Eisele v. Rice

948 P.2d 1360, 1997 Wyo. LEXIS 146, 1997 WL 757496
CourtWyoming Supreme Court
DecidedDecember 10, 1997
Docket96-254
StatusPublished
Cited by2 cases

This text of 948 P.2d 1360 (Eisele v. Rice) 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
Eisele v. Rice, 948 P.2d 1360, 1997 Wyo. LEXIS 146, 1997 WL 757496 (Wyo. 1997).

Opinion

TAYLOR, Chief Justice.

Appellant challenges the district court’s grant of summary judgment in favor of ap-pellees on his claim of quantum meruit. Appellant claims there are material facts which support his claim that appellees wrongfully refused to compensate him for his services in the sale of appellees’ stock in John E. Rice & Sons, Inc.

We affirm.

I. ISSUES

Appellant, William J. Eisele (Eisele), presents the following issues for review:

I. The trial court erred in its findings of fact that it was unclear after the contract expired, as to whether the plaintiff'was working for the buyers of the defendants’ stock, or for the defendants.
II. The trial court erred in its findings of fact that before the defendants sold their stock, the plaintiff had an opportunity to have the defendants consider payment of a commission to him, and he refused to have them consider payment at that time.
III. The trial court erred in its conclusion of law that to allow restitution to be made in this ease would involve a violation or frustration of law or opposition to public policy because of the undisputed facts set forth in the findings of fact in the court’s order.
IV. That the court erred in its ruling that there were no genuine issues of material fact in this case and that as a matter of law, the defendants are entitled to a summary judgment in their favor.
Appellees, the majority and minority shareholders of John E. Rice & Sons, Inc., phrase the issues as follows:
A. Did the trial court correctly rule that Plaintiff failed to prove the elements of a quantum meruit claim?
B. Did the trial court correctly rule that there are no disputed issues of material fact which would preclude summary judgment?
C. Is quantum meruit or unjust enrichment available as a remedy to revive or alter an expired contract?
D. Did the trial court correctly rule that to allow Plaintiff to recover on his quantum meruit claim would frustrate law or public policy?

II. FACTS

This appeal arises from Eisele’s claim that he is legally entitled to payment for his efforts leading to the sale of the corporate stock of John E. Rice & Sons, Inc. (the corporation). The primary asset of the corporation was a large tract of land known as the ‘Wrench Ranch” (the ranch) located just north of Sheridan, Wyoming. The ranch was established in the 1940’s by John E. Rice and his wife, Ruth, and, in 1950, the family-run ranching operation was incorporated. At the time relevant to this action, the corporation’s shares of stock were owned by majority shareholders, Jane J. Rice, William Woolston IV and Jeff Woolston, and minority shareholders, Jill Woolston Flack, June Warren (Eisele’s sister), her children Lisa Rice Wilmer and Valerie Rice Kobold.

*1362 The following recitation of facts is taken from Eisele’s deposition testimony. In late 1992, the minority shareholders brought suit against the majority shareholders. The lawsuit resulted in a settlement in December 1993 in which the parties agreed to liquidate the assets and dissolve the corporation. Learning from his sister that the ranch was to be sold, Eisele contacted Jane Rice and informed her that he knew of prospective buyers for the ranch.

Undeterred by his lack of a license to sell securities or real estate, Eisele again contacted Jane Rice in late April or early May 1994. Eisele informed Jane Rice of the name of a potential buyer and requested permission to show the ranch to the prospective buyer. Eisele’s request was denied, and he was instructed to have the prospective buyer accompanied by William Woolston IV. According to Eisele, this instruction led him to understand that appellees did not want to be obligated to him in respect to the sale, and that he would need a written agreement to insure compensation.

Around the same time, Eisele also contacted two other prospective buyers, and with the permission of appellees, showed the ranch. Eisele stated that he believed if he could find a buyer for the ranch and bring them to the table, he would be able to negotiate a commission for himself at the same time he negotiated the sale. Neither of these prospective buyers, however, wanted to make an offer.

Although the record is unclear as to the exact time, prior to May 7, 1994 Eisele also toured the ranch with James “Butch” Jellis (Jellis) and Neltje (a prospective buyer who requested her identity be kept confidential). Afterwards, Jellis telephoned Eisele to let Eisele know that Neltje was interested in buying the property. Eisele deliberately withheld Neltje’s identity from appellees because “[Neltje] * ⅜ * didn’t want anybody to know she was interested in it.”

Discussions between Eisele and Neltje progressed, and Eisele provided available information regarding the property and the corporation. Eisele then approached Jane Rice and William Woolston IV and told them he had an interested buyer. Eisele also stated he would like a written agreement to receive a commission if his interested buyer bought the ranch. The parties executed a written contract which provided that effective May 7, 1994, Eisele would receive a commission of four percent if: (1) he produced a qualified purchaser; (2) with an offer acceptable to the shareholders; and (3) within thirty days. The contract further provided that any modification or change in terms must be set forth in writing signed by all shareholders. 1

During the thirty-day period that the contract was in effect, Eisele did not disclose Neltje’s identity and no offer for the ranch or the stock was presented. In June 1994, after the contract period had terminated, Eisele told Jane Rice that Neltje was his prospective buyer, but that Neltje was no longer interested in buying the ranch.

Eisele took no further action regarding the ranch until the late summer or fall of 1994. At that time, he had brief contact with another prospective buyer, but testified he did not expect compensation for these efforts in the event of a sale. Eisele stated he met with the prospective buyer because he “was wanting to see them get it sold. My niece was involved and my sister and everybody was going to benefit from it.”

In early 1995, Jellis contacted Eisele and informed him that Neltje was again interested in purchasing the ranch. Eisele then called his niece, Lisa Rice Wilmer, to relay the information. Eisele testified he had no more involvement regarding the ultimate sale to Neltje, but that all further negotiations were conducted between the prospective buyer, the sellers, and their lawyers.

However, Eisele also testified that in the meantime, he was involved in negotiations between the minority shareholders and Neltje to form a partnership.

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Bluebook (online)
948 P.2d 1360, 1997 Wyo. LEXIS 146, 1997 WL 757496, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eisele-v-rice-wyo-1997.