Elliott v. Darwin Neibaur Farms
| Decision Date | 08 April 2003 |
| Docket Number | No. 28232, No. 28233. |
| Citation | 138 Idaho 774,69 P.3d 1035 |
| Parties | Edward G. ELLIOTT and Mary L. Elliott, husband and wife, Plaintiffs-Respondents, v. DARWIN NEIBAUR FARMS, an Idaho general partnership; Darwin Neibaur and June Neibaur, husband and wife, Defendants-Appellants, and Green Line Sales, Inc., an Idaho corporation; Hansen and L. Patricia Hansen, husband and wife; Darwin P. Neibaur, a single man, June G. Neibaur, a single woman; Darwin P. Neibaur; June G. Neibaur; Steve Neibaur, a.k.a. Burke Vearl Neibaur; Ira Neibaur, a.k.a. Ira Lynn Neibaur; Renea Hartley, a.k.a. Renea N. Hartley, Corinne Jones, a.k.a. Corinne N. Jones, Dana Lee Dorsey, a.k.a. Dana Lee N. Dorsey; June G. Neibaur, as Trustee for Burke Vearl Neibaur and Ira Lynn Neibaur d/b/a Darwin Neibaur Farms Partnership; Edward K. Heiner and Zina L. Heiner, husband and wife; Key Bank Of Idaho, a banking corporation; Valley Bank, a banking company; First Security Bank Of Idaho, N.A., a banking company, Defendants. |
| Court | Idaho Supreme Court |
Westburg, McCabe & Collins, Boise, for appellant Darwin Neibaur Farms. P. Larry Westberg argued.
Ling & Robinson, Rupert, for appellants Darwin and June Neibaur. Brent T. Robinson argued.
Charles J. Nicholas, Boise, argued for respondents.
This case involves the foreclosure of a mortgage on real property. The district court entered judgment allowing Edward and Mary Elliott to foreclose a mortgage on property owned by Darwin Neibaur Farms, a partnership, over the objection by Neibaur Farms and Darwin and June Neibaur, individually, that the parties' contracts required the Elliotts to foreclose first on property owned by John and Patricia Hansen before foreclosing on the Neibaurs' property. We affirm.
In October 1982, Edward and Mary Elliott entered into a contract for the sale of the John Deere dealership business and a land sale contract for the real property that the business was located upon in Burley, Idaho. The buyer was Green Line Sales, Inc. John and Patricia Hansen and Darwin and June Neibaur, among others, were shareholders in Green Line Sales, Inc. Promissory notes were given to the Elliotts and guaranteed by the shareholders. Two mortgages were given to the Elliotts as security for the guarantees made by the shareholders pursuant to the business contract; the Hansens granted a mortgage against real property owned by them, and the Neibaurs granted a mortgage against real property that they owned.
There were two conditions pertaining to the mortgages. First, if the indebtedness on the business sale contract dropped below a certain dollar amount, the Neibaurs' mortgage would be released. Second, in the event that the Elliotts should simultaneously foreclose on the mortgages, the Hansens' property would be sold first to satisfy the debt. If the proceeds from the sale of the Hansens' property were insufficient, the Elliotts would then foreclose on the Neibaurs' property.
The farm economy in the Burley area took a serious downturn in the late 1980's and early 1990's. Efforts were made to keep current with the payments pursuant to the business contract, including a modification agreement in 1991. Despite these efforts, Green Line Sales, Inc., defaulted upon the promissory notes for both the business sale contract and the land sale contract.
The Elliotts demanded full payment on the notes in May 1993 and initiated a single action against the Hansens and the Neibaurs to foreclose on both mortgages. The Elliotts and the Hansens later entered into a stipulation whereby the Hansens would pay the Elliotts at least half of the amounts owed on the promissory notes, in exchange for the Hansens' property not being sold in a foreclosure proceeding. A Stipulation and Order for Sale, Foreclosure of Mortgages and Entry of Judgments, and a Stipulation for Settlement and Order entered into between the Elliotts and the Hansens were filed in March 1994. The Neibaurs were not involved in the negotiations or settlement agreements between the Elliotts and the Hansens.
Following the stipulations, the Neibaurs filed a motion for summary judgment alleging a statute of limitation defense and the absence of a contractual condition precedent which required the Elliotts to conduct a foreclosure sale of the Hansens' property prior to foreclosing on the Neibaurs' property. The district court granted partial summary judgment and held that the foreclosure action against the Neibaurs was time-barred. The district court entered an order dismissing the foreclosure action against the Neibaurs and dismissed Neibaur Farms, with prejudice. The district court declined to enter an I.R.C.P. 54(b) certificate on the order at that time but directed that the question of certification be heard by a separate motion.1 In April 1995, the Elliotts and the Hansens entered into an additional stipulation.
In January 1995, the Neibaurs filed for Chapter 12 relief with the U.S. Bankruptcy Court. During the course of the Chapter 12 proceeding, the Neibaurs disputed the validity of the Elliotts' claim. The bankruptcy court issued its memorandum decision finding that the Neibaurs' defenses of impossibility, impracticability and frustration of purpose did not excuse the Neibaurs' performance, nor did the statute of limitation bar the Elliotts' foreclosure action. The bankruptcy court then dismissed the Neibaurs' petition. The decision of the bankruptcy court was upheld on appeal.
Following the dismissal of the bankruptcy petition, the Elliotts filed a motion for partial summary judgment requesting that the district court rule that all of the Neibaurs' claims and defenses had been adjudicated and disposed of by the bankruptcy court. The Neibaurs filed another motion for partial summary judgment asserting the I.C. § 6-101 `one-action rule' and statute of limitation as grounds. On December 18, 1997, the district court granted the Elliotts' motion for partial summary judgment. The court held that collateral estoppel barred re-adjudication of the claims decided by the bankruptcy court. The district court took under advisement the Neibaurs' arguments concerning the one-action rule.
On January 9, 1998, the district court issued its opinion on the Neibaurs' I.C. § 6-101 claim. The court sua sponte reversed its decision that the Neibaurs' mortgage was time-barred. A trial was held, and the district court entered its findings of fact and conclusions of law. The district court concluded that the Elliotts did not have to foreclose and sell the Hansens' property before foreclosing on the Neibaurs' property. The district court further determined that the Neibaurs had bargained away their statute of limitation defense and such bargaining inured to the detriment of Neibaur Farms. Attorney fees were awarded by the district court to the Elliotts as the prevailing party. An Amended Judgment and Decree of Foreclosure was filed on January 30, 2003. The Neibaurs and Neibaur Farms appeal.
1. Did the district court err in entering a decree of foreclosure of the Neibaurs' mortgage in the absence of a condition precedent, i.e., the foreclosure sale of the land covered by the Hansens' mortgage?
2. Did the district court err by exercising jurisdiction over the foreclosure of the Neibaurs' mortgage?
3. Did the district court err by allowing the Elliotts to proceed with a foreclosure action and holding that the `one-action' rule of Idaho Code § 6-101 inapplicable?
4. Did the district court err in holding that foreclosure of the Neibaurs' mortgage was not barred by the applicable statute of limitation?
5. Did the district court err in holding that certain of Neibaurs' arguments and defenses were precluded from trial by the doctrines of res judicata and collateral estoppel based on the bankruptcy action which was ultimately dismissed?
6. Did the district court err by sua sponte reversing the summary judgment previously entered in favor of Neibaur Farms?
7. Did the district court err in awarding fees and in its method of calculating attorney fees for the Elliotts at trial?
8. Are any of the parties entitled to attorney fees on appeal?
In an appeal from an order granting summary judgment, this Court uses the same standard of review as the district court did in ruling upon the motion. Baxter v. Craney, 135 Idaho 166, 170, 16 P.3d 263, 267 (2000). Summary judgment is appropriate only when the pleadings, depositions, affidavits and admissions on file show that there is no genuine issue of material fact and that the movant is entitled to judgment as a matter of law. I.R.C.P. 56(c).
Generally, when considering a motion for summary judgment, this Court liberally construes the record in the light most favorable to the party opposing the motion, drawing all reasonable inferences and conclusions in that party's favor. Construction Management Systems, Inc. v. Assurance Co. of America, 135 Idaho 680, 682, 23 P.3d 142, 144 (2001). However, where the evidentiary facts are undisputed and the trial court rather than a jury will be the trier of fact, "summary judgment is appropriate, despite the possibility of conflicting inferences because the court alone will be responsible for resolving the conflict between those inferences." Riverside Development Co. v. Ritchie, 103 Idaho 515, 519, 650 P.2d 657, 661 (1982); see also Cameron v. Neal, 130 Idaho 898, 900, 950 P.2d 1237, 1239 (1997)
.
The Neibaurs and Neibaur Farms contend that the clear and unambiguous language of the mortgages require that there must first be a foreclosure sale of the Hansens' property prior to a foreclosure sale on the Neibaurs' property and that the Hansens' property shall be sold first.
The Elliotts agree that the language of the mortgages is clear and unambiguous. However, the Elliotts argue that the provisions for foreclosure...
To continue reading
Request your trial
-
Boise Mode, LLC v. Pace
...authority to reconsider and vacate interlocutory orders so long as final judgment has not been entered." Elliott v. Darwin Neibaur Farms, 138 Idaho 774, 785, 69 P.3d 1035, 1046 (2003) (citing Telford v. Neibaur, 130 Idaho 932, 950 P.2d 1271 (1998) ; Sammis v. Magnetek, Inc., 130 Idaho 342, ......
-
Maroun v. Wyreless Systems, Inc.
...P.2d 188, 190 (1983). The determination and legal effect of a contractual provision is a question of law. Elliott v. Darwin Neibaur Farms, 138 Idaho 774, 779, 69 P.3d 1035, 1040 (2003). "Determining the meaning of a statute and its application is a matter of law over which this Court exerci......
-
In re Elias
...jurisdiction is an absolute bar to a subsequent action between the same parties upon the same claim." Elliott v. Darwin Neibaur Farms, 138 Idaho 774, 69 P.3d 1035, 1044 (2003). Bankruptcy courts are granted exclusive jurisdiction over nondischargeability claims brought under § 523(a)(6). Se......
-
Bennett v. Bank of E. Or.
...credit in at least double the amount of his debt[.]"); Frazier , 115 Idaho at 740, 769 P.2d at 1112 ; Elliott v. Darwin Neibaur Farms , 138 Idaho 774, 781, 69 P.3d 1035, 1042 (2003) ; see also Fed. Land Bank of Spokane v. Parsons , 118 Idaho 324, 327, 796 P.2d 533, 536 (Ct. App. 1990) ("Ida......