Justia Nebraska Supreme Court Opinion Summaries

Articles Posted in Civil Procedure
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Jennings Plant Services, LLC, and its members, Spencer and Tarin Jennings, filed a lawsuit against Ellerbrock-Norris Agency, Inc., and Elliot Bassett, alleging that Ellerbrock-Norris failed to provide competent insurance advice. Specifically, Jennings claimed that Ellerbrock-Norris advised them not to add a company-owned vehicle, a Ford F-150, to their commercial insurance policies, which led to a lack of coverage when the vehicle was involved in a fatal collision. This resulted in a significant judgment against Jennings in a federal wrongful death case brought by Kacey Kimbrough, the special administrator of the estate of Shawn Thomas Kimbrough.In the U.S. District Court for the District of Nebraska, Kimbrough obtained a judgment of $5,436,266.87 against Jennings Plant Services. As part of a partial settlement, Jennings assigned Kimbrough a right to 85% of any proceeds from their state lawsuit against Ellerbrock-Norris. Kimbrough then sought to intervene in the state lawsuit under Neb. Rev. Stat. § 25-328, claiming an interest in the litigation due to her assigned right to a portion of the proceeds.The District Court for Washington County denied Kimbrough's motion to intervene, finding that she had no direct cause of action against either Jennings or Ellerbrock-Norris and no legal interest in the subject matter of the underlying litigation. The court determined that Kimbrough's interest was indirect and insufficient to warrant intervention under § 25-328.The Nebraska Supreme Court affirmed the district court's decision, holding that Kimbrough's alleged interest in the proceeds of the lawsuit was too attenuated to constitute a direct and legal interest in the litigation. The court concluded that Kimbrough, as a mere creditor with an indirect interest, did not meet the statutory requirements for intervention. View "Jennings Plant Services, LLC v. Ellerbrock-Norris Agency" on Justia Law

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A landowner, Main St Properties LLC (MSP), entered into a conditional zoning agreement with the City of Bellevue, Nebraska, in 2012. The agreement allowed the City to rezone MSP’s property if MSP violated the agreement by parking U-Haul vehicles north of the building. The City issued multiple violation notices to MSP over the years, citing breaches of the agreement.MSP did not appeal the first three violation notices but did appeal a fourth notice issued in June 2020. While this appeal was pending, the City rezoned MSP’s property back to its original classification, citing the multiple violations as the basis for this action.MSP filed two lawsuits against the City: one seeking declaratory and injunctive relief and the other challenging the rezoning through a petition in error. The district court granted summary judgment for the City in both cases, finding that the City acted within its rights under the agreement and that the rezoning was not arbitrary or unreasonable.The Nebraska Supreme Court reviewed the case. It determined that the City’s action to rezone the property was legislative, not judicial, and thus not subject to a petition in error. Consequently, the court dismissed the appeal related to the petition in error and vacated that judgment. However, the court affirmed the district court’s summary judgment in the declaratory and injunctive relief case, holding that the City properly exercised its rights under the agreement after MSP committed multiple violations. The court also found that the stay provision in Neb. Rev. Stat. § 19-909 did not apply to the City’s legislative action and that there were no genuine issues of material fact precluding summary judgment. View "Main St Properties v. City of Bellevue" on Justia Law

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Active Spine Physical Therapy, LLC (Active Spine) and its owners, Sara and Nicholas Muchowicz, were sued by 132 Ventures, LLC (Ventures) for breach of contract and personal guarantee after failing to pay rent and common area maintenance (CAM) charges under a lease agreement. Ventures had purchased the property in a foreclosure sale and sought damages for unpaid rent and CAM charges from June 2020 to February 2021. Active Spine argued that the lease was invalid due to fraudulent inducement and that they were under a COVID-19-related rent abatement.The district court initially ordered restitution of the premises to Ventures and denied Active Spine's request for a temporary injunction. A separate bench trial found Active Spine and the Muchowiczes liable for breach of contract. On appeal, the Nebraska Supreme Court affirmed the restitution order but reversed the breach of contract judgment, remanding for a jury trial.At the jury trial, Ventures presented evidence of unpaid rent and CAM charges, while Active Spine argued that Ventures failed to provide notice of budgeted direct expenses, a condition precedent to their obligation to pay CAM charges. The jury found in favor of Ventures, awarding $593,723.82 in damages. Active Spine and the Muchowiczes moved for a new trial or judgment notwithstanding the verdict (JNOV), arguing errors in the jury's damage calculations and the lack of notice of budgeted direct expenses.The Nebraska Supreme Court reviewed the case and found that the district court did not abuse its discretion in admitting the exhibits as business records and not summaries under Neb. Rev. Stat. § 27-1006. The court also held that Active Spine and the Muchowiczes failed to preserve their arguments for appeal regarding the costs of new tenancy, COVID-19 abatement, and the amended lease. The court affirmed the district court's denial of the motion for new trial or JNOV, concluding that the jury's verdict was supported by sufficient evidence. View "132 Ventures v. Active Spine Physical Therapy" on Justia Law

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Brian Herman and Skyler Herman sued Peter Tonn Enterprises, LLC, doing business as I39 Supply, for breach of contract. The Hermans alleged that they agreed to buy a livestock trailer from I39 Supply, but I39 Supply failed to honor the agreement. The Hermans served I39 Supply via certified mail, but I39 Supply did not respond, leading the Hermans to file for a default judgment. The district court granted the default judgment, ruling that I39 Supply was properly served and had failed to answer the complaint.I39 Supply, represented by its owner Peter Tonn, who is not an attorney, sent documents to the district court and participated in the default judgment hearing by telephone. The district court ruled that Tonn could not represent the LLC and entered a $19,000 judgment in favor of the Hermans. I39 Supply later retained counsel and filed a motion to vacate the default judgment, arguing that Tonn was unaware he could not represent the LLC. The motion did not mention personal jurisdiction. The district court granted the motion to vacate the default judgment and set the matter for a pretrial conference.The Nebraska Supreme Court reviewed the case and found that I39 Supply made a general appearance by filing the motion to vacate the default judgment without raising the issue of personal jurisdiction. This action conferred personal jurisdiction on the district court. The Supreme Court reversed the district court's order dismissing the Hermans' complaint for lack of personal jurisdiction and remanded the case for further proceedings. View "Herman v. Peter Tonn Enters." on Justia Law

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The case involves Meisam Sedighi, who sought reimbursement from his employer, Schnackel Engineers, Inc., for $3,000 he paid to an immigration attorney for the preparation and filing of a permanent labor certification application. Sedighi argued that under 20 C.F.R. § 656.12(b), Schnackel Engineers was responsible for these costs. Schnackel Engineers contended that Sedighi was to pursue his green card at his own expense, as stipulated in his employment contract, and that it did not agree to pay for the certification application.The small claims court of the county court for Douglas County ruled in favor of Sedighi, finding that Schnackel Engineers was responsible for the attorney fees under 20 C.F.R. § 656.12(b). Schnackel Engineers appealed to the district court for Douglas County, which reversed the small claims court's decision. The district court found that the employment contract controlled the parties' obligations and that Sedighi was responsible for his own green card expenses. It concluded that the Michigan immigration attorney represented Sedighi, not Schnackel Engineers.The Nebraska Supreme Court reviewed the case and found that the district court erred in its appellate review. The Supreme Court noted that the small claims court's judgment was supported by competent evidence showing that Schnackel Engineers actively participated in the preparation and filing of the permanent labor certification application. The Supreme Court held that the district court should have presumed that the small claims court found the Michigan immigration attorney represented both Sedighi and Schnackel Engineers. Consequently, the Supreme Court reversed the district court's judgment and directed it to reinstate the small claims court's judgment in favor of Sedighi. View "Sedighi v. Schnackel Engineers" on Justia Law

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A group of 29 physicians challenged a proposed ballot initiative in Nebraska that sought to add a new section to the state constitution, protecting unborn children from abortion in the second and third trimesters, except in cases of medical emergency, sexual assault, or incest. The physicians argued that the initiative violated the single subject rule and would create voter confusion.The Nebraska Supreme Court had previously reviewed a similar initiative titled "Protect the Right to Abortion" and found it did not violate the single subject rule. The physicians conceded that if the first initiative was allowed, the second should be as well, given their structural similarities. They filed for a writ of mandamus to prevent the second initiative from appearing on the ballot, arguing it should be withheld based on the same principles applied to the first initiative.The Nebraska Supreme Court reviewed the case and determined that the second initiative did not violate the single subject rule. The court applied the "natural and necessary" test and found that all parts of the initiative related to the same subject. The court also noted that arguments about potential voter confusion were not separate requirements for determining the legal sufficiency of the measure. Additionally, the court found that other arguments presented by the physicians were not ripe for review, as they were based on contingent future events.Ultimately, the Nebraska Supreme Court denied the writ of mandamus, allowing the second initiative to appear on the ballot. The court dissolved the alternative writ and concluded that the Secretary of State did not have a duty to withhold the initiative from the general election ballot. View "State ex rel. Constance v. Evnen" on Justia Law

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An inmate in the custody of the Nebraska Department of Correctional Services (DCS) filed a negligence action against the State of Nebraska under the State Tort Claims Act (STCA). The inmate alleged that DCS failed to investigate his complaint that other inmates had stolen his property while he was in segregated confinement. He claimed that this failure to investigate resulted in the loss of his property, valued at $496.05, and caused him mental and emotional distress.The District Court for Lancaster County dismissed the case, finding that it lacked subject matter jurisdiction. The court concluded that the inmate failed to plead a cognizable claim under the STCA because he did not show that the State owed him a legal duty under the relevant regulations. The court determined that the regulations cited by the inmate did not create a legal duty owed to him by the State.The Nebraska Supreme Court reviewed the case de novo and affirmed the district court's decision. The Supreme Court held that the inmate disciplinary procedure statutes and regulations did not give rise to a tort duty of the State to investigate the alleged theft of the inmate's property. The court found that these regulations were designed to prescribe disciplinary procedures for inmates who allegedly engaged in misconduct, not to protect an inmate seeking an investigation into other inmates' alleged misconduct. As a result, the inmate failed to state a claim of negligence under the STCA, and the State's sovereign immunity was not waived. Therefore, the district court correctly dismissed the case for lack of subject matter jurisdiction. View "Ryan v. State" on Justia Law

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Dylan H. initiated a legal proceeding to establish paternity of a minor child, P.C., against Brooke C., the child's natural mother. Brooke's partner, Brandon B., intervened, claiming paternity based on a notarized acknowledgment he had signed. Dylan then filed a third-party complaint to disestablish Brandon's paternity, alleging fraud and material mistake of fact. The district court for Nemaha County bifurcated the issues and held an evidentiary hearing on the disestablishment claim. The court found fraud and material mistake of fact, disestablishing Brandon's paternity, and later denied a motion for a new trial.The district court's decision to disestablish Brandon's paternity was appealed by Brooke and Brandon. They also appealed the denial of their motion for a new trial. However, the district court had not resolved all claims in the case, including Dylan's action to establish paternity, custody, and support. The Nebraska Court of Appeals had previously dismissed an appeal related to genetic testing, determining it was not filed within the required timeframe and did not affect a substantial right.The Nebraska Supreme Court reviewed the appeal and determined that the orders appealed from did not resolve all claims and involved multiple parties, thus implicating Neb. Rev. Stat. § 25-1315(1). This statute requires certification for an order to be appealable when it adjudicates fewer than all claims or the rights and liabilities of fewer than all parties. The district court had not provided such certification. Consequently, the Nebraska Supreme Court dismissed the appeal for lack of jurisdiction, as the requirements for a final, appealable order under § 25-1315(1) were not met. View "Dylan H. v. Brooke" on Justia Law

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The case involves a challenge to the constitutionality of a Nebraska legislative bill, L.B. 574, which regulates both abortion and gender-altering care. Planned Parenthood of the Heartland, Inc., and its medical director, Sarah Traxler, M.D., argued that the bill violated the single subject requirement of the Nebraska Constitution, which mandates that no bill shall contain more than one subject. The bill, titled "Let Them Grow Act," was initially introduced to prohibit gender-altering procedures for minors but was later amended to include provisions from a stalled bill, L.B. 626, which restricted abortions after 12 weeks of pregnancy.The District Court for Lancaster County ruled that Traxler lacked standing but found the single subject challenge justiciable. The court concluded that L.B. 574 did not violate the single subject requirement and granted summary judgment in favor of the defendants, including Nebraska Attorney General Mike Hilgers. Planned Parenthood appealed, and Hilgers cross-appealed, arguing that the single subject challenge was a nonjusticiable political question.The Nebraska Supreme Court reviewed the case de novo and affirmed the lower court's decision. The court held that L.B. 574 did not violate the single subject requirement of the Nebraska Constitution. The court reasoned that the bill's title, "public health and welfare," was sufficiently broad to encompass both the regulation of abortion and gender-altering care. The court found that all provisions of the bill were germane to the subject of public health and welfare, thus meeting the constitutional requirement. The court also rejected Hilgers' argument that the single subject challenge was nonjusticiable, reaffirming its authority to review legislative acts for constitutional compliance. View "Planned Parenthood of the Heartland v. Hilgers" on Justia Law

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A Catholic priest, Andrew J. Syring, sued the Archdiocese of Omaha, alleging defamation, tortious interference with prospective employment, slander per se, breach of fiduciary duty, and intentional infliction of emotional distress. His claims stemmed from the Archdiocese publishing his name on a list of clergy with substantiated claims of sexual misconduct and a subsequent phone conversation where a church official referenced this list when discussing Syring's potential employment as a hospital chaplain.The District Court for Cuming County granted summary judgment for the Archdiocese on Syring's defamation claim, finding it barred by Nebraska’s one-year statute of limitations. The court ruled that the initial publication of the list in 2018 started the limitations period, and subsequent updates to the list did not constitute republication. The court also granted summary judgment on Syring's intentional infliction of emotional distress claims, concluding that Syring failed to provide medical evidence of severe emotional distress.The Nebraska Supreme Court reviewed the case de novo and affirmed the lower court's decisions. The court held that the single publication rule applied to the Archdiocese's list, meaning the statute of limitations began with the initial publication. The court also found that the Archdiocese's conduct did not meet the high threshold for extreme and outrageous behavior required for an intentional infliction of emotional distress claim.Additionally, the court upheld the dismissal of Syring's claims for tortious interference, slander per se, and breach of fiduciary duty, citing the ministerial exception. This doctrine prevents courts from interfering with the employment relationship between a religious institution and its ministers, thus barring Syring's claims related to his employment and the Archdiocese's internal governance decisions. The Nebraska Supreme Court affirmed the judgment, dismissing all of Syring's claims. View "Syring v. Archdiocese of Omaha" on Justia Law