Knott v. Crown Colony Farm, Inc.

865 S.W.2d 326, 1993 Ky. LEXIS 153, 1993 WL 482031
CourtKentucky Supreme Court
DecidedNovember 24, 1993
DocketNo. 92-SC-892-DG
StatusPublished
Cited by14 cases

This text of 865 S.W.2d 326 (Knott v. Crown Colony Farm, Inc.) is published on Counsel Stack Legal Research, covering Kentucky Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Knott v. Crown Colony Farm, Inc., 865 S.W.2d 326, 1993 Ky. LEXIS 153, 1993 WL 482031 (Ky. 1993).

Opinion

LEIBSON, Justice.

The principal question we address in this appeal is whether failure to name the attorney of Crown Colony Farm, Inc. as a party is fatal to the appeal.

In October-November 1990, James Knott’s estranged business partner, Dick Brooks, boarded a number of horses with Crown Colony. One of these horses, a thoroughbred mare by the name of Silver Design, was actually owned by the Dixie Sport Partnership of which Knott owned 75%. Knott claims that he was the managing partner in the Knott-Brooks partnership, that Silver Design was to be sold to his account, and that Brooks, acting without authority, misappropriated the horse when he boarded it with Crown Colony. When Brooks subsequently failed to pay the board bill on the horses, Crown Colony initiated an action to enforce its agister’s lien pursuant to KRS 376.400.

Knott further claims that there is evidence from the record from which it may be reasonably inferred that Crown Colony was aware Brooks was not the owner of Silver Design and was without authority from the owner to board Silver Design as part of his herd. Finally, Knott claims that the statutory agister’s lien, provided for by KRS 376-400, and the boarding contract which supplemented it, did not provide authority to sell this horse because both refer to the “owner” and Brooks was not the owner, and was acting contrary to the wishes of the owner.

Crown Colony moved for summary judgment claiming that Brooks, if not the owner, was Knott’s agent, and that, in any event, Brooks’s interest in the partnership sufficed to sustain the sale of the horse. Knott filed a cross motion for summary judgment. The Fayette Circuit Court overruled Knott’s motion and sustained Crown Colony’s motion for summary judgment without stating reasons, simply citing “various legal memoranda and affidavits, and arguments of all counsel.”

The Summary Judgment and Order of Sale, entered May 28, 1991, specified that certain horses, including Silver Design, were subject to sale to pay for board under Crown Colony’s agister’s hen and for attorney’s fees related to the action to collect the agister’s lien. The trial court ordered sale of Silver Design if necessary to satisfy the hen and pay the attorney’s fees incurred by Crown Colony. All of the horses, including Silver Design, to which movant had by this time acquired full title, were sold.1

After the judicial sale was held, in a July 11, 1991 order, the trial court set the amount awarded for attorney’s fees and added them to the judgment amount from the May 28, 1991 summary judgment and order of sale. Money from the sale of Silver Design exceeded the board bill due on her, and the remaining proceeds were used both to satisfy the debt due on Brooks’s other horses and to pay Crown Colony’s attorney’s fees.

Knott appealed both the May 28, 1991 summary judgment and order of sale and the July 11, 1991 order approving the amount of attorney’s fees sought by Crown Colony. In an October 8, 1991 order, a motion panel of the Court of Appeals sustained a “motion to [328]*328strike legal issues” holding that the right to challenge sale of Silver Design to pay attorney’s fees was precluded from the appeal of the summary judgment and order of sale because Crown Colony’s attorney was not named as an additional party appellee. However, the motion panel denied Crown Colony’s motion to dismiss the appeal on this ground. In that same October 8, 1991 order, the motion panel dismissed Knott’s separate appeal of the second trial court order, entered July 11, 1991, approving the amount of the attorney’s fees.

Thereafter, a different panel of the Court of Appeals was assigned to address the merits of the controversy. On October 2, 1992, this second panel held that Knott’s appeal was moot because of the previous order of the motion panel and affirmed the trial court’s judgment. The reason the Court of Appeals so held was because, in the trial court’s July 11, 1991 order setting the amount of the attorney’s fees and entered after the judicial sale was held pursuant to the first order, the total award to Crown Colony, which included attorney’s fees, was in an amount that more than consumed the proceeds from the sale of the horses involved.

Thus, when this case was heard on the merits by the Court of Appeals, with the attorney’s fees issue stricken from the appeal and with the amount obtained upon sale of the horses insufficient to satisfy the award for attorney’s fees, the Court of Appeals decided “Knott lost his opportunity to appeal.” While dismissing this case as moot on procedural grounds, the Court of Appeals volunteered lengthy “observations” regarding the merits of the controversy, none of which have binding effect under the circumstances.

However, Knott’s claim in this appeal is not about the amount of the attorney’s fees, the subject of the trial court’s second order. Knott claims that Crown Colony’s agister’s lien and boarding contract did not attach to the horse, Silver Design, in the first instance and that the trial court erred in so holding and that, on this issue, Crown Colony’s attorney, albeit an incidental beneficiary, was not a necessary party to the appeal: that if Knott wins on the merits, the amount obtained from the judicial sale of his horse belongs to him and cannot be disbursed to pay Crown Colony’s attorney’s fees. The amount of attorney’s fees, but not the fact they are to be paid from the proceeds of the sale, derives from the trial court’s second order and Knott does not question the amount of the fees.

Knott moved for discretionary review in our Court claiming the Court of Appeals erred in refusing to reach the merits of his appeal, being sidetracked by failure to name Crown Colony’s attorney as an additional party. We agree, and therefore we reverse the decision of the Court of Appeals and remand this case to the Court of Appeals for consideration of the merits.

The question before us is whether the interim order from the Court of Appeals’ motion panel, holding that Knott “shall be precluded from raising the issue of attorney fees in this appeal for failure to name the attorneys as parties,” was correct. It is this order that triggered the Court of Appeals’ final decision that subsequent payment to the attorneys of the proceeds from the sale of Silver Design and her foal rendered this appeal moot.

Crown Colony insists that a threshold issue which we must first address is whether Knott was obliged to seek discretionary review in our Court from the motion panel’s October 8, 1991 order. If an immediate motion for discretionary review was required, the motion made after the final decision on October 2, 1992, from which this appeal was taken, was filed too late.

Crown Colony claims a motion for discretionary review from the interim order is required by CR 76.20(2)(b). Specifically, CR 76.20, in ten subparagraphs, covers the procedure for filing a motion for discretionary review. CR 76.20(2), is styled “Time for Motion,” and subparagraph (b) states in pertinent part: [329]*329The quoted language does not specify review of a final order or opinion in so many words, but we can conceive of no other rational interpretation consistent with appellate practice.

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Cite This Page — Counsel Stack

Bluebook (online)
865 S.W.2d 326, 1993 Ky. LEXIS 153, 1993 WL 482031, Counsel Stack Legal Research, https://law.counselstack.com/opinion/knott-v-crown-colony-farm-inc-ky-1993.