McGee v. Burlington Northern, Inc.

                                  No. 14233

               IN THE SUPRFME COURT OF THE STATE OF MONTANA

                                           1978



DONALD R. MCSEE,

                      Plaintiff and Appellant,

        -vs-

BURLETCN NOIITHERN, INC., a corporation,

                      Defendant and Respondent
                                   ,   .




Appeal fm: District Court of the Eighth Judicial District,
           Honorable N a t Allen, District Judge presiding.

Counsel of &cord:

     For Appellant:

         John C. Hoyt argued, Great Falls, Wntana

    For Respondent:

         Gough, Snanahan, Johnson and Watennan, Helena, Montana
         Cordell Johnson argued, Helena, Montana



                                             Suhitted:       October 1 2 , 1978
                                                  Decided:   -3C' 2   -   '978
    Mr. Chief Justice Frank I. Haswell delivered the Opinion of
    the Court.

         plaintiff appeals from an order of the District Court,
    Cascade County, setting aside a satisfaction of judgment.
         On November 15, 1977, this Court affirmed a jury verdict
    of $618,000 in favor of plaintiff in his personal injury ac-
    tion against defendant.    McGee v. Burlington Northern (1977),
         Mont.      , 571 P.2d 784, 34 St.Rep. 1304.
         On or about December 7, 1977, negotiations began between
    counsel for both parties to reach a mutually agreeable satis-
    faction of the judgment.    In the course of these negotiations,
    defendant offered plaintiff $490,000 to satisfy the judgment.
    Allegedly this amount plus $171,306.04 obtained by plaintiff
    through executions on defendant's property, covers the full
    amount of the judgment with interest, and awards plaintiff
    his costs.   Plaintiff accepted the offer.   On December 9, 1977,
    defendant gave plaintiff's counsel a check for $490,000 in
    return for a satisfaction of judgment.    Defendant thereafter
    filed the satisfaction of judgment with the District Court.
         Shortly after plaintiff's counsel had received defen-
    dant's check, cashed it and distributed the proceeds, defen-
    dant informed him that it was going to stop payment on the
    check.   Defendant told plaintiff's counsel that it was going
    to stop payment because it had overpaid plaintiff $10,000.
    Defendant stated that in arriving at the $490,000 figure, it
    had overlooked $10,000 in advances given plaintiff in 1971
    and 1972, which he had agreed to repay.   Plaintiff's counsel
L   told defendant that it could not stop payment on the check,
    because it had been cashed and the proceeds distributed.
         Thereafter on December 28, 1977, defendant filed a mo-
    tion under Rule 60(b), M.R.Civ.P.,   to have the satisfaction
of judgment s e t a s i d e on t h e grounds o f m i s t a k e and s e e k i n g

r e s t i t u t i o n of t h e $10,000 a l l e g e d l y o v e r p a i d t o p l a i n t i f f .

The D i s t r i c t C o u r t o r d e r e d t h e motion s u b m i t t e d on b r i e f s .

B r i e f s were s u b m i t t e d by b o t h s i d e s .       The D i s t r i c t C o u r t

g r a n t e d d e f e n d a n t ' s motion s e t t i n g a s i d e t h e s a t i s f a c t i o n of

judgment.         P l a i n t i f f now a p p e a l s from t h a t o r d e r .

        I n h i s appeal, p l a i n t i f f has r a i s e d f i v e s e p a r a t e i s s u e s

f o r our consideration.                W e w i l l discuss these issues i n t h e i r

broader context.              A c c o r d i n g l y , we r e s t a t e t h e u n d e r l y i n g i s s u e

i n t h i s manner:

        Was i t p r o p e r f o r t h e D i s t r i c t C o u r t t o s e t a s i d e t h e

s a t i s f a c t i o n of judgment t h r o u g h a motion under Rule 6 0 ( b ) ,

M.R.Civ.P.?

        Rule 6 0 ( b ) s u p p l i e s a p r o c e d u r e whereby a p a r t y upon mo-

t i o n c a n b e r e l i e v e d from a " f i n a l judgment, o r d e r o r proceed-

ing" f o r c e r t a i n s p e c i f i c reasons.           One of t h e r e a s o n s t h a t

i s a v a i l a b l e t o a p a r t y i s "mistake".              Defendant a r g u e s t h a t

i t was upon t h i s ground t h a t i t made i t s motion.

        Rule 6 0 ( b ) ( 5 ) p r o v i d e s t h a t a p a r t y may b e r e l i e v e d from

a f i n a l judgment upon a showing t h a t i t h a s been s a t i s f i e d .

The r u l e d o e s n o t s p e c i f i c a l l y p r o v i d e t h a t a s a t i s f a c t i o n o f

judgment i s a f i n a l judgment, o r d e r o r p r o c e e d i n g from which

r e l i e f may b e o b t a i n e d .

        I f t h i s r u l e were i n t e n d e d t o b e used i n t h e manner d e f e n -

d a n t used i t , t h e r u l e would n o t p r o v i d e t h a t a ground f o r

r e l i e f from a judgment i s t o show t h a t i t h a s been s a t i s f i e d .

W hold t h a t t h e D i s t r i c t Court e r r e d i n g r a n t i n g d e f e n d a n t ' s
 e

motion under Rule 60 ( b )              .
        Our i n t e r p r e t a t i o n of Rule 6 0 ( b ) i s bottomed on what we

consider t h e i n t e n t of t h e d r a f t e r s .           I n construing the ~ u l e s

of C i v i l P r o c e d u r e , we a p p l y t h e r u l e s of s t a t u t o r y c o n s t r u c -
tion.       P i e r c e Packing Company v . D i s t r i c t C o u r t ( 1 9 7 8 ) ,

Mont.             ,   579 P.2d 760, 35 St.Rep.               656.      W give e f f e c t t o
                                                                        e

t h e p l a i n language used i n i t s o r d i n a r y meaning and c o n s i d e r

t h e r u l e i n i t s e n t i r e t y t o d e t e r m i n e t h e i n t e n t of t h e

drafters.          P i e r c e Packing Company v . D i s t r i c t C o u r t , s u p r a ;

G i l d r o y v . Anderson ( 1 9 7 3 ) , 162 Mont.             26, 507 P.2d         low.          By

g i v i n g e f f e c t t o t h e p l a i n language used i n Rule 6 0 ( b ) and

considering the r u l e i n i t s e n t i r e t y , w e believe the i n t e n t

of t h e d r a f t e r s was t h a t a s a t i s f a c t i o n of judgment c o u l d n o t

b e s e t a s i d e by a motion under t h i s r u l e .

        Our d e c i s i o n h e r e d o e s n o t mean t h a t a s a t i s f a c t i o n of

judgment c a n n o t b e s e t a s i d e .         I t may be v a c a t e d by a p p r o p r i a t e

proceedings f o r proper cause.                    Such p r o c e e d i n g s a r e governed

by e q u i t a b l e r u l e s .   47 Am J u r 2d Judgments               81032,

        W e hold t h a t such a p p r o p r i a t e proceedings a r e an inde-

pendent a c t i o n i n equity.             A s t h e Utah Supreme C o u r t h a s s a i d :

        ". . .       T h i s a c t [ f i l i n g a s a t i s f a c t i o n of judg-
        ment] became f a i t a c c o m p l i , and c o u l d b e undone
        o n l y by a c o n v e n t i o n a l a c t i o n i n e q u i t y , claim-
        i n g f r a u d , m i s t a k e , undue i n f l u e n c e , w i t h r e g u l a r
        s e r v i c e of p r o c e s s , a p p r o p r i a t e s p e c i f i c i t y a s
        b a s i s f o r i n v o c a t i o n of e q u i t y , and t h e r e s t of
        t h e trimmings."             [Bracketed m a t e r i a l added.]
        Utah C.V. F e d e r a l C r e d i t Union v . J e n k i n s (Utah
        1 9 7 4 ) , 528 P. 2d 1187, 1189.

I f d e f e n d a n t d e s i r e s t o have t h e s a t i s f a c t i o n of judgment

v a c a t e d , i t must p r o c e e d i n t h i s manner.

        Counsel f o r p l a i n t i f f a l s o c l a i m s t h a t t h e a t t o r n e y - c l i e n t

r e l a t i o n s h i p between him and p l a i n t i f f t e r m i n a t e d upon t h e

s a t i s f a c t i o n of judgment.        He t h e n a r g u e s t h a t s e r v i c e of t h e

motion upon him r a t h e r t h a n p l a i n t i f f was improper.                    Under t h e

f a c t s of t h i s c a s e , we f i n d no m e r i t t o t h i s argument.

        Counsel f o r p l a i n t i f f appeared i n t h e a c t i o n i n t h e D i s -

t r i c t C o u r t t o a r g u e a g a i n s t t h e motion of d e f e n d a n t .         His

f i l i n g of a b r i e f i n o p p o s i t i o n t o t h e motion c o n s t i t u t e d a
g e n e r a l appearance.            T h i s C o u r t h a s s a i d t h a t when a d u l y

l i c e n s e d a t t o r n e y makes a n a p p e a r a n c e i n a p r o c e e d i n g , h i s

a p p e a r a n c e i s p r e s u m p t i v e e v i d e n c e of h i s a u t h o r i t y t o r e p r e -

s e n t t h e p e r s o n f o r whom he a p p e a r s .          Coleman v. D i s t r i c t

C o u r t ( 1 9 4 7 ) , 1 2 0 Mont. 372, 186 P.2d                91.     Counsel f o r p l a i n -

t i f f w i l l n o t now be h e a r d t o c l a i m t h a t t h e a t t o r n e y - c l i e n t

r e l a t i o n s h i p had t e r m i n a t e d .

        F i n a l l y , counsel f o r p l a i n t i f f has requested t h i s Court

t o impose s a n c t i o n s upon d e f e n d a n t under Rule 32, M.R.App.Civ.P.

He a r g u e s t h a t under t h i s r u l e , w e c a n impose s a n c t i o n s upon

defendant f o r i n s t i t u t i n g t h i s a c t i o n without reasonable

grounds f o r i t .          W e disagree.

        Rule 32 p r o v i d e s t h a t s a n c t i o n s may be imposed upon a

party f o r bringing a frivolous appeal.                            The s a n c t i o n s a r e

a u t h o r i z e d a g a i n s t a n a p p e l l a n t , n o t a r e s p o n d e n t i n whose

favor t h e D i s t r i c t Court r u l e d .           By no s t r e t c h of t h e l a n g u a g e

c a n damages b e awarded a g a i n s t a r e s p o n d e n t under t h e p l a i n

l a n g u a g e of Rule 32.

        The o r d e r of t h e D i s t r i c t C o u r t s e t t i n g a s i d e t h e s a t i s -
f a c t i o n of judgment under Rule 6 0 ( b ) , M.R.Civ.P.,                         i s vacated

and t h e s a t i s f a c t i o n o f judgment i s r e i n s t a t e d .



                                                       ~~~ B. W&,&
                                                           Chief J u s t i c e



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