.” Gunther v. E. I. Du Pont De Nemours & Co., 255 F.2d 710, 717 (4th Cir. 1958).1 Federal courts liberally construe notices of appeal. See, e.g., Raley v. Hyundai Motor Co., Ltd., 642 F.3d 1271, 1278 (10th Cir. 2011). Although we have not used this phrase, we approved of liberally construing notices of appeal in Pfeil v. State, where we said: “even if a notice fails to properly designate the order from which the appeal is taken, this Court has jurisdiction if the appellant’s intention was clear.” 2014 WY 137, ¶ 12, 336 P.3d 1206, 1210 (Wyo. 2014) (quoting Fleming v. Evans, 481 F.3d 1249, 1253–54 (10th Cir. 2007)). Our goal is to determine whether the notice “serve[s] the purpose of providing notice to other parties and the [C]ourt.” Id. (citing Smith v. Barry, 502 U.S. 244, 248, 112 S. Ct. 678, 682, 116 L. Ed. 2d 678 (1992)). “A mistake in designating the judgment appealed from is not always fatal, so long as the intent to appeal from a specific ruling can fairly be inferred by probing the notice and the other party was not misled or prejudiced.” Sines v. Wilner, 609 F.3d 1070
1070, 1074 (10th Cir. 2010) (citing Sanabria v. United States, 437 U.S. 54, 67 n.21, 98 S. Ct. 2170, 2180 n.21, 57 L. Ed. 2d 43 (1978)). However, we cannot waive
II. Did the district court abuse its discretion when it denied ACS’s motion to alter or amend the underlying judgment?
[¶11] ACS brought its motion to alter or amend the underlying judgment under
interest and informed the district court awarding post-judgment interest was mandatory. ACS’s brief focuses entirely on the merits of the underlying judgment, and it lacks any detailed argument or analysis regarding the denial of the motion to alter or amend. Because we only have jurisdiction over the post-judgment order, we limit our review to whether the district court abused its discretion when it denied the motion to alter or amend the underlying judgment.
[¶12] “Our jurisdiction ‘is limited to appeals from final appealable orders.’” Painter v. McGill ex rel. Wyo. Bd. of Med., 2019 WY 108, ¶ 10, 450 P.3d 1243, 1245 (Wyo. 2019) (quoting Matter of Estate of Inman, 2016 WY 101, ¶ 9, 382 P.3d 67, 69 (Wyo. 2016)). Over the last 35 years, our jurisprudence has taken conflicting positions on whether a Rule 59(e) order is appealable.
[¶13] In Parker v. Kahin, we dismissed an appeal from an order denying a motion to alter or amend a judgment finding we lacked jurisdiction because it was not an appealable order. 758 P.2d 570 (Wyo. 1988). In the 1990s, we changed course, and found Rule 59(e) orders were appealable, and subject to an abuse of discretion standard of review. See Dudley v. Franklin, 983 P.2d 1223, 1227 (Wyo. 1999) (quoting Sherman v. Rose, 943 P.2d 719, 721 (Wyo. 1997)); Moore v. Lubnau, 855 P.2d 1245, 1251 (Wyo. 1993). Then, in 2007, without discussing our cases from the 1990s, we again held a Rule 59(e) order was not an appealable order. In re GLP, 2007 WY 141, ¶ 3, 166 P.3d 1284, 1285 (Wyo. 2007). We explained that the reason for this rule was that any error lies in the underlying judgment rather than in the decision to deny
[¶14] This Court approaches overruling prior case law with caution. However, stare decisis is not an “inexorable command,” and it can occasionally be rejected “for specific articulated reasons.” In re JJD, 2023 WY 52, ¶ 3, 529 P.3d 1091, 1092 (Wyo. 2023) (quoting Smith v. Bd. of Cnty. Comm’rs of Park Cnty., 2013 WY 3, ¶ 15, 291 P.3d 947, 952 (Wyo. 2013)). This Court has departed from precedent when necessary to vindicate plain, obvious principles of law and remedy continued injustice. Id. (citing Gueke v. Bd. of Cnty. Comm’rs for Teton Cnty., 728 P.2d 167, 171 (Wyo. 1986), overruled on other grounds by Dunnegan v. Laramie Cnty. Comm’rs, 852 P.2d 1138 (Wyo. 1993)). “When precedential decisions are no longer workable, or are poorly reasoned, we should not feel compelled to follow precedent.” McCallister v. State ex rel. Dep’t of Workforce Servs., Workers’ Comp. Div., 2019 WY 47, ¶ 21, 440 P.3d 1078, 1084 (Wyo. 2019) (quoting State ex rel. Wyo. Workers’ Comp. Div. v. Barker, 978 P.2d 1156, 1161 (Wyo. 1999)). The purpose of stare decisis is to further the “evenhanded, predictable, and consistent development of legal principles, foster[] reliance on judicial decisions, and contribute[] to the actual and perceived integrity of the judicial process.” Id. (quoting Barker, 978 P.2d at 1161).
[¶15] As outlined above, our approach to Rule 59(e) has not resulted in the “evenhanded, predictable, and consistent development of legal principles[.]” Id. It is necessary for us to depart from our prior decisions in order to further the purpose of stare decisis and provide clear guidance for future cases. We find the approach taken in our 1990s cases and our more recent cases like Brown is more likely to lead to the consistent, predictable, and evenhanded application of legal principles. In addition, because this approach is in line with federal precedent, it provides additional persuasive authority for district courts to follow when faced with Rule 59(e) motions. We expressly overrule In re GLP and Parker and hold Rule 59(e) orders are final appealable orders that we review for an abuse of discretion.
[¶16] The party appealing an order has the burden of establishing an abuse of discretion. Corley v. Wyo. Rents, LLC, 2024 WY 51, ¶ 25, 547 P.3d 333, 338 (Wyo. 2024) (citing Int. of Bass, 2020 WY 27, ¶ 5, 458 P.3d 857, 858 (Wyo. 2020)). “Judicial discretion is a composite of many things, among which are conclusions drawn from objective criteria; it means a sound judgment exercised with regard to what is right under the circumstances and without doing so arbitrarily or capriciously.” Id. at ¶ 26, 547 P.3d at 338 (quoting Dollarhide v. Bancroft, 2010 WY 126, ¶ 4, 239 P.3d 1168, 1170 (Wyo. 2010)). “A court abuses its discretion when it acts in a manner which exceeds the bounds of reason under the circumstances.” Id. (citing Circle C Res. v. Hassler, 2023 WY 54, ¶ 22, 530 P.3d 288, 295 (Wyo. 2023)). The ultimate question is “whether the trial court could reasonably conclude as it did.” Id. (citing Circle C Res., ¶ 22, 530 P.3d at 295).
[¶17] Due to the conflicting nature of our case law regarding the appealability of Rule 59(e) orders, we have relatively few cases that discuss the guidelines that apply to these motions. There are three appropriate grounds for bringing a motion to alter or amend a judgment under Rule 59(e): “1) an intervening change in controlling law; 2) the availability of new evidence not available at the time the case was originally heard; or 3) the need to correct a clear error of law or prevent manifest injustice.” Brown, 2020 WY 123, ¶ 12, 472 P.3d at 1042 (quoting Essex Holding, LLC v. Basic Props., Inc., 2018 WY 111, ¶ 30, 427 P.3d 708, 717 (Wyo. 2018)). In Brown, the district court entered an order directing the name of the father and the surname of a minor child be entered on the birth certificate. Id. at ¶ 6, 472 P.3d at 1040. The child’s mother subsequently filed a Rule
[¶18] Our holding in Brown is contrary to the majority of precedent interpreting the federal version of Rule 59(e). See, e.g., Nelson v. City of Albuquerque, 921 F.3d 925, 928 (10th Cir. 2019) (citation omitted) (“[A] motion constitutes a Rule 59(e) motion if it ‘requests a substantive change in the district court’s judgment or otherwise questions its substantive correctness.’”); Munden v. Ultra-Alaska Assocs., 849 F.2d 383, 387 (9th Cir. 1988) (holding a proper Rule 59(e) motion seeks “a substantive change in the district court’s decision,” and not merely a “‘ministerial’ act by the court”); Mendenhall v. Goldsmith, 59 F.3d 685, 689 (7th Cir. 1995) (citations omitted) (finding a proper Rule 59(e) motion seeks “a substantive change in the original judgment”); Finch v. City of Vernon, 845 F.2d 256, 258 (11th Cir. 1988) (citation omitted) (holding Rule 59 applies to “matters encompassed in a decision on the merits of the dispute, and not matters collateral to the merits”); see also 11 Charles Alan Wright & Authur R. Miller, Fed. Prac. & Proc. Civ. § 2810.1 (3d ed. June 2024 Update) (“Rule 59(e) covers a broad range of motions, and the only real limitation on the type of the motion permitted is that it must request a substantive alteration of the judgment, not merely the correction of a clerical error, or relief of a type wholly collateral to the judgment.”). Addressing any of the three appropriate grounds for bringing a Rule 59(e) motion would likely require a substantive change to an underlying judgment. We agree with our holding in Brown that Rule 59(e) does not provide district courts with an avenue to vacate an order simply because it has changed its mind. However, we find it is necessary to depart from Brown’s holding regarding the scope of the type of changes that may be made to an underlying judgment under Rule 59(e) in order to further the “evenhanded, predictable, and consistent development of legal principles[.]” McCallister, 2019 WY 47, ¶ 21, 440 P.3d at 1084. In line with federal precedent, we hold
[¶19] Although ACS did not specify under which of the three Rule 59(e) grounds it was bringing its motion, the only possible applicable ground is “the need to correct a clear error of law or prevent manifest injustice.” Rule 59(e) gives a district court the chance “‘to rectify its own mistakes in the period immediately following’ its decision.” Banister v. Davis, 590 U.S. 504, 508, 140 S. Ct. 1698, 1703, 207 L. Ed. 2d 58 (2020) (quoting White v. New Hampshire Dept. of Emp. Sec., 455 U.S. 445, 450, 102 S. Ct. 1162, 1166, 71 L. Ed. 2d 325 (1982)). Rule 59(e)
The standard for Rule 59(e) motions is high. To justify reconsideration on the basis of manifest error, the prior decision cannot be “just maybe or probably wrong; it must strike us as wrong with the force of a five-week-old, unrefrigerated dead fish.”
Gross v. Pfizer, Inc., 825 F. Supp. 2d 654, 664 (D. Md. 2011) (quoting TFWS, Inc. v. Franchot, 572 F.3d 186, 194 (4th Cir. 2009)). While colorful and arguably subjective, this “sniff test” emphasizes the extraordinary nature of Rule 59(e) relief.
[¶20] Although we review ACS’s Rule 59(e) motion for an abuse of discretion, this review involves verifying the district court’s “discretion was not guided by erroneous legal conclusions.” Walker v. BOKF, Nat’l Ass’n, 30 F.4th 994, 1002 (10th Cir. 2022) (quoting ClearOne Commc’n v. Biamp Sys., 653 F.3d 1163, 1178 (10th Cir. 2011)). A Rule 59(e) motion to alter or amend a judgment may be granted if the district court misapprehended the controlling law. N. Arapaho Tribe v. Ashe, 925 F. Supp. 2d 1206, 1219 (D. Wyo. 2012) (citing Servants of Paraclete, 204 F.3d at 1012).
[¶21]
CONCLUSION
[¶22] ACS did not identify the underlying judgment in its notice of appeal, and this Court is without jurisdiction to review that order. The district court misapprehended the controlling law when it denied ACS’s request for mandatory post-judgment interest. The district court abused its discretion because its decision to deny the Rule 59(e) motion was based on erroneous legal conclusions. Granting ACS’s motion to alter or amend the judgment is necessary to correct a clear error of law and prevent manifest injustice. This is one of the extraordinary circumstances where relief under
