Lead Opinion
OPINION
This is another inglorious chapter in a long-running series of civil cases in which, regrettably, the sins of the lawyer as agent are visited upon the client as principal.
The defendant-client, Maguire Group, Architects, Engineers, Planners, Ltd. (Ma-guire), appeals from a Superior Court order denying its motion to vacate a default judgment that entered against it on August 6, 1999, in the amount of $458,533.69, including interest and costs. The court entered the default judgment because Ma-guire’s lawyer, John Coffey, Jr. (Coffey), inexcusably had failed to respond to a request for production of documents and then inexcusably failed to respond to a series of follow-up motions and conditional court orders compelling Maguire to produce the requested documents. Despite proper service of these documents on Coffey, both his and Maguire’s stony silence eventually culminated in the entry of a default judgment against Maguire for the amount of the plaintiffs’ damages and prejudgment interest.
The plaintiffs alleged that they suffered personal injuries while they were excavating a trench and laying a gas line in East Providence, and that defendants’ negligence caused these injuries. Although Maguire filed an answer denying these allegations, its later default mooted whatever defenses it may have possessed to its asserted liability on these claims. But
Facts and Travel
The defendant, Algonquin Gas Transmission Company (Algonquin), employed plaintiffs to excavate a trench and lay a gas line in East Providence. The plaintiffs alleged that they suffered personal injuries as a result of working there because of Algonquin’s and the other defendants’ negligence. Although the complaint did not assert specific allegations against Maguire, plaintiffs alleged that defendants knew or should have known that the soil and ground water that plaintiffs excavated had been contaminated with various toxic chemicals. They further averred that defendants were negligent in failing to warn plaintiffs about the presence of toxic chemicals at this site and in misrepresenting the dangers of working in that area.
In March 1997, during pretrial discovery, plaintiffs propounded a request to Ma-guire for the production of relevant documents, to which Maguire failed to respond. There followed, in due course, a motion and an order compelling Maguire to produce the requested documents, a conditional default order, the entry of a default, a hearing on damages, and, finally, a default judgment, in August 1999. Despite proper service of these court papers on Maguire’s lawyer and his receipt of several commendable letters from plaintiffs’ lawyer entreating him to comply, Coffey failed to respond to any of them. Ultimately, an execution on the judgment issued on September 7, 1999, and plaintiffs caused it to be duly served on Maguire soon thereafter. Finally waking up to the fact that its own lawyer had been asleep at the switch while this train wreck of a default was occurring, Maguire engaged new counsel who, in October 1999, filed a motion to vacate the judgment. The court denied the motion and Maguire then appealed to this Court.
Before representing Maguire on this particular case, for many years Coffey had handled various types of legal work for this same client, mostly of the corporate variety. During 1999, when this lawsuit was pending in the Superior Court, Ma-guire was providing Coffey with an office, absorbing certain of his administrative expenses, and paying him a retainer of $15,500 per month. At quarterly meetings he attended with officers of the company, Coffey would report to Maguire on the status of this case and on the various other legal matters for which Maguire had engaged him to represent the company. Although Coffey recalled receiving in the mail a request for document production in this case, he testified he did not inform anyone at Maguire about it.
Neither Coffey nor Maguire offered any explanation to the motion justice for his total inaction in the case, other than referring to the fact that Coffey was imbibing heavily during this time by consuming eight to ten glasses of wine per day, beginning at lunch (after leaving Maguire’s premises for the day) and ending when he went to bed at night. Ultimately, Coffey had himself checked into Butler Hospital in September 1999, where he was treated for alcoholism. Coffey believed that his consumption of alcohol had affected his handling of this case by impairing his judgment. He stated:
“I think it was a pattern that had developed of making bad judgments that sort of steam roll you, and this just happened to be there. And I have no — I can’t explain it myself.”
Maguire based its motion to vacate the default judgment on Rule 60(b)(1) and (6) of the Superior Court Rules of Civil Procedure. Rule 60(b)(1) provides that a party may be relieved from a final judgment for “mistake, inadvertence, surprise, or excusable neglect.” Rule 60(b)(6) allows relief for “any other reason justifying relief from the operation of the judgment.” (Emphasis added.) The motion justice denied the motion on both grounds. He determined, first, that there was no causal connection between Coffey’s tippling and his failure to handle this case properly, noting that Coffey had competently managed various other legal matters for Maguire during the same period he was ignoring the discovery requirements in this case. Indeed, Ma-guire’s attempt to show a causal connection between Coffey’s crapulence and his inexcusable neglect in handling this case foundered when its expert witness recanted his medical opinion to that effect after he became aware of the other legal services that Coffey had ably performed for Maguire during this same period.
The motion justice next concluded that Coffey’s failure to respond to plaintiffs’ document requests did not constitute excusable neglect, but rather it was the result of either unexplained or willful conduct. On appeal, Maguire does not challenge the motion justice’s findings with respect to Rule 60(b)(1), but it contends that its motion to vacate should have been granted under Rule 60(b)(6).
The motion justice reasoned that the grounds for relief under Rule 60(b)(6) must be “mutually exclusive” from the grounds that are available for relief under Rule 60(b)(1) through (5).
Analysis
We will not disturb a trial court’s ruling on a motion to vacate a judgment absent a showing of abuse of discretion or error of law. Webster v. Perrotta,
Under Rule 60(b)(1), unexplained neglect, standing alone, whether by counsel or a party, will not excuse a party’s noncompliance with orderly procedural requirements, such as compliance with deadlines for responding to discovery requests and the court’s compliance orders. Iddings,
Maguire maintains that this case presented the very type of extraordinary and unusual circumstances that cried out for relief under Rule 60(b)(6). It argues that it should not be held accountable for the gross negligence of its attorney in ignoring the document requests and the court order directing its compliance. In support of its argument, it cites Palazzolo v. Coastal Resources Management Council,
The Palazzolo case, however, is distinguishable from the case at bar. In Palaz-zolo, the client attempted to sever the attorney-client relationship before the court had entered a default judgment against the client. In addition, opposing counsel had been informed that plaintiff was attempting to change its counsel and that it was in the process of doing so. Nevertheless, despite this notice, opposing counsel actively pursued a motion to dismiss the complaint. Based on these circumstances, the Court determined that an agency relationship no longer existed between the attorney and the client and, for that reason, it declined to apply agency principles in defaulting the client for the attorney’s negligence. In this case, however, there is no evidence that Maguire attempted to terminate its agency relationship with Coffey before the entry of the default judgment. Indeed, it was not until Maguire received an execution on the judgment that it took any action in this regard. Notwithstanding that its attorney was performing or failing to perform the litigation services in question on Maguire’s own premises and while Maguire was paying a significant portion of Coffey’s office expenses, Maguire did not discover its attorney’s malfeasance until the default judgment was a fait accompli. Although the parties have stipulated that Maguire itself was not negligent in this situation, we mention these circumstances not to fault Maguire but only to point out the significant differences between this case
Holding the client responsible for the lawyer’s inexcusable neglect may seem to constitute a harsh result in these circumstances, but it comports with the agency principles that control in this area of the law. As the United States Supreme Court has stated:
“[W]e have held that clients must be held accountable for the acts and omissions of their attorneys. In Link v. Wabash R. Co.,370 U.S. 626 ,82 S.Ct. 1386 ,8 L.Ed.2d 734 (1962), we held that a client may be made to suffer the consequence of dismissal of its lawsuit because of its attorney’s failure to attend a scheduled pretrial conference. In so concluding, we found ‘no merit to the contention that dismissal of petitioner’s claim because of his counsel’s unexcused conduct imposes an unjust penalty on the client.’ Id., at 633,82 S.Ct. at 1390 . To the contrary, the Court wrote: ‘Petitioner voluntarily chose this attorney as his representative in the action, and he cannot now avoid the consequences of the acts or omissions of this freely selected agent. Any other notion would be wholly inconsistent with our system of representative litigation, in which each party is deemed bound by the acts of his lawyer-agent and is considered to have “notice of all facts, notice of which can be charged upon the attorney.” ’ Id. at 633-634,82 S.Ct. at 1390 (quoting Smith v. Ayer,101 U.S. 320 , 326,25 L.Ed. 955 (1880)). * * * This principle applies with equal force here and requires that respondents be held accountable for the acts and omissions of their chosen counsel. Consequently, * * * the proper focus is upon whether the neglect of [the clients] and their counsel was excusable.” Pioneer Investment Services Co. v. Brunswick Associates Limited Partnership,507 U.S. 380 , 396-97,113 S.Ct. 1489 , 1499,123 L.Ed.2d 74 , 90-91 (1993).
Maguire also cites to cases from other jurisdictions in support of its position that it should not have to suffer the consequences of its attorney’s gross negligence. See, e.g., Chang v. Smith, 778 F.2d 83 (1st Cir.1985); Sumler v. District Court, City and County of Denver,
The theory that Maguire advances — that an attorney’s gross negligence should not be imputed to the client and that such gross negligence can be grounds for relief
“Courts are sensitive to the fact that justice is not always served when clients are required to bear the consequences of attorney misconduct. As a result, there is an older line of cases that holds that when an attorney is guilty of gross negligence, and the client is innocent of wrongdoing, relief from a judgment may be had under Rule 60(b)(6) even though this ‘neglect’ is not ‘excusable’ under Rule 60(b)(1) * * *. This line of cases goes against the general rule that conduct arguably within some other subsection of Rule 60(b) should not be grounds for relief under the catch-all provision of Rule 60(b)(6) * * *. This line of cases also is illogical, in that the opponent is made to bear the brunt of unacceptable conduct by an attorney while the party that hired the attorney obtains relief.” 12 Moore’s Federal Practice, § 60.48[4][b] at 60-179-80 (Matthew Bender 3d ed.2001).
Maguire contends that the motion justice overlooked the stipulation that it was not negligent in this case, and that, through no fault of its own, it was misled by its grossly negligent attorney.
Maguire next argues that the motion justice failed to recognize the unique and compelling circumstances of this case. It cites to four cases decided by this Court in which circumstances existed that were found to justify the granting of relief under Rule 60(b)(6): Palazzolo v. Coastal Resources Management Council,
The inexcusable neglect evident in this situation — though we hope and believe it does not represent the usual case of this ilk — still does not present conditions that are so extraordinary and so unusual in circumstances accompanying failures to comply with the rules that a motion justice would abuse his or her discretion by denying a motion to vacate the default judgment that had entered in the case. Unfortunately, the cases are legion in which the client’s attorney was too busy, too distracted, or too unconscientious to bother responding to discovery requests or to other rule-based filing requirements, or to follow-on motions to compel, conditional orders of default, or default judgments.
Maguire contends that the circumstances of this situation are made more compelling by the fact that Coffey performed satisfactory legal work for it on other legal matters during the same period in which this case was pending, thereby giving it no reason to doubt the accuracy of Coffey’s periodic reports to the client about the status of this case. It cites a Wyoming case in which one of the factors
Maguire also maintains that the motion justice ignored the relative prejudice to the parties in the present case. Maguire asserts that it will be greatly prejudiced if it is denied an opportunity to defend this lawsuit, whereas plaintiffs will suffer no significant prejudice if the case is allowed to proceed to trial. In Palazzolo,
Although prejudice to the opposing party can and should be considered under Rule 60(b)(6), it should not be the sole criterion and need not be the dispositive factor in deciding whether to vacate default judgments, especially in light of the strong countervailing principles favoring finality-of-judgments and attribution of the lawyer’s agency status to the client that weigh against the granting of such relief. Admittedly, here the prejudice to plaintiffs did not appear to be irremediable: the case was and remains in a pretrial posture and the delay and expense attributable to Coffey’s legal meltdown could have been ameliorated by, for example, an award of attorneys’ fees to plaintiffs and reimbursement to them of any other resultant expenses. But the existence of discretion in how a motion justice rules on a request to vacate a default judgment — especially in close cases like this one — is often, as here, the dispositive factor on appeal. Even in circumstances where we might be inclined to rule the other way if we were standing in the shoes of the motion justice, the deference that we must accord to the exercise of the motion justice’s discretion and the absence of any reversible error of law committed by that justice in doing so are considerations that deter us from overturning that decision — at least in the absence of other unusual factors that are not present here.
Conclusion
We are of the opinion that the motion justice correctly applied this Court’s previous rulings to the facts of this case when he denied the motion to vacate the default judgment. In any event, we cannot say that he abused his discretion in refusing to vacate the judgment under Rule 60(b)(6). For these reasons, we deny the appeal and affirm the judgment.
Notes
. But Victor Calabretta, Maguire's executive vice president of operations, testified that he was aware of the request for production and actually had searched, to no avail, for the documents requested.
. The United States Supreme Court has stated that the analogous provisions of Rule 60(b)(1) and (6) of the Federal Rules of Civil Procedure "are mutually exclusive.” Pioneer Investment Services Co. v. Brunswick Associates Limited Partnership,
. See Annot. 64 A.L.R. 4th § 4(b) (1988) for a collection of cases that recognize an exception to the general rule imputing an attorney’s negligence to the client when the attorney is guilty of gross negligence.
. Maguire cites Valvoline Instant Oil Change Franchising v. Autocare Associates,
. See, e.g., Daniel v. Cross,
. See, e.g., In re Rossi,
. Maguire may ultimately be entitled to a partial credit or to a recovery of a portion of the judgment paid to the plaintiffs in this ' case. Although in Calise v. Hidden Valley
Concurrence Opinion
concurring.
In assessing the relative prejudice to the parties caused by the entry of the default judgment and the motion justice’s refusal to vacate same, there is one other equitable factor that, in my judgment, supports the motion justice’s discretionary ruling. In this case, the prejudice to Maguire caused by its own lawyer’s misconduct still could be alleviated if it is able to obtain contribution from one or more of the other defendants for any amount of the default judgment that it pays to the plaintiffs in excess of its pro-rata share of the plaintiffs’ damages. See G.L.1956 § 10-6-4 (“[a] joint tortfeasor is not entitled to a final money judgment for contribution until he or she has by payment discharged the common liability or has paid more than
In Calise v. Hidden Valley Condominium Association, Inc.,
Here, unlike Calise, the other alleged joint tortfeasors neither have settled the claims against them nor obtained a joint tortfeasor’s release from the plaintiffs before the default judgment entered against the defendant (Maguire) who may be entitled to contribution. Thus, given that the plaintiffs’ claims against the other defendants are still pending, it may yet be possible in this case for Maguire to pay the default judgment and then to obtain contribution from one or more of the other defendants, either by filing cross-claims against them or by filing an independent action seeking such relief.
