Central National Bank v. Estate of Weber

CourtCourt of Appeals of Kansas
DecidedDecember 22, 2017
Docket116109
StatusUnpublished

This text of Central National Bank v. Estate of Weber (Central National Bank v. Estate of Weber) is published on Counsel Stack Legal Research, covering Court of Appeals of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Central National Bank v. Estate of Weber, (kanctapp 2017).

Opinion

NOT DESIGNATED FOR PUBLICATION

No. 116,109

IN THE COURT OF APPEALS OF THE STATE OF KANSAS

CENTRAL NATIONAL BANK, Appellee,

v.

ESTATE OF ANNITA LOU WEBER, Appellant,

and

KENNETH WALSH as Successor Trustee of UNILDA MOFFATT TRUST and Administrator of the ESTATE OF UNILDA MOFFATT, Appellee.

MEMORANDUM OPINION

Appeal from Harvey District Court; JOHN E. SANDERS, judge. Opinion filed December 22, 2017. Affirmed in part, reversed in part, dismissed in part, and remanded with directions.

Levi H. Goossen, of Goossen Law Office, of Newton, for appellant.

Randall J. Pankratz and David J. Stucky, of Adrian & Pankratz, P.A., of Newton, for appellee Central National Bank.

William P. Tretbar and Adam R. Burrus, of Fleeson, Gooing, Coulson & Kitch, L.L.C., of Wichita, for appellee Kenneth Walsh.

Before ATCHESON, P.J., MALONE and POWELL, JJ.

1 PER CURIAM: This is a mortgage foreclosure action in which Central National Bank seeks the judicially ordered sale of a 20-acre parcel of land, including a residence and outbuildings, in rural Harvey County. Bill Weber, as the executor of the Estate of Annita Lou Weber, has vigorously contested the sale. In a series of rulings, the Harvey County District Court cleared the way for the foreclosure sale and set conditions of the sale. Bill Weber has appealed. We affirm the district court with the exception of secondary rulings allocating the costs of the private sale and awarding attorney fees to CNB. We affirm in part, reverse as to the costs of the sale, dismiss as to the attorney fees, and remand for further proceedings.

INTRODUCTORY FACTUAL AND PROCEDURAL SETTING

The recent ownership of the land involves a few twists and turns. But that history informs some of the issues and helps explain the relationship of the parties. Unilda Moffatt owned the property and lived in the house for a number of years. As her physical health began to decline in 2006, Moffatt pitched a deal to Annita Weber, a longtime friend. If Annita and her husband Donald would move into the house to help take care of her, Moffatt would deed the property to them. As part of the arrangement, Moffatt would have a handicap accessible apartment added to the house, where she would live. And the Webers were to convey a much smaller residential property to Moffatt's trust. Everyone agreed, and Moffatt deeded the 20-acre parcel to the Webers.

In 2007, the Webers took out a home equity loan with CNB and mortgaged the Moffatt parcel as collateral. The loan provided a 10-year line of credit up to $75,000 with an annual interest rate of 8.774%. The Webers initially borrowed $20,000 and from time to time later borrowed additional amounts. They made the required periodic payments but did not significantly reduce the principal balance that eventually hovered around $60,000.

2 In the meantime, they never conveyed their residential property to Moffatt's trust, contrary to the agreement. Rather, their son Bill moved into the house and ostensibly was to pay rent to the trust. Moffatt also wrote a check to Annita Weber for $100,000 that was either a loan or a gift.

Moffatt died in September 2010, and Donald Weber died about two months later. In early 2011, Kenneth Walsh, as the administrator of Moffatt's estate, sued Annita Weber and Bill Weber over both the $100,000 check and the failure to deed the residential property to Moffatt's trust. Details of that litigation, which need not be recited here, may be found in Walsh v. Weber, No. 113,972, 2016 WL 4750102 (Kan. App. 2016) (unpublished opinion), rev. denied October 17, 2017. Annita Weber died in 2013, and her estate was substituted as a defendant in that case. Ultimately, Walsh obtained a $100,000 judgment against Annita Weber's estate based on the check, and the district court imposed a constructive trust on the Webers' property in favor of Moffatt's estate.

Until her death, Annita Weber continued making the required payments on the loan with CNB. As we have indicated, Bill Weber was named the executor of Annita's estate. In that capacity, Bill Weber made only one payment on the loan.

In June 2013, CNB filed this foreclosure action as to the 20-acre parcel and identified the estate of Annita Weber and the estate of Unilda Moffatt as interested parties. (As a judgment creditor of Annita Weber's estate, Unilda Moffatt's estate had a lien that potentially encumbered the parcel.) That pitted Walsh and Bill Weber against each other in this case. They filed various cross-claims that largely mirrored aspects of the legal dispute in Walsh. Those claims are not before us on appeal. In this case, Bill Weber unleashed a host of counterclaims against CNB to resist the foreclosure.

The district court held multiple hearings and a short bench trial to sort through the various claims. On June 6, 2016, the district court filed a journal entry of foreclosure. Bill

3 Weber filed a timely notice of appeal. We postpone further discussion of the district court proceedings in favor of more tailored recitations tied to the particular points before us.

ANALYSIS

Civil Conspiracy Claim

The district court dismissed Bill Weber's claim that CNB and Walsh had joined in a conspiracy to drive down the amount that might be paid for the 20-acre parcel at the foreclosure sale. The sale, of course, has not yet taken place. The district court ruled correctly because Bill Weber cannot show an actionable injury at this juncture. A civil conspiracy standing alone does not itself constitute a cause of action—the party claiming harm has to prove an independent civil wrong resulting in damages. See State ex rel. Mays v. Ridenhour, 248 Kan. 919, 926-27, 811 P.2d 1220 (1991); Stoldt v. City of Toronto, 234 Kan. 957, 967, 678 P.2d 153 (1984).

The elements of an actionable civil conspiracy have been stated this way: "(1) two or more persons, (2) an object to be accomplished, (3) a meeting of the minds in the object or cause of action, (4) one or more unlawful overt acts, and (5) damages as the proximate result thereof." Mays, 248 Kan. 919, Syl. ¶ 2. The required "overt act" must itself be unlawful and, thus, actionable. And the conspiracy must have produced a compensable injury. In short, a civil conspiracy "is not actionable without commission of some wrong giving rise to a cause of action independent of the conspiracy." 248 Kan. at 927 (citing Stoldt, 234 Kan. at 967). A civil conspiracy basically spreads liability for a civil wrong among the conspirators but is not itself a civil wrong.

Here, the object of the purported conspiracy is the foreclosure sale. But the sale has not occurred, so Bill Weber cannot have suffered any damages as a result of the sale. Moreover, there are statutory and judicial protections when a foreclosure sale yields

4 unusually low bids, whatever the reason. See K.S.A. 60-2415(b) (district court may refuse to confirm sale for "substantially inadequate" bid or may approve sale only if "the fair value of the property" is credited against the amount owed regardless of amount actually bid); Olathe Bank v. Mann, 252 Kan. 351, 362-63, 845 P.2d 639 (1993) (fair value of property for purposes of foreclosure sale may be greater than market value).

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