Ex Parte Third Generation, Inc.
Ex Parte Third Generation, Inc.
Opinion
This petition for a writ of mandamus represents the third time this case has been before us. The case was tried in 1993, and a judgment was entered on a jury verdict awarding $125,000 to Third Generation, Inc. ("TGI"), on its claims against Stephen M. Wilson, and $15,500 to Wilson on his claims against TGI and Benjamin F. Harbin III. The trial court subsequently granted a new trial, but we reversed that decision and ordered the trial court to reinstate the judgment on the jury's verdict.Third Generation, Inc. v. Wilson,
We later granted TGI's petition for a writ of mandamus and directed the trial court to set aside its November 8, 2000, order granting Wilson's Rule 60(b)(3), Ala.R.Civ.P., motion1 and compelling TGI to accept worthless inventory as partial satisfaction of its judgment against Wilson. Ex parte Third Generation, Inc.,
TGI now seeks a writ of mandamus directing the trial court (1) to vacate the March 8 and May 13 orders and (2) to *Page 491 enter an order reinstating the judgment on the jury verdict with postjudgment interest to run from June 15, 1993 — the date of the original entry of judgment on the jury verdict3 — to the present. However, TGI's request for mandamus relief from the March 8 order is unnecessary because in its May 13 order the trial court vacated the March 8 order. Therefore, we need address only the issue whether TGI is entitled to a writ of mandamus with respect to the May 13 order.
As discussed in our 1995 opinion, the jury awarded TGI $0 in compensatory damages and $125,000 in punitive damages on TGI's fraudulent-suppression claim against Wilson. Third Generation, 668 So.2d at 521. If such a verdict were awarded today, the losing party would certainly be entitled to a new trial based on our decision in LifeInsurance Co. of Georgia v. Smith,
In its May 13 order, the trial court granted Wilson's motion under Rule 60(b)(4), Ala.R.Civ.P., on the basis that the jury's verdict was inconsistent under Smith and that it thereby violated his due-process rights. The order cites Satterfield v. Winston Industries, Inc.,
"The standard of review on appeal from the denial of relief under Rule 60(b)(4) [Ala.R.Civ.P.] is not whether there has been an abuse of discretion. When the grant or denial of relief turns on the validity of the judgment, as under Rule 60(b)(4), discretion has no place. If the judgment is valid, it must stand; if it is void, it must be set aside. A judgment is void only if the court that rendered it lacked jurisdiction of the subject matter or of the parties, or if it acted in a manner inconsistent with due process."
(Citing Pollard v. Etowah County Comm'n,
The main issue presented by this mandamus petition is whether the trial court's grant of Wilson's Rule 60(b)(4) motion for a new trial — filed nine years after the original judgment was entered — was proper based on the reasoning in Smith.6 Wilson contends (1) that his motion was filed within a reasonable time after the entry of judgment because, when he filed the motion, the case was still "pending" in that the manner of collecting the judgment was still in dispute, and (2) that the trial court had no discretion in ruling on his motion and had to grant the motion based on the due-process violation.
We agree with Wilson on only one point: a trial court's ruling on a Rule 60(b)(4) motion involves no discretion; whether a judgment is void is purely a matter of law, and a trial court must grant a properly presented Rule 60(b)(4) motion filed in response to a void judgment. However, we do not agree that the judgment was void, a conclusion that pretermits any discussion of whether the motion was filed within a reasonable time.
As stated above, Satterfield includes in the definition of a "void" judgment for purposes of Rule 60(b)(4) those judgments in which the trial court has "acted in a manner inconsistent with due process." 553 So.2d at 64. However, as we recently discussed in Neal v. Neal, [Ms. 1991439, Sept. 6, 2002]
*Page 493"`[I]t is established by the decisions in this and in Federal jurisdictions that due process of law means notice, a hearing according to that notice, and a judgment entered in accordance with such notice and hearing.'
"Frahn v. Greyling Realization Corp.,Neal, 856 So.2d at 781-82.239 Ala. 580 ,583 ,195 So. 758 ,761 (1940) (emphasis added [in Neal]). The rule that a want of due process, so defined, voids a judgment is not redundant with the rule that a want of personal jurisdiction likewise voids a judgment, for a person already effectively made a party to litigation could, on some critical motion or for some critical proceeding within that litigation, be deprived of the `notice, a hearing according to that notice, and a judgment entered in accordance with such notice and hearing,' required by the Due Process Clause of the Fourteenth Amendment to the United States Constitution, Frahn, supra. See Winhoven v. United States,201 F.2d 174 (9th Cir. 1952), Bass v. Hoagland,172 F.2d 205 (5th Cir. 1949), Cassioppi [v. Damico,536 So.2d 938 (Ala. 1988)], and Seventh Wonder [v. Southbound Records, Inc.,364 So.2d 1173 (Ala. 1978)].
Because our decision in Smith was based on substantive due-process grounds (following the lead of the United States Supreme Court's BMW decision), the Smith rationale may not be used as a ground for declaring a judgment void under Rule 60(b)(4). Therefore, the original judgment entered on the jury's verdict was not void, and the trial court erred in granting Wilson's Rule 60(b)(4) motion.
PETITION GRANTED; WRIT ISSUED.
Moore, C.J., and See, Lyons, Brown, Johnstone, Harwood, Woodall, and Stuart, JJ., concur.
"The Supreme Court, in deciding each case when there is a conflict between its existing opinion and any former ruling in the case, must be governed by what, in its opinion, at that time is law, without any regard to such former ruling on the law by it; but the right of third persons, acquired on the faith of the former ruling, shall not be defeated or interfered with by or on account of any subsequent ruling."
However, our disposition of this petition obviates the need to address this issue.
Reference
- Full Case Name
- Ex Parte Third Generation, Inc. (In Re: Stephen M. Wilson v. Benjamin F. Harbin III, Individually, and Third Generation, Inc.)
- Cited By
- 16 cases
- Status
- Published