Stafford v. Fockaert

382 Mont. 178

366 P.3d 673

Gail STAFFORD, Plaintiff and Appellee,

v.Charles FOCKAERT, Defendant and Appellant.

No. DA 15–0345.

Supreme Court of Montana.

Submitted on Briefs Jan. 6, 2016.

Decided Feb. 9, 2016.

Rehearing Denied March 8, 2016.

For Appellant: Charles Fockaert, Self–Represented, Somers, Montana.

For Appellee: Quentin M. Rhoades, Nicole L. Siefert, Rhoades & Siefert, P.L.L.C., Missoula, Montana.

Justice LAURIE McKINNON delivered the Opinion of the Court.

¶ 1 Charles Fockaert appeals pro se from an order issued by the Second Judicial District Court, Silver Bow County, granting default judgment in favor of Gail Stafford and awarding her prejudgment interest. We affirm.

¶ 2 We address the following issues on appeal:

1. Whether the District Court abused its discretion by entering a default judgment in favor of Stafford as a sanction for Fockaert's failure to comply with the court's order requiring mediation.

2. Whether the District Court erred in awarding prejudgment interest.

FACTUAL AND PROCEDURAL BACKGROUND

¶ 3 Stafford initiated this action against Fockaert on September 12, 2012, alleging that Fockaert defrauded her out of $100,000. Stafford and Fockaert both agree that Stafford transferred $100,000 to Fockaert with the Korea Exchange Bank in July 2010, and that in August 2010 Fockaert refused to return the money after Stafford requested that he do so.

¶ 4 Stafford's complaint further sets forth the following facts. On July 4, 2010, Fockaert sent an email to Stafford detailing the various ways he could invest Stafford's money, including primarily investing her funds in a gold account. Fockaert stated that he would provide Stafford with the necessary information to access her account and detail her investments. On July 19, 2010, Stafford completed a foreign wire transfer in the amount of $100,000 to Fockaert's bank account with the Korea Exchange Bank, and Fockaert received notification from the Bank that the $100,000 had been transferred. In August 2010, Fockaert visited Stafford in Montana and failed to provide any account information or documentation to Stafford regarding her investment. While Fockaert was in Montana in August 2010 Stafford requested Fockaert return the full $100,000. Despite continued assurances from Fockaert that he would return her money, Fockaert has failed to return any of Stafford's $100,000.

¶ 5 On September 12, 2012, Stafford filed a complaint alleging claims of unjust enrichment, constructive trust, and fraud. After Stafford filed a motion for judgment on the pleadings, Fockaert moved to amend his answer. The District Court denied Fockaert's motion and granted Stafford's motion for judgment on the pleadings. Fockaert appealed the District Court's decision to this Court. We reversed the District Court and permitted Fockaert to amend his pleadings. See Stafford v. Fockaert, 2014 MT 51N, 374 Mont. 542, 2014 WL 769633.

¶ 6 After remand, Fockaert filed an amended answer on August 11, 2014, and the District Court entered a scheduling order setting trial for April 6, 2015. The District Court's order required that the parties participate in a mandatory settlement conference at least 45 days prior to trial.

¶ 7 On February 7, 2015, Stafford sent an email to Fockaert explaining that the District Court imposed mandatory mediation in its scheduling order and suggesting that the parties engage in the mediation with non-profit mediators in Missoula. Two days later, Fockaert responded, stating he would not comply with the court's order requiring mediation. Fockaert stated that "once Stafford deposed me, all possible negotiation options were off the table."

¶ 8 On February 23, 2015, Stafford filed a motion for sanctions, requesting the court enter a default judgment against Fockaert as a sanction for violating the District Court's scheduling order requiring mediation. The District Court conducted a hearing on Stafford's motion on February 26, 2015. The court explained to Fockaert that it expressly required mediation in its scheduling order, and that he must attend mediation or risk a default judgment. The court explained:

Mediation is required. It's not discretionary. Mediation must occur. All parties with settlement authority—with the ultimate settlement authority, which in this case it would be the parties themselves, are required to attend in person and participate in the mediation.

...

I've required this mandatory mediation consistently in my 15 years on the bench.... I have not ever granted a waiver of the mediation. I will not do so today, and I expect parties to go to the mediation and participate in good faith, meaning that they—that they go to the mediation with the idea to see if the matter can be resolved. And so the Court's not going to change that position.

At the close of the hearing, Fockaert indicated that he understood the court's order, and Stafford withdrew her motion for sanctions. Stafford requested that she retain the right to refile the motion, however, if Fockaert continued to interfere with the court ordered mediation process. The court granted her request.

¶ 9 On March 11, 2015, the District Court issued a written order, reiterating that "mediation is mandatory and both parties must participate prior to the final pretrial conference," and that Stafford withdrew her motion on the condition that should Fockaert refuse to participate in mediation Stafford would resubmit her motion.

¶ 10 The next day, Stafford emailed Fockaert and asked when Fockaert would be willing to conduct the mediation conference. Initially, Fockaert deflected Stafford's request for mediation by referencing his previous response to Stafford's motion for default judgment wherein Fockaert contended that he did not need to mediate. This caused Stafford to inquire whether Fockaert was again refusing to mediate. Fockaert then replied that he would indeed mediate and requested that Stafford "propose possible dates for my consideration." On March 30, 2015, Stafford emailed Fockaert explaining that she had confirmed mediation for April 8, 2015, in Missoula. Fockaert responded that he had "prior engagements for April 8." Over the next couple days, Stafford attempted to schedule a mediation date with Fockaert without success. Fockaert repeatedly refused to suggest a date he could attend and remarked to Stafford that he could not "afford to lose any more income on a frivolous case because you don't know how to coordinate a meeting." Finally, Stafford emailed Fockaert stating: "Since you have failed to suggest any alternatives there's little I can do. If you care to suggest some alternatives, I'll check with my calendar and the mediator." Fockaert then emailed Stafford suggesting April 6, 2015. Stafford agreed and confirmed the mediation date with the non-profit Community Dispute Resolution Center in Missoula. On April 3, 2015, Stafford forwarded an email confirmation to Fockaert from the Community Dispute Resolution Center confirming the mediation date with the mediators for April 6, 2015.

¶ 11 On the morning of April 6, 2015, Stephan Edwards of the Community Dispute Resolution Center emailed Stafford informing her that he spoke with Fockaert over the weekend and Fockaert indicated he would not be attending the mediation and that the mediation was therefore cancelled. Edwards also explained that Fockaert had asked him to forward a letter to Stafford. The letter stated: "There are no issues to mediate. I'm fully prepared and looking forward to the trial." By the time Stafford received Edwards' email informing her of the cancellation, she had driven to Missoula from Butte to participate in the mediation. Edwards subsequently submitted a sworn affidavit stating Fockaert had emailed him over the weekend and stated multiple times that he would not participate in meditation.

¶ 12 On April 7, 2015, Edwards emailed Stafford notifying her that Fockaert had, in fact, showed up at the mediation center on April 6. Edwards explained: "Fockaert showed up in Missoula yesterday morning for the mediation, though he did not intend to actually negotiate. He simply wanted to fulfill the letter of the Court order." Edwards further notified Stafford that Fockaert gave him another copy of the earlier letter stating:

"There are no issues to mediate. I'm fully prepared and looking forward to the trial."

¶ 13 On April 9, 2015, Stafford renewed her motion for sanctions, requesting that the court enter a default judgment against Fockaert as a sanction for violating the District Court's scheduling order requiring mediation. After a hearing on Stafford's motion, the District Court granted default judgment in favor Stafford. The District Court awarded Stafford prejudgment interest on the judgment from July 19, 2010, the date Stafford transferred the funds to Fockaert.

¶ 14 Fockaert appeals.

STANDARD OF REVIEW

¶ 15 We review a district court's decision to impose sanctions for failure to comply with M.R. Civ. P. 16(f) for an abuse of discretion. Watson v. West, 2009 MT 342, ¶ 17, 353 Mont. 120, 218 P.3d 1227. We also review the severity of the sanction imposed for an abuse of discretion. Watson, ¶ 17.

¶ 16 "The decision to grant or deny prejudgment interest is reviewed to determine whether the district court correctly interpreted the law." Tidyman's Mgmt. Servs. v. Davis, 2014 MT 205, ¶ 13, 376 Mont. 80, 330 P.3d 1139.

DISCUSSION

¶ 17 1. Whether the District Court abused its discretion by entering a default judgment in favor of Stafford as a sanction for Fockaert's failure to comply with the court's order requiring mediation.

¶ 18 M.R. Civ. P. 16(f) permits a court to impose any just sanctions, including those authorized by M.R. Civ. P. 37, on a party who fails to appear at a court ordered pretrial conference or who does not participate in good faith in the conference. M.R. Civ. P. 37 further expressly provides a court with the authority to "render[ ] a default judgment against the disobedient party."

¶ 19 In reviewing a district court's decision regarding the...