Rea v. Moore
| Decision Date | 25 January 2002 |
| Docket Number | No. 23795.,23795. |
| Parties | Peter H. REA, Plaintiff-Appellant, v. Nancy MOORE, Individually and as Personal Representative of the Estate of Clovis Moore, Defendant-Respondent. |
| Court | Missouri Court of Appeals |
Peter H. Rea, pro se.
Paul Benton Weeks, III, Springfield, for respondent.
Before GARRISON, P.J., PREWITT, J., and RAHMEYER, J.
Peter H. Rea ("Appellant") contends on appeal that the trial court abused its discretion by (1) entering a judgment against him for sanctions based on an inherent power to do so, and failing to follow the statutory requirements of Rule 55.03,1 and (2) setting aside a previously entered judgment without specifying good cause for doing so. For the reasons outlined below, we affirm the trial court's decisions.
This case stems from an action filed by Appellant in December 1987 in which he claimed, in pertinent part, that he had loaned or advanced $49,000 to Clovis and Nancy Moore ("Respondent").2 Respondent maintained that the amounts paid by Appellant were not loans, but rather money paid for an option to purchase property from Respondent. An amended petition filed by Appellant on March 28, 1991 contained five counts, three of which related to the $49,000. The fourth count was a claim for trespass to personal property, and the fifth count involved another $25,000 debt Respondent allegedly owed Appellant. Respondent's answer included a counterclaim seeking damages resulting from Appellant allegedly failing to keep a bull fenced within his own property.
On January 13, 1994, the trial judge entered what he termed a final judgment, finding for Appellant on the three counts involving the $49,000, which the court determined was "as a result of loans." The judgment also noted that Appellant dismissed the fourth count without prejudice. Respondent appealed to this Court and that appeal was dismissed for lack of appellate jurisdiction based on our determination that the order was not a final judgment, in that neither Appellant's fifth count nor Respondent's counterclaim had been resolved and there had been no finding of "there is no just reason for delay" as authorized by Rule 74.01(b). See Rea v. Moore, 891 S.W.2d 874, 875 (Mo.App. S.D. 1995).
On April 17, 1998, Respondent filed a letter and supporting documents with the trial court suggesting that Appellant had committed fraud on the court. She alleged that documents from another case in which Appellant was a party indicated the money Appellant claimed was paid to Respondent as loans was in fact money Appellant had paid Respondent toward the purchase of Respondent's property. Based on that information, Respondent filed a motion on June 1, 1998 to set aside the judgment previously entered in the case. A hearing was held on August 26, 1998, and on September 22, 1998, the trial court entered an order in which Appellant's remaining unresolved count and Respondent's counterclaim were dismissed for failure to prosecute. The order also granted Respondent's motion to set aside the previously entered judgment that involved the three counts relating to the $49,000 in alleged loans.
On September 28, 1998, Respondent filed a motion for sanctions against Appellant "pursuant to [Rule] 55.03 and the inherent powers of [the][c]ourt." In the motion, Respondent accused Appellant of committing perjury and of attempting to perpetrate a fraud on the court by filing a lawsuit that was "false, fraudulent and without basis in fact." On April 6, 2000, Appellant sought to dismiss all pending claims without prejudice. Appellant later filed a petition for writ of prohibition with this Court to prevent the trial court from hearing Respondent's motion for sanctions. Appellant's petition was denied on June 27, 2000. Appellant also filed a writ of prohibition with the Missouri Supreme Court, which was denied on June 29, 2000.
The trial court held a hearing on the motion for sanctions on June 30, 2000. On July 3, 2000, the trial court entered a judgment for sanctions finding Appellant made false allegations in his petition, made false statements in affidavits, and gave perjured testimony regarding the transactions Appellant claimed were loans. The trial court concluded that given its Further, the court determined that although Respondent did receive benefit from the money paid by Appellant, such did "not excuse or justify [Appellant's] acts of fraud on the [c]ourt." Appellant was ordered to pay $5,000 to the registry of the court as a sanction for the false pleadings, false affidavits and perjured testimony. The court also rejected Appellant's attempted voluntary dismissal of his claims, instead dismissing all of Appellant's remaining claims with prejudice. Here, Appellant identifies the judgment or order appealed from as the judgment for sanctions entered July 3, 2000.
Appellant's first point on appeal charges that the trial court abused its discretion by invoking its inherent powers to impose sanctions for filing a frivolous pleading because Respondent initiated the sanctions pursuant to Rule 55.03 and the requirements of that rule were not met. Specifically, Appellant claims that the trial court did not have jurisdiction to impose sanctions because the safe harbor provision of Rule 55.03, under which a party must wait thirty days after serving the motion on the party against whom sanctions are sought before filing the motion with the court, was not met. See Rule 55.03(c)(1)(A); Robin Farms, Inc. v. Bartholome, 989 S.W.2d 238, 250 (Mo.App. W.D.1999).
We review under an abuse of discretion standard, since "[a] trial court... may, at its discretion, impose sanctions when they are justified, considering the conduct of the parties and counsel." Foster v. Kohm, 661 S.W.2d 628, 631 (Mo.App. E.D.1983). This is the same standard used when a court imposes sanctions based on Rule 55.03(c). See Brown v. Kirkham, 23 S.W.3d 880, 882 (Mo.App. W.D.2000). "An abuse of discretion occurs when the court's order is clearly against the logic of the circumstances and is so arbitrary and unreasonable as to shock the sense of justice and indicate a lack of careful consideration." Id. at 882-83.
Before discussing our analysis of Appellant's first point, we note that the point itself defines the boundary of our review. See State v. Stringer, 36 S.W.3d 821, 822 (Mo.App. S.D.2001). "The scope of the issue for determination on appeal is that framed in the point relied on." Id. Within the argument portion of his brief, Appellant raises issues outside the scope of the point relied on. "Our review is restricted to the issue[s] raised in the point relied on." State ex rel. Wilson v. Brown, 897 S.W.2d 171, 173 (Mo.App. S.D.1995).
In Appellant's first point, he claims that the trial court abused its discretion by invoking its inherent powers to impose sanctions for filing a frivolous lawsuit. However nowhere in the motion for sanctions was Appellant accused of filing a frivolous lawsuit and nowhere in the judgment for sanctions did the trial court conclude that sanctions were necessary based on Appellant's filing of a frivolous lawsuit. In fact, there was no finding that Appellant had filed a frivolous lawsuit. Within the judgment for sanctions, the trial court rendered findings that Appellant had filed false pleadings and false affidavits as well as given perjured testimony. Further, the trial court based the sanctions on the false pleadings, false affidavits, perjured testimony and Appellant's "acts of fraud." Therefore, there is no support in the record for Appellant's contention as stated in his point relied on.
In addition, Appellant's claim that only Rule 55.03 can be used by the trial court in its imposition of sanctions or that Rule 55.03 was the only basis on which Respondent made its motion for sanctions is incorrect. Appellant is correct that Missouri law is stringent in its requirement that the safe harbor provision of Rule 55.03(c) be followed when sanctions are imposed for violations of Rule 55.03(b). Robin Farms, 989 S.W.2d at 250. "This rule prohibits a movant for sanctions from filing its motion with the trial court before the thirty-day period after serving the motion on the other party has expired." Id. The intention of the safe harbor provision is to allow the party against whom sanctions are sought an opportunity to correct violations of Rule 55.03(b), "thereby conserving judicial resources if such corrective action is taken." Id. Appellant is also correct that the safe harbor provision of that Rule was not followed here. However, the first line of Respondent's motion for sanctions states that the motion is made pursuant to Rule 55.03 and the inherent powers of the court. The judgment for sanctions clearly indicates on its face that the trial court was not proceeding pursuant to Rule 55.03, but rather it was relying on its responsibility to impose sanctions for false pleadings, false affidavits and perjured testimony on its "inherent power, right and duty to take that action which is necessary to protect the integrity of the judicial process."
Although Missouri cases do not seem to address the issue of the appropriateness of using the court's inherent power to impose sanctions versus the use of Rule 55.03, Missouri case law does provide support for the use of a court's inherent powers to address particular issues before it. See Higgins v. Director of Revenue, 778 S.W.2d 24, 26 (Mo.App. S.D.1989). Missouri courts are cautioned to exercise their inherent powers "sparingly, wisely, temperately, and with judicial self-restraint." Id. Any sanctions...
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