Hollenkamp v. Peters

410 N.W.2d 427, 1987 Minn. App. LEXIS 4668
CourtCourt of Appeals of Minnesota
DecidedAugust 18, 1987
DocketNo. C6-87-348
StatusPublished
Cited by2 cases

This text of 410 N.W.2d 427 (Hollenkamp v. Peters) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hollenkamp v. Peters, 410 N.W.2d 427, 1987 Minn. App. LEXIS 4668 (Mich. Ct. App. 1987).

Opinion

OPINION

LESLIE, Judge.

This appeal is from a judgment entered pursuant to an agreement between appellants and respondents. Appellants argue the trial court improperly included terms in the judgment not agreed to by the parties, through incorporation of an attached memorandum. Additionally, appellants claim that in entering judgment the trial court erred by making findings of fact. The entered judgment was in the nature of a consent decree, based on an agreement between the parties. Consequently, appellants claim, because no adjudication on the merits had taken place, it was inappropriate for the trial court to make findings of fact. Appellants argue such findings could create unintended collateral estoppel effects in the future. We affirm.

FACTS

The Sovereign Order of St. John of Jerusalem, Knights of Malta (Order) is a religious chivalric organization in existence since the eleventh century. This case involves a localized aspect of a struggle for control over this national entity.

Appellants include St. Pius V Priory of the Sovereign Order of St. John of Jerusalem, Knights of Malta (Priory), an unincorporated priory with the functional equivalent of a parish in a diocese. The Priory was originally formed in 1975 and exists pursuant to a nonexclusive licensing agreement with the Sovereign Order of St. John of Jerusalem, Knights of Malta, Inc. (Delaware Corporation).

St. Pius V Priory of the Sovereign Order of Jerusalem, Knights of Malta, Inc. (Minnesota Corporation) is a Minnesota nonprofit corporation formed to hold title to the property and manage the affairs of the Priory. Appellants LuVerne Hollen-kamp, Edward Justin, Thomas Sowada, Mickey Sowada, and William Sowada are members and directors of the Minnesota Corporation.

Respondents Von Stahl, Grady, Peters and others claim to be members of the Order. They claim to be priors of various regions in the United States and are officers of the Association of Family Commanders and Hereditary Knights of St. John (Association). Both respondents and the Delaware Corporation claim authority over the Order.

Appellants’ original complaint was filed on March 24, 1984 alleging respondents were engaged in unfair competition, deceptive trade practices, and defamation. The complaint sought declaratory and injunc-tive relief, damages, and attorney fees. Appellants also requested a preliminary injunction restraining respondents from interfering with the functioning of the Priory, holding themselves out as Knights of the Order, and claiming supreme authority over the Order. On June 22, 1984 the trial court temporarily enjoined respondents, except Alois Nieders, from interfering with the functioning of the Priory and denying all other relief. The trial court found that other relief was not warranted because appellants had not shown irreparable injury would occur.

In Hollenkamp v. Peters, 358 N.W.2d 108 (Minn.Ct.App.1984) this court affirmed the trial court’s partial denial of the temporary injunction. This court found the trial court did not abuse its discretion in finding that appellants had failed to show they would suffer irreparable harm in the absence of further relief.

[429]*429After a plethora of further legal machinations, an amended complaint was filed on April 7, 1986, again claiming unfair competition, deceptive trade practices, and defamation. Appellants requested declaratory and injunctive relief, as well as damages and attorney fees. A jury trial was set for August 5, 1986. All the parties appeared on the fifth and entered into settlement negotiations that lasted through most of the following day. The trial court assisted the parties during this process.

On August 6, 1986 the parties reached agreement before the trial court. The trial court orally read the terms of a proposed agreement to insure that the agreement accurately “stated the tenor” of the parties’ settlement. The parties acquiesced to the oral stipulation.

Pursuant to the oral stipulation, the court issued its consent decree in the matter on September 5, 1986. The decree, though not an exact duplicate, largely restated the contents of the parties’ stipulation. The decree provided for settlement of the parties’ dispute, but contained several clauses and sentences that appellants objected to as not part of the original oral agreement. Appellants moved for amendment of the consent decree or, in the alternative, a trial on the merits of the case.

On November 25, 1986 the trial court vacated the consent decree and issued its findings of fact, conclusions of law, order for amended judgment and decree. The findings of fact related to the August 6, 1986 settlement hearing and the manifested intentions "of the parties. In its conclusions of law, the court denied appellants’ motion, vacated its previous decree, and set out the terms of the amended judgment and decree.

The trial court complied with appellants’ requests and eliminated all of the objected to clauses from the terms of the amended judgment-decree. The trial court then attached a memorandum further discussing the intent of the parties in reaching an agreement. The trial court then denied appellants’ further motion to amend. Appellants now appeal and claim the resulting judgment and decree contains provisions never agreed upon, incorporated therein by the trial court memorandum, and that it was inappropriate for the trial court to make findings of fact, as there was never an adjudication on the facts.

ISSUE

Did the trial court erroneously include unagreed to terms in its consent judgment and decree by the attached memorandum and err in making findings of fact as to the intent of the parties?

ANALYSIS

A consent judgment is based solely on the agreement and consent of the parties. Hentschel v. Smith, 278 Minn. 86, 95, 153 N.W.2d 199, 206 (1967). A trial court has the inherent power to set aside such a decree for fraud, mistake, or the absence of real consent. Hafner v. Hafner, 237 Minn. 424, 429, 54 N.W.2d 854, 857 (1952). Appellant claims the trial court erred in failing to exercise this power and in entering an amended judgment and decree purportedly based on the parties’ consent because the amended judgment and decree contained terms to which appellant claims to not have consented.

The terms to which appellant objected in the first consent decree are underlined below:

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2. [Respondents] collectively and individually, shall make no claims in the future that they, or any of them, have authority to determine whether the individual [appellants] are or are not legitimate, lawful or authorized members of the [Order]. [Respondents] by this Decree are not barred from raising such claims as to anyone other than the named parties to this litigation.
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4. [Appellants] have the exclusive right to the title, possession and use of the names “St. Pius V Priory of the Sovereign Order of St. John of Jerusalem, Knights of Malta,” and “St. Pius V Priory of the Sovereign Order of St. John of Jerusalem, Knights of Malta, Inc.,” [430]*430and of the real and personal property owned, used and possessed by St.

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Bluebook (online)
410 N.W.2d 427, 1987 Minn. App. LEXIS 4668, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hollenkamp-v-peters-minnctapp-1987.