H&E Equipment Services, Inc. v. Cassani Electric, Inc. & Nicholas Cassani
No. 2016-207
Supreme Court of Vermont
2017 VT 17
On Appeal from Superior Court, Franklin Unit, Civil Division. November Term, 2016. Thomas Z. Carlson, J.
NOTICE: This opinion is subject to motions for reargument under
Joshua Martin, St. Albans, for Defendant-Appellant.
PRESENT: Reiber, C.J., Dooley, Skoglund, Robinson and Eaton, JJ.
¶ 1. SKOGLUND, J. Defendant Nicholas Cassani appeals from the trial court‘s order granting summary judgment to plaintiff H&E Equipment Services, Inc. on its complaint to collect on a 2001 Arizona judgment. Defendant argues that the action is time-barred under
¶ 2. The record indicates the following. In February 2015, H&E filed a complaint against defendant1 in Vermont, seeking to collect an unpaid judgment from the State of Arizona in the amount of $56,016.22 plus interest. H&E attached to its complaint a “judgment renewal affidavit” from Arizona dated February 2011. Under Arizona law, a judgment renewal affidavit renews and revives a judgment to the extent of the balance still owed. See
¶ 3. Defendant moved to dismiss H&E‘s complaint, arguing that the suit was barred under
¶ 4. H&E moved for summary judgment in December 2015. Citing Wursthaus, Inc. v. Cerreta, it argued that the Arizona judgment was “entitled to full faith and credit in the absence of a showing that that court lacked jurisdiction or acted to deprive defendant of a reasonable opportunity to be heard.” 149 Vt. 54, 58, 539 A.2d 534, 537 (1987); see also Restatement (Second) of Conflict of Laws § 104 (1971) (“A judgment rendered without judicial jurisdiction or without adequate notice or adequate opportunity to be heard will not be recognized or enforced in the other states.“). H&E explained that defendant had the heavy burden of showing that the judgment should not be enforced. See Wursthaus, 149 Vt. at 55, 539 A.2d at 535 (“The burden of undermining the decree of a sister state rests heavily upon the one who assails such decree.“) (citing Cook v. Cook, 342 U.S. 126, 128 (1951) (same)).
¶ 5. H&E asserted that the undisputed facts, as recited by the Arizona court on the initial judgment order, established that defendant had been served by personal delivery of the summons and complaint in Arizona and that he failed to appear or answer. H&E then obtained a default judgment in March 2001 for $25,981.19, plus interest at the rate of 10% per annum. As provided by Arizona law, H&E renewed its judgment before the Arizona statute of limitations period expired by filing a judgment renewal affidavit in the Maricopa County Superior Court in March 2006, and again in February 2011. Given these facts, H&E argued that the judgment should be enforced and that it was entitled to summary judgment in its favor.
¶ 6. The court granted summary judgment to H&E without providing defendant a full thirty days to respond, and defendant moved to set aside the decision on this basis. Defendant also opposed H&E‘s summary judgment motion. Defendant argued that the Arizona judgment should not be enforced because he was not properly served with the complaint in the underlying Arizona action. He provided a sworn statement to this effect and argued that his affidavit created a material dispute of fact. Even if the Arizona court had jurisdiction over him, defendant asserted that the judgment could not be enforced in Vermont under
¶ 7. The court agreed with defendant that it had granted summary judgment prematurely and set aside its judgment. It found, however, that defendant‘s opposition boiled down to an argument that he was not served in the Arizona proceeding and therefore that the Arizona judgment should not be recognized by a Vermont court.3 This argument rested on defendant‘s
¶ 8. Given the Arizona judgment‘s recital that defendant was in fact served, and the holding in Wursthaus, the court found that defendant had the burden of making a reasonable showing that he was not actually served beyond his mere assertion to this effect. The court explained that Arizona presumably maintained court records dating back to 2001 when the original judgment was issued. Defendant had asked the court for additional opportunity to offer evidence “thus far NOT presented,” and pursuant to
¶ 9. Defendant did not file anything with the court during the sixty-day period. In April 2016, H&E renewed its motion for summary judgment. Defendant did not respond to the renewed motion. In May 2016, the court granted H&E‘s request and entered judgment in H&E‘s favor for the amount owed. This appeal followed.
¶ 10. We review the trial court‘s summary judgment decision de novo, using the same standard as the trial court. Buxton v. Springfield Lodge No. 679, Loyal Order of Moose, Inc., 2014 VT 52, ¶ 2, 196 Vt. 486, 99 A.3d 171. Summary judgment is appropriate if “there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.”
¶ 11. We begin with defendant‘s assertion that this action is time-barred under
¶ 12. We reject defendant‘s interpretation of
¶ 13. Our holdings in Ayer and Russo are not to the contrary. As an initial matter, neither involved the enforcement of a renewed judgment or the enforcement of a foreign judgment. In Ayer, we considered whether the statute of limitations in
¶ 14. We did not hold otherwise in Marine Midland, cited by defendant. In that case, a party sought to enforce a 1991 New York judgment in Vermont by filing an action on the judgment in Vermont in 2000. We recognized that “Vermont law governs all procedural issues in actions to enforce foreign judgments in Vermont courts.” 2004 VT 25, ¶ 7 (citing Wursthaus, 149 Vt. at 55-56 n.*, 539 A.2d at 535 n.* and Restatement (Second) of Conflict of Laws § 99 (1971) (“The local law of the forum determines the methods by which a judgment of another state is enforced.“)). In other words, “[w]hen a cause of action is brought in Vermont, Vermont law determines the accrual date and the limitations period.” Marine Midland, 2004 VT 25, ¶ 8. Applying these basic propositions, we concluded that the action was time-barred under
¶ 15. Our conclusion in the instant case implements the basic propositions discussed above. Under Vermont law, judgments, including renewed judgments, must be acted upon—or renewed again—within eight years of the date they were issued. The Arizona judgment here was renewed in 2011 and H&E brought this action in 2015, well within the eight-year limitation period set forth in
¶ 16. Defendant also appears to suggest that a party who has obtained a judgment in Arizona cannot renew such judgment in Arizona but must instead renew the judgment in Vermont before it can be enforced. We find no support for this suggestion. There would be no reason to renew a foreign judgment in Vermont unless and until a judgment debtor resides there, which could occur well outside the eight-year window. Not only is this approach illogical, it is also inconsistent with the requirement that we give full faith and credit to foreign judgments. See
¶ 17. In Union National Bank, the U.S. Supreme Court considered a party‘s suit on a Colorado judgment in Missouri. The Colorado judgment was obtained in 1927 and revived in Colorado in 1945. Missouri law limited the life of judgments to ten years after their original rendition or ten years after their revival and did not allow judgments to be revived after ten years from their rendition. The Missouri Supreme Court refused to enforce the judgment because the original judgment under Missouri‘s law could not have been revived in 1945. The Supreme Court reversed, relying on case law that established that
¶ 18. This leads us to defendant‘s final argument. Defendant asserts that we should not give full faith and credit to the Arizona judgment because the Arizona court lacked personal jurisdiction over him. He cites to his sworn statement that he was not served with a complaint, and argues that this created a material dispute of fact that prevented the entry of summary judgment.
¶ 19. As previously stated, “[a] sister-state judgment is normally ‘entitled to full faith and credit in the absence of a showing that [the] court lacked jurisdiction or acted to deprive defendant of a reasonable opportunity to be heard.’ ” Lakeside Equip. Corp. v. Town of Chester, 173 Vt. 317, 321, 795 A.2d 1174, 1178 (2002) (quoting Wursthaus, 149 Vt. at 58, 539 A.2d at 537) (recognizing that party can defeat enforcement of foreign default judgment by showing that judgment was issued by court lacking personal jurisdiction); see also 18 C. Wright et al., Fed. Prac. & Proc. § 4430, at 292 (2d ed. 1981) (“[A] defendant who makes no appearance whatever remains free to challenge a default judgment for want of personal jurisdiction.“). The Arizona judgment is presumptively valid, and defendant had the “heavy burden” of undermining it. Hall v. McCormick, 154 Vt. 592, 595, 580 A.2d 968, 970 (1990); Cook, 342 U.S. at 128 (burden of undermining sister-state decree rests heavily upon assailant); see also Lakeside Equip. Corp., 173 Vt. at 322, 795 A.2d at 1179 (recognizing that “[a]lthough the burden of overcoming the default judgment rests with the party attacking it, where the issue of personal jurisdiction is resolved on summary judgment, the moving party retains the burden of establishing the absence of a genuine issue of material fact and entitlement to prevail as a matter of law” (citation omitted)). “If the defendant in the action to domesticate the foreign default judgment ultimately fails to meet its burden of demonstrating that the judgment is jurisdictionally defective, any challenge on the merits of the lawsuit is foreclosed.” Id. (citing 18 C. Wright et al., supra, § 4430, at 291 for proposition omitted).
that “[o]bjections to personal jurisdiction remain open to the defendant who remains entirely aloof from the original proceeding, but if it is later concluded that personal jurisdiction existed the merits of the action are foreclosed unless relief can be had from the default judgment“).
¶ 20. In this case, we agree with the trial court that defendant failed to establish
¶ 21. The trial court made clear to defendant that it required more than his mere assertion to draw the judgment into question, and it provided him the opportunity to provide additional evidence, such as Arizona court records, to support his contention regarding service. See
Affirmed.
FOR THE COURT:
Associate Justice
¶ 22. ROBINSON, J., concurring in part, dissenting in part. The majority suggests that testimony about a critical fact, given under oath and based on personal knowledge, is insufficient to create a dispute of material fact for purposes of summary judgment. That is a dramatic departure from well-established and universal principles of
¶ 23. I agree with the majority‘s description of the legal framework. Ante, ¶ 19. The Arizona judgment in this case is entitled to full faith and credit unless defendant can show that the Arizona court lacked jurisdiction or acted to deprive defendant of a reasonable opportunity to be heard. Lakeside Equip. Corp. v. Town of Chester, 173 Vt. 317, 321, 795 A.2d 1174, 1178 (2002). Although the majority does not explicitly say so, implicit in the majority‘s description of the applicable law is the recognition that if defendant in this case does, in fact, establish that he was never served with the complaint or the ultimate judgment in the Arizona case, the Arizona judgment is not entitled to full faith and credit. See In re Hanrahan‘s Will, 109 Vt. 108, 120, 194 A. 471, 477 (1937) (“[A] ‘judgment’ rendered without notice or appearance is no judgment at all. It is not merely erroneous, irregular, or voidable. Upon the plainest principles of natural justice, and under the Fourteenth Amendment, it is absolutely void.“).
¶ 24. Accordingly, the critical factual issue driving resolution of this case is: was defendant served with the complaint or final judgment in the Arizona case? If not, H&E is not entitled to enforce the judgment in Vermont; if so, it is entitled to enforce the judgment, and defendant cannot challenge the judgment on its merits.
¶ 25. The majority‘s conclusion that the record reflects no dispute of material fact on this decisive issue, ante, ¶ 20, is flatly contradicted by the record. Defendant filed a sworn affidavit stating the following:
I was not served with a summons or complaint in the underlying lawsuit....
I had no contact from plaintiff regarding the alleged debt until I was served with this lawsuit in Vermont to enforce the Arizona judgment....
If I had notice of the Arizona action, I would have responded and defended myself, because I had many defenses to Plaintiff‘s claim.
In its factfinding capacity, the trial court may conclude that plaintiff is not credible, or that his testimony is not persuasive enough to satisfy defendant‘s burden to overcome the presumption of validity afforded the Arizona judgment. But I cannot fathom how, as a matter of law, defendant‘s sworn testimony as to the critical fact at issue, based upon his own personal knowledge, does not create a disputed issue such that summary judgment is inappropriate.
¶ 26. This is not at all like the cases relied upon by the majority in which the statement claimed to give rise to a factual dispute is nothing more than a bald assertion of an ultimate fact or legal conclusion. Ante, ¶ 20. In In re Shenandoah LLC, a closely divided majority of this Court affirmed a summary judgment where the non moving party “provided no information to the court, and no actual documentation to support their conclusory statements that they had no ‘control’ over the Trust‘s activities and derived no ‘benefit’ from the Trust‘s land development activities.” 2011 VT 68, ¶ 17, 190 Vt. 149, 27 A.3d 1078. The Court explained, “[i]t is well-established that ultimate or conclusory facts and conclusions of law . . . cannot be utilized on a summary-judgment motion.” Id. (quotation omitted); see also Lussier v. Truax, 161 Vt. 611, 612, 643 A.2d 843, 844 (1993) (mem.) (“[The] defendants’ affidavits and documents, which for the most part consist of self-serving opinions as to the legal nature of the parties’ transaction and of unrecorded or undelivered documents, are
¶ 27. The relevant testimony in defendant‘s affidavit is neither a legal conclusion nor an assertion of ultimate fact; it establishes the critical foundational fact from which a legal conclusion may follow. It is nothing like the conclusory and unsupported statement that a judgment “was obtained without personal jurisdiction over the defendants” that a federal court held insufficient to survive summary judgment in Shurland Robin Demergue Bell v. Nutmeg Airways Corp., 407 F. Supp. 1254, 1259 (D. Conn. 1976). Instead, defendant‘s sworn affidavit provided evidence of a straightforward, and disputed, fact as to whether defendant was served with notice of the Arizona proceeding.
¶ 28. The trial court‘s decision may have been influenced in part by the fact that in a prior ruling it made clear to defendant that in addition to his offering his “word,” the court expected him to secure and provide the court with Arizona court records from 2001 further supporting his claim. But the court‘s expectation in this regard, while perhaps an accurate reflection of its anticipated expectations as a factfinder on the merits of the notice question, was not an appropriate requirement on summary judgment. Defendant was entitled to rest on his testimony, hoping the court would find him sufficiently credible to overcome the presumption that the Arizona judgment was valid, or at least to shift a burden of production to H&E.
¶ 29. For these reasons, I respectfully dissent.
¶ 30. I am authorized to state that Justice Dooley joins this concurrence and dissent.
Associate Justice
