Justia Nebraska Supreme Court Opinion Summaries

A husband and wife, both real estate professionals, were married for 31 years and jointly owned several properties, including two farms, residential homes, and business assets acquired during the marriage. The couple had no children together but each had adult children from prior marriages. During the marriage, they operated a real estate business and were equal shareholders in a grain company that was dissolved before the divorce proceedings. The husband claimed certain assets as nonmarital property, including proceeds from a premarital business and an inheritance, and also sought to have debts incurred during the marriage, such as a COVID-related loan and loans taken to pay temporary spousal support, treated as marital debts. Additionally, a third party, J.E.M. Farms, LLC, intervened, claiming a one-half interest in one of the farms based on a prior agreement and financial contributions.The District Court for Antelope County conducted a bifurcated trial, first addressing the intervenor’s claim and then the dissolution action. The court entered a consent decree quieting title to half of one farm in favor of J.E.M. Farms, with all parties agreeing to pay their own attorney fees and costs. In the dissolution proceedings, the court found that the husband failed to adequately trace most of his claimed nonmarital assets, except for $260,000 from his inheritance that was used to purchase one farm. The court also found insufficient evidence to treat the COVID loan as an outstanding marital debt or to find dissipation by the wife. The court ordered both farms to be sold, with the proceeds divided equally after accounting for the nonmarital inheritance, and denied the husband’s request for attorney fees related to the intervention.On appeal, the Nebraska Supreme Court reviewed the case de novo for abuse of discretion. The court affirmed the district court’s rulings, holding that the husband did not meet his burden to trace additional nonmarital property, that the consent decree barred his claim for attorney fees related to the intervention, and that the order to sell the farms was reasonable under the circumstances. The court also found no error in the treatment of debts or in the division of property. View "White v. White" on Justia Law

Two individuals, Kellogg and Mathiesen, formed a limited liability company (LLC) to provide in-home personal care services. Over time, disputes arose regarding ownership interests, capital contributions, and management of the company. The parties executed several agreements, including a 2017 contract transferring Mathiesen’s ownership to Kellogg due to his ineligibility as a Medicaid provider, and a 2019 contract in which Kellogg sold Mathiesen a 50% interest in the LLC’s assets. Allegations of mismanagement, misuse of company funds, and inappropriate conduct by Mathiesen led to litigation between the parties, including derivative claims and counterclaims. Kellogg also sought judicial dissolution of the LLC, citing unlawful conduct and irreconcilable differences.The District Court for Douglas County held a bench trial and found both Kellogg and Mathiesen to be 50-percent co-owners or managers of the LLC. The court denied all derivative claims and counterclaims, citing unclean hands by both parties. However, the court granted Kellogg’s application for dissolution, finding Mathiesen’s conduct oppressive and fraudulent, and ordered the appointment of a receiver to oversee the dissolution and possible sale of the company. Mathiesen appealed both the judgment and the receiver’s appointment.The Nebraska Supreme Court reviewed the consolidated appeals, limiting its review to plain error due to deficiencies in Mathiesen’s appellate briefing. The court determined it had jurisdiction over both appeals and addressed Mathiesen’s argument that Kellogg lacked standing. The court held that Kellogg remained a member of the LLC at the time of filing her derivative action and thus had standing. Finding no plain error in the record, the Nebraska Supreme Court affirmed the district court’s judgment and the order appointing a receiver. View "Kellogg v. Mathiesen" on Justia Law

A dispute arose after Howard Misle, acting as lender, provided funds to Abram, LLC, under a promissory note to support the company’s real estate ventures. The note, initially executed in 2004 and later amended, allowed advances up to $5 million at 3% interest. In 2007, after selling a property known as Park Place, Howard was paid sums from the sale proceeds, including a payoff for the note and reimbursement for advances. Later, Howard continued to make advances to Abram for new properties in Pennsylvania. In 2020, Howard demanded repayment on the note, and when Abram did not pay, he filed suit. Abram responded by asserting a defense of recoupment, claiming Howard had been overpaid in 2007, and also filed counterclaims for breach of fiduciary duty and fraudulent concealment.The District Court for Lancaster County granted summary judgment for Howard on the recoupment defense, finding the 2007 payment was a separate transaction from the advances Howard sought to recover. After a bench trial, the court also found that the statute of limitations barred Abram’s counterclaims, concluding that Abram’s agents had knowledge of the relevant facts and that the discovery rule did not toll the limitations period. The court adopted Howard’s calculation of interest on the note without an evidentiary hearing, overruling Abram’s objections.The Nebraska Supreme Court reviewed the case de novo. It held that Abram’s recoupment defense regarding the alleged 2007 overpayment should not have been dismissed on summary judgment, as it arose from the same transaction as Howard’s claim on the note. However, the court affirmed summary judgment for Howard on recoupment related to a personal loan to a third party. The court also found that the statute of limitations was tolled for Abram’s breach of fiduciary duty counterclaim but affirmed the dismissal of the fraudulent concealment claim. The case was affirmed in part, reversed in part, and remanded for further proceedings, including a determination of whether interest should be calculated as simple or compound. View "Konecne v. Abram, LLC" on Justia Law

An employee brought a civil action against his former employer, alleging wrongful termination and retaliation under the Nebraska Fair Employment Practice Act. The employee claimed he was fired for discussing his compensation with his supervisor and requesting a higher annual bonus, which he argued was protected conduct under state law. The employer denied retaliatory intent, asserting instead that the employee either resigned voluntarily or was terminated for performance reasons. The employer did not plead any statutory exceptions as affirmative defenses in its answer.The case proceeded to a jury trial in the District Court for Douglas County. After both sides presented their evidence, the employer moved for a directed verdict, arguing that the employee’s discussion about compensation occurred during working hours and thus fell within a statutory exception that prohibits such discussions during working hours. The court took the motion under advisement and submitted the case to the jury, which returned a verdict in favor of the employee, awarding substantial damages. However, the court did not enter judgment on the verdict. Instead, it later granted the employer’s motion for directed verdict, reasoning that the employee failed to disprove the applicability of the statutory exception, and dismissed the action.On appeal, the Nebraska Supreme Court held that the statutory exception regarding discussions of compensation during working hours constitutes an affirmative defense. The Court clarified that the employer bears the burden to plead and prove this defense, and failure to do so results in waiver. Because the employer did not plead the exception as an affirmative defense, the district court erred in granting a directed verdict on that basis. The Supreme Court reversed the district court’s order and remanded the case with directions to enter judgment in conformity with the jury’s verdict. View "Khaitov v. Greater Omaha Packing Co." on Justia Law

Westside Community School District was entitled to receive payments in lieu of taxes (PILOT funds) from the Douglas County treasurer, as required by the Nebraska Constitution and statutes. In 2021, the Nebraska Auditor of Public Accounts found that the treasurer had erroneously distributed PILOT funds, resulting in Westside being underpaid by millions of dollars, while other entities, including Omaha Public Schools (OPS), Douglas County, and the city of Omaha, were overpaid. The parties did not dispute the existence of these errors. Westside filed suit seeking a writ of mandamus to compel the treasurer to correct the underpayment.After litigation began, Westside, the treasurer, and the city of Omaha entered into a settlement agreement to rectify the payment errors from 2019 to 2021, agreeing to prospective repayments over six years. OPS declined to participate. Pursuant to the agreement, Westside and the treasurer jointly moved for a peremptory writ of mandamus, which the District Court for Douglas County initially granted. OPS then intervened, arguing the writ was improper and that the statutory provisions did not authorize the proposed remedy. The district court vacated the writ, finding no statutory duty to correct the underpayment in the manner outlined, and left the case pending.Westside renewed its motion for a writ, seeking only correction of the underpayment without specifying the remedy’s form. The treasurer moved to enforce the settlement agreement, arguing the court’s vacation of the writ was equivalent to a denial, requiring dismissal. The district court denied Westside’s renewed motion and dismissed the case with prejudice, enforcing the settlement agreement.On appeal, the Nebraska Supreme Court held that the treasurer has a ministerial duty to properly distribute PILOT funds according to the statutory formula, and that mandamus is the appropriate remedy to compel correction of erroneous distributions. The court affirmed the vacation of the initial writ but reversed the denial of the renewed motion and the dismissal, remanding with direction to issue an alternative writ of mandamus. View "State ex rel. Douglas Cty. Sch. Dist. No. 66 v. Ewing" on Justia Law

Two children of a decedent alleged that their late stepmother wrongfully transferred assets belonging to their father to herself, depriving them of property they would have received under his will. The assets in question included a house and shares in a corporation. The stepmother, who had married their father after both had children from previous marriages, allegedly used a power of attorney to transfer the property to herself during the father’s cognitive decline. After both the father and stepmother died, the children claimed they were not notified of the stepmother’s estate proceedings and that the disputed property was distributed to the stepmother’s descendants.The District Court for Lincoln County dismissed the children’s complaint, citing the doctrine of jurisdictional priority because a similar proceeding was pending in county court. After the county court dismissed the children’s petition for lack of standing, the district court denied the children’s motion to alter or amend its dismissal, without further explanation. The children appealed, arguing that the district court’s reliance on jurisdictional priority was no longer justified after the county court’s dismissal.The Nebraska Supreme Court held that the children had standing to pursue relief under the Nebraska Uniform Power of Attorney Act, which specifically allows a principal’s issue to petition a court to review an agent’s conduct under a power of attorney. The court found that the doctrine of jurisdictional priority no longer applied once the county court proceeding was dismissed. However, the Supreme Court also determined that the complaint failed to state a claim upon which relief could be granted, as the children would not have inherited the disputed property under the will or by operation of law, even if the transfers were invalid. Nevertheless, the court ruled that the children should be given leave to amend their complaint and reversed and remanded the case with directions to allow amendment. View "Kimball v. Rosedale Ranch" on Justia Law

A woman, acting individually and as the special administrator of her late husband’s estate, filed a wrongful death and medical malpractice lawsuit against a hospital and an emergency room physician. She alleged that the physician negligently failed to diagnose and treat her husband’s condition after he presented to the emergency room with head and neck pain following a blow to the head. The physician diagnosed abrasions and a closed head injury, but did not order cardiac tests. The patient was discharged and died that night from an apparent heart attack.The case was filed in the District Court for Douglas County, Nebraska. Over several years, the parties engaged in discovery, and the court issued multiple progression orders setting deadlines for, among other things, the disclosure of expert witnesses. The plaintiff did not disclose a medical expert by the required deadline. The defendants moved for summary judgment, arguing that without expert testimony, the plaintiff could not prove her malpractice claim. Shortly before the summary judgment hearing, the plaintiff disclosed a new medical expert. The district court excluded the expert’s affidavit, both as a discovery sanction and under its inherent authority to enforce its progression orders, and granted summary judgment for the defendants, dismissing the case with prejudice.The Nebraska Court of Appeals reversed, finding that the district court abused its discretion in excluding the expert’s affidavit as a discovery sanction and remanded for further proceedings. On further review, the Nebraska Supreme Court held that the district court did not abuse its discretion in excluding the late-disclosed expert under its inherent authority to enforce progression orders. The Supreme Court reversed the Court of Appeals and remanded with directions to affirm the district court’s judgment granting summary judgment to the defendants. View "Ricker v. Nebraska Methodist Health System" on Justia Law

George Merithew, a former police officer with the City of Omaha Police Department (OPD), sued the City of Omaha under the Nebraska Fair Employment Practice Act (NFEPA) for retaliation. Merithew, who began his employment with OPD in 1996 and was promoted to lieutenant in 2009, reported a violation of the Palmer Consent Decree in May 2018 and subsequently claimed retaliation by the police chief. He filed a charge of discrimination with the Nebraska Equal Opportunity Commission (NEOC) in April 2020 after receiving a 20-day suspension. In June 2020, he received a termination letter, was suspended with pay, and later retired in February 2021 under an "Early Delayed Retirement Option."The District Court for Douglas County granted summary judgment in favor of the City, finding that any alleged discriminatory actions before June 25, 2019, were time-barred and that Merithew failed to establish a prima facie case of retaliation. The court determined that Merithew did not suffer an adverse employment action and lacked evidence of a causal connection between his protected conduct and the alleged retaliation. Additionally, the court found that the City provided legitimate, nondiscriminatory reasons for its actions, which Merithew failed to prove were pretextual.The Nebraska Supreme Court reviewed the case de novo and affirmed the district court's enforcement of the statute of limitations, barring claims for actions before June 25, 2019. However, the Supreme Court found that there were genuine issues of material fact regarding whether Merithew was subjected to an adverse employment action, whether there was a causal connection between his protected conduct and the adverse action, and whether the City's reasons were pretextual. The court reversed the summary judgment in part and remanded the case for further proceedings. View "Merithew v. City of Omaha" on Justia Law

A bank holding company sued two guarantors for breach of their personal guaranties on a $1.5 million loan extended to an entity they were involved with. The guarantors argued that the bank holding company lacked standing to sue because there was no written assignment of the loan documents from the original lender, a bank, to the holding company. The district court admitted the written assignment into evidence and found that the holding company had standing. The court also granted summary judgment in favor of the holding company, finding the guarantors liable under the terms of their guaranties.The guarantors had counterclaimed against the holding company and other parties, alleging fraudulent concealment, fraudulent misrepresentation, civil conspiracy, and breach of the implied covenant of good faith and fair dealing. They argued that the bank and its president conspired with a now-deceased individual to conceal the financial instability of the individual’s entities, which led to the guarantors entering into the guaranties. The district court found no genuine issue of material fact regarding these counterclaims and granted summary judgment for the holding company.The guarantors also attempted to file a document in which the personal representative of the deceased individual’s estate confessed judgment against the estate. The district court ruled this filing a nullity, as the personal representative’s appointment had been terminated before the filing, and he was not authorized to act on behalf of the estate.The Nebraska Supreme Court affirmed the district court’s rulings, holding that the holding company had standing, the guarantors were liable under the guaranties, and the counterclaims were unsupported by evidence. The court also upheld the ruling that the purported confession of judgment was a nullity. View "Henderson State Co. v. Garrelts" on Justia Law

Stacy L. Jones and Joshua Colgrove were in a relationship and had a child, B.C. After their separation, Stacy moved to Lincoln, Nebraska, with B.C. and her other children. Joshua, who was diagnosed with Guillain-Barre syndrome, did not initially seek custody. Stacy was later convicted of felony child abuse and placed on probation, leading to juvenile court proceedings where B.C. was placed in foster care. Joshua's request for B.C.'s placement with him was denied due to his non-compliance with DHHS requests. The juvenile court eventually found Stacy rehabilitated and awarded her custody of B.C., issuing a bridge order transferring jurisdiction to the district court.The district court entered a custody decree consistent with the juvenile court's order. Joshua filed a petition for modification, and the State filed a complaint to establish child and medical support. The district court overruled Joshua's motion to dismiss the State's complaint and required him to pay child support. The court also issued an amended custody decree after the juvenile court corrected minor errors in its bridge order. Joshua's motions to reconsider and strike the amended orders were denied.The Nebraska Supreme Court reviewed the case and affirmed the district court's decision. The court found that the district court's findings, including Stacy's compliance with rehabilitative measures and her ability to protect B.C., were supported by evidence. The court also held that the State's intervention to establish child support was permissible under the relevant statutes. The court determined that the issue of the amended orders was moot and did not warrant further review. The court concluded that the district court did not abuse its discretion in awarding custody to Stacy, requiring Joshua to handle transportation for parenting time, and not awarding Joshua the child tax credit. View "Jones v. Colgrove" on Justia Law