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Decision Information

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Facts

  • The case involves a dispute between Vanderbilt Mortgage and Finance, Inc. (Plaintiff-Appellee) and Lucy and Paul Abercrombie (Defendants-Appellants), concerning the ownership of a 1997 Fleetwood Manufactured Home. The Defendants appealed from proceedings in two related cases, challenging the district court's refusal to set aside a default judgment in one case and its dismissal of their counterclaim against Vanderbilt Mortgage in the other.

Procedural History

  • Appeal from the District Court of Rio Arriba County, Sheri A. Raphaelson, District Judge, May 24, 2012: The Court of Appeals proposed to dismiss in part for lack of a final order regarding Defendants' cross-claim against co-defendant Paula Valdez in one case and to affirm in part regarding all proceedings between Defendants and Plaintiff in both cases.

Parties' Submissions

  • Plaintiff-Appellee: Concurred with the Court of Appeals' notice's proposed disposition.
  • Defendants-Appellants: Agreed with the lack of a final order for their cross-claim against co-defendant Paula Valdez but disagreed with the proposed affirmance, arguing against the district court's refusal to set aside the default judgment and its dismissal of their counterclaim against Vanderbilt Mortgage.

Legal Issues

  • Whether the district court erred in denying Defendants' motion to set aside the default judgment.
  • Whether Defendants were properly served with the summons and complaint.
  • Whether Defendants provided a meritorious defense to the default judgment.

Disposition

  • Dismissed in part for lack of a final order regarding Defendants' cross-claim against co-defendant Paula Valdez.
  • Affirmed in part for all proceedings in both cases related to the dismissal of Defendants' counterclaim against Vanderbilt Mortgage and the default judgment against Defendants.

Reasons

  • The Court of Appeals, per Judge James J. Wechsler, with Judges Cynthia A. Fry and J. Miles Hanisee concurring, found that the Defendants' notice of appeal was prematurely filed before the district court ruled on their motion to reconsider the dismissal of the cross-claim, leading to a dismissal for lack of a final order. The Court also affirmed the district court's decisions due to the final judgment in the form of a post-judgment writ of possession, which resolved the dispute over the property's ownership. The Court concluded that Defendants were properly served with the summons and complaint, despite discrepancies in the listed address and alleged issues with the process server's affidavits. Furthermore, the Court determined that Defendants failed to provide a meritorious defense to the default judgment, noting that Vanderbilt Mortgage had a priority lien on the property. As a result, the Defendants' counterclaim against Vanderbilt Mortgage was deemed moot in light of the default judgment and their lack of a meritorious defense.
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