Larry v. Harris
Full Opinion (html_with_citations)
ΒΆ 1. We review a decision of the court of appeals
I. BACKGROUND
ΒΆ 2. The issues this case presents stem from law enforcement's entry into Taneceia Larry's home without a search warrant. Three officers were alleged to be present during the entry: Derrick Harris, M'Johno Foster and Carlos Rutherford.
ΒΆ 4. The officers returned to Larry's residence, where Larry awaited them outside. Larry consented to a search of her car. The officers found no contraband, but Larry alleges that the officers then placed her in handcuffs. One of the officers said he intended to enter Larry's home. Larry objected. She said that her five children were in the house, some of whom were asleep, and that her niece was watching them. Larry alleges that two of the officers entered her home over her objection. She also alleges that the officers conducted a search inside her home, which included waking and "interrogating" the children and their babysitter. She further alleges that Rutherford "Γ©ither participated in [the] search or was present" during the search, but failed to stop its occurrence.
ΒΆ 6. Larry moved for default judgment when neither Harris nor Rutherford timely answered her complaint. The circuit court denied the motion with respect to Harris after he objected and served an answer. However, the circuit court granted Larry's motion for default judgment against Rutherford.
ΒΆ 7. Harris then moved for summary judgment against Larry, contending that the entry into Larry's
ΒΆ 8. The circuit court granted Harris's motion for summary judgment. Because the circuit court concluded that actions on the part of Harris, Foster and Rutherford all fell within the scope of Harris's motion for summary judgment, the court "treated [them] in the same manner." The court found that, although police officers entered Larry's home without her consent and without a warrant, they did so for the purpose of ensuring that her children were adequately supervised and not for the purpose of uncovering "evidence or . . . criminal activity."
ΒΆ 9. However, in granting summary judgment to Harris and without giving prior notice to Larry, the circuit court also, sua sponte, vacated the default judgment against Rutherford and granted judgment dismissing Larry's claims against Rutherford.
The court will recall we are asking your Honor to reconsider an order in which the court, sua sponte, ordered the reopening of the previously-entered Default Judgment and Summary Judgment against the Plaintiff in favor of the defaulting Defendant, all without any argument from the defaulting Defendant.
We can find no support for this procedure and respectfully request that it be reversed.
Larry also subsequently submitted a reply brief, arguing, in essence, that the circuit court erred by ascribing the qualified immunity that it concluded Harris possessed to Rutherford as well.
ΒΆ 11. The circuit court denied Larry's motion for reconsideration. The court explained its reasoning in vacating the default judgment against Rutherford and in dismissing Larry's complaint as to all officers:
[T]he Court found that the default judgment should be vacated against Defendant Rutherford because no reason existed to hold any officer liable for violation of [Larry's] constitutional rights under her Complaint. . . . The vacation occurred here within a reasonable time after default because the summary judgment was before the Court and the Court determined the claims by Plaintiff were improper. . ..
. . . Plaintiff does not dispute the Court's findings that her rights under the constitution were not violated. Clearly, the Court vacated the default because no officer could be held liable under the Complaint according to the Court's findings; as such, the interests of justice required the Court to vacate the default.
ΒΆ 13. The court of appeals affirmed. It reasoned that a circuit court has statutory authority to grant relief from default judgments on its own motion, so long as it provides the party adversely affected with notice and an opportunity to be heard. Larry v. Harris, 2007 WI App 132, ΒΆ 1, 301 Wis. 2d 243, 733 N.W.2d 911. The court of appeals also concluded that by inviting briefing on Larry's motion to reconsider, the circuit court gave Larry sufficient notice and an opportunity to be heard. Id. The court of appeals decision did not address the circuit court's summary judgment decision.
ΒΆ 14. Larry petitioned for review, which we granted.
II. DISCUSSION
A. Standard of Review
ΒΆ 15. Whether to open a default judgment is committed to the discretion of the circuit court, which we review under the erroneous exercise of discretion standard. See, e.g., Edland v. Wis. Physicians Serv. Ins. Corp., 210 Wis. 2d 638, 643, 563 N.W.2d 519 (1997); Dugenske v. Dugenske, 80 Wis. 2d 64, 68, 257 N.W.2d 865 (1977). A circuit court does not erroneously exercise its discretion if its decision is based on the facts of record and on the application of a correct legal stan
ΒΆ 16. A circuit court's authority to vacate a default judgment and to grant summary judgment derives from Wisconsin statutes. Wis. Stat. Β§Β§ 806.07 and 802.08. We review questions of statutory interpretation independently, but benefiting from the discussions of the circuit court and the court of appeals. Marder v. Bd. of Regents of the Univ. of Wis. Sys., 2005 WI 159, ΒΆ 19, 286 Wis. 2d 252, 706 N.W.2d 110.
B. Wisconsin Stat. Β§ 806.07
1. Opening the default judgment
ΒΆ 17. A circuit court's authority to open a default judgment is derived from statute. Wis. Stat. Β§ 806.07. Section 806.07(1) lists conditions under which a circuit court may exercise its discretion and open a default judgment. It provides:
Relief from judgment or order. (1) On motion and upon such terms as are just, the court, subject to subs. (2) and (3), may relieve a party or legal representative from a judgment, order or stipulation for the following reasons:
(a) Mistake, inadvertence, surprise, or excusable neglect;
(b) Newly-discovered evidence which entitles a party to a new trial under s. 805.15(3);
(c) Fraud, misrepresentation, or other misconduct of an adverse party;
(d) The judgment is void;
*338 (e) The judgment has been satisfied, released or discharged;
(f) A prior judgment upon which the judgment is based has been reversed or otherwise vacated;
(g) It is no longer equitable that the judgment should have prospective application; or
(h) Any other reasons justifying relief from the operation of the judgment.
ΒΆ 18. We have previously recognized that Wis. Stat. Β§ 806.07 seeks to strike a balance between the judiciary's interest in achieving fair resolutions of disputes and the policy favoring finality of judgments. Edland, 210 Wis. 2d at 644. Indeed, Β§ 806.07 serves both interests, enhancing "fairness in the administration of justice by authorizing a circuit court to vacate judgments on various equitable grounds." Id.
ΒΆ 19. Here, the circuit court vacated the judgment against Rutherford on its own motion under Wis. Stat. Β§ 806.07 on equitable grounds, but without prior notice to the parties that it was considering such relief from judgment. Our first tasks are to determine whether: (1) the court's sua sponte vacation of Rutherford's default judgment, and (2) the court's providing an opportunity for the parties to be heard after it had vacated the judgment, rather than before it did so, constituted proper exercises of discretion.
a. Sua sponte vacation of default judgment
ΒΆ 20. The relief that may be accorded under Wis. Stat. Β§ 806.07 need not be sought by one of the parties; a court may act on its own motion pursuant to Β§ 806.07,
ΒΆ 21. Abram objected to the court's award of costs and fees to Gittel, and the court held a hearing on Abram's motion. Id., ΒΆΒΆ 8, 10. At the hearing and without prior notice to the parties that it planned to do so, the court vacated the portion of its order that declared the will the product of undue influence. Id., ΒΆ 11. Gittel filed a motion for reconsideration, which the court denied, indicating that it had the authority to vacate its original order pursuant to Wis. Stat. Β§ 806.07(l)(h). Id., ΒΆ 13.
ΒΆ 22. The court of appeals held in Gittel that a circuit court is authorized to grant relief from its own orders sua sponte under the authority of Wis. Stat. Β§ 806.07, but that the circuit court did not provide the parties with the requisite notice of its action. Id., ΒΆΒΆ 24, 29. The court of appeals explained, "Gittel did not have notice and the opportunity to be heard on the specific issue of the court's authority under Wis. Stat. Β§ 806.07, because the court did not refer to Β§ 806.07 until the written order denying Gittel's motion for reconsideration without a hearing."
ΒΆ 24. In addition, the plain language of Wis. Stat. Β§ 806.07(1) does not foreclose the court from acting sua sponte under the statute's authority. When interpreting a statute, we look to its language, and if that language conveys a "plain, clear statutory meaning," we construe the statute according to that meaning. State ex rel. Kalal v. Circuit Court for Dane County, 2004 WI 58, ΒΆ 46, 271 Wis. 2d 633, 681 N.W.2d 110 (quoting Bruno v. Milwaukee County, 2003 WI 28, ΒΆ 20, 260 Wis. 2d 633, 660 N.W.2d 656). Section 806.07(1) provides in part: "On motion and upon such terms as are just, the court[] . . . may relieve a party . . . from a judgment . . . ." Because the language of the statute provides that a court may relieve a party from judgment, without qualifying that the relief may be granted only upon a motion brought by one of the parties, the statute does not restrict the court from acting on its own motion.
ΒΆ 25. In sum, we reaffirm GitteVs conclusion that courts have the power to act sua sponte under the provisions of Wis. Stat. Β§ 806.07. The interests underlying Β§ 806.07 parallel the interests that we have held permit courts to act sua sponte. In addition, we con
b. Notice and hearing
ΒΆ 26. As we recounted above, sua sponte actions are permissible under Wis. Stat. Β§ 806.07(1) if the court provides the parties notice of its action and an opportunity to be heard. Gittel, 255 Wis. 2d 767, ΒΆ 27. The court in Gittel concluded that the circuit court had not provided the parties adequate notice when it vacated its initial order declaring that Persha's will was the product of undue influence. Id., ΒΆ 29. The circuit court withdrew that portion of its order during a hearing on Abram's objection to the circuit court's assignment of costs. Id., ΒΆΒΆ 8, 11. Abram's motion was grounded in the theory that the circuit court had erred in allocating costs because the court had erred in concluding that the will was the product of undue influence. Id., ΒΆ 9. At the opening of the motion hearing, the circuit court asked Abram's attorney if he was requesting that the court reconsider the portion of its order relating to undue influence, and the attorney answered affirmatively. Id., ΒΆ 10. The court of appeals concluded that, although the circuit court's question to Abram's counsel about undue influence gave Gittel's attorney some notice that it was perhaps reconsidering its previous order, Gittel had insufficient notice that the circuit court may vacate a portion of its order. Id., ΒΆ 29. Gittel did not have notice that the circuit court was acting sua sponte pursuant to Β§ 806.07 until the circuit court referred to Β§ 806.07 in its denial of Gittel's motion for reconsideration. Id.
ΒΆ 27. The facts here stand in sharp contrast to the facts in Gittel. Even though the circuit court acted on its own motion without prior notice to Larry or any defendant, as the circuit court had in Gittel, the circuit
ΒΆ 28. In vacating the default judgment, the circuit court related that all the officers were accused of substantially the same conduct under the complaint. The court explained that given the summary judgment materials submitted in regard to Harris's motion for summary judgment, it was clear that Larry's rights had not been violated by the officers' conduct. The court opined that its decision to vacate the default judgment was based on equity, as it further explained, "no officer could be held liable under the Complaint according to the Court's findings; as such, the interests of justice required the Court to vacate the default." (Emphasis added.)
2. Larry's position
ΒΆ 30. Larry advances two arguments in her opposition to the circuit court's vacation of the default judgment. First, although Larry acknowledges that the court's grant of default judgment was interlocutory rather than final, Larry maintains that the default judgment amounted to a finding that Rutherford was liable, entitling Larry to damages. Larry contends that she was entitled to rely on the court's order unless Rutherford appeared later and showed good cause or excusable neglect for failing to answer Larry's complaint. Second, Larry argues that the affirmative defense of qualified immunity that the circuit court ascribed to Rutherford is insufficient to qualify as an "extraordinary circumstance" required for relief from judgment under Wis. Stat. Β§ 806.07(l)(h). Accordingly, Larry contends that the circuit court erroneously exercised its discretion by vacating a default judgment entered against a defendant who had not appeared and who had made no showing that extraordinary circumstances caused his failure to answer Larry's complaint. Neither argument is availing.
ΒΆ 32. Larry next argues that the affirmative defense of qualified immunity is insufficient to support relief from a default judgment under Wis. Stat. Β§ 806.07(l)(h). Larry contends that, in the absence of any of the circumstances listed in subparts (a) through (f) of Β§ 806.07(1) that permit relief to be granted, the circumstances here are not sufficiently "extraordinary" to permit Rutherford relief under subpart (h) alone. Larry asserts that State ex rel. M.L.B. v. D.G.H., 122 Wis. 2d 536, 363 N.W.2d 419 (1985), requires courts reviewing decisions under subpart (h) to first determine whether the party seeking relief has asserted extraordinary circumstances, and, second, if so, to hold a hearing to determine whether the asserted extraordinary circumstances actually are present.
ΒΆ 33. Larry's arguments are misplaced. She does not discern the difference between the order issued in M.L.B. and the order issued here. The holding in M.L.B. was predicated on a final decision of the circuit court,
ΒΆ 34. Larry contests the circuit court's conclusion that Rutherford is protected by qualified immunity. She contends that the circuit court could not determine that Rutherford is protected by qualified immunity without the development of facts relating to Rutherford's participation in the entry into her home.
ΒΆ 35. The circuit court concluded that the complaint alleged that all the officers were engaged in substantially the same conduct and that under the undisputed facts presented to the court at Harris's
ΒΆ 36. Furthermore, Larry does not contest that the entry into her home was lawful; nor does she contest that Harris and Foster are protected from liability by qualified immunity and the conduct ascribed to Rutherford in the complaint largely mirrored the conduct ascribed to Harris. Therefore, the circuit court did not erroneously exercise its discretion by vacating the default judgment against Rutherford, pursuant to Wis. Stat. Β§ 806.07(l)(h), due to the common conduct from which the complaint arose.
C. Summary Judgment
ΒΆ 37. We next consider whether the court properly granted judgment in favor of Rutherford dismissing Larry's complaint. We adhere to the very narrow formulation of this issue, as Larry presented it in her petition for review. The question we are asked to answer is as follows:
When a default judgment has been granted against a defendant, no evidence has been developed or submitted regarding the defaulting defendant, the defaulting party has not moved for summary judgment, and the defaulting party has raised no affirmative defenses, can a trial court enter summary judgment in that defendant's favor?
ΒΆ 39. In Wisconsin, the availability of summary judgment is statutory. Wis. Stat. Β§ 802.08. Statutory interpretation begins with the statute's language. Kalal, 271 Wis. 2d 633, ΒΆ 45. If the language of the statute is clear and its meaning is plain, then we apply that meaning to the controversy before us. Id. Section 802.08 provides in relevant part:
(1) Availability. A party may, within 8 months of the filing of a summons and complaint or within the time set in a scheduling order under s. 802.10, move for summary judgment on any claim, counterclaim, cross-claim, or 3rd-party claim which is asserted by or*349 against the party. Amendment of pleadings is allowed as in cases where objection or defense is made by motion to dismiss.
(2) Motion. Unless earlier times are specified in the scheduling order, the motion shall be served at least 20 days before the time fixed for the hearing and the adverse party shall serve opposing affidavits, if any, at least 5 days before the time fixed for the hearing. (Emphasis added.)
ΒΆ 40. It is significant that Wis. Stat. Β§ 802.08(2) sets forth the procedural conditions for granting summary judgment. Unless a scheduling order specifies otherwise, Β§ 802.08(2) mandates that a motion for summary judgment be served at least 20 days before a hearing on that motion. In raising and granting summary judgment on its own motion, the circuit court did not provide the parties 20 days' advance notice of its motion, as required by Β§ 802.08(2).
ΒΆ 41. State courts outside our jurisdiction have held that a trial court may grant summary judgment sua sponte, but only if the court adheres to the conditions under which summary judgment may be granted. See, e.g., Awada v. Shuffle Master, Inc., 173 P.3d 707, 712 n.26 (Nev. 2007). The Nevada Supreme Court has observed that, although trial courts have the " 'inherent power to enter summary judgment sua sponte,' that power is subject to the requirements of [Nevada's rule for civil procedure governing summary judgment.]" Id. (quoting Soebbing v. Carpet Barn, Inc., 847 P.2d 731, 735 (Nev. 1993)). Nevada's summary judgment civil procedure rule, Nev. R. Civ. E 56(c), sets forth proce
ΒΆ 42. In Soebbing, the Nevada Supreme Court held that the trial court erroneously exercised its discretion in granting summary judgment sua sponte, because it did not give the parties the requisite notice contained in Nev. R. Civ. E 56(c). Id. at 735-36. After the defendant moved for summary judgment, the plaintiff moved to amend his first amended complaint. Id. at 733. The court granted the plaintiffs motion. Id. However, immediately thereafter, the court granted the defendant's motion with respect to the plaintiffs first amended complaint, and it, sua sponte, granted summary judgment on the plaintiffs yet-to-be-filed second amended complaint. Id. at 735. Because the trial court did not provide the plaintiff the full ten days' notice Nev. R. Civ. E 56(c) requires before summary judgment may be granted, its sua sponte grant of summary judgment dismissing the plaintiffs second amended complaint constituted an erroneous exercise of discretion. See id. at 735-36.
ΒΆ 43. A court's sua sponte grant of summary judgment without complying with the statutory prior notice requirement deprives parties of an opportunity to bring
ΒΆ 44. Our decision should not be read to leave the circuit court hamstrung on remand, without any authority to grant judgment in favor of Rutherford. To the contrary, granting judgment in favor of Rutherford may be appropriate, given that Harris and Rutherford are the objects of substantially similar factual allegations invoking the same qualified immunity defense. However, we stress that in granting summary judgment, circuit courts must adhere to either the procedural requirements of Wis. Stat. Β§ 802.08(2), for 20 days prior notice, or of a scheduling order specifying a shorter time period within which summary judgment may be granted.
ΒΆ 45. In sum, we conclude that the circuit court did not erroneously exercise its discretion in vacating the default judgment it had granted against Rutherford because Wisconsin's relief from judgment statute, Wis. Stat. Β§ 806.07(1), permits such an action. However, we also conclude that the circuit court did err when it sua sponte granted summary judgment in Rutherford's favor because it failed to give the notice required by Wis. Stat. Β§ 802.08(2).
ΒΆ 46. Accordingly, we reverse and remand the cause to the circuit court for further proceedings consistent with this opinion.
By the Court. β The decision of the court of appeals is reversed and the cause is remanded to the circuit court for further proceedings consistent with this opinion.
Larry v. Harris, 2007 WI App 132, 301 Wis. 2d 243, 733 N.W.2d 911.
The Honorable Daniel A. Noonan of Milwaukee County presided.
All subsequent references to the Wisconsin Statutes are to the 2005-06 version, unless otherwise noted.
Harris and Rutherford are mentioned by name in Larry's complaint. Foster is referred to as a third officer present, but not by name. In contrast to the complaint, which alleges that three officers were present, the respective affidavits of Harris and Foster aver that they were the only two officers present during the search.
Many facts underlying this appeal are disputed, but their irresolution is inconsequential for purposes of this appeal, because we are not considering the merits of Larry's claims. Rather, we are considering only whether the circuit court erroneously exercised its discretion. Nevertheless, in our presentation of the facts, we adhere to the law governing how they are to be viewed on a review of summary judgment. As a review of a summary judgment requires, we consider the disputed "facts in the light most favorable to the non-moving party." See,
The man has not been identified.
The complaint implicates the actions of three officers, but does not make clear which two officers pursued Larry's passenger. Nor does the complaint make clear which of the officers among the three alleged to be present performed the subsequent actions described.
Apparently, a drug buy occurred when Larry was at the service station. The officers' subsequent questioning of Larry caused them to believe she had no involvement in it.
The court of appeals opinion appears to state as fact that "[t]he officer who entered [Larry's home], looked at pictures, opened doors, woke the children and asked them questions, and also questioned the babysitter." Larry, 301 Wis. 2d 243, ΒΆ 2. We note, however, that the circuit court made no such finding of fact. Although the circuit court, in its decision granting summary judgment, presented these events as allegations made by Larry, it did not find that they actually occurred. In his affidavit, Foster contests Larry's allegation, asserting that he "did not touch anything in the home and I did not open any drawers or doors on any of the furnishings in the home." Later in its opinion, the court of appeals acknowledges Foster's assertion in this respect. Id., ΒΆ 5.
The nature of the dismissal of Larry's claim against Rutherford is not clear, i.e., the circuit court did not say it was granting "summary judgment" in favor of Rutherford. However, Larry characterizes the circuit court's action as granting Rutherford summary judgment. Rutherford does not dispute that characterization. Accordingly, we address it as though the circuit court granted summary judgment dismissing Larry's claims against Rutherford.
The court ultimately concluded, however, that Gittel was not prejudiced by the circuit court's action. It so concluded
We note, as well, that we have previously observed that a circuit court "apparently has authority to rescind at least part of its order and decision under Wis. Stat. Β§ 806.07(1)(h) as long as both parties have adequate notice." State v. Morford, 2004 WI 5, ΒΆ 55 n.45, 268 Wis. 2d 300, 674 N.W.2d 349. Although this statement from Morford is not controlling, it is informative for purposes of our decision.
Contrary to the concurrence/dissent's suggestion, we do not depart from the rule in Gittel requiring notice of a sua sponte action pursuant to Wis. Stat. Β§ 806.07. Concurrence/ dissent, ΒΆ 54. Notice is required; prior notice is preferable. Although the circuit court here did not give prior notice in regard to vacating the default judgment against Rutherford, the court did give an opportunity to fully address the vacation of the default judgment in regard to Rutherford upon Larry's motion for reconsideration. In addition, the court provided Larry with notice and an opportunity to be heard in advance of its hearing Harris's motion for summary judgment based on the same conduct as was alleged against Rutherford.
In State ex rel. M.L.B. v. D.G.H., 122 Wis. 2d 536, 537, 363 N.W.2d 419 (1985), D.G.H. sought relief from an agreement that he had signed and that the court had accepted declaring him the father of M.L.B.'s child. Id. at 537-38. The court had submitted a final order adjudging D.G.H. as the father. Id. at 538, 544. D.G.H. was 18 years old at the time, was unemployed, was not represented by counsel and had no blood test taken to confirm his parenthood. Id. at 540-41. Four years later, D.G.H. discovered that M.L.B. had provided a state agency false statements that cast doubt about D.G.H.'s parenthood of her child. Id. at 541. In addition, a blood test revealed that D.G.H. was not the father. Id. We held that the false statements, which had induced D.G.H. to agree to be designated the father, along with the collection of other circumstances, constituted extraordinary circumstances that justified granting D.G.H. relief under Wis. Stat. Β§ 806.07(1)(h). Id. at 553-54.
We disagree with the State's assertion that Larry waived the argument that the circuit court erred in issuing summary judgment in Rutherford's favor. In support of her motion to reconsider, Larry wrote: "The court will recall we are asking your Honor to reconsider an order in which the court, sua sponte, ordered the reopening of the previously-entered Default Judgment and Summary Judgment against the Plaintiff in favor of the defaulting Defendant...." (Emphasis added.) Larry objected to the entry of summary judgment before the circuit court and briefed the issue to the court of appeals. Accordingly, Larry preserved the issue for our review.
This 20-day notice requirement is significantly different from Wis. Stat. Β§ 806.07, which requires notice, but does not set a time prior to the hearing when notice must be given.
Rule 56(c) of Nev. R. Civ. E provides in relevant part:
(c) Motion and Proceedings Thereon. The [summary judgment] motion shall be served at least 10 days before the time fixed for the hearing. Motions for summary judgment and responses thereto shall include a concise statement setting forth each fact material to the disposition of the motion which the party claims is or is not genuinely in issue, citing the particular portions of any pleading, affidavit, deposition, interrogatory, answer, admission, or other evidence upon which the party relies.
Our decision does not prohibit Rutherford from filing a motion for summary judgment on remand.