Go Invest Wisely LLC v. Murphy , 820 Utah Adv. Rep. 31 ( 2016 )


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    2016 UT App 185
    THE UTAH COURT OF APPEALS
    GO INVEST WISELY LLC,
    Appellee,
    v.
    BLAINE MURPHY,
    Appellant.
    Memorandum Decision
    No. 20140822-CA
    Filed September 1, 2016
    Fourth District Court, Provo Department
    The Honorable Samuel D. McVey
    No. 090403475
    Karthik Nadesan, Attorney for Appellant
    Victor A. Sipos, Attorney for Appellee
    JUDGE MICHELE M. CHRISTIANSEN authored this Memorandum
    Decision, in which JUDGES STEPHEN L. ROTH and KATE A. TOOMEY
    concurred.
    CHRISTIANSEN, Judge:
    ¶1     Appellant Blaine Murphy appeals the district court’s
    denial of his rule 60(b) motion for postjudgment relief. See Utah
    R. Civ. P. 60(b). We affirm in part, vacate in part, and remand for
    further proceedings.
    BACKGROUND
    ¶2     In November 2013, Go Invest Wisely LLC (GIW) filed an
    amended complaint against Murphy, a resident of North
    Carolina, alleging three causes of action: (1) fraud, (2) negligent
    misrepresentation, and (3) unlawful formation and use of Bryce
    Peters Financial Corporation (BPFC) in violation of law. The
    Go Invest Wisely v. Murphy
    complaint also named as defendants Odell Barnes and BPFC. See
    generally Go Invest Wisely LLC v. Barnes, 
    2016 UT App 184
    .
    ¶3      Copies of the summons and amended complaint were
    served on Murphy at the correctional facility in Ohio where he
    was then incarcerated. Several days later, Murphy sent a letter to
    the district court and GIW’s counsel ‚to request an extension of
    time in which to submit [a] response/answer due to [his] current
    incarceration.‛ At a pretrial conference on January 6, 2014, the
    district court acknowledged that it had received Murphy’s letter;
    however, the court did not respond to, or formally rule on,
    Murphy’s request for an extension. Ultimately, in March 2014,
    the district court entered a default judgment against Murphy for
    $1,183,496.14.
    ¶4     Three months later, Murphy’s current counsel entered an
    appearance and filed a motion for relief from the judgment
    pursuant to rule 60(b) of the Utah Rules of Civil Procedure. In
    his motion, Murphy requested oral argument and asked the
    court to set aside the judgment as void for lack of jurisdiction
    under rule 60(b)(4) and on grounds of mistake and excusable
    neglect under rule 60(b)(1). In support of his motion, Murphy
    submitted a declaration setting forth his version of the facts
    regarding jurisdiction and his reasons for failing to timely
    answer GIW’s complaint. Thereafter, GIW filed an opposition to
    Murphy’s rule 60(b) motion, contending that the district court
    could exercise jurisdiction over Murphy because, among other
    things, ‚Murphy had numerous contacts with GIW, knowing it
    was a Utah company. Murphy received hundreds of thousands
    of dollars from GIW related to his criminal acts.‛ GIW’s
    opposition was not supported by any affidavits, declarations, or
    other sworn testimony, but GIW did submit approximately 430
    pages of documents as exhibits (the Motion Exhibits), including
    what purported to be (1) Murphy’s Ohio criminal indictment;
    (2) a press release from the Cuyahoga County Prosecutor’s
    Office stating that Murphy had been released from prison on
    January 17, 2014; (3) several email exchanges between GIW and
    Marty Franks acting on behalf of BPFC; (4) several email
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    Go Invest Wisely v. Murphy
    exchanges between GIW and Sandy Warren acting on behalf of
    BPFC; (5) unsigned copies of purported sales agreements
    between GIW and BPFC; (6) several email exchanges between
    GIW and Andi Davis acting on behalf of BPFC; and (7) the
    district court’s order denying codefendant Odell Barnes’s motion
    to dismiss for lack of personal jurisdiction. See Go Invest Wisely
    LLC v. Barnes, 
    2016 UT App 184
    .
    ¶5      Murphy then filed a reply memorandum, asserting that
    GIW had ‚failed to establish personal jurisdiction over Murphy‛
    and ‚failed to proffer an affidavit or other admissible evidence
    in support of its argument for personal jurisdiction.‛ Murphy
    contended that the Motion Exhibits constituted ‚inadmissible
    hearsay in the absence of a supporting affidavit‛ and that the
    district court was therefore required to accept as true the facts in
    Murphy’s declaration. In addition, Murphy attached a
    supplemental declaration, a copy of a complaint filed against
    GIW for fraud, an Ohio Court of Appeals decision affirming
    GIW’s misdemeanor convictions entered on no contest pleas,
    and a Cleveland Municipal Court Capias Warrant Report
    showing an outstanding warrant for GIW.1
    ¶6     In August 2014, after the conclusion of Barnes’s trial, see
    generally Barnes, 
    2016 UT App 184
    , ¶ 7 n.1, the district court
    entered an order denying Murphy’s motion for relief from the
    default judgment. In denying Murphy’s motion, the district
    court stated that ‚Murphy did not support his motion with any
    admissible evidence.‛ The court then found that it had
    jurisdiction over Murphy pursuant to section 78B-3-205 of the
    Utah Code:
    1. Black’s Law Dictionary defines ‚capias‛ as ‚*a+ny of various
    types of writs that require an officer to take a named defendant
    into custody. A capias is often issued when a respondent fails to
    appear . . . .‛ Capias, Black’s Law Dictionary (10th ed. 2014).
    20140822-CA                     3                
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    Go Invest Wisely v. Murphy
    Murphy claims the court lacks general and specific
    jurisdiction over him. However, he offers no
    affidavit supporting his alleged facts. Sin[c]e he
    wants instead to rely on the complaint and
    seemingly convert his motion to a motion to
    dismiss on this point, the Court notes the
    complaint contains facts indicating Murphy was
    transacting real estate sales with [GIW] which was
    located in Utah and Murphy received payments
    sent [to] him from Utah by that Utah company. He
    did business using emails and couriers going to
    and from Utah and provided fraudulent materials
    to Utah. He thus engaged in transactions, supplied
    documents and caused injury in Utah according to
    the complaint. Plaintiff also provided exhibits
    establishing these facts.
    The court further concluded that ‚Murphy also made a general
    appearance in the case when he wrote and filed a letter asking
    for an extension of time.‛ Regarding Murphy’s mistake claim,
    the court ruled that Murphy had ‚assumed the Court gave him
    more time to answer‛ and that
    he received no such grant from the Court and his
    claim to making such an assumption is belied by
    the fact he waited a half year after being served,
    including four and a half months after getting out
    of jail, to do anything, far beyond any reasonable
    amount of time even if his assumption was correct
    (he conveniently left out of his ‚facts‛ the date he
    got out of jail—plaintiff had to research the date to
    respond to the motion).
    Likewise, the district court found no excusable neglect for
    Murphy’s failure to respond to the complaint because Murphy
    provided ‚no facts showing that once he got out of jail,
    circumstances made him unable to act for six weeks.‛ According
    20140822-CA                    4                
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    Go Invest Wisely v. Murphy
    to the district court, even if Murphy had ‚been served the day of
    his release, he would have had to answer in 30 days, but did
    nothing for 45 days to the default date, and then continued to do
    nothing thereafter for another 90 days.‛ Consequently, the
    district court denied Murphy’s rule 60(b) motion in its entirety.
    The court did not address Murphy’s claim that the Motion
    Exhibits submitted by GIW constituted ‚inadmissible hearsay in
    the absence of a supporting affidavit.‛
    ¶7      Apparently recognizing that the district court’s order
    contained factual errors, GIW filed a motion to correct the
    record. Specifically, GIW observed that the district court’s order
    erroneously stated ‚that Murphy did not request oral argument
    and that Murphy did not support his motion with admissible
    evidence.‛ Murphy opposed the motion, arguing that the district
    court lacked jurisdiction to alter the order because Murphy had
    already filed his notice of appeal and because the relief GIW
    sought was not authorized under the rules for correcting the
    record. The district court granted GIW’s motion and amended its
    order, concluding that ‚*e+ven if *Murphy+ requested a hearing
    related to his motion for relief from the default judgment, a
    hearing would not have materially affected the Court’s
    decision.‛ In addition, the district court acknowledged that
    Murphy had filed two declarations related to his motion for
    relief. The district court stated that it had ‚reviewed those
    affidavits and nothing contained therein alters the substantive
    nature of the rulings in this Court’s August 5 Order. Plentiful
    evidence shows that this Court has personal jurisdiction over
    Murphy related to this action.‛ Murphy appeals.
    ISSUES AND STANDARDS OF REVIEW
    ¶8     On appeal, Murphy first contends that the district court
    erred in denying his motion for relief from judgment under rule
    60(b)(4) because the court lacked personal jurisdiction over him.
    ‚A denial of a motion to vacate a judgment under rule 60(b) is
    ordinarily reversed only for an abuse of discretion.‛ Department
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    Go Invest Wisely v. Murphy
    of Social Services v. Vijil, 
    784 P.2d 1130
    , 1132 (Utah 1989).
    ‚However, when a motion to vacate a judgment is based on a
    claim of lack of jurisdiction, the district court has no discretion: if
    jurisdiction is lacking, the judgment cannot stand without
    denying due process to the one against whom it runs.‛ 
    Id.
     Thus,
    ‚the propriety of the jurisdictional determination, and hence the
    decision not to vacate, becomes a question of law upon which
    we do not defer to the district court.‛ 
    Id.
     ‚Although
    jurisdictional questions present issues of law, the burden of
    demonstrating a lack of jurisdiction lies on the party challenging
    jurisdiction.‛ Jackson Constr. Co. v. Marrs, 
    2004 UT 89
    , ¶ 9, 
    100 P.3d 1211
    . ‚‘When a judgment, including a default judgment,
    has been entered by a court of general jurisdiction, the law
    presumes that jurisdiction exists, and the burden is on the party
    attacking jurisdiction to prove its absence.’‛ 
    Id.
     (quoting Vijil, 784
    P.2d at 1133).
    ¶9      Alternatively, Murphy contends that he ‚should be
    granted relief as a result of mistake and excusable neglect.‛ We
    review the district court’s denial of Murphy’s motion for relief
    from judgment under rule 60(b)(1) for an abuse of discretion. See
    Jones v. Layton/Okland, 
    2009 UT 39
    , ¶ 10, 
    214 P.3d 859
    .
    ANALYSIS
    I. Personal Jurisdiction
    ¶10 Murphy first contends that he ‚should be granted relief
    from the default judgment because Utah does not have personal
    jurisdiction over [him].‛ As part of this contention, Murphy
    argues that, ‚in the absence of sworn testimony, *the Motion
    Exhibits] supplied by GIW constitute inadmissible hearsay
    documents and lack foundation.‛2 Thus, according to Murphy,
    2. In a similar vein, Murphy argues that ‚*e+vidence from the
    trial of Odell Barnes is not part of the record for purposes of
    (continued<)
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    Go Invest Wisely v. Murphy
    (2016 UT
    App 184
    . On appeal, GIW’s briefing relies heavily on the Trial
    Exhibits for its assertion that the district court had personal
    jurisdiction over Murphy, and GIW implicitly asserts that the
    district court relied on the Trial Exhibits in ruling on Murphy’s
    motion for relief. However, Murphy asserted in his briefing and
    at oral argument before this court that ‚contrary to GIW’s
    arguments, there is no basis for believing that the district court
    considered *the Trial Exhibits+ when it ruled on Murphy’s Rule
    60(b) motion for relief,‛ and he correctly observes that ‚the Final
    Order does not identify [the Trial Exhibits] as part of the
    materials considered by the district court.‛ Murphy further
    contends that this court ‚should not rely on *the Trial Exhibits+
    in deciding whether the district court’s decision was erroneous‛
    because ‚consideration of evidence from the trial of Barnes, held
    after Murphy’s motion for relief had been briefed and submitted,
    would violate due process.‛
    We agree with Murphy that consideration of the Trial
    Exhibits would be improper. ‚‘Procedural due process requires,
    at a minimum, timely and adequate notice and an opportunity to
    be heard in a meaningful way.’‛ Osburn v. Bott, 
    2011 UT App 138
    , ¶ 7, 
    257 P.3d 1028
     (quoting McBride v. Utah State Bar, 
    2010 UT 60
    , ¶ 16, 
    242 P.3d 769
    ). In this case, as Murphy correctly
    acknowledges, ‚after the default judgment was entered against
    him, Murphy lost his right to contest liability, participate in the
    trial, or object to the evidence presented at Barnes’s trial.‛
    Consequently, we conclude that GIW’s reliance on the Trial
    Exhibits is misplaced. And were we to reach the merits of the
    (continued<)
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    Go Invest Wisely v. Murphy
    GIW did not rebut Murphy’s sworn testimony and its ‚failure to
    do so is fatal to any claim that Utah has personal jurisdiction
    over Murphy.‛ Because we conclude that the district court
    improperly ruled on Murphy’s rule 60(b)(4) motion before ruling
    on his hearsay challenges, we do not reach the merits of the
    parties’ personal-jurisdiction arguments.
    ¶11 In support of his argument that the Motion Exhibits
    ‚constitute inadmissible hearsay documents and lack
    foundation,‛ Murphy cites White Pine Ranches v. Osguthorpe, 
    731 P.2d 1076
     (Utah 1986), in which the Utah Supreme Court held
    that it was improper for a trial court to consider an abstract of
    the record from another case that was attached to the plaintiff’s
    motion for summary judgment, because the abstract was
    unauthenticated and was hearsay, and because the abstract did
    not constitute an affidavit or support an affidavit. 
    Id.
     at 1077–78.
    In addition, Murphy cites several federal cases regarding
    summary judgment that explain that ‚before they can be treated
    as admissible, documents [in support of or in opposition to a
    motion for summary judgment] must ‘be authenticated by and
    attached to an affidavit that meets the requirements of [Federal
    Rule of Civil Procedure] 56(e) and the affiant must be a person
    through whom the exhibits could be admitted into evidence.’‛3
    (929 F. Supp. 2d
    1155
    , 1161 n.5 (D. Utah 2013). Consequently, rule 56(c)(4), and
    not rule 56(e), now outlines the procedures governing affidavits
    or declarations submitted in support of motions for summary
    judgment. See Fed. R. Civ. P. 56(c)(4) (‚An affidavit or
    (continued<)
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    Go Invest Wisely v. Murphy
    (Quoting Burnett v. Stagner Hotel Courts, Inc., 
    821 F. Supp. 678
    ,
    683 (N.D. Ga. 1993).) See also, e.g., Hal Roach Studios, Inc. v.
    Richard Feiner & Co., 
    896 F.2d 1542
    , 1550–51 (9th Cir. 1989) (‚It is
    well established that unauthenticated documents cannot be
    considered on a motion for summary judgment. . . . A document
    which lacks a proper foundation to authenticate it cannot be
    used to support a motion for summary judgment.‛).
    ¶12 Notwithstanding the foregoing, Murphy has cited no
    cases—and our research has revealed none—in which a court
    applied the procedures and requirements of rule 56 to a rule
    60(b) motion for postjudgment relief. Cf. Robinson v. Jones Waldo
    Holbrook & McDonough, PC, 
    2016 UT App 34
    , ¶ 22 n.6, 
    369 P.3d 119
    . Consequently, we are not persuaded that the Motion
    Exhibits were required to be accompanied by a sworn affidavit
    pursuant to rule 56.
    ¶13 However, it does not follow that the Motion Exhibits were
    not otherwise required to be properly authenticated under rule
    (Id.
     R. 56 advisory committee notes (2015).
    The former version of Utah Rule of Civil Procedure 56(e) was
    nevertheless substantively similar to the current rule 56(c)(4) of
    the Federal Rules of Civil Procedure.
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    Go Invest Wisely v. Murphy
    901 of the Utah Rules of Evidence and, if offered for their truth,
    to be brought within an exception to the hearsay rule. Rule 901
    requires that the proponent of an item of evidence authenticate
    or identify it with ‚evidence sufficient to support a finding that
    the item is what the proponent claims it is‛ and provides a
    nonexhaustive list of means by which evidence may be
    authenticated. See Utah R. Evid. 901. Moreover, if the contents of
    a document are offered for their truth, see 
    id.
     R. 801(c), they must
    be brought within an exception to the hearsay rule, see 
    id.
     R. 803,
    804.
    ¶14 In denying Murphy’s request for relief, the district court
    concluded that Murphy ‚engaged in transactions, supplied
    documents and caused injury in Utah according to the
    complaint. [GIW] also provided exhibits establishing these
    facts.‛ Based on this language from the district court’s order, we
    can infer that the district court concluded that the Motion
    Exhibits were admissible evidence. However, the district court
    provided no findings, no analysis, and gave no reasoning in
    support of that conclusion, and nothing in the court’s order
    indicates that the court specifically considered and rejected
    Murphy’s hearsay arguments regarding the Motion Exhibits.
    ¶15 Consequently, because the district court failed to
    meaningfully address Murphy’s argument that the Motion
    Exhibits constituted inadmissible hearsay, we are unable to
    determine on what grounds the district court found the twenty-
    four Motion Exhibits to be admissible or the extent to which its
    ultimate conclusion was based on them. For example, we do not
    know whether the district court determined that the individual
    exhibits required authentication to be admissible and, if so,
    whether they were sufficiently authenticated or self-
    authenticating. Likewise, we do not know if the district court
    determined that the individual exhibits either did not constitute
    hearsay or were admissible under an exception to the hearsay
    rule. Additionally, we are unable to determine which of the
    twenty-four Motion Exhibits the district court specifically relied
    on in determining that it had personal jurisdiction over Murphy,
    20140822-CA                     10               
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    Go Invest Wisely v. Murphy
    or whether the court could have reached the same result without
    those exhibits. Accordingly, although the question of whether
    the district court’s exercise of personal jurisdiction over Murphy
    was proper presents a question of law, which we review for
    correctness, see supra ¶ 8, we are unable to determine the
    propriety of the district court’s jurisdictional determination, see
    Acton v. Deliran, 
    737 P.2d 996
    , 999 (Utah 1987) (‚The findings of
    fact must show that the court’s judgment or decree follows
    logically from, and is supported by, the evidence. The findings
    should be sufficiently detailed and include enough subsidiary
    facts to disclose the steps by which the ultimate conclusion on
    each factual issue was reached.‛ (citations and internal quotation
    marks omitted)).
    ¶16 Therefore, we vacate the district court’s decision and
    remand with instructions to determine which, if any, of the
    individual Motion Exhibits that the court relied on constitute
    admissible evidence. Once it has decided the admissibility of the
    Motion Exhibits, the district court should again consider
    whether its exercise of personal jurisdiction over Murphy is
    proper and identify the admissible evidence on which its ruling
    is based.4
    4. Based on the district court’s conclusion that Murphy ‚made a
    general appearance in this case when he wrote and filed the
    letter asking for an extension of time,‛ Murphy also contends
    that his letter to the district court asking for ‚an extension of
    time in which to submit [a] response/answer due to [his] current
    incarceration‛ did not waive his right to challenge personal
    jurisdiction. The Utah Supreme Court has acknowledged that
    ‚*t+he distinction between general and special appearances has
    been abolished by the language contained in Rule 12(b) [of the
    Utah Rules of Civil Procedure+ as follows: ‘No defense or
    objection is waived by being joined with one or more other
    defenses or objections in a responsive pleading or motion or by
    further pleading after the denial of such motion or objection.’‛
    (continued<)
    20140822-CA                    11                
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    Go Invest Wisely v. Murphy
    II. Mistake and Excusable Neglect
    ¶17 Murphy alternatively argues that he ‚should be granted
    relief [from the default judgment] as a result of mistake and
    excusable negligence.‛ Pursuant to rule 60(b) of the Utah Rules
    of Civil Procedure, ‚[o]n motion and upon such terms as are just,
    the court may in the furtherance of justice relieve a party or its
    legal representative from a final judgment, order, or proceeding
    for the following reasons: (b)(1) mistake, inadvertence, surprise,
    or excusable neglect.‛ Utah R. Civ. P. 60(b)(1). ‚To be entitled to
    relief under the rule, a party must show that ‘(1) the motion is
    timely; (2) there is a basis for granting relief under one of the
    subsections of 60(b); and (3) the movant has alleged a
    meritorious defense.’‛ Asset Acceptance LLC v. Stocks, 
    2016 UT App 84
    , ¶ 13 (quoting Menzies v. Galetka, 
    2006 UT 81
    , ¶ 64, 
    150 P.3d 480
    ).
    ¶18 As a preliminary matter, the parties dispute whether
    Murphy’s rule 60(b)(1) motion was timely. A motion made
    (547 P.2d 206
    , 207
    (Utah 1976) (quoting Utah R. Civ. P. 12(b)). Moreover, the Utah
    Supreme Court has held that a defendant did not waive its
    jurisdictional claim by sending a pro se letter to plaintiff’s
    counsel (but addressed to the district court) where the defendant
    ‚did not ask for affirmative relief of the court‛ and ‚merely
    denied responsibility for the injury and identified the case by its
    number.‛ Parry v. Ernst Home Center Corp., 
    779 P.2d 659
    , 661
    (Utah 1989). Here, Murphy’s pro se letter to the district court and
    GIW’s counsel did not ask for affirmative relief of a substantive
    nature; rather, Murphy’s letter merely sought an ‚an extension
    of time in which to submit [a] response/answer due to [his]
    current incarceration.‛ Consequently, we conclude that
    Murphy’s letter did not amount to a general appearance in the
    case or otherwise waive his jurisdictional defense.
    20140822-CA                    12                
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    Go Invest Wisely v. Murphy
    under rule 60(b)(1) ‚must be filed within a reasonable time
    and . . . not more than 90 days after entry of the judgment or
    order.‛5 Utah R. Civ. P. 60(c). Here, the district court entered
    judgment on March 10, 2014, and Murphy filed his motion for
    relief on Monday, June 9, 2014. Thus, Murphy filed his motion
    ninety-one calendar days after the court entered judgment. See
    
    id.
     R. 6(a)(1) (‚When the period is stated in days or a longer unit
    of time: . . . exclude the day of the event that triggers the
    period; . . . count every day, including intermediate Saturdays,
    Sundays, and legal holidays; and . . . include the last day of the
    period, but if the last day is a Saturday, Sunday, or legal holiday,
    the period continues to run until the end of the next day that is
    not a Saturday, Sunday or legal holiday.‛). However, because
    the ninety-day deadline fell on Sunday, June 8, 2014, Murphy
    had until the end of the day on Monday, June 9, 2014, to timely
    file his motion. See 
    id.
     Consequently, Murphy’s motion for relief
    was timely.
    ¶19 Murphy contends that he should have been granted relief
    under rule 60(b)(1) because ‚when the Court failed to respond in
    any manner [to his request for an extension of time], Murphy
    reasonably, if mistakenly, believed that he had been granted
    additional time.‛ This claimed ‚mistake‛ serves as Murphy’s
    excuse for neglecting to timely file an answer. According to
    Murphy, he was unable to respond to GIW’s complaint in a
    timely manner because he was incarcerated in Ohio at the time
    of service and ‚had limited access to funds for retaining an
    attorney,‛ resulting in his inability to search for an attorney in
    Utah. Murphy contends that he nonetheless acted with due
    diligence when he sent a letter to the district court requesting
    additional time to respond to GIW’s complaint. Murphy also
    contends that by sending his request for an extension of time to
    5. Whereas a motion made under rule 60(b)(1), (2), and (3) must
    be filed ‚not more than 90 days after entry of the judgment or
    order,‛ a motion made under rule 60(b)(4), (5), and (6) must be
    filed within a reasonable time. See Utah R. Civ. P. 60(c).
    20140822-CA                     13               
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    Go Invest Wisely v. Murphy
    the district court, he did ‚exactly what a reasonable person
    would have done under the circumstances.‛
    ¶20 In its order denying Murphy’s motion for relief, the
    district court observed that it did not grant Murphy an extension
    of time to answer and that Murphy’s ‚claim to making such an
    assumption is belied by the fact he waited a half year after being
    served, including four and a half months after getting out of jail,
    to do anything, far beyond any reasonable amount of time even
    if his assumption was correct.‛ The district court further found
    that Murphy
    provides no facts showing that once he had got out
    of jail, circumstances made him unable to act for
    six weeks. Had he even been served the day of his
    release, he would have had to answer in 30 days,
    but did nothing for 45 days to the default date, and
    then continued to do nothing thereafter for 90
    days. This is not excusable neglect because Murphy
    presents no evidence of diligence on his part. It is
    noteworthy Murphy never told the Court or
    counsel he was out of jail and asked for an
    extension of time at that point. He did nothing for
    seven weeks to find counsel or contact the Court.
    He presents no facts saying anything ‚prevented‛
    him from doing something. Any neglect was not
    excusable. Hiding one’s head in the sand or doing
    nothing is not excusable.
    (Citation omitted.) We agree with the district court, and
    conclude that Murphy’s inaction does not qualify for relief as
    excusable neglect.
    ¶21 ‚To demonstrate that *a+ default was due to excusable
    neglect, ‘*t+he movant must show that he has used due diligence
    and that he was prevented from appearing by circumstances
    over which he had no control.’‛ Black’s Title, Inc. v. Utah State Ins.
    Dep’t, 
    1999 UT App 330
    , ¶ 10, 
    991 P.2d 607
     (second alteration in
    20140822-CA                      14               
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    Go Invest Wisely v. Murphy
    original) (quoting Airkem Intermountain, Inc. v. Parker, 
    513 P.2d 429
    , 431 (Utah 1973)). ‚Due diligence is established where the
    failure to act was the result of the neglect one would expect from
    a reasonably prudent person under similar circumstances.‛
    Sewell v. Xpress Lube, 
    2013 UT 61
    , ¶ 29, 
    321 P.3d 1080
     (ellipsis,
    citation, and internal quotation marks omitted); see also Bodell
    Constr. Co. v. Robbins, 
    2014 UT App 203
    , ¶ 10, 
    334 P.3d 1004
     (‚*I+n
    determining whether a party has exercised due diligence
    sufficient to justify excusing it from the full consequences of its
    neglect under rule 60(b), the trial court must consider whether
    the actions of the party seeking relief were sufficiently diligent
    and responsible, in light of the attendant circumstances.‛
    (citation and internal quotation marks omitted)).
    ¶22 Although Murphy contends that he acted as a reasonable
    person would have when he took affirmative steps to address
    the complaint by sending his letter requesting ‚an extension so
    that he could have sufficient time to access his funds and retain a
    lawyer,‛ that was the only action Murphy took in the six months
    after he was served. In all fairness to Murphy, the district court
    could have informed him of the status of his request. Murphy
    has not, however, explained why it was reasonable for him to
    construe the district court’s silence as granting him an extension
    of time.
    ¶23 Moreover, when Murphy did not hear from the district
    court, it was unreasonable for him to assume that his request
    had been granted and to do nothing for six months thereafter.
    This is especially true given that Murphy was released from
    prison no later than January 22, 2014, yet took no action relating
    to the lawsuit between that date and the default-judgment
    date—March 10, 2014—and no action for three months after the
    default-judgment date. And, as the district court correctly
    observed, Murphy has presented no evidence that he was
    somehow ‚prevented from appearing by circumstances over
    which he had no control‛ once he got out of prison. See Black’s
    Title, 
    1999 UT App 330
    , ¶ 10 (citation and internal quotation
    marks omitted). Because Murphy has not shown that there is a
    20140822-CA                    15                
    2016 UT App 185
    Go Invest Wisely v. Murphy
    basis for granting relief under rule 60(b)(1), we need not address
    whether he has alleged a meritorious defense. See Asset
    Acceptance LLC v. Stocks, 
    2016 UT App 84
    , ¶ 13. We conclude that
    the district court did not abuse its discretion in rejecting
    Murphy’s rule 60(b)(1) motion. See Jones v. Layton/Okland, 
    2009 UT 39
    , ¶ 10, 
    214 P.3d 859
     (‚We review a district court’s denial of
    a rule 60(b) motion for relief from judgment for an abuse of
    discretion.‛).
    CONCLUSION
    ¶24 We affirm the district court’s denial of Murphy’s motion
    for relief pursuant to rule 60(b)(1) of the Utah Rules of Civil
    Procedure. However, we vacate the district court’s denial of
    Murphy’s motion to set aside the default judgment pursuant to
    rule 60(b)(4) and remand this case to the district court so that the
    court may determine whether any of the individual Motion
    Exhibits constitute admissible evidence and thereby determine
    whether the court’s exercise of personal jurisdiction over
    Murphy is proper.
    20140822-CA                     16               
    2016 UT App 185
                                

Document Info

Docket Number: 20140822-CA

Citation Numbers: 2016 UT App 185, 382 P.3d 631, 820 Utah Adv. Rep. 31, 2016 Utah App. LEXIS 192, 2016 WL 4578415

Judges: Christiansen, Roth, Toomey

Filed Date: 9/1/2016

Precedential Status: Precedential

Modified Date: 10/19/2024