Kliment v. National Farms, Inc.

514 N.W.2d 315, 245 Neb. 596, 1994 Neb. LEXIS 76
CourtNebraska Supreme Court
DecidedApril 8, 1994
DocketS-92-804
StatusPublished
Cited by7 cases

This text of 514 N.W.2d 315 (Kliment v. National Farms, Inc.) 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
Kliment v. National Farms, Inc., 514 N.W.2d 315, 245 Neb. 596, 1994 Neb. LEXIS 76 (Neb. 1994).

Opinion

Hastings, C.J.

Ivan Kliment and Ethel Kliment, husband and wife, brought this action against defendants, National Farms, Inc., and O.N. Corporation, seeking damages for a private nuisance because of the swine-raising activities of defendants. Following a jury trial which resulted in a verdict for plaintiffs in the amount of $13,000, defendants appealed. Because of the action of this court in affirming a case involving the same issues and these same defendants, Kopecky v. National Farms, Inc., 244 Neb. 846, 510 N.W.2d 41 (1994), defendants have dismissed their appeal. However, remaining is plaintiffs’ cross-appeal, in which it is claimed the trial court erred in certain evidentiary rulings and in failing to award plaintiffs reimbursement for several items they claim to be legitimate costs. We affirm as to the cross-appeal.

The facts of this case are substantially the same as those in Kopecky. Here, plaintiffs attempted to introduce exhibits 14, 14A, 15, and 15A, which were reports made for defendants by L.M. Safely, Jr., as to waste-handling matters at the subject swine-raising facility. The reports were transmitted by Safely to defendants, which reports described the waste disposal system at this swine-raising facility as being significantly overloaded. Safely was not called as a witness by either defendants or plaintiffs. The offer of the exhibits by plaintiffs was rejected by the trial court upon defendants’ objection as hearsay.

Plaintiffs contend that the exhibits should have been received under the provisions of Neb. Rev. Stat. § 27-801 (Reissue *598 1989), which provides:

(4) A statement is not hearsay if:
...[.]
(b) The statement is offered against a party and is . . . (iii) a statement by a person authorized by him to make a statement concerning the subject, or (iv) a statement by his agent or servant within the scope of his agency or employment____

Because Greg Gilsdorf, executive vice president of National Farms, testified that he had the authority to request Safely to make this report, plaintiffs argue that Safely was a person authorized by National Farms to make a statement concerning the subject or that his report was a statement by National Farms’ agent or servant within the scope of his agency or employment. See § 27-801.

However, plaintiffs overlook two problems. Firstly, Gilsdorf was authorized to request the report, and Safely was requested to make the report. That is far different from making a statement on behalf of the principal or agent. Secondly, the report discusses the overloading of the waste disposal system which explains the objectionable odors, thus making out a case for liability of National Farms for maintaining a nuisance; an issue which the jury by its verdict determined favorably to plaintiffs. The report does not address the issue of damages.

Plaintiffs direct us to Bump v. Firemens Ins. Co., 221 Neb. 678, 380 N.W.2d 268 (1986), as a case, very similar to the present case, in which this court held that the statements of an insurance company’s claims adjuster in advising the insured that his loss was covered were binding on the principal. In Bump, we said:

The hallmarks of reliability and trustworthiness are more evident in a situation involving an insurance adjuster’s vicarious admission than in the case of statements made by generic agents or employees. “An ‘adjuster’ or ‘insurance adjuster’ is a person, copartnership or corporation who undertakes to ascertain and report the actual loss to the subject-matter of insurance due to the hazard insured against.” [Citation omitted.] As a result of its policy, an insurance company *599 has a contractual obligation to pay its insured’s valid claim and, therefore, often dispatches one with special knowledge — the adjuster — to separate fact from fiction regarding a claim and obtain information to enable the insurance company to distinguish the valid claim from a claim for which the insurance company is not liable under its policy. Otherwise, an insurance company’s sending an inept or incompetent adjuster, or one who is otherwise incapable of ascertaining and reporting a loss, spawns skepticism about good faith dealing with an insured — a specter the insurance industry has long labored to dispel. In the present case there is nothing to indicate that Johnson, acknowledged as Firemens’ adjuster, was other than one qualified to ascertain the loss and attendant circumstances on which Bumps’ claim was based.

Id. at 686-87, 380 N.W.2d at 275. This court went on to state:

Unquestionably, communication with an insured is a vital and integral part of services rendered by an insurance adjuster for validation or rejection of an insured’s claim against the insuring company. Such communication constitutes a statement within the scope of an adjuster’s agency or employment by the insurance company. We, therefore, hold that the adjuster’s statement made to Brenda Bump concerning insurance coverage supplied by Firemens’ policy was admissible under [Neb. Evid. R.] 801(4)(b)(iv). Because the statement contained evidence bearing upon the issue of causation for the loss claimed by Bumps, the adjuster’s statement was relevant. See Neb. Evid. R. 401.

221 Neb. at 688, 380 N.W.2d at 275-76.

Here, unlike the situation in Bump, there is nothing to suggest that Safely was employed for any purpose other than to give technical advice to National Farms. Safely’s employment or agency did not include making statements on behalf of National Farms. Plaintiffs could have called Safely to testify at trial, but his report under these circumstances is hearsay and not subject to any of the exceptions.

We adopt the rule laid down in United States v. United Shoe Machinery Corporation, 89 F. Supp. 349, 352 (D. Mass. 1950):

*600 Where the agent makes a report to the principal or to another agent, and all that appears is that the principal had authorized the agent to make such a report, a statement in the report is not the principal’s and is not an extrajudicial admission of the principal. . . . Authority merely to report to a principal or a fellow agent is not authority to commit the principal.

(Emphasis omitted.)

Furthermore, the information imparted by Safely went to the issue of liability for a nuisance, not the damages incurred. Plaintiffs were successful on the issue of liability, and therefore, any error that might have been committed because of the rejection by the trial court of Safely’s report is at best harmless error.

Plaintiffs attempted to recover for their costs incurred, which included costs of expert witnesses and expenses of their attorneys in attending on the depositions of various witnesses. Plaintiffs point to Neb. Rev.

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Bluebook (online)
514 N.W.2d 315, 245 Neb. 596, 1994 Neb. LEXIS 76, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kliment-v-national-farms-inc-neb-1994.