ia v. Wozniak

The summaries of the Colorado Court of Appeals published opinions
constitute no part of the opinion of the division but have been prepared by
the division for the convenience of the reader. The summaries may not be
cited or relied upon as they are not the official language of the division.
Any discrepancy between the language in the summary and in the opinion
should be resolved in favor of the language in the opinion.
SUMMARY
January 16, 2020
2020COA10
No. 18CA2098, Spiremedia v. Wozniak — Civil Procedure —
Default — District Court Practice Standards — Default
Judgments
A division of the court of appeals considers whether, when a
district court denies a motion for default judgment for failure to
comply with C.R.C.P. 55 and 121, section 1–14, the court is
required to explain the basis for its denial. The division concludes
that Rule 121, section 1-14(2), requires the court to provide the
parties with a sufficient explanation to afford the moving party an
opportunity to identify and correct the deficiency, if it can.
The appellant filed two motions for default judgment, both of
which the district court denied for not complying with the
requirements listed in Rule 121, section 1-14. When it denied both
motions, the district court did not provide any explanation as to
how the motions failed to satisfy section 1-14. Further, when the
court denied the second motion for default judgment, it also
dismissed the case for violation of the court’s delay reduction order.
After reviewing the second motion, the division concludes that
the motions were deficient. However, the division also concludes
that the district court was obligated to provide an explanation as to
how the motions failed to meet the requirements of Rule 121,
section 1-14. Under Rule 121, section 1-14(2), when a court
reviews a motion for default judgment, “[i]f further documentation,
proof or hearing is required, the court shall so notify the moving
party.” The division concludes that, under this rule, a court is
obligated to provide some explanation of how a motion for default
judgment is deficient such that a party can identify and attempt to
correct the deficiencies before the case is dismissed.
Because the district court didn’t adequately articulate its basis
for denying the motion for default judgment before dismissing the
case, the division reverses the judgment and remands the case for
further proceedings
COLORADO COURT OF APPEALS 2020COA10
Court of Appeals No. 18CA2098
City and County of Denver District Court No. 18CV30504
Honorable Brian R. Whitney, Judge
Spiremedia Inc., d/b/a Spire Digital,
Plaintiff-Appellant,
v.
Timothy Richard Wozniak, a/k/a Timmy Wozniak,
Defendant-Appellee.
JUDGMENT REVERSED AND CASE
REMANDED WITH DIRECTIONS
Division VI
Opinion by JUDGE WELLING
Terry and Berger, JJ., concur
Announced January 16, 2020
Bighorn Legal, Jonathan Hagn, Englewood, Colorado, for Plaintiff-Appellant
No Appearance for Defendant-Appellee
¶1 Spiremedia Inc. appeals the district court’s order denying its
motion for default judgment and dismissing the case for violation of
the district court’s delay reduction order (DRO).
¶2 This case raises an issue of first impression: What is a court
required to tell a party when it denies a motion for default judgment
pursuant to C.R.C.P. 55(b) and 121, section 1-14, and dismisses a
case for failure to comply with the rules? We conclude that a court
is required to identify the deficiencies in the motion that supports
its decision, particularly before taking the extraordinary step of
dismissing the case. Such an explanation provides a party an
opportunity to remedy the deficiencies in its motion. Because the
court here didn’t adequately articulate its basis for denying the
motion for default judgment before dismissing the case, we reverse
the judgment and remand the case for further proceedings.
I. Background
¶3 On February 8, 2018, Spiremedia filed its complaint against
Timothy Richard Wozniak for breach of contract and treble damages
for a dishonored check pursuant to section 13–21–109(2), C.R.S.
2019. Four days later, the district court issued a DRO, stating that
“application for entry of default under C.R.C.P. 55(a) must be filed
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within 14 days after default has occurred. . . . Motions for entry of
default judgment must comply with C.R.C.P. 121, § 1-14.” The
DRO also warned (in bold and all capital letters) that “IF AN
ATTORNEY OR PRO SE PARTY FAILS TO COMPLY WITH THIS
ORDER, THE COURT MAY DISMISS THE CASE WITHOUT
PREJUDICE.”
¶4 On May 8, 2018, Spiremedia filed an affidavit of service
attesting that Wozniak was served outside of Colorado on May 6,
2018. (Under C.R.C.P. 12(a)(2), a defendant served outside of
Colorado has thirty-five days from the date of service to file an
answer or other initial response.) Thus, Wozniak had until June
10, 2018, to respond to the complaint. By June 15, 2018, however,
Wozniak had not filed any responsive pleadings or motion to
dismiss, so Spiremedia filed a motion for default judgment under
C.R.C.P. 55.
¶5 On July 11, 2018, the district court denied Spiremedia’s
motion for default judgment, stating only: “A motion for default
judgment must comport with the requirements of C.R.C.P. 121, § 1-
14. The Motion as filed does not do so, and is therefore presented
in an improper format. Accordingly, the Motion is DENIED.” The
2
court did not provide any explanation of those purported
deficiencies.
¶6 Two days later, Spiremedia, apparently uncertain was
deficienct about its first motion — but suspecting it may have been
a failure to include an affidavit stating Wozniak is not a minor,
incompetent, or a servicemember, see C.R.C.P. 121, § 1-14(1)(c) —
refiled the motion for default judgment, this time adding what it
referred to as an “affidavit equivalent” pursuant to the Uniform
Unsworn Declarations Act (UUDA), § 13–27–104(1), C.R.S. 2019,
averring compliance with C.R.C.P. 121, section 1-14(1)(c).
¶7 On September 10, 2018, the district court ruled on
Spiremedia’s second motion for default judgment as follows:
Plaintiff previously filed a motion for default
judgment on June 15, 2018. That motion was
denied for failure to comport with the
requirements of C.R.C.P. 121 § 1-14. The
current Motion is substantially identical to
that motion, with the addition of a[n]
unnotarized affidavit regarding Defendant’s
servicemember status. Thus, as with the prior
motion, this Motion does not comport with
C.R.C.P. 121 § 1-14, and is therefore presented
in an improper format. Accordingly, the
Motion is DENIED. Furthermore, because
Plaintiff has twice filed the Motion in an
improper format, Plaintiff is in violation of this
3
Court’s Delay Reduction Order. The action is
accordingly DISMISSED.
We will refer to this order as the Dismissal Order.
¶8 On September 19, 2018, Spiremedia filed a motion for
reconsideration of the Dismissal Order. It asserted that, after a
review of the requirements for a motion for default judgment listed
in C.R.C.P. 121, section 1-14, it was “unable to discern any
substantive defect in the papers already filed with the Court.” And
it told the court that, even if there was a defect, the court “has still
never notified [Spiremedia] as to what ‘further documentation,
proof, or hearing is required’ to resolve the Motion . . . .” (Quoting
C.R.C.P. 121, § 1-14(2).) Thus, Spiremedia contended, the district
court should vacate its order dismissing the case and either enter
default judgment in its favor or “notify [Spiremedia] and its counsel
as to the specific defect(s) with the Motion [for default judgment]
under C.R.C.P. 121[,] § 1-14.”
¶9 On October 11, 2018, the district court denied Spiremedia’s
motion to reconsider. In its order, the district court said, without
further explanation, that “[t]he supporting documents for both prior
4
motions were wholly incomplete for the purposes of default
judgment, sworn or not.”
II. Analysis
¶ 10 Spiremedia appeals both the Dismissal Order and the order
denying its motion for reconsideration, raising two contentions.
First, it asserts that the district court erred by denying its second
motion for default judgment because it complied with C.R.C.P. 121,
section 1-14. Second, Spiremedia asserts that, even if its second
motion for default judgment was deficient, the district court erred
by failing to notify Spiremedia as to what further documentation or
proof was required for the motion to comply with the rules. While
we disagree with Spiremedia’s first contention — that its second
motion for default judgment complied with C.R.C.P. 121, section 1-
14 — we are persuaded by its second contention. Accordingly, we
reverse the Dismissal Order and remand the case with instructions
for the court to provide further explanation for the denial of the
motion such that Spiremedia may, if possible, remedy the
deficiencies.
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A. Appellate Jurisdiction
¶ 11 Before reaching Spiremedia’s contentions, we must first
consider our jurisdiction over this appeal, on our own accord if
necessary. See Allison v. Engel, 2017 COA 43, ¶ 22 (“We must
determine independently our jurisdiction over an appeal, nostra
sponte if necessary.” (first citing People v. S.X.G., 2012 CO 5, ¶ 9;
then citing Meridian Ranch Metro. Dist. v. Colo. Ground Water
Comm’n, 240 P.3d 382, 385 (Colo. App. 2009))). At issue in this
appeal are both finality and timeliness. We address each in turn.
1. Finality
¶ 12 With some exceptions not relevant here, we have jurisdiction
only over appeals from final judgments. § 13–4–102(1), C.R.S.
2019; C.A.R. 1(a). Generally, “an order of dismissal without
prejudice is not a final judgment” subject to appeal. SMLL, L.L.C. v.
Daly, 128 P.3d 266, 268–69 (Colo. App. 2005).
¶ 13 The district court’s Dismissal Order was silent as to whether
the case was being dismissed with or without prejudice. Under
C.R.C.P. 41(b)(3), “orders that do not so specify [whether the
dismissal is with or without prejudice] shall be deemed motions for
dismissal without prejudice . . . .” And, under C.R.C.P. 121, section
6
1-10(5), which provides the steps required for dismissal of an action
under C.R.C.P. 41(b), “[a]ny dismissal under this rule shall be
without prejudice unless otherwise specified by the court.”
(Emphasis added.) See also C.R.C.P. 41(b)(2) (requiring that orders
of dismissal under this rule must comport with the requirements in
C.R.C.P. 121, section 1-10). Further, the district court dismissed
the case for noncompliance with the DRO, which provided that “if
an attorney . . . fails to comply with this order, the court may
dismiss the case without prejudice.” (Emphasis added.)
Accordingly, though the Dismissal Order itself is silent, we conclude
that it dismissed the case without prejudice.
¶ 14 Notwithstanding the general rule discussed above, a dismissal
without prejudice is a final judgment if the statute of limitations
period has expired or the dismissal otherwise results in prohibiting
further proceedings. See SMLL, L.L.C., 128 P.3d at 268–69; see also
Golden Lodge No. 13, I.O.O.F. v. Easley, 916 P.2d 666, 667 (Colo.
App. 1996); Wyler/Pebble Creek Ranch v. Colo. Bd. of Assessment
Appeals, 883 P.2d 597, 599 (Colo. App. 1994).
¶ 15 We conclude the Dismissal Order is a final, appealable order
because the statute of limitations has run. Spiremedia filed suit for
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breach of contract and treble damages under section 13–21–109(2).
The latter claim has a statute of limitations of two years from the
date the cause of action accrues. § 13–80–102(1)(k), C.R.S. 2019.
In its complaint, Spiremedia alleged that the statutory violation
occurred on or around February 12, 2016, when Wozniak’s check
was allegedly dishonored. Thus, the statute of limitations on
Spiremedia’s statutory claim had run by February 12, 2018, just
four days after the complaint was filed. And by the time the district
court denied the motion for default judgment the second time and
dismissed the action on September 10, 2018, the statute of
limitations period for Spiremedia’s statutory claim had expired
nearly seven months earlier. Accordingly, the judgment was final
for purposes of appeal. See, e.g., SMLL, L.L.C., 128 P.3d at 268–69.
2. Timeliness
¶ 16 Under Colorado Appellate Rule 4(a), a notice of appeal in a
civil case must “be filed with the appellate court . . . within 49 days
of the date of the entry of the judgment, decree, or order from which
the party appeals.” However, the forty-nine-day period does not
begin to run if a party timely files — that is, within fourteen days of
the final judgment — a motion under C.R.C.P. 59. C.R.C.P.
8
59(a)(3), (4); C.A.R. 4(a). If a party files a timely Rule 59 motion, the
time to file a notice of appeal will begin to run once the district
court enters an order either granting or denying the motion under
C.R.C.P. 59, or, if the court does not rule within sixty-three days of
the motion being filed, upon the expiration of the sixty-three-day
period. C.R.C.P. 59(j); C.A.R. 4(a).
¶ 17 Here, the court entered its Dismissal Order on September 10,
2018. But the notice of appeal was not filed until November 5,
2018 — fifty-six days after the entry of the Dismissal Order. This
appeal would be untimely under C.A.R. 4(a) as to the Dismissal
Order unless the “motion for reconsideration” filed on September
19, 2018, was a motion under Rule 59. That is where we turn next.
¶ 18 Spiremedia’s motion for reconsideration did not cite or
otherwise reference C.R.C.P. 59, and C.R.C.P. 59 itself does not
mention “motions to reconsider.” See Stone v. People, 895 P.2d
1154, 1155 (Colo. App. 1995) (“A motion to reconsider is not
specifically delineated in C.R.C.P. 59 . . . .”). But C.R.C.P. 121,
section 1-15(11), does reference “motions to reconsider other than
those governed by C.R.C.P. 59 or 60” (emphasis added), implying
that motions to reconsider may also be recognized under Rules 59
9
and 60. Further, divisions of this court have repeatedly held that
“[a] motion to reconsider may be treated as a post-trial motion
under C.R.C.P. 59.” Bailey v. Airgas-Intermountain, Inc., 250 P.3d
746, 752–53 (Colo. App. 2010) (citing In re Petition of Taylor, 134
P.3d 579, 582 (Colo. App. 2006)). Additionally, the relief requested
in Spiremedia’s motion to reconsider fits squarely within Rule
59(a)(3) and (4) — to amend the findings and final judgment.
Accordingly, we conclude that Spiremedia’s motion to reconsider
was a timely Rule 59 motion.
¶ 19 Therefore, Spiremedia’s time to appeal the Dismissal Order
only began to run once the district court entered its order denying
the motion for reconsideration on October 11, 2018. This order
reset the deadline within which Spiremedia could appeal the
Dismissal Order to the same date as the cut-off for appeal of the
order denying the motion to reconsider — November 22, 2018.
C.A.R. 4(a). Thus, Spiremedia’s notice of appeal filed on November
5, 2018, was timely as to both orders.
¶ 20 Satisfied that we have jurisdiction, we now turn to the merits
of Spiremedia’s contentions.
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B. Merits
¶ 21 We review a district court’s interpretation of the Colorado
Rules of Civil Procedure de novo. City & Cty. of Broomfield v.
Farmers Reservoir & Irrigation Co., 239 P.3d 1270, 1275 (Colo.
2010) (first citing People v. Shell, 148 P.3d 162, 178 (Colo. 2006);
then citing Leaffer v. Zarlengo, 44 P.3d 1072, 1078 n.6 (Colo. 2002);
and then citing Isis Litigation, L.L.C. v. Svensk Filmindustri, 170
P.3d 742, 744 (Colo. App. 2007)). We use “commonly understood
and accepted meaning[s]” of words to interpret the language of the
Rules. Id.
¶ 22 Under C.R.C.P. 55(a), “[w]hen a party against whom a
judgment for affirmative relief is sought has failed to plead or
otherwise defend . . . and that fact is made to appear by affidavit or
otherwise, the clerk shall enter his default.” The party entitled to
default may then apply to the court for the entry of default
judgment in its favor pursuant to C.R.C.P. 55(b).
¶ 23 C.R.C.P. 121, section 1-14 lists the documents that a moving
party must include with a motion for default judgment. C.R.C.P.
121, § 1-14(1)(a)–(g). Under this rule, the moving party must
provide the court with the following:
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(a) The original summons showing valid service
on the particular defendant in accordance with
Rule 4, C.R.C.P.
(b) An affidavit stating facts showing that
venue of the action is proper. The affidavit
may be executed by the attorney for the
moving party.
(c) An affidavit or affidavits establishing that
the particular defendant is not a minor, an
incapacitated person, an officer or agency of
the State of Colorado, or in the military
service. The affidavit must be executed by the
attorney for the moving party on the basis of
reasonable inquiry.
(d) An affidavit or affidavits or exhibits
establishing the amount of damages and
interest, if any, for which judgment is being
sought. The affidavit may not be executed by
the attorney for the moving party. The
affidavit must be executed by a person with
knowledge of the damages and the basis
therefor.
(e) If attorney fees are requested, an affidavit
that the defendant agreed to pay attorney fees
or that they are provided by statute; that they
have been paid or incurred; and that they are
reasonable. The attorney for the moving party
may execute the affidavit setting forth those
matters listed in or required by Colorado Rule
of Professional Conduct 1.5.
(f) If the action is on a promissory note, the
original note shall be presented to the court in
order that the court may make a notation of
the judgment on the face of the note. If the
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note is to be withdrawn, a photocopy shall be
substituted.
(g) A proposed form of judgment . . . .
C.R.C.P. 121, § 1-14(1); see also Tallman v. Aune, 2019 COA 12,
¶ 22.
¶ 24 If the district court finds, after reviewing the motion for
default judgment, that “further documentation, proof or hearing is
required, the court shall so notify the moving party.” C.R.C.P. 121,
§ 1-14(2).
1. Spiremedia’s Motions for Default Judgment Did Not Comply
With C.R.C.P. 121, Section 1-14
¶ 25 Spiremedia first asserts that the second motion for default
judgment complied with the requirements of C.R.C.P. 121, section
1-14. Spiremedia submitted its motion twice, with substantively
the same documents except that the second motion included what
it referred to as an “affidavit equivalent” pursuant to the UUDA
attesting that Wozniak was not a minor, incompetent, or a
servicemember to satisfy C.R.C.P. 121, section 1-14(1)(c). See § 13-
27-104(1). Although Spiremedia speculated that the district court
took issue with this affidavit substitute (and accordingly denied the
motion for noncompliance with the rule’s affidavit requirement), the
13
district court’s order on the motion to reconsider seems to suggest
some other defect because, in denying the motion to reconsider, the
court said “both motions were wholly incomplete for the purposes of
default judgment, sworn or not.” (Emphasis added.)
¶ 26 Though, as we will discuss below, the district court’s
articulated rationale is lacking, we agree with the district court that
both of Spiremedia’s motions for default judgment were deficient.
After a cursory review of both motions, we have found that, at a
minimum, the attorney fees request is deficient. Spiremedia’s
attorney fees request was listed as a lump sum of $1980.00 without
“setting forth those matters listed in or required by Colorado Rule of
Professional Conduct 1.5.” C.R.C.P. 121, § 1-14(1)(e). Further, the
attorney fees request is unsupported by an affidavit of counsel. Id.
On this basis alone, we must disagree with Spiremedia’s contention
that its motions were “wholly compliant with C.R.C.P. 121, section
1-14,” and we need not decide whether there are further
deficiencies. Accordingly, the district court did not err by
concluding that the motions were deficient.
¶ 27 But before we move on to the next issue, we address an issue
that is likely to arise on remand — namely, whether an unsworn
14
declaration that complies with the UUDA satisfies section 1-14’s
affidavit requirements. In its second motion for default judgment,
Spiremedia included an unsworn declaration attesting to certain
matters required to be addressed by Rule 121, section 1-14. The
unsworn declaration was not an affidavit, but it did comply with the
UUDA, § 13-27-104. Although whether perceived noncompliance
with section 1-14’s affidavit requirement contributed to the district
court’s denial of Spiremedia’s motion for default judgment is
unclear, because this question is likely to arise on remand, we
address the issue of whether compliance with the UUDA satisfies
the affidavit requirement of Rule 121, section 1-14. We conclude
that it does. The UUDA provides that “if a law of this state requires
or permits use of a sworn declaration in a court proceeding, an
unsworn declaration meeting the requirements of [the UUDA] has
the same effect as a sworn declaration.” § 13-27-104(1). This
provision is subject to five enumerated exceptions, none of which
applies to the motion for default judgment in this case. See § 13-
27-104(2).
¶ 28 We now turn to the matter of how the district court explained
its denials.
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2. The District Court Erred in Denying Spiremedia’s Motion for
Default Judgment Twice Without Providing a Sufficient
Rationale Such That Spiremedia Could Correct the Defects
¶ 29 Spiremedia’s second contention is that when a court denies a
motion for default judgment, Rule 121, section 1-14(2) requires a
court to explain how the motion was deficient and that the district
court erred by failing to do so before dismissing the case. We agree.
¶ 30 Regardless of what deficiencies may be in a moving party’s
motion for default judgment, under C.R.C.P. 121, section 1-14(2),
“[i]f further documentation, proof or hearing is required, the court
shall so notify the moving party.” To address Spiremedia’s
contention, we must construe the meaning of “notify.”
¶ 31 C.R.C.P. 121, section 1-14 does not define “notify” or specify
what is required for the notice to be adequate. But the 2006
comment to C.R.C.P. 121, section 1-14, explaining the rationale for
adopting the practice standard, provides guidance. It explains that,
before the addition of this provision,
[o]ne faced with the task of attempting to
obtain a default judgment usually found
themselves making several trips to the
courthouse, numerous phone calls[,] and
redoing needed documents several times. The
Practice Standard is designed to minimize both
court and attorney time.
16
(Emphasis added.)
¶ 32 The principal purpose of including granular detail in section 1-
14 is to streamline the process of obtaining a default judgment.
Section 1-14 does so by providing direction to and imposing
obligations on both the parties and the court. On the one hand, the
detailed requirements enumerated in section 1-14(1)(a) through (g)
provide counsel or a pro se party with a meticulous procedure for
assembling and filing a compliant motion for default judgment.
Still, as any judicial officer who has presided over a civil docket for
even a short time knows all too well, these itemized requirements do
not always result in perfect compliance. So, to achieve the
efficiencies envisioned in the comment to section 1-14, subsection
(2), also requires the court to “so notify” a party of the reason or
reasons it is denying a noncompliant motion for default judgment —
not simply to notify the party of the fact of denial. And the need for
an explanation is all the more acute when denial is accompanied by
dismissal. Cf. Murray v. Bum Soo Kim, 2019 COA 163, ¶ 30 (Tow,
J., specially concurring) (noting that when a district court
summarily dismisses a case with little explanation of its rationale,
“the chances of someone’s interests being adversely affected without
17
recourse are substantially increased”); Koh v. Kumar, 207 P.3d 900,
901–02 (Colo. App. 2009) (“A court errs when it sua sponte
dismisses a complaint without providing the parties with thirty days
written notice and an opportunity to show cause in writing why the
action should not be dismissed.” (first citing C.R.C.P. 41(b)(2); then
citing C.R.C.P. 121, § 1-10(2))).
¶ 33 We don’t envision the requirement that notice under
subsection 1-14(2) include an explanation will impose an
appreciable additional burden on the district courts beyond that
already borne. After all, the district court is already tasked with
assessing on its own whether a motion for default judgment
complies with subsection 1-14(1). Subsection 1-14(2) requires that
the district court take just one more step: inform the parties of the
defect that led it to deny the motion. This step ensures that the
moving party has sufficient information to remedy the issue without
engaging in a potentially fruitless guessing exercise — one that
serves only to frustrate both the court and the moving party.
¶ 34 The bare-bones orders of the district court in this case
resulted in the frustrating problem that section 1-14 sought to
avoid — the moving party was left guessing as to the deficiencies in
18
its motions and it resubmitted documents in an (ultimately
fruitless) attempt to finally get it right. Not only that, but the
district court took the extraordinary step of dismissing the case
with no mention of how Spiremedia went wrong.
¶ 35 Because we conclude that the court erred by dismissing the
case without notifying Spiremedia of (and affording it the
opportunity to correct) the deficiencies in its second motion for
default judgment, we need not reach the issue whether the court
abused its discretion by denying the motion to reconsider.
III. Conclusion
¶ 36 For the reasons set forth above, we reverse the judgment of
dismissal, reinstate the complaint, and remand with instructions
for the district court to reconsider its denial of the motion for
default judgment. If the court again denies the motion, it must
explain why it does so — by citing to the subsection(s) of C.R.C.P.
121, section 1-14(1) that the motion fails to satisfy — and give
Spiremedia a reasonable opportunity to remedy any identified
deficiencies, if it can.
JUDGE TERRY and JUDGE BERGER concur.
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