How v. Mars

513 N.W.2d 511, 245 Neb. 420, 1994 Neb. LEXIS 68
CourtNebraska Supreme Court
DecidedMarch 25, 1994
DocketS-92-443
StatusPublished
Cited by27 cases

This text of 513 N.W.2d 511 (How v. Mars) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
How v. Mars, 513 N.W.2d 511, 245 Neb. 420, 1994 Neb. LEXIS 68 (Neb. 1994).

Opinion

Fahrnbruch, J.

Two Beaver Lake Subdivision, Cass County property owners (plaintiffs) appeal the denial of their requests for declaratory relief and the denial of certification to proceed as a class action in their lawsuit against the Beaver Lake Association and its directors. We affirm.

STANDARD OF REVIEW

The relief requested by the plaintiffs in their fourth amended petition is equitable in nature. In reviewing an equity action for a declaratory judgment, an appellate court tries factual questions de novo on the record and reaches a conclusion independent of the findings of the trial court. Jaksha v. Thomas, 243 Neb. 794, 502 N.W.2d 826 (1993). When a declaratory judgment action presents questions of law, an appellate court has an obligation to reach its conclusion independent from the conclusion reached by the trial court with regard to those questions. National Am. Ins. Co. v. Continental Western Ins. Co., 243 Neb. 766, 502 N.W.2d 817 (1993).

FACTS

Carl J. How and Joseph W. Brott, property owners in Beaver Lake Subdivision, filed an amended petition on December 21, 1987, naming as defendants the Beaver Lake Association (Association), a Nebraska nonprofit corporation, as well as its seven directors, individually and in their capacities as directors (hereinafter, collectively, defendants). How, a real estate broker who owned both commercial and residential property at Beaver Lake, died during the pendency of this appeal. His widow, Willa How, has been substituted as a party as How’s successor in interest.

The Association is a Nebraska nonprofit corporation whose *422 members are landowners in Beaver Lake Subdivision. The Association was formed to acquire, provide, and maintain utility and recreational facilities and otherwise provide for the health, recreation, safety, benefit, and other interests of its members.

In their amended petition, the plaintiffs alleged that they brought the action “on their own behalf and on behalf of all others similarly situated and namely, the owners of property within said subdivision, members of the Association and subject to the decisions and actions of the board of directors of the Association (herein referred to as ‘the class’).” On March 10, 1988, the court sustained a demurrer by the defendants alleging that the plaintiffs’ amended petition failed to state a cause of action under Nebraska’s class action statute. The plaintiffs subsequently amended their petition, omitting any reference to proceeding as a class action. The case went to trial on March 25,1991, on the plaintiffs’ fourth amended petition.

The plaintiffs’ first cause of action alleged that the procedure for electing directors of the Association was void because members were denied the right to vote for directors unless their Association dues were paid in full. They asked the court to declare that the elections were invalid and to order that a new election be held.

The second cause of action sought a declaratory judgment that “all assessments for membership dues and/or expenses imposed by the Association be upon individual lots, notwithstanding that said lots are contiguous, owned by one ownership and used as a single unit” and that such dues were personal in nature and were not a lien upon individual lots. It also requested that the court direct the Association to refrain from informing prospective buyers that unpaid dues were liens upon delinquent members’ lots.

The third cause of action alleged that the Association had denied lot owners permission to build boathouses on their lots, thereby depriving them of the beneficial use of their property. A declaratory judgment holding such denial of permits to be unlawful was requested.

On May 5,. 1992, the trial court issued a memorandum opinion and judgment finding that (1) the Association bylaws *423 restricted voting privileges to members in good standing as authorized by Neb. Rev. Stat. § 21-1914 (Reissue 1991) and (2) a member who has not paid dues is not in good standing. Although plaintiffs attempted in their trial brief to challenge the constitutionality of § 21-1914, the trial court found that the issue was not properly before the court because it had not been pled, nor had notice been given to the Attorney General. The trial court found for the defendants and dismissed the plaintiffs’ first cause of action.

On the second cause of action, the trial court found that plaintiffs were entitled to declaratory relief that assessments be upon individual lots prior to 1990, at which time an amendment to Association bylaws was passed permitting “homesteading” of two contiguous lots. The court further found that assessments of the Association constituted liens against the individual lots.

On the third cause of action, the trial court held that the Association had the right to deny a permit for a boathouse by enforcement of covenants, restrictions, and regulations, but not because a member was delinquent in payment of dues, and granted the requested declaratory relief.

The plaintiffs timely appealed to this court, and the defendants cross-appealed.

ASSIGNMENTS OF ERROR

On appeal, the plaintiffs contend that the trial court erred in (1) refusing to permit this case to proceed as a class action, (2) refusing to address the constitutionality of the actions of the Association in restricting voting privileges for the Association based on nonpayment of dues, (3) failing to grant a declaratory judgment invalidating the board of directors election, and (4) failing to grant a declaratory judgment that the defendants were to stop informing prospective buyers of lots that dues and assessments “ran with the lot” and declaring that such dues and assessments were personal in nature.

The defendants assert on cross-appeal that the trial court erred in denying their motion to dismiss the causes of action of plaintiff Brott at the close of the evidence.

*424 ANALYSIS

Class Action

The plaintiffs claim that they “made a pre-trial motion in March of 1988 to proceed with the case as a class action.” (Emphasis supplied.) Brief for appellants at 11. A review of the record reveals no such motion by the plaintiffs in March 1988. Rather, as previously noted, the issue of proceeding as a class action was raised in the plaintiffs’ amended petition. Subsequently, in their second amended petition, the plaintiffs omitted any reference to proceeding as a class action.

One must stand on a pleading against which a demurrer has been sustained in order to preserve the right to appeal the decision on the particular demurrer. Bert Cattle Co. v. Warren, 238 Neb. 638, 471 N.W.2d 764 (1991).

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Bluebook (online)
513 N.W.2d 511, 245 Neb. 420, 1994 Neb. LEXIS 68, Counsel Stack Legal Research, https://law.counselstack.com/opinion/how-v-mars-neb-1994.