Dearmore v. Kerrnita Park Community Water System
Plaintiff Danial Dearmore, a property owner in a Kern County subdivision, brought this action to quiet title to an adjacent parcel of land (the adjacent lot) based on a claim of adverse possession. The adjacent lot was allegedly owned by defendant Kerrnita Park Community Water System District (Kerrnita Park), a dissolved corporation. Plaintiff sued Kerrnita Park along with All Persons Unknown claiming any right or title to the adjacent lot. An adjoining property owner, defendant Roberta Thomas, filed an answer contesting plaintiffs claim. Although Thomas appeared in the action individually, it is not disputed that she was a shareholder and the agent for service of process of Kerrnita Park. Kerrnita Park failed to answer the complaint and, on plaintiffs request, its default was entered by the court. The next day, plaintiff and Thomas announced they had agreed to a stipulation for entry of judgment whereby they would split the adjacent lot between the two of them. When the trial court entered judgment based on the stipulation, Kerrnita Park promptly moved to set aside its default and the resulting judgment. The motion was denied by the trial court and this appeal by Kerrnita Park followed. We conclude the trial court abused its discretion because Kerrnita Park was entitled to relief under Code of Civil Procedure section 473. Further, the trial courts use of a stipulated judgment procedure amounted to a default judgment in a quiet title action, which was contrary to the applicable statute. Accordingly, Court reverse the judgment, vacate the order denying relief from default and remand for further proceedings consistent with this opinion.
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