FIRST NATIONAL BANK NORTH PLATTE v. Sheets

740 N.W.2d 613, 16 Neb. Ct. App. 35
CourtNebraska Court of Appeals
DecidedOctober 16, 2007
DocketA-07-632
StatusPublished

This text of 740 N.W.2d 613 (FIRST NATIONAL BANK NORTH PLATTE v. Sheets) 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
FIRST NATIONAL BANK NORTH PLATTE v. Sheets, 740 N.W.2d 613, 16 Neb. Ct. App. 35 (Neb. Ct. App. 2007).

Opinion

740 N.W.2d 613 (2007)
16 Neb. App. 35

FIRST NATIONAL BANK NORTH PLATTE, Trustee, Appellee
v.
James and Mary SHEETS et al., Appellees, and
First National Bank South Dakota, Appellant.

No. A-07-632.

Court of Appeals of Nebraska.

October 16, 2007.

*616 Kirk E. Brumbaugh and Cory J. Rooney, of Brumbaugh & Quandahl, P.C., L.L.O., Omaha, for appellant.

No appearance for appellees.

INBODY, Chief Judge, and CARLSON and CASSEL, judges.

*614 CASSEL, Judge.

INTRODUCTION

We consider the motion for rehearing filed by First National Bank South Dakota (FNB South Dakota) in response to our summary dismissal of the appeal for lack of jurisdiction. In this interpleader action, the complaint named multiple parties defendant, including one over which no jurisdiction had been obtained at the time of the district court's order determining the defendants' rights to the property. Because the action was commenced but never disposed as to that party, the order from which FNB South Dakota attempted to appeal was not a final judgment. We overrule the motion.

BACKGROUND

First National Bank North Platte (FNB North Platte) filed a "Complaint in Interpleader." The complaint was filed on January 3, 2007, and named six defendants: James Sheets; Mary Sheets; Credit Bureau of North Platte, Inc., doing business as Professional Collection Service (Professional); Greenwood Trust Company (Greenwood); Unifund CCR Partners (Unifund); and FNB South Dakota. The complaint alleged that FNB North Platte had made a loan to James Sheets and Mary Sheets secured by a deed of trust upon certain real estate in North Platte and that the Sheetses had defaulted on the loan. FNB North Platte exercised its power of sale under the deed of trust, selling the real estate subject to unpaid real estate taxes and realizing sale proceeds of $25,109.75 in excess of the amount necessary to satisfy the indebtedness secured by FNB North Platte's deed of trust. The *617 complaint alleged that each of the defendants may claim some right, title, or interest in the excess sale proceeds. FNB North Platte alleged that the Sheetses may be entitled to claim a homestead exemption under Neb.Rev.Stat. § 40-101 (Reissue 2004). It alleged that each of the other defendants may claim an interest pursuant to various judgments specifically alleged in the complaint.

FNB North Platte requested issuance of summons only as to the Sheetses, apparently relying upon voluntary appearances by the remaining defendants. Except for Greenwood, each of the defendants voluntarily appeared and filed pleadings asserting their claims to the excess sale proceeds. Greenwood filed no voluntary appearance or pleading, and no process was issued or served against Greenwood.

On March 13, 2007, FNB North Platte filed a motion to allow payment of the proceeds into court. On April 23, the district court conducted a hearing on this motion at which each of the parties was represented in some manner, except for Greenwood. By order entered April 25, the court authorized FNB North Platte to pay proceeds of $25,232.42 to the court clerk and held that "upon such payment [FNB North Platte] shall be dismissed as a party to the case." The order further provided, "Upon receipt of collected funds, the [court clerk] is authorized to pay [the Sheetses] the sum of $12,500.00 representing their [h]omestead [e]xemption claim, and upon such payment the [Sheetses] shall be dismissed." Trial of the remaining issues was set for May 15.

On April 25, 2007, Professional filed a motion for summary judgment. On May 7, FNB South Dakota filed a motion for summary judgment. On May 15, the district court conducted a hearing on the motions for summary judgment. By order entered on May 16, the court determined that FNB South Dakota's judgment had become dormant and ceased to be a lien upon the real estate, that one of Professional's judgment liens had first priority to the remaining proceeds, that Unifund's judgment lien had second priority and would exhaust the proceeds, and that no funds would be available regarding Professional's other judgment lien. The court sustained Professional's motion for summary judgment, overruled FNB South Dakota's motion for summary judgment, and directed the court clerk to disburse the remaining proceeds, part to Professional and the remainder to Unifund.

On June 7, 2007, FNB South Dakota filed its notice of appeal and deposited the statutory docket fee. On July 10, this court dismissed the appeal for lack of jurisdiction, citing Neb.Rev.Stat. § 25-1315 (Cum.Supp.2006) and Malolepszy v. State, 270 Neb. 100, 699 N.W.2d 387 (2005), as authority supporting the dismissal. This court noted that there was "no final appealable order as to Greenwood . . . and [the Sheetses]." On July 20, FNB South Dakota filed a motion for rehearing accompanied by a brief, which we discuss below.

ASSIGNMENT OF ERROR

[1, 2] In its brief on rehearing, FNB South Dakota assigns that this court erred in summarily dismissing the appeal as not being taken from a final, appealable order.

STANDARD OF REVIEW

For an appellate court to acquire jurisdiction of an appeal, there must be a final order entered by the court from which the appeal is taken; conversely, an appellate court is without jurisdiction to entertain appeals from nonfinal orders. Pfeil v. State, 273 Neb. 12, 727 N.W.2d 214 (2007). A jurisdictional question which does not involve a factual dispute is determined *618 by an appellate court as a matter of law. Cumming v. Red Willow Sch. Dist. No. 179, 273 Neb. 483, 730 N.W.2d 794 (2007).

ANALYSIS

Summary Dismissal.

This court's summary dismissal identified two jurisdictional issues. First, we observed that the April 25, 2007, order directed that the Sheetses were to be dismissed as defendants upon disbursement of their $12,500 homestead exemption. We viewed this as a conditional order and found in the record no subsequent order actually dismissing the Sheetses.

Second, we noted no disposition of Greenwood as a party to the case. The record shows that no process was ever served upon Greenwood; nor did Greenwood file a voluntary appearance or any pleading. We reasoned that under § 25-1315, an order or other form of decision, however designated, which adjudicated the rights and liabilities of fewer than all of the parties shall not terminate the action as to any of the parties, and the order or other form of decision is subject to revision at any time before the entry of judgment adjudicating the rights and liabilities of all of the parties. In other words, the order was interlocutory. We noted the decision of the Nebraska Supreme Court in Malolepszy v. State, supra, which interpreted § 25-1315 to require an explicit adjudication with respect to all claims and parties in the action. We digress to note that none of the orders in the district court purport to make the express determination that there is no just reason for delay, and the express direction for the entry of judgment, contemplated by § 25-1315(1).

Arguments for Rehearing.

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Cite This Page — Counsel Stack

Bluebook (online)
740 N.W.2d 613, 16 Neb. Ct. App. 35, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-national-bank-north-platte-v-sheets-nebctapp-2007.