Francis v. Wynn Las Vegas, LLC ( 2014 )


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  •                       mistake, or excusable neglect; (2) the district court erred in refusing to set
    aside the default and judgment because the default was invalid;' and (3)
    the district court abused its discretion in refusing to set aside the default
    and judgment because of fraud. 2
    The district court did not abuse its discretion in refusing to set aside the
    default and judgment because Francis failed to provide evidence of
    inadvertence, surprise, mistake, or excusable neglect
    Francis argues that the court should have set aside the default
    and judgment due to inadvertence, surprise, mistake, or excusable neglect
    under NRCP 60(b)(1). We disagree.
    "The district court has wide discretion in deciding whether to
    grant or deny a motion to set aside a judgment under NRCP 60(b):'
    Stoecklein v. Johnson Elec., Inc., 
    109 Nev. 268
    , 271, 
    849 P.2d 305
    , 307
    (1993). This court will not overturn the district court's decision absent an
    abuse of discretion. Id.; Britz v. Consol. Casinos Corp., 
    87 Nev. 441
    , 445,
    
    488 P.2d 911
    , 914-15 (1971) C[T]he trial judge is free to judiciously and
    'Francis argues that the default is invalid for four reasons: (1)
    Sidebotham and Pakele's motion to withdraw did not contain a notice of
    hearing; (2) the district court did not have jurisdiction to grant
    Sidebotham and Pakele's withdrawal; (3) Francis did not receive notice of
    the pretrial conference; and (4) the district court entered case-concluding
    sanctions without holding an evidentiary hearing. We disagree and
    conclude that the default is valid.
    2 Francisargues that the district court erred in not setting aside the
    default and judgment based on two misrepresentations from Wynn.
    Francis alleges that Wynn misrepresented that (1) "a letter was served on
    [Francis] and that this letter notified him of the pretrial conference," and
    (2) Francis had notice of the prove-up hearing. We disagree and conclude
    that Wynn's representations were accurate.
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    reasonably exercise discretion in determining whether a default judgment
    should be set aside.").
    The district court may relieve a party from a final judgment or
    order for grounds of "mistake, inadvertence, surprise, or excusable
    neglect." NRCP 60(b)(1). This court noted that a district court must
    consider several factors before granting a NRCP 60(b)(1) motion: (1)
    "prompt application to remove the judgment"; (2) "absence of an intent to
    delay the proceedings"; (3) evidence of a lack of knowledge of procedural
    requirements on the part of the moving party, (4) moving party made the
    motion in good faith; and (5) the state's "basic policy for resolving cases on
    their merits when possible." 3 Kahn v. Orme, 
    108 Nev. 510
    , 513, 
    835 P.2d 790
    , 792-93 (1992) (emphasis and internal quotations omitted).
    Further, "public policy dictates that cases be adjudicated on
    their merits."      Kahn, 108 Nev. at 516, 
    835 P.2d at 794
    . However,
    "Mitigants and their counsel may not properly be allowed to disregard
    process or procedural rules with impunity." Lentz v. Boles, 
    84 Nev. 197
    ,
    200, 
    438 P.2d 254
    , 256-57 (1968).
    Prompt application
    A motion for relief from default must be made "within a
    reasonable time" and "not more than 6 months after the proceeding was
    taken or the date that written notice of entry of the judgment or order was
    served." NRCP 60(b). This court suggested that the six-month period
    3 Thiscourt in Kahn also discussed another factor: "the moving party
    must promptly tender a meritorious defense to the claim for relief." 108
    Nev. at 513, 
    835 P.2d at 793
     (emphasis and internal quotations omitted).
    This court has since overruled that requirement. See Epstein v. Epstein,
    
    113 Nev. 1401
    , 1405, 
    950 P.2d 771
    , 773 (1997).
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    "represents the extreme limit of reasonableness."       Union Petrochemical
    Corp. of Nev. v. Scott, 
    96 Nev. 337
    , 339, 
    609 P.2d 323
    , 324 (1980) (quoting
    Murphy v. Bocchio, 
    338 A.2d 519
    , 523 (R.I. 1975)). Further, this court
    stated that "want of diligence in seeking to set aside a judgment is ground
    enough for denial of such a motion." Union Petrochemical, 96 Nev. at 339,
    
    609 P.2d at 324
    .
    The district court found that Francis was aware of the
    relevant court dates and deadlines, yet "waited nearly five months after
    receiving notice of Wynn's intent to take default and over four months
    from receiving notice that default was entered, before filing his [mlotion."
    We conclude that the district court did not abuse its discretion
    by finding that Francis did not promptly file his application for relief from
    default. Francis waited nearly five months after becoming aware of
    Wynn's intent to take default and the district court's entry of default
    before filing for relief. While he filed his motion within the six-month time
    period, the district court maintained the discretion to find that Francis did
    not promptly file his motion, but instead used the six-month deadline as a
    delay tactic. This is not how NRCP 60(b) should be utilized, and Francis
    has failed to show why his delay in filing his motion should constitute the
    extreme limit of reasonableness. See Union Petrochemical, 96 Nev. at 339,
    
    609 P.2d at 324
    . Therefore, we conclude that this factor weighs in favor of
    the district court's ruling.
    Intent to delay proceedings
    The district court will consider the circumstances of each case
    to determine if the party has filed a NRCP 60(b) motion with the intent to
    delay the proceedings. Stoecklein, 109 Nev. at 272, 
    849 P.2d at 308
    ; Kahn,
    108 Nev. at 514, 
    835 P.2d at 793
     (the district court did not abuse its
    discretion when it found that the party intended to delay the proceedings
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    by waiting nearly five months after the entry of default to obtain counsel
    to file a motion to set aside default and failed to establish an absence of
    intent to delay); Union Petrochemical, 96 Nev. at 339, 
    609 P.2d at 324
     (the
    district court found that the party intended to delay by not filing until just
    before the six month period ended and it was not excused merely because
    the party's headquarters were located out of state).
    Here, when denying Francis' motion for relief, the district
    court found that "the record demonstrates that Francis has sought to
    delay this case from its inception." Further, the district court stated that
    "Francis has been on notice of these proceedings and failed to take any
    action until his [m]otion for [r]elief was filed. And, it determined that
    "[Francis] willfully ignored his responsibility to comply with procedural
    rules as a pro se litigant."
    We conclude that the district court did not abuse its discretion
    in determining that Francis intended to delay the proceedings by filing his
    motion for relief nearly five months after the notice of the entry of default.
    Union Petrochemical, 96 Nev. at 339, 
    609 P.2d at 324
    . Further, Francis
    has failed to provide any justification for filing his motion nearly five
    months after the district court entered default. 4 Kahn, 108 Nev. at 514,
    4 Francis did not allege that it took him five months to file his motion
    for relief for lack of counsel. However, even if Francis claimed that he
    delayed filing his motion for relief for lack of counsel, this argument is
    without merit because the district court found that Francis had hired
    David Houston to represent him at least three months prior to filing his
    motion for relief based on the comments Houston and Francis made to the
    press regarding appealing the district court decision. Kahn, 108 Nev. at
    514, 
    835 P.2d at
    793
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    835 P.2d at 793
    . Therefore, we conclude that this factor also weighs in
    favor of the district court's ruling.
    Lack of knowledge of procedural requirements
    If a party is unaware of the trial date because he did not
    receive notice of the date, then the party has shown they lacked knowledge
    of procedural requirements, which constitutes excusable neglect.
    Stoecklein, 109 Nev. at 273, 
    849 P.2d at 308
    . However, the neglect is not
    excusable if the party receives notice of the scheduled proceedings but fails
    to appear. See Durango Fire Prot., Inc. v. Troncoso, 
    120 Nev. 658
    , 663, 
    98 P.3d 691
    , 694 (2004) (holding that a movant has notice of the proceedings
    if he or she was served by mail). This court has further noted, when
    referring to NRCP 60(b), that "we are not confronted here with some
    subtle or technical aspect of procedure, ignorance of which could readily be
    excused. The requirements of the rule are simple and direct."           Union
    Petrochemical, 96 Nev. at 339, 
    609 P.2d at 324
    .
    The district court determined that Francis received notice of
    the scheduled proceeding but failed to appear. Specifically, the district
    court found that once Sidebotham and Pakele withdrew, Francis was
    acting without counsel because, even though another attorney, Mr.
    Aftergood, was assisting Francis in locating replacement counsel,
    Aftergood was never retained as counsel of record in this matter. Further,
    the district court found that "Nile evidence demonstrates that Francis
    was fully aware of these proceedings, independent of what Aftergood may
    have told him."
    We conclude that the district court did not abuse its discretion
    by refusing to set aside the default and judgment because Francis had
    knowledge of the procedural requirements to appear at the hearings.
    Francis' neglect was inexcusable because he was served with notice of the
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    hearings by mail. Also, Aftergood was not Francis' counsel of record, so it
    was Francis' responsibility, as a pro se litigant, to appear at the hearings.
    Further, this is not a complex procedural requirement, and someone as
    experienced at litigation as Francis surely understands that he needs to
    appear at the proceedings. This factor also weighs in favor of the district
    court's ruling and we, therefore, conclude that the district court did not
    abuse its discretion in refusing to set aside the default and judgment. 5
    Accordingly, we ORDER the judgment of the district court
    AFFIRMED. 6
    xas,             J.
    Hardesty
    J.
    Douglas
    n't
    Cherry
    5 The  district court did not address the remaining two factors.
    However, we conclude that they weigh in Wynn's favor because Francis
    did not file his motion to set aside in good faith and the policy of hearing
    cases on the merits was not intended to allow litigants to disregard
    process or procedural rules. See Lentz, 84 Nev. at 200, 
    438 P.2d at 256-57
    .
    6 We have considered the parties' remaining arguments and conclude
    they are without merit.
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    cc: Hon. Mark R. Denton, District Judge
    An H. Shirinian, Settlement Judge
    Parker Scheer Lagomarsino
    Lipson Neilson Cole Seltzer & Garin, P.C.
    Brownstein Hyatt Farber Schreck, LLP/Los Angeles
    Pisanelli Bice, PLLC
    Brownstein Hyatt Farber Schreck, LLP/Las Vegas
    Eighth District Court Clerk
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