Butcher v. McGinn

706 P.2d 878
CourtSupreme Court of Oklahoma
DecidedOctober 18, 1985
Docket57989
StatusPublished
Cited by17 cases

This text of 706 P.2d 878 (Butcher v. McGinn) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Butcher v. McGinn, 706 P.2d 878 (Okla. 1985).

Opinions

DOOLIN, Vice Chief Justice.

Appellees, Larry and Farrell Butcher (Butchers), filed their petition in the District Court of Custer County, alleging a partnership existed in four, retail shoe stores owned and operated by them and the appellant Gary P. McGinn (McGinn). These stores, which were acquired in 1965, 1966, 1967 and 1973, were financed by McGinn and managed or operated by the Butchers, according to verbal agreements between the parties. It was not until the last-acquired shoe store was destroyed in 1979 that a dispute arose as to whether a partnership had existed among them.

The Butchers claimed they were full partners in the shoe store and McGinn denied the existence of a partnership and counter-claimed against the Butchers. Alleging the Butchers were his employees, he petitioned the trial court to impose an equitable trust and convey title to real property which they had acquired with funds from the first two stores.

For all practical purposes, most, if not all, the claims and counter-claims made by McGinn and the Butchers are equitable in nature. Despite the equitable nature of the proceedings, the district court and counsel for the parties set the matter for a jury trial. There is no suggestion from the record that counsel or the trial, court ever recognized the jury’s verdict in such a situation would be advisory only.1

The district court bifurcated the trial, with stage one to determine the existence or non-existence of a partnership and stage two to determine the remaining issues. On December 11, 1981, the jury returned a verdict for McGinn that no partnership existed and thereafter, the same jury pro[880]*880ceeded to reach decisions as to the other actions.

On December 15, 1981, the jury returned a verdict that:

(a) McGinn was entitled to a lease on the building in question at a rental of $1,100 per month.
(b) The Butchers were each entitled to a draw or base salary of $250 per week.
(c) Farrell Butcher was entitled to 50% of the profits from Clinton Booterie for prior to and including 1981; and
(d) Larry Butcher was entitled to 50% of the profits from the Elk City Booterie and Elk City Shoe Box for prior to and including 1981.

The district court entered a judgment on both verdicts, apparently unaware of their advisory nature. In a post-trial proceeding, the district court appointed an accounting firm to determine (c) and (d) and denied McGinn’s request for attorney fees. McGinn and the Butchers appealed from the judgments in these proceedings.

Before the substantive issues raised on appeal and cross-appeal may be addressed, we must determine the effect of the failure to recognize the equitable nature of the proceedings and the advisory nature of the jury’s verdicts. To do this it has been necessary for this Court to independently review the record in search of error.

In an equitable action, trial by jury is not a matter of right.2 The presence of joined legal and equitable issues does not mandate a trial by jury. If the equitable issues are paramount or the legal issues incidental to or dependent upon the equitable issues, the issues are treated as equitable for trial purposes.3

The predominant issues in dispute in the immediate cause were matters of equitable cognizance and whatever “legal issues” are present in this case arise incidentally to the equitable claims. While the parties to this controversy were not entitled to a jury trial,4 the district court could have impaneled a jury to advise it on questions of fact.5

The verdict of such a jury is advisory only and the trial court is free to reject it or accept the verdict as its own.6 However, a jury’s advisory verdict in an equitable action does not relieve the trial court of its independent duty to make its own determination on issues of fact and law.7

The record in the instant case is not only void of any explicit performance of this duty, it fails to give an indication of even a glimmering awareness of it. Instead, this Court is forced to search the record to determine if we may engage in the presumption the trial court would have adopted the jury’s findings.8

We find we can indulge such presumption and we reiterate our holding in A. A. Murphy, Inc. v. Banfield,9 where we said failure of the trial court to treat the verdict as advisory is no ground for reversal unless an examination of the entire record discloses that a miscarriage of justice has probably resulted or there was a violation of statutory or constitutional rights.

[881]*881There are two prior decisions of this Court which are of assistance in this examination. In the first, Flowers v. Stanley,10 we looked to the journal entry of judgment to determine if the trial court had made independent findings and conclusions of law and fact in a case tried before an advisory jury. We found that the journal entry “plainly [represented] ... that the trial court reviewed the evidence and arrived at its own independent finding and conclusions_” 11 In contrast, the journal entries of judgment in this controversy reflect that they were made “pursuant” to the jury verdict. There is no indication that the trial court made its own review and judgment on any issue in the case.

In the second, First National Bank v. Russell,12 we found that the trial court adopted the advisory verdict when it refused to grant a judgment notwithstanding the verdict or a motion for a new trial. We held that the verdict and findings of the jury were adopted by the trial court as “effectively as though it had entered an order to that effect.” In the instant case both such motions were made and refused by the trial court and though there is no indication from the record that the trial court or counsel for the parties recognized the adoptive impact of the court’s actions, our decision in First National Bank v. Russell,13 guides this Court to find that the jury’s verdict was adopted by the trial court.

Instructions to an advisory jury furnish no basis for the assertion of error on appeal.

McGinn and the Butchers assign numerous errors in the instructions to the jury. Errors in jury instructions, which might form the basis for reversal in a trial at law, ordinarily furnish no ground for reversal on appeal where the jury serves only in an advisory capacity.14 Applying this rule in the case before us, we find it unnecessary to address these alleged errors.

Assignments of evidentiary errors are to be judged by equity standards despite the impaneling of an advisory jury.

The Butchers and McGinn also make numerous assignments of errors in evidentiary rulings by the trial court. The advisory nature of the jury invokes a different standard of review for these assertions, and the final responsibility for determination of fact as well as law in this case rested in the trial court. Despite the existence of an advisory jury, the matter was tried to the court.

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Butcher v. McGinn
706 P.2d 878 (Supreme Court of Oklahoma, 1985)

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Bluebook (online)
706 P.2d 878, Counsel Stack Legal Research, https://law.counselstack.com/opinion/butcher-v-mcginn-okla-1985.