Charter Thrift and Loan v. Cooke

766 P.2d 522, 1988 Wyo. LEXIS 172, 1988 WL 132922
CourtWyoming Supreme Court
DecidedDecember 13, 1988
Docket88-133
StatusPublished
Cited by5 cases

This text of 766 P.2d 522 (Charter Thrift and Loan v. Cooke) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Charter Thrift and Loan v. Cooke, 766 P.2d 522, 1988 Wyo. LEXIS 172, 1988 WL 132922 (Wyo. 1988).

Opinions

MACY, Justice.

Appellant Charter Thrift and Loan (Charter) sought judgment against appellee Bree Cooke, d/b/a Stagecoach Enterprises (Cooke) for amounts owed on a promissory note secured by a collateral assignment of a lease and a trust deed with an assignment of rents. At the conclusion of a bench trial, the district court directed judgment for Cooke.

We affirm.

Charter presents the following issue:

Was a directed verdict properly entered by the trial court against the appellant, where a landlord assigned its leasehold rights to the appellant as security for a loan, and the appellee as tenant refused to pay rent to appellant following default on the loan?

George E. Cooke Associates, Inc. (Associates) (a closely held family corporation whose stockholders are George Cooke, his wife, Marina, and his son, Bree) owned as its sole asset a bar/restaurant in Wilson, [523]*523Wyoming, known as the Stagecoach Bar. On January 10, 1985, Associates leased a portion of the bar to Cooke for a term of five years. The lease stated that the leased area (basically the kitchen area) was to be used by Cooke for conducting a food service business within the bar.

On January 17, 1985, Associates obtained a $40,000 loan from Charter. As part of the loan transaction, Associates executed three documents: (a) a collateral assignment of a lease giving to Charter all the beneficial interest in the lease between Associates and Cooke; (b) a commercial note in the amount of $40,000; and (c) a trust deed with an assignment of rents conveying to Charter, in trust, the lease between Associates and Cooke.

On February 19, 1985, Charter recorded the trust deed with the Teton County Clerk, attaching the collateral assignment of lease as well as the lease itself. Charter conceded that no other filing of its security interest in the lease was made in Wyoming.

After the December 4, 1985, payment, Associates ceased making payments on the loan from Charter, having made regular payments since March 19,1985. On February 5, 1986, Associates sold the bar to Stagecoach Enterprises, Inc., a corporation whose sole stockholder is Cooke. The lease between Associates and Cooke was then verbally cancelled, and a new lease on the kitchen portion of the bar was entered into between Stagecoach Enterprises, Inc. and another corporation called First Stage, Inc. Cooke and Juline Christofferson owned one-half of the stock in First Stage, Inc. By early 1987, Cooke and Christofferson purchased all the stock in First Stage, Inc. and cancelled the new lease.

The record further demonstrates that no payments .were made on Associates’ indebtedness to Charter from December 4, 1985, until August 12, 1986. Cooke negotiated with Charter to assume Associates’ indebtedness, but those negotiations ultimately failed because Charter insisted that, as part of the assumption, Cooke give to Charter a mortgage on the bar, which he refused to do. From August 1986 through the end of October 1986, while negotiating with Charter, Cooke paid a total of $9,000 to Charter on Associates’ debt.

On May 18, 1987, George E. Cooke and his wife, Marina Cooke, were discharged from their debts in a Chapter 7 bankruptcy proceeding in the United States Bankruptcy Court for the District of Wyoming. As a result of this bankruptcy, Cooke was the only source from which Charter could expect payment on the indebtedness.

By stipulation, the parties agreed that the only property encumbered by the trust deed with assignment of rents was the rentals payable under the lease between Cooke and Associates and that “[t]he parties to this proceeding all had proper notice of said assignment of rents referred to in the Trust Deed, and as between those parties the 'rental stream’ was duly encumbered as security for the * * * loan.” (Emphasis added.) Cooke also contended that on April 19, 1985, before he had notice of the assignment of the lease, he made an advance payment of rent to Associates in the amount of $17,000.

We will not set out in detail the claims made by Charter in its complaint, because by the time of trial the issues had been simplified to such an extent that the only claim being pursued by Charter was one premised on the theory that Associates (as landlord) and Cooke (as tenant) could not alter the lease to the detriment of Charter.

In a nonjury trial, where the district court dismisses the plaintiff’s suit at the end of the presentation of the plaintiff’s evidence, as occurred in this case, this Court is compelled to consider the evidence as it would have had the district court directed a jury verdict. Caribou Four Comers, Inc. v. Chapple-Hawkes, Inc., 643 P.2d 468 (Wyo.1982); Fuller v. Fuller, 606 P.2d 306 (Wyo.1980). We must view that evidence most favorably to the plaintiff, giving him the benefit of all reasonable and legitimate inferences that may be drawn therefrom. Willmschen v. Meeker, 750 P.2d 669 (Wyo.1988); Osborn v. Manning, 685 P.2d 1121 (Wyo.1984). The approved approach to be used by a trial judge [524]*524in considering a motion under W.R.C.P. 41(b)(1)1 is:

When plaintiffs proof fails in some aspect, the motion must be granted. When plaintiff's evidence is overpowering, the trial judge's work is easy and the motion should be denied. When the plaintiff has presented only a prima facie case founded on unimpeached evidence, the district judge should not grant the motion, even though he sits in the stead of a jury as the trier of facts and may not feel at that juncture of the trial that plaintiff has sustained his proof burden.

Kure v. Chevrolet Motor Division, 581 P.2d 603, 606 (Wyo.1978). See also Arbenz v. Bebout, 444 P.2d 317 (Wyo.1968).

Charter’s burden in this appeal is to demonstrate to this Court that it presented a prima facie case in the district court. A prima facie case is made if at least some evidence is presented on every essential element of the cause of action. Osborn, 685 P.2d 1121; Caribou Four Corners, Inc., 643 P.2d 468. Charter sets out the facts of the case but beyond that makes no cogent argument and cites no pertinent authority to support the proposition that it made a prima facie case before the district court. Charter did not present a coherent theory of its case to the district court, and that failing continues before this Court.

Even though Charter’s burden is a relatively light one in view of the W.R. C.P. 41(b)(1) dismissal, we must follow our wellsettled rule that the judgment of the trial court is presumed to be correct and that one appealing therefrom must make an affirmative showing of error. Gregory v. Sanders, 635 P.2d 795

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Charter Thrift and Loan v. Cooke
766 P.2d 522 (Wyoming Supreme Court, 1988)

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Bluebook (online)
766 P.2d 522, 1988 Wyo. LEXIS 172, 1988 WL 132922, Counsel Stack Legal Research, https://law.counselstack.com/opinion/charter-thrift-and-loan-v-cooke-wyo-1988.