This litigаtion arose out of a stock sale and subsequent related agreements, and was instituted by the filing of a complaint naming seventeen corporate and individual defendants, including Appellants and Appellee. All of the defendants have filed answers to the complaint and two have been dismissed from the case. Appellee filed an answer with a counterclaim against the plaintiff and with cross-claims against Aрpellants and two added cross-claim defendants. An answer to the counterclaim has been filed by the. plaintiff, and an answer to the crоss-claim has been filed by one of the added cross-claim defendants. The cross-claim was filed December 18, 1972. Time for Appellants to аnswer the cross-claim was extended, the last extension expiring March 27, 1973. A reply to Appellee’s cross-claim, including a cross-claim against Appellee, was filed by Appellants on March 7,1974. On motion of Appellee, Appellants’ reply and cross-claim were stricken by order filed April 9,1974. Appellants then moved to dismiss Appellee’s cross-claim for failure of Appellee to take a default and mоved for reconsideration of the order striking their reply and cross-claim. Appellee secured entry of Appellant’s default on Aрril 17, 1974. Appellants’ motions were denied and leave to take an interlocutory appeal was denied by order filed May 30, 1974. Appellаnts filed on June 26, 1974, a notice of appeal from the orders of April 17 and May 30,1974. There have been no other proceedings.
While the quеstion is not raised in the briefs, it is quite apparent that this appeal is premature and must be dismissed. Adjudication of Appellee’s cross-clаim remains incomplete although Appellants have been barred from answering it and their default has been entered. The cross-claim seeks judgment against Appellants upon certain promissory notes in the principal
In view of the fact that the case must be remanded without dеtermination of the effect which should be given to our rules in this litigation, and having in mind our supervisory responsibilities under HRS § 602-4, we think it is appropriate to provide some guidance to the trial court in further proceedings. Upon the remand, appellants may move under Rule 55(c), H.R.C.P., to set asidе the default. Should the default be set aside under Rule 55(c), denial of enlargement of time to answer under Rule 6(b) would create an anomalоus situation in which Appellants would be forced to remain in default but Appellee would be foreclosed from obtaining entry of a default. To avoid such an anomaly it is necessary that the requirements of these rules be interpreted in relation to each other.
Rule 6(b) Enlargement. When by these rulеs or by a notice given thereunder or by order of court an act is required or allowed to be done at or within a specified time, the court for cause shown may at any time in its discretion (1) with or without motion or notice order the period enlarged if request therefor is made bеfore the expiration of the period originally prescribed or as extended by a previous order or (2) upon motion made after the expiration of the specified period permit the act to be done where the failure to act was the result of excusаble neglect; but it may not extend the time for taking any action under Rules 50(b), 52(b), 59(b), (d) and (e), 60(b), and 73(a) and (g), except to the extent and under the conditions stated in them.
Rule 55(c) Setting Aside Default. For good cause shown the court may set aside an entry of default and, if a judgment by default has been entered, may likewise set it aside in accordance with Rule 60(b).
Rule 6(b) deals with a variety of time requirements, of which time to answer a cross-claim is only one. What is “excusable neglect” within the meaning of Rule 6(b) depends in part on the matter involved.
Coady v. Aguadilla Terminal Inc.,
We agree with the reasoning of those decisions which hold that defaults and default judgments are not favored and that any doubt shоuld be resolved in favor of the party seeking relief, so that, in the interests of justice, there can be a full trial on the merits.
Tolson v. Hodge,
In general, a motion to set aside a default entry or a default judgment may and should be granted whenever the court finds (1) that the nondefaulting party will not be prejudiced by the reopening, (2) that the defaulting party has a meritorious dеfense, and (3) that the default was not the result of inexcusable neglect or a wilful act.
Montez v. Tonkawa Village Apartments,
Appeal dismissed.
Notes
See
Tolson v. Hodge,
