Justia Nebraska Supreme Court Opinion Summaries

Articles Posted in Business Law
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The Supreme Court affirmed the decision of the court of appeals affirming the judgment of the district court dismissing certain defendants for lack of personal jurisdiction, holding that the defendants' contacts were too attenuated for them to have purposefully established minimum contacts within Nebraska.The out-of-state defendants at issue on appeal facilitated the sale of allegedly defective software installed by a local mechanic in four of Plaintiff's trucks. Plaintiff asserted against them claims for strict liability, negligence, and breach of implied warranties. The district court granted the defendants' motion to dismiss, concluding that Plaintiff failed to make a prima facie showing of jurisdiction. The Supreme Court affirmed, holding that the quality and nature of the defendants' activities related to this action did not support personal jurisdiction. View "Wheelbarger v. Detroit Diesel ECM, LLC" on Justia Law

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The Supreme Court dismissed in part and reversed in part Appellant's appeal of the district court's rulings finding that Jerald Schreiber was unjustly enriched and ordering him to pay an additional $400,184 to a limited liability company (LLC) he owned in equal shares with his brother, Steven Schreiber, holding that the district court erred in part.Steven brought a complaint seeking the dissolution of the LLC at issue. The district court ordered dissolution and directed a receiver to liquidate the LLC's assets, including two buildings owned by the company but located on property owned by Jerald. Because Jerald made the sole offer to purchase the buildings, the parties agreed that the district court should order the receiver to accept the offer but that Steven and the LLC could continue to pursue a claim of unjust enrichment. The district court concluded that Jerald had been unjustly enriched and denied Jerald's motion asking the district court to provide further directions to the receiver. The Supreme Court (1) dismissed the order denying Jerald's motion for further directions for lack of jurisdiction; and (2) reversed the district court's order finding that Jerald was unjustly enriched, holding that the district court erred. View "Schreiber Brothers Hog Co. v. Schreiber" on Justia Law

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The Supreme Court affirmed the judgment of the district court finding that the Nebraska Real Estate License Act, Neb. Rev. Stat. 81-885.01 to 81-885.55, barred Choice Homes, LLC's claims regarding a failed purchase agreement, holding that the district court did not err.Choice attempted to buy certain real estate from Owners in order to sell it to Buyers, but after the closing failed, Buyers purchased the property directly from Owners. Choice brought this action seeking damages related the purchase claims. Choice also asserted a defamation claim stemming from an online review posted by Buyers. The district court granted summary judgment against Choice. The Supreme Court affirmed, holding (1) the Act barred Choice's nondefamation claims; and (2) Choice was not defamed by the review at issue because it did not state or imply a false statement of fact. View "Choice Homes v. Donner" on Justia Law

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The Supreme Court dismissed this appeal from the order of the district court finding that the recommendation of a single-member special litigation committee, which was appointed to investigate and determine whether it was in an LLC's best interests to pursue a certain derivative action, was beyond the committee's statutory authority, holding that the court's order was not a final order under Neb. Rev. Stat. 25-1902.A minority shareholder brought suit in a derivative action on behalf of the manager-managed limited liability company at issue in this case. The committee appointed by Defendants determined that it was in the LLC's best for the derivative action to be settled on terms approved by the committee, which were to conduct a majority vote on how certain issues should be resolved. The district court concluded that the committee's recommendation for disclosure to and vote of the members was beyond the committee's statutory authority and ordered the parties to attempt mediation. Both parties appealed. The Supreme Court dismissed the appeal, holding that the court's order for mediation and further recommendation was not a final order under section 25-1902. View "Tegra Corp. v. Boeshart" on Justia Law

Posted in: Business Law
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In this dispute involving a limited liability company (LLC) and its members the Supreme Court affirmed the judgment of the district court ordering an accounting, declaring the membership rights of the parties, quieting title to certain real estate, and establishing a resulting trust, holding that there was no merit to the assigned errors on appeal.On appeal, one member of the LLC asserted that the district court erred in denying a request for a jury trial on its legal counterclaims. The LLC cross-appealed, asserting that the trial court erred in denying a request to dissociate one of the members. The Supreme Court affirmed, holding that all assignments of error were without merit. View "Schmid v. Simmons" on Justia Law

Posted in: Business Law
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The Supreme Court affirmed in part, vacated in part, and reversed in part the decision of the district court determining the fair value of an estate's 14.84 percent of common stock in a family-owned business, holding that the district court erred in its determination of the fair value of the company.After Leonard and Marlene Benes, the owners of the company, died, the personal representative of Marlene's estate filed a petition for dissolution, and the company responded with an election to purchase in lieu of dissolution. The trial court found that the fair value of 14.84 percent of the company was worth $2,886,790 and declined to award Plaintiff expenses, attorneys fees, or prejudgment interest. The Supreme Court remanded the case in part, holding (1) the district court did not use the correct definition and subjected the estate's shares to discounts, and therefore, the court erred in its determination of the fair value of BSC; and (2) the court correctly denied attorneys fees and other expenses. View "Bohac v. Benes Service Co." on Justia Law

Posted in: Business Law
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The Supreme Court affirmed the judgment of the lower court determining the fair value of certain shares to be purchased by a corporation to be $467 million and awarding the petitioning shareholder $256 million in prejudgment interest, holding that this appeal was without merit.The successor president and chief executive officer (CEO) of Streck, Inc. implemented a sales process that failed to produce an offer acceptable to the majority shareholder, and the corporation was not sold. The majority shareholder sued Streck and its president and CEO, alleging breach of fiduciary duty and shareholder oppression. Streck opted to purchase the petitioning shareholder's shares and, after a trial, the court determined the fair value of the shares and awarded the petitioning shareholder prejudgment interest. The Supreme Court affirmed, holding that Streck's appeal was without merit. View "Wayne L. Ryan Revocable Trust v. Ryan" on Justia Law

Posted in: Business Law
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The Supreme Court affirmed the judgment of the district court entered against Appellants - Conveyance Consulting Group, Inc., Jones Consulting Inc., and Jonathan Jones - holding that Appellants' claims were either waived or without merit.Eletech, Inc. brought this action alleging that Jones, the former Vice President of Eletech, engaged in self-dealing and interfered with business opportunities. The court entered judgment in favor of Eletech as a discovery sanction and dismissed Appellants' counterclaim. Appellants appealed, arguing that the district court abused its discretion in granting motions to withdraw, motions to compel, and a motion for sanctions. The Supreme Court affirmed, holding that Appellants' claims were unavailing. View "Eletech, Inc. v. Conveyance Consulting Group, Inc." on Justia Law

Posted in: Business Law
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The Supreme Court affirmed the decision of the district court granting judgment in favor of an accountant and his new firm on his claims against his former firm, holding that the judgment was not in error.After Plaintiff left one firm to join another, he sued Defendant, his former firm, with whom he was a shareholder and officer. Plaintiff alleged that Defendant failed to perform a mandatory provision in the shareholder agreement to buy out a departing shareholder's corporate shares at a price that accounted for lost billings by virtue of clients following a departing shareholder. Defendant brought counterclaims for breach of fiduciary duty and misappropriation of confidential information and third-party claims against Plaintiff's new firm, including tortious interference with business expectations. All claims presented to the jury were determined in favor of Plaintiff and his new firm. The Supreme Court affirmed, holding that all claims were correctly decided in favor of Plaintiff and his new firm. View "Dick v. Koski Professional Group, P.C." on Justia Law

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The Supreme Court affirmed the order of the district court granting summary judgment against a real estate agency on its complaint against the seller and buyers of certain property for breach of an exclusive listing agreement and tortious interference with a contract, business relationship, or expectation, holding that summary judgment was properly granted.The sale of the property occurred after the listing period and after the protection period of the agreement, and no commission was paid. The negotiations for the sale were conducted directly between the seller and buyers, with the real estate agent's knowledge. The district court granted Defendants' motions for summary judgment. On appeal, the real estate agency argued that summary judgment was inappropriate because the district court held the summary judgment hearing before the real estate company had conducted depositions. The Supreme Court affirmed, holding (1) the district court did not prematurely address Defendants' motions for summary judgment; and (2) the district court erred in awarding attorney fees. View "George Clift Enterprises, Inc. v. Oshkosh Feedyard Corp." on Justia Law