Lead Opinion
Plaintiffs appeal from a minute order and a written order setting aside a default and default judgment taken against defendant corporation. It is urged that the trial court abused its discretion in granting such relief under authority of section 473 of the Code of Civil Procedure. This point is well taken in the light of the record and the applicable legal principles governing our consideration of the propriety of the trial court’s action.
On October 9, 1945, plaintiffs brought an action in the city and county of San Francisco to recover the purchase price of certain goods allegedly sold and delivered to defendant. Defendant’s president and secretary were served, respectively, with copy of summons and complaint on December 10, 1945, in the county of San Mateo, the county of defendant’s residence. Defendant having failed to appear in the action within the 30-day period allowed by law, plaintiffs six days thereafter—on January 15,1946—caused defendant’s default to be taken and formal judgment to be entered against it for the full sum sought in their complaint, $9,538.13, plus costs. On May 1, 1946, defendant served and filed a notice of motion to set aside the default. Supporting affidavits by defendant’s president and secretary and a proposed verified answer accompanied the motion. No counteraffidavit was filed in opposition to defendant’s showing. A hearing on the motion was had on May 9, 1946, at which time the trial court ordered the default judgment to be set aside and approved the filing of defendant’s verified answer. A formal order was entered accordingly on May 15, 1946.
While a large amount of discretion is thus vested in the trial court in the matter of an application for the setting aside of a default judgment (Gorman v. California Transit Co.,
Here the motion for relief under section 473 of the Code of Civil Procedure was made on the ground that the “default and the . . . default judgment were entered through the mistake, inadvertence, surprise and excusable neglect of the defendant and its officers, to wit, its Secretary and its President.” Prom the supporting affidavits of these officers, which were essentially the same in content, it appears that the president, upon receipt of the copies of summons and 'complaint by him and by the secretary, directed the secretary —who was also his private secretary—to forward the papers immediately to defendant’s attorney; that the secretary “misunderstood” the “directions so given to her . . . and understood [the president] to say that she . . . was to file said papers in the office files”; that “as a result of such misunderstanding” the secretary “failed to forward” the papers to defendant’s attorney; that neither of the affiant officers knew of the default “until on or about January 16,1946,” when the president received a letter from defendant’s attorney stating
From these considerations demonstrating that defendant’s failure to appear in the action within the period prescribed by law was due to the inadvertent omission of defendant’s officers, charged with the duty of responding to the legal process in due time, to notify defendant’s attorney of the service made upon them, it may be conceded that there was reasonable ground for the trial court to excuse defendant’s conduct to the point of entry of the default judgment. As defendant maintains in this regard with respect to its corporate officers: (1) the president’s delinquency stemmed from his reliance upon his secretary to follow his forwarding instructions and his failure to anticipate her misunderstanding them, with the result that the process papers were placed in the office files; and (2) the secretary’s delinquency stemmed in some measure from the perfunctory nature of her official position, so that while her failure to “read” and “heed” the summons served upon her constituted a neglect of duty (Gillingham v. Lawrence,
However, there now remains for consideration the matter of defendant’s delay in instituting proceedings to set aside the default judgment. As above indicated, the default was known to defendant’s officers the day after it was taken, and on the second day the process papers were mailed to defendant’s attorney for attention, but no action was taken to open the default for a period of more than three months. So far as the record discloses, defendant furnished no explanation in the trial court, either by affidavit or testimony, for its dilatory procedure. The significance of this “time lag” stems from the provision of section 473 of the Code of Civil Procedure that application for relief thereunder “must be made within a reasonable time, in no case exceeding six months, . . .” (Emphasis added.) This time requirement is discussed in Smith v. Pelton Water Wheel Co.,
Courts do not relieve litigants from the effects of mere carelessness. Defendant has not cited, nor has independent research disclosed, any case in which a court has set aside a default where, in making application therefor, there has been an unexplained delay of anything approaching three months after full knowledge of the entry of the default. On the contrary, the proper procedure appears to involve the presentation of some explanation, by affidavit or testimony, of any extended delay, and the court then determines whether such explanation may be deemed sufficient to justify the granting of the relief sought. Illustrative of this procedure is the case of Smith v. Pelton Water Wheel Co., supra,
Defendant relies heavily on the ease of Wolff & Co. v. Canadian Pacific Railway Co.,
Defendant cites certain cases where relief from the burdens of a default judgment has been deemed proper despite an extended period of delay in making the requisite application, , but in each instance there was an explanation of all the circumstances involved. Thus, in Waite v. Southern Pacific Co., supra,
Although where “the plaintiff files no counter affidavit and makes no showing that he has suffered any prejudice or that injustice will result from the trial of the case upon its merits, very slight evidence will be required to justify a court in setting aside the default” (J. A. Vaughan Corp. v. Title Insurance & Trust Co., supra,
The orders subject of this appeal are reversed.
Gibson, C. J., Edmonds, J., Traynor, J., and Schauer, J., concurred.
Dissenting Opinion
I dissent.
The majority of this court has again seen fit to usurp the function and power of the trial court in the exercise of a discretion exclusively committed to the latter court by the statutory law of this state as construed in a legion of court decisions.
It is indeed unfortunate that this court should at this time render a decision such as this, designed to inspire and encourage appeals from all discretionary orders and decisions of trial courts regardless of merit. It has almost reached a point where a majority of this court has adopted the policy of substituting its own discretion for that reposed by statute in the trial court. Manifestly, in this field, no rule or standard can be established as a yardstick to guide the trial judge in the exercise of his discretion. No two cases are exactly alike. Each case has its distinguishing features. Trial judges are presumed to be intelligent, honest, and fair-minded individuals. They have a grave responsibility in cases of this character. The statute has reposed in them an exceptionally broad power. The power to grant relief from default. The statute has fixed the limit of that power. Within that limit it must be exercised wisely, reasonably and fairly, with the view of advancing the administration of justice. All this a trial judge is presumed to have done when he exercises his discretion in ruling on an application for relief from default under section 473 of the Code of Civil Procedure. The ruling comes before an appellate court fortified with this presumption. The duty of the appellate court is to give full effect to this presumption. The question to be determined by the appellate court is not what it would have done had it been sitting in the place of the trial judge, but whether from the record it can be said that the trial judge failed to act wisely, reasonably and fairly in view of what was presented to him in support of the application. If such failure does not clearly and unmistakably appear, it cannot be said
What does the record disclose in the case at bar? The majority opinion concedes that the showing of mistake, inadvertence, surprise, or excusable neglect was adequate to justify the order relieving the defendant from its default. But the majority assert that the application was not timely made and reverse the order granting relief on this ground.
While I concede that application for relief from default under section 473 of the Code of Civil Procedure must be timely made, the determination of this issue is also within the discretion of the trial judge, and the same considerations are involved as in the determination of any other issue arising on the hearing of such an application. Said section provides that such application “must be made within a reasonable time, and in no case exceeding six months, after the judgment, order, or proceeding was taken.” However, what is a reasonable time must depend somewhat upon the circumstances of each particular case, and is not definitely determined further than that it will not extend beyond the maximum period allowed by the terms of the statute. (14 Cal.Jur., § 110, p. 1065; Consolidated Construction Co. v. Pacific Electric Ry. Co.,
But “[w]here a delay has been assented to by the other party, or does not appear to have been injurious to his rights, the six months’ limitation prescribed by the code [§473] should be considered as the only limit of reasonable time. In the matter of opening defaults, much is confided to the discretion of the trial court. (Dougherty v. Nevada Bank,
In the present case a period of over three months elapsed before proceedings were undertaken to open the default herein, although within two days after entry of the default judgment and immediately upon learning of that fact defendant’s president had the process papers forwarded to defendant’s attorney for action. No explanation for this “time lag” was given at the hearing of defendant’s motion, and plaintiffs urge that in view of such unexplained delay the trial court had no basis for setting aside the defendant’s default. But there is no claim that in the presentation of their case plaintiffs have been prejudiced as a result of the delay in the application for the order vacating the default judgment. As above stated, defendant’s verified answer was served with the notice of motion and became a part of the moving papers. (Beard v. Beard,
As before stated, by reversing the order of the trial court in this case, the majority has usurped the function and
Decisions such as this encourage appeals from every order of this character because the determination of the trial court is placed at naught, and the litigant feels he is justified in taking the chance that the discretion of the reviewing court will support his position. Thus, appeals are multiplied and our appellate courts are clogged with cases involving only procedural matters which do not involve the merits of the controversy. Nothing short of a clear and unmistakable abuse of discretion amounting to arbitrary and capricious action on the part of the trial court should be considered as sufficient to justify a reversal in a case of this character, and it is not even intimated in the majority opinion that anything like this occurred in the case at bar.
For the foregoing reasons I would affirm the order appealed from.
