Douglas Landscape & Design, L.L.C. v. Miles

355 P.3d 700, 51 Kan. App. 2d 779, 2015 Kan. App. LEXIS 53
CourtCourt of Appeals of Kansas
DecidedAugust 7, 2015
Docket111812
StatusPublished
Cited by5 cases

This text of 355 P.3d 700 (Douglas Landscape & Design, L.L.C. v. Miles) 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
Douglas Landscape & Design, L.L.C. v. Miles, 355 P.3d 700, 51 Kan. App. 2d 779, 2015 Kan. App. LEXIS 53 (kanctapp 2015).

Opinion

Leben, J.:

Doug Miles appeals a judgment entered against him for work performed on his house by a contractor, Douglas Landscape and Design, L.L.C. Miles argues that Douglas Landscape and Design should not have been allowed to sue Miles in a Kansas court because the company was doing business in Kansas without having registered to do so.

But a lawsuit defendant who claims that the plaintiff lacks the capacity to bring suit must make that claim in the answer filed at the beginning of the lawsuit. Miles did not do so; he first raised the issue midway through trial. So the district court correctly held that Miles had waived this defense.

Miles also argues that Douglas Landscape and Design should not have been awarded any damages beyond the contract price, which he had paid. But the principal owner of Douglas Landscape and Design, Douglas McMullen, testified that Miles had requested extra work beyond tire contract, and McMullen’s testimony about the work performed and its value supported the district court’s award of additional damages. We therefore affirm the district court’s judgment.

Factual and Procedural Background

Miles owns a home in Lenexa, and he contracted with Douglas *781 Landscape and Design for remodeling work to the home. In a written contract, Miles and Douglas Landscape and Design agreed that the contractor would build a deck, a sunroom, and a concrete support for a lap pool for a price of $28,440.

After the work was finished, Douglas Landscape and Design sent a bill for additional work it said it had performed at Miles’ request. That work included changing the wall height in a sunroom, adjusting the door opening to tire sunroom, changing existing windows, and excavating rock at the building site.

When Miles refused to pay the additional bill, .the contractor sued him in Johnson County District Court.

Both parties presented evidence in a trial to the district court. At the conclusion of the plaintiff-contractor’s evidence, Miles’ attorney made an oral motion for judgment as a matter of law because Douglas Landscape and Design was not registered to do business in Kansas. The contractor’s attorney asked for the opportunity to review that issue and file a brief in response, and the district court had Miles go ahead and present his evidence without ruling on the motion at trial.

At the end of the trial, the court gave the parties about 2 weeks to submit suggested factual findings and legal conclusions for the court to consider. In its later ruling, the court noted that these had been submitted and considered (though they are not included in the record on appeal or noted in the district court clerk’s record of filings in the case).

The district court rejected Miles’ defense that the plaintiff couldn’t sue in a Kansas court, concluding that this was an affirmative defense that Miles should have raised in his answer to die petition, not midway through the trial. In addition, as an alternative basis for its ruling, the court concluded that Douglas Landscape and Design wasn’t “doing business” in Kansas as that term is defined in the statutes diat would require registration, so the failure to register didn’t prevent the contractor from bringing suit in a Kansas court.

Substantively, the court found that—at Miles’ request—Douglas Landscape and Design had done additional work beyond what had been called for under the parties’ contract. The court awarded *782 $11,922.50 for that work plus court costs of $179.50, the fee paid to the clerk to file the lawsuit. Miles then appealed to this court.

We should note that Miles’ wife, Catherine, was a defendant at trial too. But she is not a record owner of the home and didn’t sign the written contract; the district court found that she didn’t request the extra work, either. Accordingly, the court did not find her liable, and there are no issues concerning her on appeal.

Analysis

I. The District Court Did Not Err When It Refused to Allow the Defendant to Raise the Defense That the Plaintiff Lacked the Capacity to Sue in the Middle of the Parties’ Trial.

Miles’ first argument on appeal is that Douglas Landscape and Design shouldn’t have been allowed to sue him in a Kansas court at all, so the district court should have granted his mid-trial motion for judgment in his favor. To resolve this issue, we’ll need to review the Kansas statutes that sometimes restrict the ability of out-of-state companies to sue in our courts as well as some civil-procedure mies.

Let’s start with the statutory provisions limiting the ability of out-of-state companies to sue. Such statutes are colloquially called “closed-door statutes” because, when they apply, the courthouse doors are closed to their legal claims.

The Kansas closed-door statutes are found in K.S.A. 17-7307, applicable to out-of-state corporations, and K.S.A. 2014 Supp. 17-76,126, applicable to out-of-state limited-liability companies. Douglas Landscape and Design is a Missouri limited-liability company, so K.S.A. 2014 Supp. 17-76,126 applies here.

That statute provides that an out-of-state limited-liability company “doing business in the State of Kansas may not maintain any action, suit or proceeding” here “until it has registered in this state” and paid all fees due for having done business in Kansas without having registered to do so. K.S.A. 2014 Supp. 17-76,126. But the failure to register doesn’t make contracts that an out-of-state company enters invalid or keep the company from being sued by an-odier party in Kansas; the failure to register simply limits the ability of such a company to “maintain” a suit on its own behalf in Kansas.

*783 Registration of out-of-state corporations and limited-liability companies is only required when they are “doing business” in Kansas, which is separately defined by statute. See K.S.A. 2014 Supp. 17-76,121a; K.S.A. 2014 Supp. 17-7932; 17A Fletcher, Cyclopedia of the Law of Corporations § 8466 (2015). Douglas Landscape and Design also contends—and tire district court agreed—that it wasn’t doing business in Kansas and thus wasn’t required to register to do business here. If so, die closed-door statute wouldn’t apply at all.

But we need not make that determination because the district court’s ruling based on civil-procedure rules was on the mark, and that ruling properly left the parties’ claims before die court to be decided on die merits. We turn next, then, to those civil-procedure rules. Because K.S.A. 2014 Supp.

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Cite This Page — Counsel Stack

Bluebook (online)
355 P.3d 700, 51 Kan. App. 2d 779, 2015 Kan. App. LEXIS 53, Counsel Stack Legal Research, https://law.counselstack.com/opinion/douglas-landscape-design-llc-v-miles-kanctapp-2015.