132 Ventures v. Active Spine Physical Therapy

313 Neb. 45
Nebraska Supreme Court·Decided December 16, 2022·No. S-22-047·Published·Cited by 5 cases

Opinion

Nebraska Supreme Court Online Library www.nebraska.gov/apps-courts-epub/ 12/16/2022 08:04 AM CST

- 45 - Nebraska Supreme Court Advance Sheets 313 Nebraska Reports 132 VENTURES V. ACTIVE SPINE PHYSICAL THERAPY Cite as 313 Neb. 45

132 Ventures, LLC, a Nebraska limited liability company, appellee and cross-appellant, v. Active Spine Physical Therapy, LLC, a Nebraska limited liability company, et al., appellants and cross-appellees. ___ N.W.2d ___

Filed December 16, 2022. No. S-22-047.

1. Judgments: Appeal and Error. In a bench trial of a law action, a trial court’s factual findings have the effect of a jury verdict and will not be set aside on appeal unless clearly wrong. 2. Statutes: Appeal and Error. Statutory interpretation presents a ques- tion of law which an appellate court resolves independently of the lower court. 3. Constitutional Law: Appeal and Error. The review of constitutional standards is a question of law and is reviewed independently of the trial court’s determination. 4. Jury Trials: Waiver. A party must be entitled to a jury trial before the party can validly waive that right. 5. Forcible Entry and Detainer: Property: Words and Phrases. The forcible entry and detainer proceeding is a special statutory proceeding designed to provide a speedy and summary method by which the owner of real estate might regain possession of it from one who had unlaw- fully and forcibly entered into and detained possession thereof, or one who, having lawfully entered, then unlawfully and forcibly detained possession. 6. Forcible Entry and Detainer: Legislature. Because of its summary nature, the Legislature has narrowed the issues that can be tried in a forcible entry and detainer action to the right of possession and statu­ torily designated incidents thereto. - 46 - Nebraska Supreme Court Advance Sheets 313 Nebraska Reports 132 VENTURES V. ACTIVE SPINE PHYSICAL THERAPY Cite as 313 Neb. 45

7. Forcible Entry and Detainer: Title. A forcible entry and detainer action does not try the question of title, but only the immediate right of possession. 8. Constitutional Law: Jury Trials. Nebraska’s Constitution preserves the right to a jury trial as it existed at common law. 9. Forcible Entry and Detainer: Damages. Neb. Rev. Stat. § 25‑21,223 (Reissue 2016), a provision of Nebraska’s forcible entry and detainer statutes, contemplates bifurcated proceedings wherever damages are warranted, distinguishing between the “trial of the action for possession” and “other causes of action.” 10. Statutes: Legislature: Intent. In construing a statute, the legislative intention is to be determined from a general consideration of the whole act with reference to the subject matter to which it applies and the particular topic under which the language in question is found, and the intent as deduced from the whole will prevail over that of a particular part considered separately. 11. Jury Trials: Equity. At common law, legal claims were tried by a jury and equitable claims were tried by a court. 12. Claims: Jury Trials: Equity. In Nebraska, it is well established that litigants are typically entitled to a jury trial on legal claims, but not equitable claims. 13. Actions: Pleadings: Equity. The essential character of a cause of action and the remedy or relief it seeks as shown by the allegations of the petition determine whether a particular action is one at law to be tried to a jury or in equity to be tried to a court. 14. Actions: Breach of Contract: Damages. A suit for damages arising from breach of a contract presents an action at law.

Heavican, C.J., Cassel, Stacy, Funke, Papik, Freudenberg, JJ., and Post, District Judge.

Funke, J. INTRODUCTION This appeal arises from a dispute concerning the posses- sion and use of a commercial property in Omaha, Nebraska. A complaint was filed by 132 Ventures, LLC, managed by Dale Scott, against Active Spine Physical Therapy, LLC (Active Spine), Sara Muchowicz, and Nicholas Muchowicz for (1) forcible entry and detainer, (2) breach of contract, (3) breach of guaranty, and (4) unjust enrichment. The district court granted - 47 - Nebraska Supreme Court Advance Sheets 313 Nebraska Reports 132 VENTURES V. ACTIVE SPINE PHYSICAL THERAPY Cite as 313 Neb. 45

relief on 132 Ventures’ forcible entry and detainer cause of action, ordering restitution of the premises. The district court proceeded to hear the remaining causes of action at a bench trial and subsequently awarded damages to 132 Ventures in the amount of $158,368.73 under the parties’ amended lease agree- ment. Active Spine and the Muchowiczes appeal, assigning error to the district court’s denial of their request for a jury trial and its calculation of damages, and 132 Ventures cross‑appeals, assigning multiple errors related to the district court’s calcula- tion of damages.

BACKGROUND Active Spine is a physical therapy business owned by the Muchowiczes. In 2017, with the assistance of Scott, a real estate broker, the Muchowiczes began looking for a new build- ing to purchase for Active Spine. The Muchowiczes decided to purchase a commercial property in Omaha. Before buying the property, the Muchowiczes formed DEMU Properties, LLC (DEMU), to hold title to it. Scott became a member of DEMU along with the Muchowiczes. DEMU then purchased the prop- erty, with its members intending to execute a lease with Active Spine for a portion of the property. On December 29, 2017, Scott on behalf of DEMU and Nicholas on behalf of Active Spine executed a written lease agreement (December 29 lease) for the purchased property. The December 29 lease provided that Active Spine would occupy 9,544 rentable square feet of the property at a base rent of $12.50 per rentable square foot for the first year of the lease. Additionally, the lease provided that the base rent would increase to $13 per rentable square foot for the second lease year. The term of the lease was 20 years, with an option to renew for two additional 5‑year periods. As part of the lease agreement, Nicholas and Sara executed a “Personal Guarantee” unconditionally guaranteeing payment of all rent and other charges due under the lease. On February 20, 2020, Nicholas, as DEMU’s manager, purportedly executed an amendment - 48 - Nebraska Supreme Court Advance Sheets 313 Nebraska Reports 132 VENTURES V. ACTIVE SPINE PHYSICAL THERAPY Cite as 313 Neb. 45

of the December 29 lease (amended lease) on behalf of both DEMU and Active Spine. The amended lease differs from the December 29 lease in multiple respects, but not in its calcula- tion of monthly rent payments. In June 2020, the property was purchased by 132 Ventures at a foreclosure sale. A third‑party management company for 132 Ventures began invoicing Active Spine for rent. Active Spine did not pay rent to 132 Ventures in June or July, result- ing in 132 Ventures serving Active Spine with a “Three‑Day Notice to Quit” pursuant to Neb. Rev. Stat. § 25‑21,221 (Reissue 2016). On July 23, 132 Ventures filed its complaint against Active Spine and the Muchowiczes. On its cause of action for forcible entry and detainer, 132 Ventures sought immediate possession of the property pending proceedings on its other causes of action. Active Spine filed a counterclaim and third‑party complaint against 132 Ventures and Scott, alleging fraud, promissory estoppel, and intentional interfer- ence with a business expectation against both parties. In August 2020, the matter came on for hearing on 132 Ventures’ cause of action for forcible entry and detainer. Although evidence was heard, the district court made no ruling on the issue of possession. Instead, the court con- solidated the case with another related matter and reassigned the case to another judge.

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