Palevac v. Mid Century Non Auto
| Decision Date | 31 December 1985 |
| Docket Number | No. 16253,16253 |
| Parties | Richard D. PALEVAC and Nancy Palevac, Appellants, v. MID CENTURY NON AUTO, Respondent. |
| Court | Nevada Supreme Court |
This is an appeal from an order and judgment granting respondent's motion for summary judgment.
In 1978, appellant Richard D. Palevac (Palevac), Donald D. Ferderer (Ferderer), and R.J. Robinson (Robinson) were the sole shareholders of Las Vegas Hosts, Inc. and New Horizons Travel, Inc., two Nevada corporations operating two travel agencies in Las Vegas.
As most of the business carried on by the two travel agencies was conducted over long distance telephone lines, the travel agencies applied to Central Telephone Company (Centel) for several WATS lines.
Before it would install those WATS lines, Centel required the individual shareholders of the two travel agencies to personally indemnify Centel for any charges incurred to Centel by the two travel agencies. Toward that end, on September 11, 1978, the two documents relevant to the instant appeal were executed: first, a Surety Bond under which respondent Mid Century Non Auto (Mid Century) agreed to pay "all just bills" incurred by the two travel agencies to Centel; and second, a General Indemnity Agreement under which Palevac agreed to pay Mid Century certain premiums and to indemnify Mid Century against any "claim, demand, liability, cost, charge, counsel fee, expense, suit, order, judgment, and adjudication" incurred by Mid Century as a consequence of the Surety Bond. The General Indemnity Agreement further provided that "in the event of payment by the Surety the Indemnitor agrees to accept the voucher or other evidence of such payment as prima facie evidence of the propriety thereof and of the Indemnitor's liability therefor to the Surety." 1
In late 1979 or early 1980, a dispute arose between Centel and the two travel agencies. Centel and Mid Century assert that the two travel agencies failed to pay $35,198.66 owed to Centel. Palevac, however, asserts that the two travel agencies never owed Centel $35,198.66. In an affidavit accompanying Palevac's opposition to Mid Century's motion for summary judgment, Ferderer, who was president and principal officer of the two travel agencies, stated that the travel agencies never owed Centel $35,198.66. Ferderer swore in his affidavit that the disputed $35,198.66 was the amount due for service for WATS lines that Ferderer had instructed Centel to disconnect. Ferderer also asserted that each year, during the holidays, due to a decrease in telephone business, Ferderer instructed Centel to disconnect several WATS lines. Ferderer swore that during the year in which the dispute arose, though Ferderer instructed Centel to disconnect several WATS lines, Centel failed to do so. Ferderer alleged that Centel employees assured him on numerous occasions that the WATS lines would be disconnected. Finally, Ferderer claims that, once it appeared that the WATS lines had not been disconnected, Centel employees assured him that the travel agencies would not be billed for the lines that he had instructed Centel to disconnect.
In early 1980, Centel billed the two travel agencies $35,198.66. When the travel agencies did not pay the bill, Centel disconnected all of the travel agencies' telephones, and the travel agencies went...
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