Plaintiff, Subhash Baxi, filed a petition in the circuit court pursuant to Section 287.500 RSMo (2000) requesting a judgment against defendants, United Technologies Automotive Corporation and Liberty Mutual Insurance Company, in accordance with a final award of the Labor and Industrial Relations Commission (the Commission) allowing payments in the amount of $222.73 per week from and after November 5,1996 through May 5, 2002 for a total amount of $63,700.78 plus interest. The trial court entered judgment in the amount prayed on June 18, 2002. Defendants thereafter filed a motion to set aside a default judgment pursuant to Rule 74.05(d) and an alternative motion to set aside the judgment as void or irregular pursuant to Rule 74.06(b). The trial court denied these motions in an Amended Judgment dated March 25, 2003. Defendants purport to appeal from the judgment entered on June 18, 2002, and from the judgment entered on March 25, 2003. Defendants claim that the trial court erred in entering its judgment of June 18, 2002 and in refusing to set the judgment aside under Rule 74.06(b) or Rule 74.05(d). We affirm.
PROCEDURAL BACKGROUND
Plaintiff was injured on January 9, 1985, and was eventually awarded temporary total disability benefits in the amount of $222.73 per week. On December 19, 1995, the Administrative Law Judge (the ALJ) found plaintiff to be permanently totally disabled and awarded him permanent total disability payments of $222.73 per week for life. On review, the Commission modified the award of permanent total disability to permanent partial disability, and found plaintiff had been temporarily totally disabled for only 38 weeks. It determined that plaintiff was entitled to lump sum payments for permanent partial disability and that the total of these payments and the reduced total disability payment was less than the total amount defendants had previously paid in total temporary disability benefits. It found that defendants were therefore entitled to a credit for the overpayment in the amount of $66,476.47. On appeal from this award, we reversed and remanded for a re-determination of plaintiffs disability.
Baxi v. United Technologies Automotive,
DISCUSSION
I. June 18, 2002, Judgment — Motion to Dismiss Appeal
In both of their points, defendants assert, in part, that the trial court erred in
II. March 25, 2003, Judgment
We can review the timely-filed appeal from the March 25, 2003 judgment denying the 74.06(b) motion and the Rule 74.05(d) motion. The judgment denying a motion filed pursuant to 74.06(b) is appeal-able.
Yanuzzi v. Director of Revenue,
A. Denial of Rule 7^.06(b) Motion
In the remainder of their first point, defendants contend that the trial court erred in denying their 74.06(b) motion because the judgment was void and irregular and they were entitled to be relieved from the judgment under Rule 74.06(b)(3) and (4). They argue that the judgment was both void and irregular because trial court never acquired jurisdiction in that the petition requesting the judgment was not served on defendants. They also argue that the judgment was void and in excess of the court’s jurisdiction because the amount of the judgment exceeded the amount awarded by the Commission in that the judgment did not take into account a credit previously awarded defendants.
Defendants moved to set the judgment aside on numerous grounds: 1) the defendants were not served with the petition; 2) it was entered before defendants had time to answer; 3) defendants received no notice of the hearing; 4) defendants were deprived of due process; and 5) the trial court exceeded its authority by failing to enter judgment in accordance with the Industrial Commission’s Awards and the Court of Appeals’ opinions. The trial court denied the motion on the grounds that section 287.500 does not provide for notice prior to entry of a judgment or allow relitigation of issues that were before the Labor and Industrial Relations Commission.
The trial court is vested with broad discretion in determining whether to set aside a judgment under Rule 74.06.
Burris v. Terminal Railroad Ass’n,
To be “irregular,” a judgment “must be materially contrary to an established form and mode of procedure for the orderly administration of justice.”
Burris,
1. Absence of Service
The first question is whether defendants were deprived of due process by plaintiffs failure to serve them with the petition before the judgment was entered. A violation of a litigant’s due process rights results in a void judgment.
Platt,
In a workers’ compensation case, the final award of the Commission is an adjudication of the parties’ rights, and is as effective as a judgment of a court of law.
Brown v. Color Coating,
Section 287.500 authorizes the trial court to enter a judgment on a final award as if it were an original judgment of the court.
Schneidler v. Feeder’s Grain & Supply, Inc.,
Any party in interest may file in the circuit court of the county in which the accident occurred, a certified copy of a memorandum of agreement approved by the division or by the commission or of an order or decision of the division or the commission, or of an award of the division or of the commission from which an application for review or from which an appeal has not been taken, whereupon said court shall render judgment in accordance therewith and notify the parties.
Section 287.500.
Section 287.500 does not require that notice be sent to the defendant prior to judgment being entered in the circuit court. It does not mandate that the parties be notified until the judgment has been entered. Although this provision has been in the workers’ compensation act from its inception in 1925, we have not been directed to any Missouri cases that
In states which do not require pre-entry notice and in which workers’ compensation coverage is “elective,” courts have held that, when an employer voluntarily elects to be covered by the workers’ compensation law, it constructively agrees to be bound by all the provisions of that law and therefore cannot complain that the lack of pre-entry notice of a judgment deprives it of due process.
See Grasselli Chemical Company v. Simon,
Although Missouri was an “elective” state when this statute was first enacted, worker’s compensation coverage became “compulsory” in 1974 for all employers with more than five employees. Sections 287.030, 287.120 RSMo (Supp.1975). Accordingly, the “consent” rationale no longer applies in Missouri.
However, another reason that statutes of this type do not deprive employers of due process is based on the facts that the statute does not give the court discretion to do anything but enter a judgment in the amount of the award and no further factual issues remain to be resolved.
See Taylor,
This interpretation is consistent with Missouri law. When there are no further factual issues to be resolved, due process does not require notice or hearing prior to the entry of judgment.
Smith v. Smith,
2. Deduction for Credit
For all of the above reasons, point one is denied.
B. Denial of Rule 71.05(d) Motion
For their second point defendants assert that the trial court erred in failing to set aside the judgment under Rule 74.05(d). That rule applies only to.default judgments. The trial court did not enter a default judgment pursuant to Rule 74.05, but rendered a judgment pursuant to section 287.500. A judgment rendered pursuant to section 287.500 is not a default judgment. The parties appeared and were represented by counsel at adversarial hearings before the ALJ, they obtained review from the Commission, and they appealed the final award and the modification of final award to this court. The petition to render judgment on this award is a different proceeding from a default judgment and the procedures governing default judgments do not apply.
See Horner v. CS Myers & Sons, Inc.,
Conclusion
Defendants’ motion to strike plaintiffs brief is denied. Plaintiffs motion to dismiss the appeal is sustained in part and denied in part as moot.
The judgment of the trial court is affirmed.
