Bucklin Constr. v. McCormick Constr. , 835 N.W.2d 862 ( 2013 )


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  • #26505, #26506-rev & rem-GAS
    
    2013 S.D. 57
    IN THE SUPREME COURT
    OF THE
    STATE OF SOUTH DAKOTA
    ****
    DONALD BUCKLIN CONSTRUCTION,
    A D/B/A OF DONALD BUCKLIN,                 Plaintiff and Appellant,
    v.
    MCCORMICK CONSTRUCTION CO.,
    A D/B/A OF MCC, INC., A
    MINNESOTA CORPORATION; ET AL.,             Defendant and Appellee.
    ****
    APPEAL FROM THE CIRCUIT COURT OF
    THE FIFTH JUDICIAL CIRCUIT
    DAY COUNTY, SOUTH DAKOTA
    ****
    THE HONORABLE JON S. FLEMMER
    Circuit Court Judge
    ****
    RONALD A. PARSONS, JR.
    STEVEN M. JOHNSON
    SHANNON R. FALON of
    Johnson, Heidepriem &
    Abdallah, LLP
    Sioux Falls, South Dakota                  Attorneys for plaintiff
    and appellant.
    MATTHEW P. BOCK
    WILLIAM G. BECK of
    Woods, Fuller, Shultz & Smith, PC
    Sioux Falls, South Dakota                  Attorneys for defendant
    and appellee.
    ****
    ARGUED MAY 21, 2013
    OPINION FILED 07/31/13
    #26505, #26506
    SEVERSON, Justice
    [¶1.]        McCormick Construction contracted with Donald Bucklin Construction
    to build flat grain storage facilities at two locations in northern South Dakota.
    After beginning construction on the facilities, Bucklin stopped work, alleging that
    McCormick failed to make progress payments. Bucklin filed lawsuits seeking to
    foreclose liens on the properties and alleging McCormick was unjustly enriched.
    McCormick answered and counterclaimed. McCormick later moved for default
    judgment on its counterclaims against Bucklin and for summary judgment on
    Bucklin’s claims. The trial court granted McCormick’s motions for default judgment
    on the counterclaims and granted McCormick’s motions for summary judgment in
    both cases. Bucklin appeals. We reverse and remand.
    BACKGROUND
    [¶2.]        In early 2010, the South Dakota Wheat Growers Association (SDWGA)
    hired McCormick Construction as a general contractor to build large grain storage
    complexes in Edmunds County and Day County. SDWGA requested that Donald
    Bucklin Construction build “Bucklin buildings” for the grain storage portion of both
    complexes. “Bucklin buildings,” which have a fabric roof and a concrete base, are
    used for flat storage of grain as an alternative to vertical grain towers or outdoor
    storage of grain. McCormick subcontracted the construction of the flat grain
    storage buildings to Bucklin.
    [¶3.]        The contracts between Bucklin and McCormick specified that each
    building would be constructed for $2,109,500. For each building, a one-third
    payment would be made up front to Bucklin, a one-third payment would be due on
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    delivery, and progress payments would be made throughout the construction. A
    portion of all payments made to Bucklin would be retained by McCormick until the
    buildings were complete. The contracts required any change orders on the buildings
    to be in writing and signed by each party.
    [¶4.]        After the receipt of $650,000 for each building, Bucklin began work on
    the buildings near Andover in Day County and near Roscoe in Edmunds County.
    Bucklin alleges that change orders to the construction of both buildings increased
    the total amount due under the contracts by more than $1,000,000. Bucklin also
    alleges that after construction began, McCormick sought to impose delays to avoid
    making progress payments owed to Bucklin. Bucklin asserts that because the
    company did not receive certain payments, Bucklin stopped work on both projects.
    McCormick alleges that it should not have to pay Bucklin because of Bucklin’s
    deficient work at both sites.
    [¶5.]        On March 17, 2011, McCormick received a notice from SDWGA’s
    insurance carrier describing construction defects in the buildings. McCormick then
    made emergency repairs to the buildings because of safety concerns.
    [¶6.]        On March 23, 2011, Bucklin recorded mechanic’s liens against both
    project sites. Bucklin stated that the company was owed $912,057.13 for the Day
    County facility and $769,257.93 for the Edmunds County facility. Bucklin attached
    invoices submitted to McCormick for his company’s work on the buildings to the
    liens. Bucklin did not attach any written change orders to the liens.
    [¶7.]        On April 1, 2011, SDWGA served a written demand on Bucklin
    pursuant to SDCL 44-9-26, requesting that Bucklin either sue for foreclosure on the
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    mechanic’s liens or forfeit the liens. On May 2, 2011, Bucklin sued SDWGA to
    foreclose on the mechanic’s liens for both projects. 1 Bucklin also sued McCormick,
    alleging unjust enrichment. McCormick answered and counterclaimed against
    Bucklin for breach of contract, negligence, breach of express and implied warranties
    of good workmanship, and other claims. McCormick and SDWGA moved to dismiss
    Bucklin’s mechanic’s liens because the liens were not sufficiently itemized.
    [¶8.]          On October 19, 2011, the trial court held a hearing on the motions to
    dismiss the mechanic’s liens claims on both buildings. On October 28, 2011, the
    trial court issued a memorandum decision dismissing the mechanic’s liens claims in
    both complaints. The trial court ordered the liens cancelled on both buildings on
    November 10, 2011.
    [¶9.]          In January 2012, SDWGA moved for permission to withdraw and be
    dismissed as a party defendant because the mechanic’s liens on both properties
    were dismissed and Bucklin’s remaining claims on both projects was against
    McCormick alone. SDWGA, Bucklin, and McCormick stipulated to SDWGA’s
    dismissal from both lawsuits and the trial court granted the order.
    [¶10.]         After the dismissal of SDWGA from both lawsuits, McCormick moved
    for summary judgment against Bucklin on the unjust enrichment claims. On March
    18, 2012, Bucklin moved to amend both complaints to allege breach of contract
    1.       Initially, Bucklin filed a complaint in Day County regarding the Andover
    facility and a complaint in Edmunds County regarding the Roscoe facility.
    The parties later stipulated to a transfer of the lawsuit in Edmunds County
    to Day County. Both lawsuits were addressed together by the same trial
    court judge, although two case numbers and records exist.
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    claims and to forfeit the claims of unjust enrichment. On April 16, 2012,
    McCormick and Bucklin stipulated to Bucklin’s amended complaints. The trial
    court allowed McCormick to rely on its previously filed answers and counterclaims
    in response to the amended complaints, though the claims were different.
    [¶11.]         On June 27, 2012, McCormick moved for default judgment on its
    counterclaims against Bucklin and again moved for summary judgment on
    Bucklin’s claims against McCormick. On July 18, 2012, Bucklin filed a reply,
    denoted as an answer, to McCormick’s counterclaim. 2 In response, McCormick filed
    motions to strike as untimely Bucklin’s answers to the counterclaims. Then, on
    July 23, 2012, Bucklin filed a brief and affidavit opposing McCormick’s motions for
    summary judgment. The trial court held a hearing on McCormick’s motions on July
    24, 2012. At the beginning of the hearing, McCormick made an oral motion to
    strike Bucklin’s pleadings filed in opposition to the motions for summary judgment.
    At the close of the hearing, the trial court made oral rulings, granting McCormick’s
    motions for default on the counterclaims and McCormick’s motions for summary
    judgment in both cases.
    [¶12.]         Following the July 24 hearing, Bucklin hired new counsel. Before the
    trial court entered its written orders granting the default judgment and summary
    judgment in both suits, Bucklin’s new counsel moved for reconsideration of the trial
    court’s rulings.
    2.       Although Bucklin, McCormick, and the trial court refer to Bucklin’s “answer”
    to the counterclaim, the correct term is “reply” to the counterclaim. See
    SDCL 15-6-7(a).
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    [¶13.]       The trial court entered the orders granting the default judgment and
    summary judgment in both suits to McCormick on August 20, 2012. At a hearing
    on September 19, 2012, the trial court considered Bucklin’s motions for
    reconsideration under SDCL 15-6-55(c). At the end of the hearing, the trial court
    issued an oral ruling denying the motions to vacate the default judgment and
    summary judgment. The trial court entered its formal order denying the motions
    on October 10, 2012.
    [¶14.]       Bucklin petitioned this Court for an intermediate appeal in both suits,
    which was granted on December 26, 2012. Bucklin presents two issues: (1) whether
    the trial court abused its discretion in granting the motions for default judgment
    against Bucklin on McCormick’s counterclaims, failing to grant Bucklin’s motions
    for enlargement of time, and denying Bucklin’s motions to vacate; and (2) whether
    genuine issues of material fact exist as to Bucklin’s claims against McCormick.
    STANDARD OF REVIEW
    [¶15.]       “‘The decision to grant or deny relief from a default judgment rests
    with the sound discretion of the trial court and we will not disturb the trial court's
    decision absent an abuse of that discretion.’” Roso v. Henning, 
    1997 S.D. 82
    , ¶ 5,
    
    566 N.W.2d 136
    , 139 (quoting First Fed. Sav. & Loan Ass’n v. Strub, 
    427 N.W.2d 836
    , 838 (S.D. 1988)).
    The trial court’s discretion is to be exercised liberally in accord
    with legal and equitable principles in order to promote the ends
    of justice. Ultimately, any doubt should be resolved in favor of
    an application to set aside a judgment in order that the case
    may be tried upon the merits.
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    Upper Plains Contracting Inc. v. Pepsi Americas, 
    2003 S.D. 3
    , ¶ 11, 
    656 N.W.2d 323
    ,
    327 (quoting Smith v. Hermsen, 
    1997 S.D. 138
    , ¶ 8, 
    572 N.W.2d 835
    , 838) (internal
    quotation marks omitted).
    [¶16.]       “[W]e review a grant or denial of enlargement of time to file an answer
    under the abuse of discretion standard.” Colton Lumber Co. v. Siemonsma, 
    2002 S.D. 116
    , ¶ 7, 
    651 N.W.2d 871
    , 873 (citing Tingle v. Parkston Grain Co., 
    442 N.W.2d 252
    , 253 (S.D. 1989)). See also Velocity Invs., LLC v. Dybvig Installations, Inc., 
    2013 S.D. 41
    , ¶ 10, ___ N.W.2d. ___, ___; AgFirst Farmers Coop. v. Diamond C Dairy,
    LLC, 
    2013 S.D. 19
    , ¶ 23, 
    827 N.W.2d 843
    , 849-50. “‘An abuse of discretion refers to
    a discretion exercised to an end or purpose not justified by, and clearly against
    reason and evidence.’” Baker v. Atkinson, 
    2001 S.D. 49
    , ¶ 12, 
    625 N.W.2d 265
    , 270
    (quoting State v. Almond, 
    511 N.W.2d 572
    , 574 (S.D. 1994)).
    [¶17.]       We review a trial court’s grant or denial of a motion for summary
    judgment by determining “‘whether the moving party has demonstrated the absence
    of any genuine issue of material fact and showed entitlement to judgment on the
    merits as a matter of law.’” Janis v. Nash Finch Co., 
    2010 S.D. 27
    , ¶ 6, 
    780 N.W.2d 497
    , 500 (quoting Dykstra v. Page Holding Co., 
    2009 S.D. 38
    , ¶ 23, 
    766 N.W.2d 491
    ,
    496). See also SDCL 15-6-56(c). “‘The evidence must be viewed most favorably to
    the nonmoving party and reasonable doubts should be resolved against the moving
    party.’” Janis, 
    2010 S.D. 27
    , ¶ 
    6, 780 N.W.2d at 500
    (quoting Dykstra, 
    2009 S.D. 38
    ,
    ¶ 
    23, 766 N.W.2d at 496
    ). “‘The nonmoving party, however, must present specific
    facts showing that a genuine, material issue for trial exists.’” 
    Id. (quoting Dykstra,
    2009 S.D. 38
    , ¶ 
    23, 766 N.W.2d at 496
    ).
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    #26505, #26506
    DISCUSSION
    [¶18.]         (1) Whether the trial court abused its discretion in granting the
    motions for default judgment against Bucklin on McCormick’s
    counterclaims, failing to grant Bucklin’s motions for
    enlargement of time, and denying Bucklin’s motions to vacate.
    [¶19.]         At the July 24, 2012 hearing, the trial court ruled from the bench on
    the issues of enlargement of time under SDCL 15-6-6(b) and default judgment
    under SDCL 15-6-55(b). The trial court stated:
    No other basis has been provided here so it does appear to the
    court that the motion to strike as untimely the answer of
    Bucklin to the counterclaim must be granted at this point and
    with the granting of that motion it would appear as well that the
    default judgment on the – or the motion for default judgment on
    the counterclaim of the defendant must also be granted.
    [¶20.]         McCormick filed their answers and counterclaims on September 26,
    2011. McCormick moved for default judgment on the counterclaims on June 27,
    2012. Bucklin filed replies, denoted as answers, to the counterclaims on July 18,
    2012. SDCL 15-6-12(a) requires a plaintiff to “serve a reply to a counterclaim in the
    answer within twenty days after service of the answer[.]” 3 However, a trial court
    3.       SDCL 15-6-12(a) provides:
    A defendant shall serve the answer within thirty days after the
    service of the complaint upon defendant, except when otherwise
    provided by statute or rule. A party served with a pleading
    stating a cross-claim shall serve an answer within twenty days
    after the service. The plaintiff shall serve a reply to a
    counterclaim in the answer within twenty days after service of
    the answer or, if a reply is ordered by the court, within twenty
    days after service of the order, unless the order otherwise directs.
    The service of a motion permitted under § 15-6-12 alters these
    periods of time as follows, unless a different time is fixed by
    order of the court:
    (continued . . . )
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    has discretion under SDCL 15-6-6(b) to enlarge the time to file a reply. If, as in this
    case, the motion is made after the expiration of the time period, the trial court may
    permit the enlargement of time “where the failure to act was the result of excusable
    neglect[.]” SDCL 15-6-6(b)(2).
    [¶21.]        Excusable neglect in the context of SDCL 15-6-6(b)(2) “is closely
    analogous to the excusable neglect which must be shown to set aside a default
    judgment or other final judgment under SDCL 15-6-55(c) and SDCL 15-6-60(b).”
    Colton Lumber Co., 
    2002 S.D. 116
    , ¶ 
    8, 651 N.W.2d at 874
    (citing 
    Tingle, 442 N.W.2d at 254
    ). “‘Excusable neglect must be neglect of a nature that would cause a
    reasonable, prudent person to act similarly under similar circumstances.’” Elliott v.
    Cartwright, 
    1998 S.D. 53
    , ¶ 9, 
    580 N.W.2d 603
    , 604-05 (quoting Clarke v. Clarke,
    
    423 N.W.2d 818
    , 821 (S.D. 1988)). “‘Excusable neglect’ has no fixed meaning and
    should be ‘interpreted liberally to insure that cases are heard and tried on the
    merits.’” 
    Id. (quoting Eby
    v. Misar, 
    345 N.W.2d 381
    , 383 (S.D. 1984)). We have
    _______________________
    (. . . continued)
    (1) If the court denies the motion or postpones its disposition
    until the trial on the merits, the responsive pleading shall be
    served within ten days after notice of the court's action;
    (2) If the court grants a motion for a more definite statement,
    the responsive pleading shall be served within ten days after the
    service of the more definite statement;
    (3) If an appeal is taken from an order sustaining a motion to
    dismiss and such order is thereafter reversed, the responsive
    pleading shall be served within twenty days after the judgment
    or order of reversal is filed in the trial court.
    (Emphasis added.)
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    also adopted the requirement of a meritorious defense for SDCL 15-6-6(b) cases
    where “after expiration of the thirty days, the moving party seeks an enlargement of
    time to file an answer.” Colton Lumber Co., 
    2002 S.D. 116
    , ¶ 
    13, 651 N.W.2d at 875
    .
    Another factor considered in the evaluation of SDCL 15-6-55(c) and SDCL 15-6-
    60(b), which is applicable here, is whether there is prejudice to the party opposing
    the enlargement of time. See Upper Plains Contracting Inc., 
    2003 S.D. 3
    , ¶ 
    21, 656 N.W.2d at 329
    (citing Hermsen, 
    1997 S.D. 138
    , ¶ 
    11, 572 N.W.2d at 838-39
    ).
    [¶22.]       McCormick highlights Hawks v. J.P. Morgan Chase Bank, 
    591 F.3d 1043
    , 1048 (8th Cir. 2010), where the Eighth Circuit determined that counsel’s busy
    schedule alone did not constitute excusable neglect. Hawks also recognized that
    “‘[t]he determination as to what sort of neglect is considered excusable is an
    equitable one, taking account of all relevant circumstances surrounding the party’s
    own 
    omission.’” 591 F.3d at 1048
    (quoting Kaubisch v. Weber, 
    408 F.3d 540
    , 543
    (8th Cir. 2005)).
    [¶23.]       After determining that there was no excusable neglect under SDCL 15-
    6-6(b), denying the motions to enlarge time, and granting the motions to strike
    Bucklin’s reply, the trial court concluded that a default judgment on the
    counterclaims must be awarded to McCormick. SDCL 15-6-55(a) authorizes courts
    to enter a default if the “party against whom . . . relief is sought has failed to plead
    or otherwise defend[.]” SDCL 15-6-55(b) provides the circumstances under which a
    trial court may award a default judgment. But, “[a] default judgment is an extreme
    remedy and should only be granted when ‘the adversary process has been halted
    because of an essentially unresponsive party.’” Upper Plains Contracting Inc., 2003
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    26506 S.D. 3
    , ¶ 
    12, 656 N.W.2d at 327
    (quoting Roso, 
    1997 S.D. 82
    , ¶ 
    8, 566 N.W.2d at 140
    ). Default judgments were conceived as a protection against “interminable delay
    and continued uncertainty as to [a party’s] rights.” H. F. Livermore Corp. v.
    Aktiengesellschaft Gebruder Loepfe, 
    432 F.2d 689
    , 691 (D.C. Cir. 1970). The
    requirements for notice in SDCL 15-6-55(b), which is similar to the federal rule,
    were “intended to protect those parties who, although delaying in a formal sense by
    failing to file pleadings within the twenty-day period, have otherwise indicated to
    the moving party a clear purpose to defend the suit.” 
    Id. Importantly, “‘[d]efault
    judgments are not favored in the courts since their effect is to prevent a trial on the
    merits.’” Upper Plains Contracting Inc., 
    2003 S.D. 3
    , ¶ 
    12, 656 N.W.2d at 327
    (quoting Colton Lumber Co., 
    2002 S.D. 116
    , ¶ 
    9, 651 N.W.2d at 874
    ). Once a default
    judgment is entered, trial court may grant relief from judgment under SDCL 15-6-
    60(b).
    [¶24.]       After granting the default judgments at the earlier hearing, the court
    declined to vacate the default judgments at the hearing on September 19, 2012.
    The trial court found:
    While the court is certainly aware that the Supreme Court
    doesn’t like matters determined on simply procedural issues, the
    court’s also aware that if the action isn’t taken someone has to
    bring the matter to a head and in this case that was done by the
    defendant filing their motion. And, again, it doesn’t appear to
    the court that there was any type of excusable neglect. Someone
    wasn’t disabled or incapable of filing a response. It simply
    wasn’t done. And it would appear to the court that that is not
    excusable neglect, and therefore, the motion to reconsider the
    court’s ruling on the default judgment and the motion to vacate
    the default judgment would also be denied.
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    #26505, #26506
    [¶25.]        Bucklin argues that excusable neglect is demonstrated in this case,
    and the trial court should have granted the motions for enlargement of time to file
    replies. Bucklin’s original counsel, Attorney Lester, inadvertently failed to file the
    replies to the counterclaims during the time when Lester was actively litigating
    McCormick’s motions to dismiss mechanic’s liens in both lawsuits. Bucklin also
    asserts that the failure to file replies to the counterclaims did not cause any delay in
    the lawsuits because litigation on a variety of other issues was ongoing. By a court
    order on April 16, 2012, Bucklin was allowed to file amended complaints. The order
    also allowed McCormick to stand on its answers and counterclaims filed in response
    to Bucklin’s original complaints, though Bucklin’s claim had changed.
    [¶26.]        Upon our review of the records in these cases, Bucklin has
    demonstrated excusable neglect and a meritorious defense. Though Bucklin’s
    original counsel, Attorney Lester, failed to reply to McCormick’s counterclaims
    within the twenty day time period, he was engaged in the litigation and responsive
    to other motions in both suits. When McCormick moved for default judgment on the
    counterclaims, Attorney Lester realized his error and filed replies, denoted as
    answers, to the counterclaims. Attorney Lester acted reasonably to remedy his
    failure to file replies.
    [¶27.]        As to the meritorious defense, “[w]e have held that a discrepancy in
    damages alone can give rise to ‘a prima facie showing of a meritorious defense.’”
    Upper Plains Contracting Inc., 
    2003 S.D. 3
    , ¶ 
    19, 656 N.W.2d at 329
    (quoting Meier
    v. McCord, 
    2001 S.D. 103
    , ¶ 27, 
    632 N.W.2d 477
    , 484). These lawsuits center on
    breach of contract claims regarding construction of two grain storage facilities.
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    Bucklin and McCormick each assert that the other party is responsible for the
    breach and owes them a significant amount of money. Neither party had conducted
    discovery in either lawsuit at the time the default judgments were granted, and the
    amounts of damages are disputed. In granting the default judgments to
    McCormick, the trial court did not give appropriate consideration to Bucklin’s
    defenses.
    [¶28.]       Regarding the issue of prejudice, both Bucklin and McCormick were
    engaged in these lawsuits, litigating a variety of issues. At the time that the
    default judgment motions were granted, the lawsuits were a little over a year old.
    The parties had not begun discovery. After the default judgments were granted, the
    trial court ordered some limited discovery in connection with a hearing on damages.
    McCormick has not identified any prejudice it suffered resulting from Bucklin’s
    delays in replying to the counterclaims.
    [¶29.]       In addressing similar circumstances, we have stated that “[u]nder
    these circumstances ‘cases should ordinarily be decided on their merits, and
    elementary fairness demands of courts a tolerant exercise of discretion in
    evaluating excusable neglect.’” 
    Id. ¶ 22,
    656 N.W.2d at 330 (quoting Roso, 
    1997 S.D. 82
    , ¶ 
    12, 566 N.W.2d at 141
    ). Considering all of the facts in these lawsuits,
    Bucklin’s defenses, and the lack of prejudice to McCormick, the need to decide these
    cases on their merits outweighs any impact on the sanctity of the final judgments.
    There are a number of issues that the trial court failed to review in this case. The
    trial court allowed McCormick to rest on its original answers to Bucklin’s
    complaints, even though the claims in Bucklin’s amended complaints were vastly
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    different. Also, the court failed to consider the ongoing nature of the litigation and
    the amounts of damages at issue. In addition, the trial court failed to consider that
    once Bucklin’s counsel was notified of his failure to reply to the counterclaims, he
    responded quickly and also filed an affidavit and response to the motions for
    summary judgment. The trial court abused its discretion in granting the motions
    for default judgment against Bucklin on McCormick’s counterclaims and denying
    Bucklin’s motions for enlargement of time. Because we determined that the trial
    court abused its discretion in denying Bucklin’s motions for enlargement of time
    and granting McCormick’s motions for default judgment, we reverse and remand to
    the trial court.
    [¶30.]        (2) Whether genuine issues of material fact exist as to Bucklin’s
    claims against McCormick.
    [¶31.]        When reviewing the grant of summary judgment, we consider the
    evidence in a light most favorable to the non-moving party. Janis, 
    2010 S.D. 27
    , ¶
    
    6, 780 N.W.2d at 500
    (citing Dykstra, 
    2009 S.D. 38
    , ¶ 
    23, 766 N.W.2d at 496
    ).
    “‘Summary judgment is a drastic remedy, and should not be granted unless the
    moving party has established a right to a judgment with such clarity as to leave no
    room for controversy.’” Berbos v. Krage, 
    2008 S.D. 68
    , ¶ 15, 
    754 N.W.2d 432
    , 436
    (quoting Richards v. Lenz, 
    539 N.W.2d 80
    , 83 (S.D. 1995)).
    [¶32.]        The trial court granted summary judgment to McCormick on the
    claims of breach of contract in Bucklin’s amended complaints. At the July 24
    hearing, the trial court found:
    In his amended complaint, in order for the court to grant a
    motion for summary judgment, there must be a determination
    that there are no genuine issues of material fact. There’s been
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    no evidence presented before the court at this point that there
    has been any breach on the part of McCormick in connection
    with the contracts that were entered into between McCormick
    and Bucklin such that Bucklin would be entitled to receive an
    award or judgment on its breach of contract claim. That there’s
    also been no evidence as to any damages that Bucklin is alleging
    it suffered. That with no evidence having been presented, there
    can be no issue as to material facts and so the motion for
    summary judgment in favor of the defendant would be granted
    at this time as well.
    At the September 19 hearing, the trial court found:
    The summary judgment issue was simply a matter of there not
    being any material facts at dispute and although current
    counsel has certainly raised some issues, those issues were not
    raised at the appropriate time by the prior counsel at the time of
    the hearing on the motion for summary judgment. It simply did
    not appear to the court that there was any evidence to support
    the contentions made by the plaintiff on his claim and,
    therefore, the court did grant the summary judgment that was
    sought by the defendant. And the court at this time is not going
    to reconsider or vacate that summary judgment as much as it
    appears to the court there was an opportunity to litigate that
    issue at the time of the hearing and it was not adequately done
    by counsel for the plaintiff, that’s—that’s not something the
    court’s going to back up and allow a second opportunity to do.
    Notably, when the trial court granted the motions for summary judgment, the
    parties had not begun discovery. The record contains affidavits filed by McCormick
    and Bucklin to support their positions, with both parties disputing the amounts
    owed and making claims against the other party.
    [¶33.]       Bucklin’s affidavit stated that McCormick breached the contracts by
    defaulting and failing to make timely payments to Bucklin, by billing Bucklin for
    the installation of the conveyors in both buildings in violation of the contract, and
    by failing to pay Bucklin for change orders required by McCormick. Bucklin’s
    affidavit included an itemized list of damages the company suffered as a result of
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    McCormick’s breach of the contracts. McCormick’s affidavits allege that Bucklin is
    responsible for faulty construction of the buildings and the breach of the contracts.
    [¶34.]       After reviewing the record, we find that the trial court erred when it
    determined that there were no genuine issues of material fact. Here, McCormick
    has not “‘established a right to a judgment with such clarity as to leave no room for
    controversy.’” 
    Id. (quoting Richards,
    539 N.W.2d at 83). The trial court stated that
    it was granting the motions on the basis that Bucklin provided no evidence to
    support his claims. This was clearly an error. We reverse the trial court’s grant of
    summary judgment to McCormick on Bucklin’s claims of breach of contract and
    remand for trial.
    CONCLUSION
    [¶35.]       The trial court abused its discretion in granting the motions for default
    judgment against Bucklin on McCormick’s counterclaims and failing to grant
    Bucklin’s motions for enlargement of time. The trial court also erred in granting
    the motions for summary judgment to McCormick on Bucklin’s claims of breach of
    contract. We reverse the grant of the default judgments and summary judgments
    and remand to the trial court for further proceedings.
    [¶36.]       GILBERTSON, Chief Justice, and KONENKAMP and ZINTER,
    Justices, and MACY, Circuit Court Judge, concur.
    [¶37.]       MACY, Circuit Court Judge, sitting for WILBUR, Justice, disqualified.
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