Klooster v. North Iowa State Bank

404 N.W.2d 564
CourtSupreme Court of Iowa
DecidedMay 8, 1987
Docket84-985
StatusPublished
Cited by27 cases

This text of 404 N.W.2d 564 (Klooster v. North Iowa State Bank) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Klooster v. North Iowa State Bank, 404 N.W.2d 564 (iowa 1987).

Opinion

CARTER, Justice.

Defendants, North Iowa State Bank (the bank) and its surety, Aetna Casualty and *566 Surety Company, appeal from a judgment for actual and punitive damages entered against them in favor of plaintiffs, Alfred Klooster, Charlotte Klooster, and Raymond Klooster (the Kloosters), on various legal theories as a result of the bank’s attachment (for which bond was furnished) and sale of hogs securing debts owed the bank by the Kloosters. Claims of the Kloosters against Hancock County and the sheriff of Hancock County and the sheriffs cross-petition against defendants have been disposed of by the parties and are not involved in this appeal.

In 1981, the bank, in an action against the Kloosters on two promissory notes, sought and obtained an ex parte order for the attachment of the Kloosters’ swine herd, which was collateral for the notes. The action sought recovery of $128,364. The order provided for attachment of hogs with a value of $100,000. All of the Kloosters’ 1736 hogs were attached by the sheriff. A surety bond of $250,000 was provided by Aetna Casualty and Surety.

The order authorizing the attachment provided that because the hogs were perishable they should be sold immediately and the proceeds should be applied against the Kloosters’ debts to the bank. An affidavit of the bank president, attached to the ex parte application, stated that there were reasonable grounds to believe that the Kloosters had sold or had attempted to sell some of their hogs for the purpose of putting the collateral beyond the reach of creditors and that, unless prevented by the court, the hogs might be sold, removed, and concealed.

The notice of levy of attachment contemporaneously served on the Kloosters did not mention any sale. Prior to taking possession of the hogs, the sheriff contacted three potential bidders, requesting private bids, and sold the hogs to one of them for $63,500. This sale occurred without the Kloosters’ knowledge.

The Kloosters’ amended petition sought actual and punitive damages from the bank on theories of wrongful attachment, conversion, disposition of collateral in other than a commercially reasonable manner, abuse of process, tortious interference with a business relationship, and violation of civil rights contrary to 42 U.S.C. section 1983 (1982). Following the first segment of a bifurcated trial involving only liability, the jury returned findings in favor of the Kloosters and against the bank under each of the foregoing theories. The same jury then heard additional evidence concerning damages and returned verdicts against the bank in the following amounts:

Wrongful attachment $565,000 actual damages; 50,000 punitive damages
Abuse of Process 50,000 actual damages; 25,000 punitive damages
Conversion 145,000 actual damages; 50,000 punitive damages
Sale in Other Than 145,000 actual damages;
Reasonably Commercial Manner 100,000 punitive damages
Tortious Interference 100,000 actual damages;
With Business 30,000 punitive damages Operations
Civil Rights Violation 50,000 pecuniary damages;
Under 42 U.S.C. § 1983 45,000 damages for emotional distress;
25,000 punitive damages

The court, apparently believing that certain of the separate verdicts were duplicative of each other, included in the judgment only the $565,000 actual damage recovery for wrongful attachment, the $45,000 recovery for emotional distress under section 1983, and the highest of the several punitive damage verdicts ($100,000). In addition, it awarded the Kloosters $116,820 for attorney fees under section 1983.

The bank and its surety have appealed from this judgment, asserting that they were entitled to a directed verdict on each of the several claims and, in the alternative, asserting that errors were committed during the trial with respect to admission of evidence and instructions on the applicable law. We discuss those portions of the several contentions urged which we deem dispositive of the issues on appeal. Additional facts bearing upon the disposition of the case will be stated in conjunction with our discussion of the legal issues.

*567 I. Real Parties in Interest.

We first consider the bank’s contention that certain of the plaintiffs have failed to demonstrate that they are the real parties in interest with respect to various portions of the damage claims which were allowed. We find no merit in this contention. The record suggests that one or more of the plaintiffs, or a partnership to whose interest one or more of the plaintiffs succeed, would be the real parties in interest with respect to the several claims presented. Under such circumstances, it is permissible for the parties to jointly present said claims without identifying the interest which each individual plaintiff has in the whole.

The extent of each individual plaintiff’s interest in the recovery is a matter to be settled between the plaintiffs inter se. As long as the defendants are protected against double recovery, they are not prejudiced by that method of submitting the case. See Kimmel v. Iowa Realty Co., 339 N.W.2d 374, 379-80 (Iowa 1983); In re Marriage of Stutsman, 311 N.W.2d 73, 75 (Iowa 1981); Iowa R.Civ.P. 2. No danger of double recovery against the defendants is presented under the present facts with respect to the claims of the plaintiffs or of the partnership to whose interest they succeed.

II. Alleged Error in Denial of Defendants’ Motion for Summary Judgment.

The bank also contends that the district court erred in denying its motion for summary judgment with respect to each of the various theories for which recovery was ultimately allowed. The same legal arguments presented in this assignment of error are also included in a separate assignment stating that the bank and its surety were entitled to a directed verdict as to these claims at the conclusion of all of the evidence.

On an appeal from a final judgment following trial, determination of the existence or nonexistence of genuine issues of material fact made upon affidavits, depositions, and pleadings for the purpose of adjudicating a motion under Iowa Rule of Civil Procedure 238, should, we believe, be superseded by the court’s rulings on motions for directed verdict at the close of all the evidence. Consequently, determinations made in advance of trial concerning a genuine issue of material fact will not constitute grounds for reversal where a full trial is subsequently held and sufficient evidence is produced to sustain the claim.

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Bluebook (online)
404 N.W.2d 564, Counsel Stack Legal Research, https://law.counselstack.com/opinion/klooster-v-north-iowa-state-bank-iowa-1987.