Justia Nebraska Supreme Court Opinion Summaries

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

The case revolves around a residential eviction dispute between a landlord, MIMG LXXIV Colonial, LLC (Colonial), and a tenant, TajReAna Ellis. Colonial initiated eviction proceedings against Ellis for failing to pay rent, providing a seven-day notice as required by Nebraska’s Uniform Residential Landlord and Tenant Act (URLTA). Ellis, however, argued that the federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act) imposed a 30-day notice requirement, superseding the state law. The county court rejected Ellis' argument and ruled in favor of Colonial. Ellis appealed to the district court, which reversed the county court's decision, agreeing with Ellis that the CARES Act required a 30-day notice.The case was then brought before the Nebraska Supreme Court. However, by this time, Ellis' lease had expired, and she had vacated the property. The court found that the case was moot as the relief sought by Colonial, a judgment for restitution of the premises, would have no practical effect since Ellis no longer resided in the property. Colonial argued that the case was not moot due to its interest in knowing whether it violated the law and the financial interest related to the district court's taxing of costs. The court rejected these arguments, stating that claims for costs are generally insufficient to avoid mootness.The court also considered whether to reach the merits of the case under the public interest exception to the mootness doctrine. However, it declined to do so, noting that the primary question in the case was a matter of federal statutory interpretation, over which the U.S. Supreme Court has final authority. The court also declined to apply the collateral consequences exception, which is typically used in criminal cases. Consequently, the appeal was dismissed. View "MIMG LXXIV Colonial v. Ellis" on Justia Law

The case involves a dispute between a landlord, Daniel Johnson, and his tenant, Tina Vosberg. Johnson filed a complaint under Nebraska’s Uniform Residential Landlord and Tenant Act (URLTA) seeking restitution of the premises, unpaid rent, and statutory damages for willful holdover. The primary disagreement was over the duration of the lease agreement. Johnson presented a 90-day lease, while Vosberg claimed she had signed a 1-year lease. The county court held an expedited trial on the claim for possession and ruled in favor of Johnson. Vosberg appealed this decision.Vosberg's appeal was heard by the District Court for Douglas County, which affirmed the county court's decision. Vosberg then appealed to the Nebraska Supreme Court. During the pendency of the appeal, the alleged 1-year lease period passed, Vosberg vacated the premises, and she stopped paying monthly rent pursuant to the supersedeas bond.The Nebraska Supreme Court found that it had appellate jurisdiction over the case. However, it ruled that the appeal was moot because the term of the alleged 1-year lease had expired, Vosberg had vacated the premises, and she was no longer paying the monthly rent under the terms of the supersedeas bond. The court also rejected Vosberg's argument that she suffered collateral consequences from the writ because a judgment of eviction on her record made it harder for her to find landlords willing to rent to her. The court dismissed Vosberg's appeal as moot. View "Johnson v. Vosberg" on Justia Law

The Supreme Court affirmed the summary judgment granted by the district court in favor of a non-shareholder officer and a non-shareholder former director in this suit brought by Landlord seeking to pierce the corporate veil of a commercial tenant (Tenant), who failed or refused to pay a judgment against it, holding that the district court did not err.Landlord sued Tenant for nonpayment of rent and recovered a judgment. When Landlord was unable to recover on its judgment it commenced the instant action seeking to pierce Tenant's corporate veil and hold a non-shareholder officer and a non-shareholder former director personally liable for the judgment against Tenant. The district court entered summary judgment in favor of Defendants and dismissed the case with prejudice. The Supreme Court affirmed, holding the factors did not weigh in favor of veil piercing. View "407 N 117 Street v. Harper" on Justia Law

The Supreme Court dismissed the appeal of the underlying eviction proceedings brought under Nebraska's Uniform Residential Landlord and Tenant Act (the NURLTA), Neb. Rev. Stat. 76-1401, holding that this case was moot.After Defendant allegedly breached the terms of her residential lease agreement Plaintiff, Defendant's landlord, terminated the lease. When Defendant refused to leave the property Plaintiff initiated eviction proceedings. The county court found in favor of Plaintiff and issued a writ of restitution. Defendant appealed, holding that section 76-1446, which mandates a bench trial for a possession action under the NURLTA, violated her constitutional right to a jury trial. The Supreme Court dismissed Defendant's appeal, holding that Defendant's arguments on appeal were moot, and none of the mootness exceptions applied. View "NP Dodge Management Co. v. Holcomb" on Justia Law

The Supreme Judicial Court reversed the decision of the district court granting a partial summary judgment construing a long-term written lease between Owner and Tenant and, after a trial, entering a judgment regarding the parties dispute over minimum rent, holding that a factual issue existed precluding summary judgment.Owner sued Tenant for breach of contract after the parties could not agree when renegotiating minimum rent, alleging express breach of contract, declaratory judgment, and breach of the implied duty of good faith and fair dealing. The district court entered partial summary judgment in favor of Owner construing the lease but held that there were material facts in dispute as to whether Owner violated the implied duty of good faith and fair dealing when renegotiating. After a trial, the court entered judgment for Owner. The Supreme Court reversed, holding that the provision in the lease regarding minimum rent is ambiguous, and therefore, the court's entry of partial summary judgment on the issue must be reversed. The Court remanded the case for further proceedings. View "Brush & Co. v. W. O. Zangger & Son, Inc." on Justia Law

The Supreme Court affirmed the judgment of the district court evicting Defendant from a property and quieting title to it in Plaintiff, Defendant's former husband's corporation (the corporation) but awarding Plaintiff a judgment for the money she provided for its downpayment, holding that the district court did not err.After Plaintiff failed to pay rent for two years the corporation initiated eviction proceedings. Plaintiff denied being a tenant and claimed to co-owned the property. Plaintiff then filed a complaint asking the district court to quiet title to the property in the corporation and restore the premises to it. Defendant filed a countercomplaint requesting partition or, alternative, a constructive trust and restitution. The district court quieted title to the property in Plaintiff. The Supreme Court affirmed, holding that the court did not err in quieting title to the corporation, declining to partition the property or impose a constructive trust upon it, restoring the premises to the corporation, and awarding Defendant a monetary judgment for an unpaid loan. View "Dreesen Enterprises, Inc. v. Dreesen" on Justia Law

In this insurance dispute, the Supreme Court affirmed the decision of the district court granting summary judgment for Allstate Indemnity Company, holding that property loss from Plaintiffs' tenants' producing or using methamphetamine indoors was not a covered peril under the insurance policy.Plaintiff filed an insurance claim alleging that his tenants damaged his rental house by producing or using methamphetamine indoors. Allstate denied the claim. Plaintiff subsequently filed a complaint against Allstate alleging breach of contract and bad faith. The district court granted summary judgment for Allstate, concluding that Plaintiff's property loss was excluded from coverage under certain portions of the insurance policy and was not covered by other portions of the policy. The Supreme Court affirmed, holding that Plaintiff's assignments of error were without merit. View "Kaiser v. Allstate Indemnity Co." on Justia Law

The Supreme Court affirmed the judgment of the district court granting a money judgment for Landlord after Tenant breached its leases on two commercial properties, holding that there was no merit in Tenant's arguments on appeal.After a trial, the jury returned a special verdict in Landlord's favor, finding that Landlord met its burden of proving that Tenant breached the lease agreement, causing Landlord damages of $1,657,800 for unpaid rent and late fees and for unpaid taxes. The court entered judgment on the verdict and further awarded prejudgment interest. The Supreme Court affirmed, holding (1) Landlord had standing in this action and was not required to produce the actual assignment of the leases; (2) there was no error in the award of prejudgment interests or in the special verdicts awarding late fees; and (3) the court had inherent authority to award Landlord its actual expenses as a condition of sustaining Tenant's motion for continuance of trial. View "AVG Partners I, LLC v. Genesis Health Clubs of Midwest, LLC" on Justia Law

The Supreme Court affirmed the district court's order dismissing Tenants' first cause of action against Landlord under the Uniform Residential Landlord and Tenant Act (URLTA) but reversed as to Tenants' second, third, and fourth causes of action, holding that the complaint stated plausible claims for relief under Neb. Rev. Stat. 76-1419, 76-1430, and 76-1439 of the URLTA for retaliatory conduct, ouster, and failure to maintain fit and habitable premises but not under sections 76-1418 and 76-1429 for failure to deliver possession.In their complaint, Tenants alleged that numerous code violations materially affecting their health and safety were present at the time they commenced physical possession of the property at issue but were not discovered until later. The City of Omaha Planning Department's housing division eventually declared the property unsafe and unfit for human occupancy, Tenants vacated the premises and did not receive a return of their security deposit or rent and utilities paid for the months they were unable to occupy the premises. Tenants then brought this action. The district court dismissed the complaint, concluding that the alleged facts did not state a claim for relief under the URLTA. The Supreme Court reversed in part, holding that the district court erred in dismissing several causes of action. View "Vasquez v. CHI Properties, LLC" on Justia Law