Griffith v. Drew's LLC

Nebraska Supreme Court·Decided March 27, 2015·No. S-14-456·Published

Opinion

508 290 NEBRASKA REPORTS

The entire amount of Valpak’s payments to Direct Marketing was taxable under § 056.05A, because those payments constituted purchases of labor and, in some cases, creative talent for work on advertising materials. The regulation speaks of taxes generally and does not differentiate between sales and use taxes. See id. However, it is well established that if an “item is purchased in Nebraska, the sales tax applies. If the item is purchased outside of Nebraska, the use tax applies.” See Interstate Printing Co. v. Department of Revenue, 236 Neb. 110, 119, 459 N.W.2d 519, 526 (1990). Accordingly, the taxes imposed on Valpak’s purchases from Direct Marketing, a Florida business, were properly classified as use taxes.

Under § 056.05A, Valpak was required to pay use taxes on the payments it made to Direct Marketing. Therefore, the district court did not err by upholding the assessment of such taxes on those payments.

CONCLUSION

For the foregoing reasons, we find no error on the record in the district court’s conclusion that under § 056 of the Department’s regulations, Valpak was an advertising agency and was liable for use taxes on its payments to Direct Marketing. Therefore, we affirm the judgment of the district court which affirmed the decision of the Tax Commissioner to deny Valpak’s petitions for redetermination.

Affirmed.

Heavican, C.J., participating on briefs.

Thomas R. Griffith and Heather Griffith, appellees, v. Drew’s LLC, appellant.

___ N.W.2d ___

Filed March 27, 2015. No. S-14-456.

1. Appeal and Error. To be considered by an appellate court, an alleged error must be both specifically assigned and specifically argued in the party’s brief.

2. Courts: Appeal and Error. The district court and higher appellate courts generally review appeals from the county court for error appearing on the record.

GRIFFITH v. DREW’S LLC 509 Cite as 290 Neb. 508

3. Judgments: Appeal and Error. When reviewing a judgment for errors appearing on the record, the inquiry is whether the decision conforms to the law, is supported by competent evidence, and is neither arbitrary, capricious, nor unreasonable.

4. ____: ____. In instances when an appellate court is required to review cases for error appearing on the record, questions of law are nonetheless reviewed de novo on the record.

5. Trial: Judgments: Appeal and Error. In a bench trial of a law action, the trial court’s factual findings have the effect of a jury verdict, which an appellate court will not disturb on appeal unless clearly wrong. And an appellate court does not reweigh the evidence but considers the judgment in the light most favorable to the successful party and resolves evidentiary conflicts in favor of the successful party.

6. Real Estate: Property: Annexation. Whether an article annexed to the real estate has become a part thereof is a mixed question of law and fact.

7. Damages. While the amount of damages presents a question of fact, the proper measure of damages presents a question of law.

8. Rules of Evidence. In proceedings where the Nebraska Evidence Rules apply, the admissibility of evidence is controlled by the Nebraska Evidence Rules; judicial discretion is involved only when the rules make discretion a factor in determining admissibility.

9. Judges: Evidence: Appeal and Error. The exercise of judicial discretion is implicit in determining the relevance of evidence, and a trial court’s decision regarding relevance will not be reversed absent an abuse of discretion.

10. Deeds: Merger. The rule or doctrine of merger is that upon the delivery and acceptance of an unambiguous deed, all prior negotiations and agreements are deemed merged therein. This rule is equally applicable where prior oral negotiations result in a written contract.

11. Deeds: Merger: Fraud. The doctrine of merger does not apply where there has been fraud or mistake.

12. Fraud. Where one has a duty to speak, but deliberately remains silent, his or her silence is equivalent to a false representation.

13. ____. In fraudulent concealment cases, existence of a duty to disclose the fact in question is a matter for the determination of the court, although, if there are disputed facts bearing upon the existence of the duty, they are to be determined by the trier of fact under appropriate instructions as to the existence of the duty.

14. ____. Justifiable reliance must be decided on a case-by-case basis. 15. Actions: Fraud. Where ordinary prudence would have prevented a deception, an action for the fraud perpetrated by such deception will not lie.

16. Real Estate: Property: Words and Phrases. Fixtures are usually thought of as personal property which has become a part of the real estate, but a trade fixture is defined as personalty.

17. Real Estate: Property: Appurtenances: Words and Phrases. Trade fixtures are articles annexed to the realty by a tenant for the purpose of carrying on trade and are ordinarily removable by him during his term.

510 290 NEBRASKA REPORTS

18. Real Estate: Property: Appurtenances. In determining whether an article annexed to real estate has become a part of the real estate, a court should consider (1) actual annexation to the realty or something appurtenant thereto; (2) appropriation to the use or purpose of that part of the realty with which it is connected; and (3) the intention of the party making the annexation to make the article a permanent accession to the freehold, said intention being inferred from the nature of the articles affixed, the relation and situation of the party making the annexation , the structure and mode of annexation, and the purpose or use for which the annexation has been made.

19. ____: ____: ____. The second component of the test to determine whether an article annexed to real estate has become a part of the real estate focuses on whether a chattel is specific to the type of business conducted on realty, or on whether it is the type of property that would generally be found on realty and that would have utility to a hypothetical purchaser of the underlying realty.

20. Courts: Real Estate: Property: Words and Phrases. It is incumbent on the court to define a fixture, but whether an article of property is a fixture in a particular instance depends upon the facts of that case.

21. Real Estate: Property: Damages. The rule that the measure of damages for fixtures is the difference in value of the real property before and after the removal of the articles is not an exclusive rule.

22. Real Estate: Sales: Property: Valuation: Damages. Fixtures ordinarily have a value separate and apart from the realty to which they are attached. That value may properly be submitted to the fact finder to enable it to more accurately determine a loss suffered by a purchaser.

23. Evidence: Words and Phrases. Relevant evidence means evidence having any tendency to make the existence of any fact that is of consequence to the determination of the action more probable or less probable than it would be without the evidence.

24. Evidence: Proof. For evidence to be relevant, all that must be established is a rational, probative connection, however slight, between the offered evidence and a fact of consequence.

25. Trial: Testimony. The weight to be given a witness’ testimony is a question for the trier of fact.

26. Trial: Evidence: Records: Appeal and Error. The erroneous admission of evidence in a bench trial is not reversible error if other relevant evidence, properly admitted, sustains the trial court’s necessary factual findings; in such case, reversal is warranted only if the record shows that the trial court actually made a factual determination, or otherwise resolved a factual issue or question, through the use of erroneously admitted evidence.

Appeal from the District Court for Custer County, Karin L. Noakes, Judge, on appeal thereto from the County Court for Custer County, Tami K. Schendt, Judge. Judgment of District Court affirmed.

GRIFFITH v. DREW’S LLC 511 Cite as 290 Neb. 508

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