Lemon v. Coates
| Decision Date | 27 March 1987 |
| Docket Number | No. 18706,18706 |
| Parties | Neldon L. LEMON and Neldon L. Lemon Construction Company, Inc., a Utah corporation, Plaintiffs and Appellants, v. Jay COATES and Larry Lahusen, Defendants and Respondents. |
| Court | Utah Supreme Court |
Paul W. Mortensen, Harry E. Snow, Moab, for plaintiffs and appellants.
Albert J. Colton, William G. Waldeck, Joseph Coleman, Salt Lake City, for defendants and respondents.
Plaintiff 1 sued defendants, claiming that defendants wrongfully withheld or misrepresented material information in breach of a fiduciary duty defendants owed plaintiff because a joint venture existed between the parties. Plaintiff alleged that as a result of the breach of fiduciary duty, he was induced to withdraw from the joint venture, which was subsequently quite profitable. At the close of plaintiff's evidence, defendants were granted an involuntary dismissal of plaintiff's claims, which plaintiff now appeals. We affirm.
Plaintiff filed his complaint on August 20, 1979. The case was bifurcated for trial, with the issue of liability to be determined at the first trial and the amount of damages, if any, to be determined at the second trial. At the close of plaintiff's evidence, defendants moved for dismissal pursuant to Utah Rule of Civil Procedure 41(b), which provides in part:
After the plaintiff, in an action tried by the court without a jury, has completed the presentation of his evidence the defendant, without waiving his right to offer evidence in the event the motion is not granted, may move for a dismissal on the ground that upon the facts and the law the plaintiff has shown no right to relief. The court as trier of the facts may then determine them and render judgment against the plaintiff or may decline to render any judgment until the close of all the evidence.
The trial court granted defendants' motion, finding that although a joint venture had existed, no material misrepresentation or nondisclosure had occurred and plaintiff had voluntarily left the venture.
Two issues are presented on appeal: whether the trial court erred in finding that no material misrepresentation had occurred, and whether the trial court erred in refusing to consider certain expert testimony offered by plaintiff.
In November 1976, the parties entered into an oral agreement to conduct exploratory drilling for uranium ore pursuant to a contract defendants had with the Atlas Corporation. The Atlas contract promised to pay $2 per pound for the uranium ore. The contract was speculative in that a minimum of 100,000 pounds of ore had to be available before Atlas was obligated to pay anything. To qualify as ore, the samples had to be of a grade specified by the contract.
In December 1976, after plaintiff had drilled five holes, a dispute arose between the parties as to the method of drilling. On December 30, plaintiff suggested that defendants pay him an hourly rate for the work done and allow him to withdraw from the arrangement. Defendants agreed, and plaintiff was paid $7,273.90 on or before January 2, 1977.
Plaintiff claims that when he withdrew from the agreement, defendants were in possession of material information that they either misrepresented to or withheld from him. The trial court found that no misrepresentation or withholding of material evidence had occurred.
The direct and cross-examination of plaintiff's witnesses produced conflicting testimony...
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