Agri Affiliates, Inc. v. Bones

660 N.W.2d 168, 265 Neb. 798, 2003 Neb. LEXIS 68
CourtNebraska Supreme Court
DecidedMay 2, 2003
DocketS-01-1074
StatusPublished
Cited by12 cases

This text of 660 N.W.2d 168 (Agri Affiliates, Inc. v. Bones) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Agri Affiliates, Inc. v. Bones, 660 N.W.2d 168, 265 Neb. 798, 2003 Neb. LEXIS 68 (Neb. 2003).

Opinion

Hendry, C.J.

INTRODUCTION

Agri Affiliates, Inc., sued Calvin R. Bones and Audrey J. Bones, trustees of the Calvin R. and Audrey J. Bones Family Trust, for a commission resulting from the sale of real estate. In their answer, the Boneses pled several defenses and filed a counterclaim for, inter alia, damages resulting from their defense costs in Keller v. Bones, 260 Neb. 202, 615 N.W.2d 883 (2000). Both parties filed motions for summary judgment. The Lincoln County District Court overruled the Boneses’ motion for summary judgment and dismissed their counterclaim. Agri Affiliates’ motion for summary judgment was granted. This appeal followed. We moved this case to our docket pursuant to our authority to regulate the caseloads between this court and the Nebraska Court of Appeals. See Neb. Rev. Stat. § 24-1106(3) (Reissue 1995).

*800 FACTUAL BACKGROUND

The Boneses entered into an exclusive listing agreement with Agri Affiliates on May 24, 1997, to sell ranch land near North Platte, Nebraska, which was owned by the trust. That agreement provided that Agri Affiliates, as broker, was to receive a commission of 6 percent for services provided “upon the Broker finding a purchaser who is ready, willing and able to complete the purchase as proposed by the Owner.” The parties agreed that the listing price for the property was to be $490,000, or $245 per acre. At Calvin’s request, the listing agreement included language drafted by John Childears, managing partner and a broker at Agri Affiliates, which provided that “Seller reserves current Tenant from this listing for six Í61 months from date of Seller’s signature. If Tenant is successful buyer within said six months. Broker will close the sale and receive 1% commission.”

Both Calvin and Audrey testified that the current tenant of the property, Lydic Brothers, had been notified that the property was for sale, and further that they had inquired of Don Lydic, a representative of Lydic Brothers, whether Lydic Brothers would be interested in purchasing the property. The record shows Lydic Brothers made an offer “somewhere between ... 190 and $200 an acre” prior to the Boneses’ entering into the listing agreement with Agri Affiliates. Lydic’s testimony also revealed that he was informed the property had been listed and was aware of the “split sales commission” arrangement.

Loren Johnson, the broker who handled the sale for Agri Affiliates, testified that he would periodically contact Lydic to determine whether Lydic Brothers was interested in the property. Mike Polk, another Agri Affiliates agent, also contacted Lydic sometime between July 10 and 17, 1997, informing him that an offer of $220 per acre on the property had been received. Lydic responded by saying, “I think we are interested in it, but why . . . should [we] bid against ourselves ...” Thereafter, on July 17, Johnson telephoned Lydic, notifying him that Agri Affiliates had a buyer who was planning to make a full price offer. According to Lydic, he responded to this July 17 notification by telling Johnson, “ ‘Loren, that’s a lot of money, you know.’ ” Shortly after this telephone conversation, Johnson met with Dean Keller, who made an offer for the property at the full *801 list price of $245 per acre. Johnson had no further contact with Lydic after receiving Keller’s offer.

The purchase agreement signed by Keller was to expire at 5 p.m. on July 21,1997, and was sent to the Boneses at their home in Council Bluffs, Iowa. After receipt of the Keller offer, the Boneses and Johnson had a telephone discussion late in the afternoon of July 21 regarding the offer. Before signing the agreement, the Boneses asked if Lydic Brothers had any interest in the property; Johnson replied that it did not.

In their testimonies, both Calvin and Audrey also indicate that in response to their hesitation about signing the purchase agreement, Johnson told them that “it doesn’t make any difference to me whether you take the offer or not. They have met the asking price, and therefore you owe us the commission.” The purchase agreement was then signed and faxed to Agri Affiliates at 4:53 p.m. on July 21, 1997. At 5:12 p.m., after receiving the faxed purchase agreement, Johnson called Keller and left a message on Keller’s answering machine informing him that his offer had been accepted. In Keller v. Bones, 260 Neb. 202, 615 N.W.2d 883 (2000), this court held that a valid contract for the purchase of the property in question existed between the Boneses and Keller.

On the morning of July 22, 1997, Lydic called the Boneses to inquire about the property. At that time, he was informed that a purchase agreement for the full listing price had already been signed. Lydic then informed the Boneses that Lydic Brothers would purchase the property at the same price. Calvin called Johnson at Agri Affiliates to inform him that they wished to sell to Lydic Brothers instead of Keller. The Boneses’ desire to sell to Lydic Brothers was driven by the fact that under such a circumstance, the Boneses would be required to pay only a 1-percent commission, rather than the 6-percent commission if Keller purchased the property. Johnson testified that after he spoke to Calvin, he discussed the matter with Childears. Thereafter, Johnson left another message on Keller’s answering machine, inquiring whether Keller would “let the Boneses out of the contract.” Keller refused to do so and further requested Agri Affiliates to fax a copy of the purchase agreement to his attorney, which was done. Agri Affiliates also deposited Keller’s earnest money check in its trust account.

*802 Agri Affiliates brought this action in Lincoln County District Court for the payment of the 6-percent commission under the listing agreement. The Boneses’ answer alleged several defenses, specifically, negligent misrepresentation, fraudulent misrepresentation, and breach of fiduciary duty. The Boneses also asserted a counterclaim against Agri Affiliates for (1) defense costs from Keller, supra; (2) loss of the opportunity to sell to Lydic Brothers; and (3) loss of the use of the net proceeds and interest that would have been earned from a sale to Lydic Brothers.

Both parties filed motions for summary judgment and offered evidence in support of their respective motions. The only objection to any of the evidence offered by either party was that of the Boneses to the affidavit of R.T. Marland, Jr., a real estate broker and appraiser. Both parties also requested the district court take judicial notice of the trial record from Keller, supra.

In an order entered August 29, 2001, the district court (1) granted Agri Affiliates’ motion for summary judgment and (2) dismissed the Boneses’ counterclaim and overruled their motion for summary judgment. In its order, the district court began its analysis of the pending motions by observing that Keller, supra,

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Bluebook (online)
660 N.W.2d 168, 265 Neb. 798, 2003 Neb. LEXIS 68, Counsel Stack Legal Research, https://law.counselstack.com/opinion/agri-affiliates-inc-v-bones-neb-2003.