April 18, 2018

Colorado Court of Appeals: District Court Abused its Discretion by Failing to Apply Three-Part Test for Excusable Neglect

The Colorado Court of Appeals issued its opinion in Taylor v. HCA-HealthONE, LLC on Thursday, March 8, 2018.

Medical Malpractice—Service—C.R.C.P. 4(m)—C.R.C.P. 60(b)—Excusable Neglect.

Plaintiff filed a medical malpractice action but failed to serve defendants within the C.R.C.P. 4(m) deadline. The district court dismissed the action without prejudice, and because the statute of limitations had run, plaintiff could not refile the lawsuit. She moved to set aside the judgment under C.R.C.P. 60(b) based on excusable neglect. Without holding a hearing, the district court concluded that counsel’s docketing errors did not amount to excusable neglect and denied the motion.

On appeal, plaintiff first argued that the district court’s dismissal order was invalid under C.R.C.P. 4(m) because the delay reduction order was premature. Although the rule requires notice before dismissal, it does not require notice after expiration of the service deadline. Thus, plaintiff was not entitled to additional notice beyond the delay reduction order and the district court’s order of dismissal was valid.

Plaintiff also argued that the court erred in failing to apply the three-factor test in Craig v. Rider, 651 P.2d 397 (Colo. 1982), in evaluating her Rule 60(b) motion to set aside the order of dismissal. That test requires the district court to consider not just whether the neglect that resulted in the order of dismissal was excusable, but also whether the plaintiff has alleged a meritorious claim and whether relief from the order would be consistent with equitable considerations. The district court abused its discretion in failing to analyze the Rule 60(b) motion under the three-part Craig test.

The order was vacated and the case was remanded to the district court to apply the Craig test.

Summary provided courtesy of Colorado Lawyer.

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