RODENBERG, Judge.
Appellant's personal-injury action was dismissed pursuant to Minn. R. Civ. P. 5.04(a) because it was filed in district court more than one year after the action was commenced by service. The district court denied appellant's request for relief under Minn. R. Civ. P. 60.02, concluding that such relief from a judgment of dismissal under rule 5.04(a) is not available and, alternatively, that appellant failed to "prove all four elements" for rule-60.02 relief even if such relief were to be considered available. Because we conclude that rule 60.02 applies to judgments entered pursuant to rule 5.04(a) and that the district court erred in its alternative holding applying rule 60.02, we reverse and remand for the district court to evaluate whether relief should be granted.
On January 14, 2012, appellant Ferdinand Leo Gams, Jr., and respondent Steven Ronald Houghton were involved in a physical altercation at appellant's home. On March 22, 2013, appellant sued respondent by service of a summons and complaint, alleging negligence and assault and battery. Consistent with Minnesota's pocket-filing rule,
Respondent answered the complaint, and the parties actively litigated the case throughout the balance of 2013 and the first part of 2014. Discovery was exchanged, and the parties were deposed. In May 2014, counsel for the parties exchanged correspondence about the possibility of stipulating to damages in an effort to advance settlement efforts.
On July 15, 2014, after a period of no communication between counsel, respondent's counsel sent a letter to appellant's counsel advising that appellant did not appear to have filed the action in district court by July 1, 2014, and that, under the amendments to Minn. R. Civ. P. 5.04 that took effect on that date, appellant's complaint was deemed to be dismissed with prejudice. The letter from respondent's counsel apparently crossed in the mail with a letter from appellant's counsel, dated July 17, 2014, inquiring about the status of settlement efforts.
Appellant's counsel filed the summons and complaint on August 7, 2014. The district court issued an order dismissing the action pursuant to Minn. R. Civ. P. 5.04(a), and judgment was entered. Appellant's counsel then moved the district court to vacate the judgment.
The district court denied the motion to vacate. The district court held that "Minn. R. Civ. P. 60.02 does not apply to a Minn. R. Civ. P. 5.04 dismissal." The district court further stated, without analysis, "[t]hat even if Minn. R. Civ. P. 60.02 did apply in the instant case, [appellant] did not prove all four elements in analyzing whether to grant relief in vacating a dismissal with prejudice pursuant to Minn. R. Civ. P. 60.02."
This appeal followed.
I. When a judgment is entered pursuant to Minn. R. Civ. P. 5.04(a), may a party seek relief from that judgment under Minn. R. Civ. P. 60.02?
II. Did the district court abuse its discretion by denying relief from judgment in this case?
Civil actions in Minnesota are commenced by service. Minn. R. Civ. P. 3.01. Historically, the rules did not provide a deadline for filing an action in district court. By order dated February 12, 2013, the Minnesota Supreme Court amended Minn. R. Civ. P. 5.04, effective July 1, 2013, to provide that any non-family action not filed within one year of commencement "is deemed dismissed with prejudice against all parties unless the parties within that year sign a stipulation to extend the filing period." Order Promulgating Corrective Amendments to Rules of Civil Procedure
Appellant challenges the district court's conclusion that relief is not available under rule 60.02 when an action is dismissed pursuant to rule 5.04(a), and its alternative conclusion that appellant has not established entitlement to relief under rule 60.02, even if the rule is available. We address each argument in turn.
Appellant asserts that the district court erred by concluding that, when an action is dismissed and judgment is entered pursuant to rule 5.04(a), a party may not obtain relief under Minn. R. Civ. P. 60.02.
The rules at issue here provide, in pertinent part:
Minn. R. Civ. P. 5.04(a).
Minn. R. Civ. P. 60.02.
Nothing in the plain language of either rule precludes a party from seeking relief under rule 60.02 from a judgment entered pursuant to rule 5.04(a). Moreover, rule 60.02 excludes one type of judgment: a
Appellant also challenges the district court's alternative denial of relief under Minn. R. Civ. P. 60.02, "even if [the rule] did apply." "Minnesota courts analyze motions seeking relief from orders and judgments under Minn. R. Civ. P. 60.02 by applying a four-factor test that was established in Hinz...." Northland Temporaries, Inc. v. Turpin, 744 N.W.2d 398, 402 (Minn.App.2008) review denied (Minn. Apr. 29, 2008); see also Finden v. Klaas, 268 Minn. 268, 271, 128 N.W.2d 748, 750 (1964) (reaffirming the Hinz test). The test requires consideration of whether the movant has (1) a reasonable claim or defense on the merits; (2) a reasonable excuse for the neglect; (3) acted diligently after notice of entry of judgment; and (4) demonstrated that no prejudice will occur to the opposing party. Northland Temporaries, 744 N.W.2d at 402 (citing Hinz, 237 Minn. at 30, 53 N.W.2d at 456).
Importantly, a party seeking relief from a judgment need not categorically establish all four of the rule-60.02 factors.
"The decision to vacate judgment under rule 60.02 rests within the district court's discretion and will not be reversed absent an abuse of that discretion." Meyer v. Best W. Seville Plaza Hotel, 562 N.W.2d 690, 694 (Minn.App.1997) review denied (Minn. June 26, 1997). The district court's discretion in applying the rule, however, is not unlimited. Northland
In this case, the district court held that appellant is not entitled to relief under rule 60.02 because he "did not prove all four elements ... pursuant to Minn. R. Civ. P. 60.02." (Emphasis added.) This holding reflects a misapprehension of the rule. As explained, the rule-60.02 factors are factors to be considered, and not elements to be proved. The district court is required to consider and weigh those factors to determine whether relief from judgment is appropriate under the circumstances. Accordingly, we conclude that the district court abused its discretion by failing to properly consider and weigh the rule-60.02 factors.
Appellant asserts that all four rule-60.02 factors are satisfied and that we should therefore reverse and remand for the case to proceed on the merits. As noted, it is true that a district court has no discretion to deny a motion for relief from a judgment when all four rule-60.02 factors are established and favor reopening. See Northland Temporaries, 744 N.W.2d at 402 (citing Hinz, 237 Minn. at 30, 53 N.W.2d at 455-56); see also Finden, 268 Minn. at 271-73, 128 N.W.2d at 750-51 (reaffirming the Hinz standard). But we generally do not address issues on appeal that were not first addressed by the district court. See Thiele v. Stich, 425 N.W.2d 580, 582 (Minn.1988). This is particularly true where, as here, there may be factual disputes. Id.; see also Whitaker v. 3M Co., 764 N.W.2d 631, 640 (Minn.App. 2009) (stating that district court, and not this court, "must address and resolve [relevant] factual disputes"). Resolution of factual disputes is uniquely a district court function. See Kucera v. Kucera, 275 Minn. 252, 254, 146 N.W.2d 181, 183 (1966) ("It is not within the province of [appellate courts] to determine issues of fact on appeal."). And remand is the appropriate remedy when the district court has made insufficient findings to enable appellate review. See, e.g., Stich v. Stich, 435 N.W.2d 52, 53 (Minn.1989) (reversing and remanding where district court made insufficient findings to demonstrate proper consideration of statutory requirements for spousal maintenance). Moreover, even if not strictly required by the rules, it is the "preferred practice" for the district court to make findings to support the exercise of discretion. See, e.g., Contractors Edge, Inc. v. City of Mankato, 863 N.W.2d 765, 769 (Minn.2015) (stating that it is "a practice for the district court to provide a written explanation" for a certification decision, but failure to do so, by itself, was not an abuse of discretion).
In this case, respondent vigorously contests all four rule-60.02 factors, and it is not clear which, if any, of the factors the district court determined favor reopening. Neither can we determine how or if the district court weighed the rule-60.02 factors. Accordingly, we conclude that it is
The district court erred by concluding that a party may not seek relief under Minn. R. Civ. P. 60.02 from a judgment entered pursuant to Minn. R. Civ. P. 5.04(a), and by holding that a party must "prove all four elements" under rule 60.02 in order to obtain relief from the judgment. We reverse and remand for the district court to evaluate whether relief from the judgment is appropriate under the circumstances of this case.
CONNOLLY, Judge (concurring specially).
I concur specially to emphasize that our decision is not in any way intended to modify or neutralize the requirement of Minn. R. Civ. P. 5.04 that an action be filed with the court within one year of its commencement by service. By extending the relief under Minn. R. 60.02 available to any other final judgment (except marriage-dissolution judgments) to dismissals for failure to timely file under Minn. R. Civ. P. 5.04, we do not imply that a dismissal under Minn. R. Civ. P. 5.04 is any less final than a dismissal under Minn. R. Civ. P. 12.02(e) (for failure to state a claim upon which relief can be granted) or under Minn. R. Civ. P. 41.02(a) (for failure to prosecute or comply with the rules of civil procedure) and (b) (for failure to show a right to relief), or a judgment on the merits. At least one of the grounds entitling a party to relief under Minn. R. Civ. P. 60.02 must apply, and the motion for relief "shall be made within a reasonable time."
As our opinion indicates, the same weighing of the rule-60.02 factors required to obtain relief under that rule in other situations applies here, and the "preferred practice" is for the district court to make findings that reflect its consideration and weighing of those factors. Cf. Contractors Edge, Inc. v. City of Mankato, 863 N.W.2d 765, 769 (Minn.2015). As the availability of relief under rule 60 does not neutralize the finality of other judgments, it does not neutralize the finality of rule-5.04 dismissals.