COURT OF APPEALS DECISION DATED AND FILED February 10, 2009 David
R. Schanker Clerk of Court of Appeals |
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NOTICE |
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This opinion is subject to further editing. If published, the official version will appear in the bound volume of the Official Reports. A party may file with the Supreme Court a petition to review an adverse decision by the Court of Appeals. See Wis. Stat. § 808.10 and Rule 809.62. |
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Appeal No. |
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STATE OF WISCONSIN |
IN COURT OF APPEALS |
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DISTRICT I |
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American Family Mutual Insurance Company, Plaintiff-Appellant, v. Anthony Warden, Defendant-Respondent. |
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APPEAL
from an order of the circuit court for
¶1 CURLEY, P.J.[1] American
Family Mutual Insurance Company (American Family) appeals an order reopening a
small claims default judgment and dismissing its action, which emanated out of
an automobile accident. The default
judgment was entered in June 1997.
American Family contends that the trial court erroneously exercised its
discretion when it granted Anthony Warden’s motion to reopen the judgment and
dismiss the action after Warden showed the court proof that he was incarcerated
in
I. Background.
¶2 On May 9, 1997, an attorney filed a small claims action
alleging that Warden had been involved in an automobile accident on September
29, 1995, with a car driven by Reino Lesseda, Jr., who was insured by American
Family. The complaint claimed that
Warden was at fault for the accident and it sought $836.54 from him. The complaint listed an address for Warden in
¶3 Besides a letter notifying the court that there was a
substitution of lawyers in 1999 and the forwarding of the judgment to the Motor
Vehicle Department, nothing occurred in this case until Warden filed a notice
to reopen in 2005. In his 2005 motion
Warden wrote, with regards to why the matter should be reopened, that his
failure to appear should be excused because the underlying complaint contained
“the wrong address plus I was in the State of
¶4 In April 2008, Warden filed another motion to reopen. In this motion, he argued that the matter should be reopened and his failure to appear excused “[b]ecause I was never served with any paper stating that I was being sued…. I have legal documents stating that I was in custody in another state from 1-26-1994 to 8/03/1997.” The trial court set the matter for a hearing. On the hearing date, Warden appeared with a lawyer who argued that Warden was the victim of identity theft and that the initial publication supporting the default judgment was faulty. The trial court addressed Warden’s publication argument, stating that the trial court assumed that it had been raised in the earlier motion and found that it was untimely to bring it up now. The trial court did, however, give Warden an opportunity to present proof of his incarceration.[3] On an adjourned date, Warden presented evidence that he was incarcerated at the time of the accident. Again, an attorney for American Family opposed the motion. Ultimately, the trial court remarked that the documentation “is compelling,” and in the interests of justice, granted the motion to reopen, vacated the judgment and dismissed the case. This appeal follows.
II. Analysis.
¶5 American Family argues that the trial court erroneously exercised its discretion when it reopened the default judgment, vacated the judgment and dismissed the action. American Family first argues that Wis. Stat. § 799.29(1) limits the time within which a motion to reopen a default judgment can be filed to twelve months after entry of judgment.[4] Next, American Family submits that Wis. Stat. § 806.07, which allows for relief from judgments under certain conditions, does not apply to small claims actions, and, in any event, under § 806.07, the motion has to be made within a reasonable time; and here, the second motion to reopen was untimely as it was brought nearly eleven years after the default judgment was entered. While this court agrees that the trial court cannot extend the time for bringing a motion to reopen a default judgment; § 806.07 does not apply to small claims cases; and normally bringing a motion to reopen nearly eleven years later would be untimely, because here, the service by publication was defective, the trial court never had personal jurisdiction over Warden; thus, the judgment is void.
¶6 We review a motion to reopen under the erroneous exercise of
discretion standard. See Kovalic
v. DEC Int’l, 186
¶7
(1) Motion to reopen. (a) There shall be no appeal from default judgments, but the trial court may, by order, reopen default judgments upon notice and motion or petition duly made and good cause shown.
….
(c) In other actions under this chapter, the notice of motion must be made within 6 months after entry of judgment unless venue was improper under s. 799.11. The court shall order the reopening of a default judgment in an action where venue was improper upon motion or petition duly made within one year after the entry of judgment.
American Family
correctly notes that the trial court could not enlarge the time period or waive
the time limits found in § 799.29. See Wisconsin
Natural Gas Co. v. Kletsch, 95
¶8 This court now turns to Warden’s final claim that the trial court never obtained personal jurisdiction over him because the publication was defective and, as a consequence, the judgment is void. American Family suggests that this matter has been waived because it was not addressed at the trial court. This is incorrect. As noted, the trial court, mistakenly believing that the service issue had been addressed at the earlier motion to reopen, did address it and found it was now “untimely.”
¶9 A court gains jurisdiction over the parties to a lawsuit only
by valid personal or substituted service of the summons and complaint. See Wis. Stat. § 801.04; Span v. Span, 52
¶10 The record reflects that American Family was unable to serve
Warden personally with the small claims summons and complaint as the process
server’s affidavit stated that Warden had moved from his address in
¶11 A similar situation arose in the Minnesota case of Electro-Measure,
Inc. v. Ewald Enterprises, Inc., 398 N.W.2d 85 (Minn. Ct. App. 1986). The
¶12 In this case, the original trial court never had personal jurisdiction over Warden. Thus, the judgment was void from its inception. Accordingly, the order of the circuit court is affirmed.
By the Court.—Order affirmed.
Not recommended for publication in the official reports.
[1] This appeal is decided by one judge pursuant to Wis. Stat. § 752.31(2) (2007-08).
All references to the Wisconsin Statutes are to the 1997‑98 version unless otherwise noted.
[2] In
its brief, American Family contends that the trial court “abused its
discretion.” Appellate courts have not
used the phrase “abuse of discretion” since 1992 because of its unjustified
negative connotations. See Hefty
v. Hefty, 172
[3] Getting
proof of Warden’s incarceration was further complicated by the fact he was
booked into the
[4] Actually, the 1997‑98 version of the statutes provides for a six-month limit.
[5] This
court has taken judicial notice that