Hardy v. Kidder
Decision Date | 24 September 1973 |
Docket Number | No. 52981,52981 |
Parties | Abel HARDY, Sr., et al. v. Raymond KIDDER. |
Court | Louisiana Supreme Court |
Lawrence B. Sandoz, Jr., Sandoz, Sandoz & Schiff, Opelousas, for defendants-applicants.
Paul J. Hardy, Willis & Hardy, St. Martinville, for plaintiff-respondent.
The sole issue for our consideration in this proceeding is whether the trial judge abused his discretion in denying defendant's motion for a new trial under the circumstances where a default judgment had been confirmed and the failure to answer plaintiff's petition and plead the special defense of a prior discharge in bankruptcy was through the sole neglect of defendant's retained counsel. It is contended that the trial judge abused his discretion since there existed 'good ground' for a new trial under Article 1973 of the Code of Civil Procedure.
On July 18, 1969, a suit was filed in the 27th Judicial District Court for the Parish of St. Landry seeking damages resulting from a motor collision. Shortly thereafter, defendant instituted bankruptcy proceedings in the United States District Court, Western District of Louisiana, and was adjudged a bankrupt on September 12, 1969. The present claim was listed in the schedules filed in said proceedings. On September 23, 1969, defendant, through his counsel, obtained a stay order in these proceedings 'until the question of the bankrupt's discharge is determined by the United States District Court, or the bankrupt waives or losses his right to a discharge, all as provided by Section 11 A of the Bankruptcy Act.' Defendant Kidder was granted a discharge in bankruptcy on August 18, 1970.
Plaintiff had a judgment by default entered against defendant on November 20, 1970, which was confirmed on February 19, 1971. Evidence was presented at the time of the confirmation that Kidder had been granted a discharge in bankruptcy on August 18, 1970.
A timely motion for a new trial was filed on bahalf of Kidder on February 25, 1971, in which it is averred:
'* * * that the judgment rendered and signed on the 19th day of February, 1971, is clearly contrary to the law and the evidence and upon further suggesting that there is good grounds for a new trial, in accordance with Article 1973 of the Code of Civil Procedure.'
The motion for a new trial was denied. On appeal, this ruling was affirmed. Hardy v. Kidder, 267 So.2d 582. We granted certiorari, 263 La. 622, 268 So.2d 678.
Defendant's contention is ably stated by the Court of Appeal:
Our Code of Civil Procedure provides in Article 1971 that a new trial may be granted, upon contradictory motion of any party or by the court on its own motion. The peremptory grounds for granting a new trial are set forth in Article 1972 C.C.P., a codification of Article 560 of the Code of Practice. The discretionary grounds for a new trial are stated in Article 1973 C.C.P. (formerly Article 558 of the Code of Practice):
'A new trial may be granted in any case if there is good ground therefor, except as otherwise provided by law.'
Kidder does not urge any of the peremptory grounds for granting a new trial as delineated in Article 1972. Rather, he relies upon the discretionary grounds in Article 1973, averring that the neglect of counsel to answer and plead his discharge in bankruptcy was 'good ground' therefor, and the denial by the trial judge was an abuse of this discretion upon the facts of this case.
It is recognized by defendant that a defense which must be specially pleaded under the express provisions of Article 1005 of the Code of Civil Procedure. However, notwithstanding this procedural requirement, defendant submits that both the trial court and the Court of Appeal committed manifest error in failing to grant a new trial.
No evidence was presented at the hearing for a new trial. Defendant's sole contention is that the neglect of his retained counsel to answer and plead the affirmative defense of his discharge in bankruptcy was 'good ground' for the granting of a new trial and that the trial judge's failure to grant a new trial under these circumstances constituted an abuse of his discretion. We are unable to agree with this contention. Defendant does not attempt to offer any explanation for his counsel's failure to plead except his neglect or oversight. There is no contention of any misunderstanding, ill-practice, etc. The default judgment was not confirmed until some six months after defendant's discharge in bankruptcy. There simply was no excuse for his counsel's failure to plead within this time period. We cannot accept the simple allegation of neglect or oversight with no further explanation to warrant our holding that the trial judge abused his discretion in not granting a new trial. Furthermore, the default judgment was confirmed in strict conformity with all the requirements of law.
It is only where the discretion allowed to the trial judge has been abused that an appellate court should interfere with the exercise of that discretion.
We stated in DeFrances v. Gauthier, 220 La. 145, 55 So.2d 896 (1951):
It would be improper for this Court to say under the facts of this case that the trial judge abused his discretion in denying a new trial.
For the foregoing reasons, the judgment of the Court of Appeal is affirmed.
ON REHEARING
The sole issue is whether the trial judge erred in denying defendant's motion for a new trial under the circumstances here shown.
In 1968, the plaintiff Hardy's then-minor daughter was injured when the defendant Kidder's automobile hit the motorcycle on which the Hardy girl was riding. In 1969, Hardy sued Kidder for her personal injuries and his medical expenses.
Shortly afterwards, the defendant Kidder filed for bankruptcy. On September 23, 1969, his attorneys, after alleging these facts, obtained a stay of further proceedings in this suit pending final discharge (or not) of the bankrupt in federal bankruptcy court.
On November 20, 1970, a preliminary default was taken by the plaintiff Hardy against Kidder. On February 19, 1971 the case was fixed for confirmation, and evidence educed of Kidder's fault and the damages. The evidence included a letter from the defendant Kidder's trustee in bankruptcy that the bankrupt was discharged from his debts, including that sought by the present suit. P--13, Tr. 36. Judgment was then entered in favor of the plaintiff in the amount of $32,794.78.
On the same date, a notice of judgment was issued notifying the defendant Kidder of the judgment rendered against him. This was required, since he had previously received only domiciliary service of the suit. La.C.Civ.P. art. 1913. (No notice was given him or his attorney's of the preliminary default taken nor of the intention to confirm the default; however, none is required by statute.)
The notice of judgment was served on the defendant Kidder on February 24th. The next day his attorneys timely applied for a new trial, alleging that good grounds existed therefor under La.C.Civ.P. art. 1973. This article provides: 'A new trial may be granted in any case if there is good ground therefor, except as otherwise provided by law.'
In Official Revision Comment (d) to Article 1971, describing this discretionary ground for a new trial, the redactors stated: ...
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