Larry Semenza v. Don Kniss

2008 MT 238, 189 P.3d 1188, 344 Mont. 427, 2008 Mont. LEXIS 378
CourtMontana Supreme Court
DecidedJuly 8, 2008
DocketDA 07-0185
StatusPublished
Cited by14 cases

This text of 2008 MT 238 (Larry Semenza v. Don Kniss) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Larry Semenza v. Don Kniss, 2008 MT 238, 189 P.3d 1188, 344 Mont. 427, 2008 Mont. LEXIS 378 (Mo. 2008).

Opinions

JUSTICE LEAPHART

delivered the Opinion of the Court.

¶1 Semenza appeals the District Court’s finding that it did not have personal jurisdiction over Stockman’s, and the court’s grant of summary judgment in favor of Stockman’s. We affirm.

¶2 We restate the issue as follows:

¶3 Did the District Court err in finding it did not have personal jurisdiction over Stockman’s?

BACKGROUND

¶4 Larry Semenza (“Semenza”) is a livestock dealer doing business in Montana as Semenza Cattle Company. Don Kniss (“Kniss”) is an Oklahoma resident who has bought and sold cattle, but is not a registered or bonded dealer. The two were introduced through a mutual business acquaintance, Harold Sagers (“Sagers”). Semenza agreed to sell Kniss cattle from the Broken O Ranch in Montana. Semenza shipped the cattle to Kniss in Oklahoma. Semenza was paid [429]*429for the transaction through a $147,400 wire transfer from an Oklahoma corporation called Stockman’s Livestock Order Buying, Inc.

¶5 Several months later, Semenza and Kniss entered into a second cattle deal. Semenza agreed to sell 92 cows to Kniss for $950/head, or $87,400 total. Semenza shipped the cattle to Kniss in Okalahoma, and received a wire transfer from Stockman’s for $35,000. Semenza believes he is still owed $52,400.

¶6 Initially, Semenza filed a reparation complaint with the United States Department of Agriculture. The USDA initiated an investigation, and took several affidavits, which are appended to Appellee Stockman’s brief. However, before the USDA concluded its investigation, Semenza filed this suit in the Ninth Judicial District Court in Montana. Since Semenza elected to seek relief through the state judicial system, the USDA dismissed his complaint. Semenza filed breach of contract claims against both Kniss and Stockman’s, arguing that Kniss acted as Stockman’s agent. Only Stockman’s answered.

¶7 The District Court granted Stockman’s motion for summary judgment. The court found that no writing existed regarding either of the two cattle transactions. Since the sale of the cattle was covered by the U.C.C., and the purchase price exceeded $500, the oral contract was not enforceable unless there was a writing satisfying the statute of frauds. The court found that Semenza failed to produce such a writing, and thus held that the agreement was unenforceable.

¶8 The court also found that Semenza failed to produce a writing which gave Kniss the authority to act as Stockman’s agent. Section 28-10-203, MCA, provides that when the law requires a contract to be in writing, an agent’s authority to enter into that contract on behalf of the principal must also be bestowed in writing. Thus, the District Court found that Semenza could not enforce the purported oral contract against Stockman’s.

¶9 Absent an agency relationship between Kniss and Stockman’s, the District Court found that it had no personal jurisdiction over Stockman’s. After granting Stockman’s motion for summary judgment, the District Court dismissed Semenza’s complaint with prejudice, and awarded Stockman’s its costs and attorney’s fees.

STANDARD OF REVIEW

¶10 The court’s order granting Stockman’s motion for summary judgment contains overlapping conclusions of law. Specifically, the court found that no agency relationship existed between Stockman’s [430]*430and Kniss as a matter of law. Absent an agency relationship, the court concluded that it could not exercise personal jurisdiction over Stockman’s.

¶11 Since personal jurisdiction is a threshold issue, we discuss that first. A district court’s determination that it lacks personal jurisdiction is a conclusion of law which we review for correctness. Cimmaron Corp. v. Smith, 2003 MT 73, ¶ 8, 315 Mont. 1, ¶ 8, 67 P.3d 258, ¶ 8. However, to address personal jurisdiction, we must also analyze the question of agency. Since the District Court’s conclusions of law regarding the agency issues were decided on a motion for summary judgment, we will review these issues de novo. Kuhr v. City of Billings, 2007 MT 201, ¶ 12, 338 Mont. 402, ¶ 12, 168 P.3d 615, ¶ 12. A grant of summary judgment is proper only if no genuine issues of material fact exist and the moving party is entitled to judgment as a matter of law. M. R. Civ. P. 56(c); Kuhr, ¶ 12.

DISCUSSION

¶12 Did the District Court err in finding it did not have personal jurisdiction over Stockman’s?

¶13 To determine whether a Montana court can exercise personal jurisdiction over a non-resident defendant, we apply a two-part test. Cimmaron, ¶ 10. First, we ask whether personal jurisdiction exists under M. R. Civ. P. 4B(1). Cimmaron, ¶ 10. Second, we examine whether the exercise of personal jurisdiction is consistent with the “traditional notions of fair play and substantial justice embodied in the due process clause.” Cimmaron, ¶ 10.

¶14 1. Does personal jurisdiction exist pursuant to M. R. Civ. P. 4B(1) ?

¶15 Semenza alleges that Kniss acted as Stockman’s agent in the cattle deal, and that Stockman’s was the ultimate purchaser of the cattle. Thus, Semenza argues, the District Court had jurisdiction over Stockman’s under M. R. Civ. P. 4B(1)(a), which provides for jurisdiction over entities which transact business within the state through an agent. In order to determine whether personal jurisdiction exists under M. R. Civ. P. 4B(1)(a), we must first address this threshold question of agency.

¶16 a. Was Kniss acting as Stockman’s agent?

¶17 As discussed above, the District Court found that, as a matter of law, no agency relationship existed between Kniss and Stockman’s. Since the District Court reached this conclusion on a summary judgment motion, we review the issue de novo.

¶18 The party moving for summary judgment bears the initial burden [431]*431of establishing the absence of any genuine issue of material fact and entitlement to judgment as a matter of law. Prindel v. Ravalli County, 2006 MT 62, ¶ 19, 331 Mont. 338, ¶ 19, 133 P.3d 165, ¶ 19. If this burden is met, the burden shifts to the non-moving party. Prindel, ¶ 19. To avoid summary judgment, the non-moving party must “establish with substantial evidence, as opposed to mere denial, speculation, or conclusory assertions, that a genuine issue of material fact does exist or that the moving party is not entitled to prevail under the applicable law .’’ Phelps v. Frampton, 2007 MT 263, ¶ 16, 339 Mont. 330, ¶ 16, 170 P.3d 474, ¶ 16.

¶19 We have recognized that allegations of agency often involve questions of fact which preclude resolution by summary judgment. See e.g. Stillman v. Fergus County, 220 Mont. 315, 317, 715 P.2d 43, 44 (1986). However, summary judgment is appropriate where a party “fail[s] to present sufficient evidence to give rise to a genuine issue of material fact regarding an agency relationship^” Contreraz v. Michelotti- Sawyers, 271 Mont. 300, 311, 896 P.2d 1118, 1124 (1995). Accord Sunset Point v. Stuc-O-Flex Intern., 1998 MT 42, ¶ 25, 287 Mont. 388, ¶ 25, 954 P.2d 1156, ¶ 25; Northwest Polymeric v. Farmers State Bk., 236 Mont. 175, 178-79,

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Larry Semenza v. Don Kniss
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Cite This Page — Counsel Stack

Bluebook (online)
2008 MT 238, 189 P.3d 1188, 344 Mont. 427, 2008 Mont. LEXIS 378, Counsel Stack Legal Research, https://law.counselstack.com/opinion/larry-semenza-v-don-kniss-mont-2008.