Cline v. Simmons

CourtNebraska Court of Appeals
DecidedJanuary 6, 2026
DocketA-24-985
StatusUnpublished

This text of Cline v. Simmons (Cline v. Simmons) is published on Counsel Stack Legal Research, covering Nebraska Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cline v. Simmons, (Neb. Ct. App. 2026).

Opinion

IN THE NEBRASKA COURT OF APPEALS

MEMORANDUM OPINION AND JUDGMENT ON APPEAL (Memorandum Web Opinion)

CLINE V. SIMMONS

NOTICE: THIS OPINION IS NOT DESIGNATED FOR PERMANENT PUBLICATION AND MAY NOT BE CITED EXCEPT AS PROVIDED BY NEB. CT. R. APP. P. § 2-102(E).

PEGGY CLINE AND NAKED MAIDEN’S FALLS, LLC, APPELLEES, V.

LEE M. SIMMONS, APPELLANT, AND KRISTOPHER QUALLEY AND MICHELLE QUALLEY, ALSO KNOWN AS MICHELLE CANNOT, APPELLEES.

Filed January 6, 2026. No. A-24-985.

Appeal from the District Court for Cherry County: MARK D. KOZISEK, Judge. Affirmed. Bartholomew L. McLeay and Dwyer Arce, of Kutak Rock, L.L.P. for appellant. Andrew D. Weeks, of Husch Blackwell, L.L.P, and Aisha Carr for appellees Peggy Cline and Naked Maiden’s Falls, LLC.

RIEDMANN, Chief Judge, and MOORE and BISHOP, Judges. MOORE, Judge. INTRODUCTION After the district court for Cherry County entered judgment on the mandate from this court following a prior appeal, Lee M. Simmons filed a post-appeal request, which was then denied by the district court. Simmons appeals from the denial of his request. For the reasons set forth herein, we affirm. STATEMENT OF FACTS The facts underlying this litigation are more fully described in this court’s memorandum opinion in Cline v. Simmons, No. A-23-165, 2024 WL 1864843 (Neb. App. Apr. 30, 2024) (selected for posting to court website). We summarize those facts briefly here to provide context for the present appeal.

-1- In 2005, Peggy Cline and her now deceased husband sold certain real property and the easement necessary to access the property to Kristopher Qualley and his then wife. The Qualleys executed a promissory note, secured by a trust deed. The trust deed named the Clines’ L.L.C., Naked Maiden’s Falls, as the beneficiary and gave it the right to consent to any sale of the property while any sums remained due on the promissory note. After the sale to the Qualleys, the Clines filed a warranty deed memorializing the sale and giving the Clines a right of first refusal to repurchase the property. Subsequently, Cline, on behalf of Naked Maiden’s Falls, paid certain property taxes that Qualley had failed to pay on the property, which, under the trust deed terms, increased the amount owed by the Qualleys. In about 2018, Cline obtained a default judgment against Qualley in Colorado in another matter. The Colorado judgment was registered in the Cherry County District Court (in a case other than the present case) and acted as a judgment lien on the property. In early 2019, Cline learned that Qualley had sold the property. Cline did not receive notice prior to the sale and was not given an opportunity to exercise her right of first refusal. The terms of the sale required Simmons to satisfy preexisting liens on the property (remaining amount due on promissory note, past due taxes paid by Cline, and Colorado judgment lien) in return for ownership of the property. Cline subsequently testified at trial that she never received any payment from Simmons on the liens after the purported sale. Naked Maiden’s Falls filed suit in the district court in March 2019 against Simmons and Qualley. Multiple amended complaints followed. The operative complaint named both Cline and Naked Maiden’s Falls as plaintiffs and we have referred to them collectively as “Cline” and “the plaintiffs.” In the operative complaint, Cline sought specific performance of the warranty deed, i.e., the opportunity to exercise her right of first refusal. Simmons’ answer to the operative complaint included a counterclaim, seeking to quiet title to the property in his name. A jury trial was held in October 2022. We note that Qualley did not participate in the district court proceedings or attend trial, although his deposition testimony was offered into evidence. The jury entered a verdict in favor of Cline on the claim that she had not been provided with an opportunity to exercise the right of first refusal for the property. The district court accepted the jury’s verdict and entered a final judgment in Cline’s favor on February 8, 2023. As relevant to the present appeal, the court instructed the parties that, within 30 days of entry of judgment, (1) Simmons was to convey the property to Cline by warranty deed and deposit the executed warranty deed with the clerk of the court; (2) Qualley and his current wife, if any, were to convey the property to Cline by quitclaim deed and deposit the executed quitclaim deed with the clerk; (3) Naked Maiden’s Falls was to request and file a deed of reconveyance for the 2005 trust deed associated with the property; and (4) Cline was to file a release and satisfaction of the judgment entered against Qualley in Colorado, and subsequently registered in Cherry County, in both the Colorado court and the relevant district court case. The court also instructed that Cline and Naked Maiden’s Falls were to “thereafter” file with the clerk an affidavit setting forth their compliance with “the orders set forth above.” Upon the filing of the affidavit, the clerk was to deliver the deposited warranty and quitclaim deeds to Cline or her designee. If Cline and Naked Maiden’s Falls failed to comply with the court’s orders, the clerk was to “return the deposited warranty deed to . . . Simmons upon request.”

-2- On March 1, 2023, Cline filed an affidavit stating that the plaintiffs had complied with the final judgment, including the requirement that they file such an affidavit. In the affidavit, Cline stated that on February 20, Naked Maiden’s Falls had requested, through its counsel, a deed of reconveyance concerning the 2005 trust deed be executed by the trustee and filed of record; that on February 24, she had filed a release and satisfaction of judgment in the Colorado case in the Colorado court; and that on February 27, she had filed a release and satisfaction of judgment in the district court in the case in which the Colorado judgment had been registered. Cline also stated that the plaintiffs had “performed their obligations as ordered by the Court in good faith and in reliance upon and in consideration of the simultaneous obligations imposed upon . . . Simmons to convey a warranty deed . . . Qualley and his current spouse to convey a quitclaim deed” pursuant to the final judgment. On March 2, 2023, Simmons appealed from the February 2023 final judgment. He also filed notice of his cash deposit of $80,000 pursuant to the district court’s order on supersedeas (following a hearing on issue of a supersedeas in the event of appeal, the court determined that the deposit of a deed did not fully protect Cline given Simmons’ possession of the property). On appeal, Simmons challenged, among other things, the district court’s finding that Cline was not notified of his offer to purchase the property. He also asserted that the district court erred in failing to quiet title to the property and easement in him. This court affirmed the judgment of the district court granting Cline’s request for specific performance and allowing her the opportunity to exercise her right of first refusal by purchasing the property and easement for the same price, terms, and conditions as that provided by Simmons. See Cline v. Simmons, No. A-23-165, 2024 WL 1864843 (Neb. App. Apr. 30, 2024) (selected for posting to court website). This court’s mandate, issued on July 8, 2024, directed the district court to “proceed to enter judgment in conformity with the judgment and opinion of this court.” The district court entered an order spreading the mandate on July 12. On July 25, 2024, Simmons deposited a warranty deed with the court clerk, conveying to Cline all his interest in the property and easement. Simmons also filed a notice related to the deposit of the warranty deed.

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Bluebook (online)
Cline v. Simmons, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cline-v-simmons-nebctapp-2026.