Fuller v. Horvath

402 A.2d 134, 42 Md. App. 671, 1979 Md. App. LEXIS 338
CourtCourt of Special Appeals of Maryland
DecidedJune 12, 1979
Docket1222, September Term, 1978
StatusPublished
Cited by12 cases

This text of 402 A.2d 134 (Fuller v. Horvath) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fuller v. Horvath, 402 A.2d 134, 42 Md. App. 671, 1979 Md. App. LEXIS 338 (Md. Ct. App. 1979).

Opinion

Lowe, J.,

delivered the opinion of the Court.

Appellants (Richard D. Fuller and wife) filed suit in the Circuit Court for Montgomery County against Midami Corporation and several named defendants (who were officers and directors or shareholders of Midami — and are appellees herein), individually, for breach of contract and fraud. They alleged that two of the individuals, on behalf of the remaining defendants (including Midami), promised to pay the appellants a fee for procuring a buyer for Midami’s subsidiary, Mid Atlantic Corporation. This fee was to be in the form of forgiveness of the appellants’ promissory note, held originally by Mid Atlantic and transferred to Midami. At the close of appellants’ case below, the trial court directed a verdict for all defendants. The court assumed and conceded establishment of appellants’ causes of action but found that individual officers or directors of a corporation, as a matter of law, cannot be held personally liable for acts performed in the scope of their authority. The court further found that no agent of Midami Corporation was a party to the breached contract.

The first contention of appellants, who were plaintiffs below, provides a considerable dilemma. While the thrust of the appeal is that the judge erred in directing a verdict, the trial record is deficient in that regard. The only entry relevant thereto is the comment of counsel for appellees that he would

"... like to make a short motion.”

This was on the last page of the trial transcript prior to jury withdrawal and a short recess. It is followed by a concluding reporter’s note:

“Whereupon, motion for directed verdict was denied.” (emphasis added).

The record indicates that appellants moved this Court to correct the omission in the record pursuant to Md. Rule 1027 b. In denying that motion, we learned that that which intervened between the request “to make a short motion” and *673 the reporter’s concluding note was unavailable through no fault of either party. See Md. Rule 1025 c. The post trial record reveals that the original stenographic notes of the entire proceeding following the recess, which related to the motion for a directed verdict, have been lost. Our review further indicates that the reporter’s entry in the record that the motion for directed verdict had been “denied” was in error. The docket entries and all of the post trial proceedings conducted before the judge who had decided the directed verdict motion, indicate that the motion was “granted.” Indeed, this entire appeal is predicated upon that presumption. In Shade v. State, 18 Md. App. 407, 410-411 (1973) , we stated that “[t]he transcript of the trial, unless shown to be in error, takes precedence over the docket entries, see Williams v. State, 7 Md. App. 241, 254 A. 2d 376 (1969), which are presumably made at a later point in time than the taking of a simultaneous transcript.” (footnote omitted and emphasis added). The cases dealing with a variance between a transcript and a docket entry have involved clearly erroneous docket entries, see Williams v. State, supra; Crowe v. Houseworth, 19 Md. App. 688, 693 (1974) , rev’d on other grounds, 272 Md. 481, 483 (1974) (following 19 Md. App. at 693 on variance question); or an ambiguous transcript and a docket entry, see Shade v. State, supra. In Coleman v. State, 231 Md. 220 (1963), the clerk entered a sentence in the docket that varied from that clearly given at trial, as verified by the transcript. The Court of Appeals stated:

“[TJhis Court has held that a docket entry must be taken as true until corrected, and the proper court to correct an erroneous docket entry is the court in which the error occurred.” Id. at 222-223 (citations omitted).

In the present case, the trial judge noted at the post trial proceeding that he had granted the motion for a directed verdict; his comments show that the stenographer’s notation at the prior proceeding was clearly in error. The docket entries stand as correct; the judge granted the defendants’ directed verdict motion.

*674 Appellants filed, and personally argued, four post trial motions for new trial at a single hearing. The last filed, but first argued, concerned the lost record of the directed verdict motion, argument and opinion. The trial judge indicated that the unavailability of the record was not a ground for a new trial because an appeal court is concerned only with facts and testimony:

“What I have to say no one pays much attention to anyway.”

To this observation, Mr. Fuller hastily dissented, stating precipitately,

“I do.”

Well so do we, Mr. Fuller! Appellant points up his own attention to the judge by attacking upon appeal both the legal premise and the factual foundation of the reasons supplied by the trial judge whose succeeding colloquy with appellant fulfilled his promise to the court reporter, that if the stenographic notes were not found, his honor would put his reasons “back into the record” at the time of the hearing on motion for new trial, “or file a memorandum or opinion for the purposes of appeal.” The last two options were not taken. We must look then to his reasons as expressed for denying the motion for a new trial.

The post trial hearing record indicates that the judge’s reason for having granted the motion for directed verdict in favor of Midami and the individual defendants had been a release by Mr. Fuller of the individual directors of Mid Atlantic, and that the evidence did not indicate that an officer or director of Midami had agreed to the mortgage release as compensation for the sale.

“The question is what was the basis for the directed verdict, and the basis for my directed verdict at the conclusion of all of the testimony on behalf of the plaintiff was that in the plaintiff’s case in chief there was the agreement filed, a release of Mid-Atlantic and all its directors, stockholders, heirs, *675 and assigns reserving, however, any right of action against Midami Corporation.
And then as all of the testimony came in as to which one of the individuals that you had any contact or relations with and that were called to testify as to who may have been an officer or director of Midami Corporation so as to represent them, there wasn’t any testimony that any of the officers or directors of Midami Corporation ever made any of the representations or agreements that you had alleged.”

The release upon which the court relied to relieve the individuals who had been officers or directors of Mid Atlantic was not a blanket release, however, and expressly applied only to what transpired after the settlement date of the purchase of Mid Atlantic by the Old Republic Insurance Company from Midami. 1 Presumably, realizing this oversight at trial, the judge set forth alternate reasons. He held that:

1. Mid Atlantic had been released

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Bluebook (online)
402 A.2d 134, 42 Md. App. 671, 1979 Md. App. LEXIS 338, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fuller-v-horvath-mdctspecapp-1979.