J.B., as legal guardian and personal representative of E.B., an adult with a disability v. MKBS, LLC d/b/a Metro Taxi, Inc. a/k/a Metro Transportation Planning and Solution Group and Jesus Manuel Ortiz

Summary

The Colorado Supreme Court held that a defendant against whom default had been entered could testify at a codefendant's trial, even when the testimony contradicted facts admitted by the default. The court also upheld setting aside the default judgment based on excusable neglect and entering judgment for the defaulting defendant consistent with the codefendant's jury verdict. The court affirmed the judgment of the Colorado Court of Appeals.

Holdings

1. A non-defaulting codefendant may call a defaulting defendant to testify at the codefendant's trial, including testimony contrary to facts admitted by the default, so long as the testimony is not prohibited by another source of law and the defaulting defendant is not thereby challenging his own liability in a Rule 55(b)(1) damages hearing.
2. The district court did not abuse its discretion by setting aside Ortiz's default judgment under C.R.C.P. 60(b) because it properly considered whether the neglect was excusable, whether Ortiz had a meritorious defense, and whether relief was equitable.
3. When a jury verdict conflicts with the allegations supporting a default judgment, and the defendants are similarly situated or have closely related defenses, the default judgment should be vacated and judgment may be entered for the defaulting defendant to prevent inconsistent judgments.

Questions Presented

1. Whether a defaulting defendant may testify at a non-defaulting codefendant's trial contrary to facts deemed admitted by the default.
2. Whether the district court properly set aside the default judgment against Ortiz under C.R.C.P. 60(b) based on excusable neglect, a meritorious defense, and equitable considerations.
3. Whether the district court properly entered judgment in Ortiz's favor based on the jury verdict in MKBS's trial to avoid inconsistent judgments.

Disposition

affirmed