Lakeside v. Meyers

CourtCourt of Appeals of Arizona
DecidedMarch 30, 2017
Docket1 CA-CV 15-0521
StatusUnpublished

This text of Lakeside v. Meyers (Lakeside v. Meyers) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lakeside v. Meyers, (Ark. Ct. App. 2017).

Opinion

NOTICE: NOT FOR OFFICIAL PUBLICATION. UNDER ARIZONA RULE OF THE SUPREME COURT 111(c), THIS DECISION IS NOT PRECEDENTIAL AND MAY BE CITED ONLY AS AUTHORIZED BY RULE.

IN THE ARIZONA COURT OF APPEALS DIVISION ONE

LAKESIDE LUMBER PRODUCTS, INC., an Arizona corporation, Plaintiff/Counterdefendant/Appellee,

v.

BENJAMIN R. MEYERS and ELSIE MEYERS, husband and wife, individually and dba Northwest Reload, Defendants/Counterclaimants/Appellants. _______________________________

BENJAMIN R. MEYERS, an individual, Cross-Complainant/Appellant

JOHN BUSS, an individual; KATHLEEN JAN BUSS, an individual; and KEVIN KEATING, an individual, Cross-Defendants/Appellees

No. 1 CA-CV 15-0521 FILED 3-30-2017

Appeal from the Superior Court in Maricopa County No. CV2011-015296 The Honorable John C. Rea, Judge

AFFIRMED APPEARANCES

The Keating Law Firm, PLC, Scottsdale By Kevin R. Keating Counsel for Plaintiff/Counterdefendant/Appellee

Benjamin Meyers and Elsie Meyers, Eugene, OR Defendants/Counterclaimants/Appellants

MEMORANDUM DECISION

Chief Judge Michael J. Brown delivered the decision of the Court, in which Presiding Judge Samuel A. Thumma and Judge Maurice Portley1 joined.

B R O W N, Chief Judge:

¶1 Benjamin and Elsie Meyers2 appeal the trial court’s judgment for breach of contract damages and attorney fees in favor of Lakeside Lumber Products, Inc. For the following reasons, we affirm.

BACKGROUND

¶2 This litigation stems from a series of lumber sale transactions between Lakeside and Benjamin (doing business as Northwest Reload). The transactions involved an intermediary manufacturer, Whitsell Manufacturing, Inc., located in Oregon. In 2009, Whitsell filed for Chapter 11 bankruptcy protection. To allow Whitsell to continue its lumber remanufacturing operations, the bankruptcy court permitted Whitsell to operate as a debtor-in-possession and to enter into a business arrangement with Lakeside, which provided that Lakeside would finance Whitsell’s operations by supplying raw lumber to Whitsell on credit. Whitsell would then remanufacture the lumber and use the product to fill orders placed by

1 The Honorable Maurice Portley, Retired Judge of the Court of Appeals, Division One, has been authorized to sit in this matter pursuant to Article VI, Section 3 of the Arizona Constitution.

2 For ease of reference, we refer to Benjamin Meyers as “Benjamin,” Elsie Meyers as “Elsie,” and to both as “the Meyers.” Elsie Meyers was dismissed as a defendant in the trial court. She does have an interest on appeal, however, in issues relating to the dismissal of her counterclaims.

2 LAKESIDE et al. v. MEYERS Decision of the Court

its customers. Under the agreement, Lakeside retained ownership of the lumber until it received full payment for each shipment, and also assumed Whitsell’s invoicing and payment collection rights. This arrangement was facilitated by Benjamin, who had a prior relationship with both Whitsell and Lakeside. In exchange for his work, Lakeside paid Benjamin commissions on many of the sales it made through Whitsell.

¶3 During 2011, Benjamin made more than twenty purchases of lumber products from Whitsell, as evidenced by invoices issued by and paid to Lakeside. In September 2011, Lakeside filed a complaint in Maricopa County Superior Court alleging Benjamin had failed to pay four of the most recent invoices, totaling $41,207.98.3 Counsel for the Meyers sought dismissal based on lack of personal jurisdiction, asserting the physical transactions were conducted between Northwest Reload and Whitsell exclusively within the state of Oregon. After briefing and oral argument, the trial court denied the motion, finding that Lakeside’s “factual presentation [was] more credible” and the “record establishes that Defendants have engaged in regular and systematic business transactions with Plaintiff for nearly 18 years.” The court concluded “[t]he facts support[ed] the assertion of both general and specific jurisdiction.”

¶4 After the trial court permitted counsel for the Meyers to withdraw, Lakeside sought summary judgment on its claim for breach of contract for nonpayment of the four invoices. In response, Benjamin filed an “Answer With Defenses and Counterclaims,” including an allegation he was entitled to an offset of more than $180,000 in commissions Lakeside owed to him. Elsie filed a separate answer and counterclaim against Lakeside alleging intentional infliction of emotional distress based on Lakeside naming her and the Silvers in the lawsuit. The trial court denied Lakeside’s summary judgment motion, stating it could not find as a matter of law that the four invoices cited by Lakeside were “unrelated to the broader financial relationship between the parties.”

¶5 Benjamin filed a motion to join Lakeside’s principal, John Buss, his wife Kathleen Buss, and Lakeside’s attorney, Kevin Keating, to the lawsuit. The court granted Benjamin’s motion and he then filed a “cross- complaint” against Lakeside and the three newly-named parties. Lakeside,

3 The complaint also named Sanford Silver and his wife based on their alleged involvement in these transactions on behalf of Benjamin. Mr. and Mrs. Silver were eventually dismissed from the lawsuit and are not parties to this appeal.

3 LAKESIDE et al. v. MEYERS Decision of the Court

the Busses, and Keating each filed motions for summary judgment on all of the claims contained in Benjamin’s cross-complaint and in the Meyers’ counterclaims. Following briefing and oral argument, the trial court granted each of the motions for summary judgment.

¶6 Following a one-day bench trial at which Benjamin represented himself, the trial court ruled in favor of Lakeside, reasoning that Benjamin acknowledged he made the lumber orders, they were delivered, he received payment from his buyer, but he did not pay for the ordered lumber. The court also found that Benjamin had failed to prove his affirmative defense, that he and Lakeside had entered into an agreement for payment of commissions on all transactions involving Whitsell. Benjamin then filed several other post-trial motions, including a motion for new trial, and Elsie filed a motion for sanctions. The court denied the motions. The court entered judgment in favor of Lakeside in the amount of $41,207.98, and awarded prejudgment interest (compounded quarterly) in the amount of $51,337, plus $71,552 in attorneys’ fees and $959 in taxable costs. The Meyers timely appealed.

DISCUSSION

¶7 In their appellate briefs, the Meyers attempt to raise a significant number of errors committed by the trial court. The briefing is deficient, however, in that it does not identify with any clarity the issues the Meyers intend to raise on appeal, nor does it include any meaningful citations to the record or arguments that are supported by relevant authorities. See Ariz. R. Civ. App. Proc. (“ARCAP”) 13(a). Based on our review of the opening brief, we discern that the Meyers raise the following issues: (1) the court was biased against the Meyers; (2) the court erred in denying the jurisdictional motion; (3) the court erred in dismissing their counterclaims and Benjamin’s crossclaims; and (4) the court made errors in the final judgment and improperly denied a motion for new trial. As best we can tell from the briefing, Elsie joins in her husband’s arguments relating to bias and dismissal of her counterclaims.

I. Bias

¶8 The Meyers argue the trial judge was biased against them as out-of-state litigants and thus unfairly ruled in Lakeside’s favor throughout the litigation. Arizona Rule of Civil Procedure 42.2 provides that a litigant may file an affidavit requesting a change of judge for cause.

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