Larsen v. Ralston Bank

464 N.W.2d 329, 236 Neb. 880, 1991 Neb. LEXIS 42
CourtNebraska Supreme Court
DecidedJanuary 11, 1991
Docket88-1013
StatusPublished
Cited by17 cases

This text of 464 N.W.2d 329 (Larsen v. Ralston Bank) 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
Larsen v. Ralston Bank, 464 N.W.2d 329, 236 Neb. 880, 1991 Neb. LEXIS 42 (Neb. 1991).

Opinions

Hastings, C.J.

First Westside Bank has appealed from an order of the district court which entered a partial summary judgment in favor of Ralston Bank. We order the appeal dismissed as premature, there being no final, appealable order.

The plaintiffs, Edward W. Larsen, Carmelita A. Larsen, [881]*881Candice Marie Larsen Ishii, Dennis E. Larsen, and Linda Marie Larsen (Larsens), filed a second amended petition for declaratory judgment, naming as the defendants Ralston Bank (Ralston), First Westside Bank (Westside), Roger L. Hass, and Financial Services Company. The petition alleged that on August 16, 1982, Hass was indebted to Westside and granted Westside a security interest in a note in the principal amount of $159,052.50. The note was made by Financial Services Company and was payable to Roger L. Hass, Inc. The Larsens alleged that they owned 50 percent of the common stock of Roger L. Hass, Inc., and that Hass held the other 50-percent interest in the common stock.

The petition further alleged that in 1982, substantially all of the assets of Roger L. Hass, Inc., were sold to Financial Services Company. Hass, individually, received as consideration a $20,000 option payment and a $30,000 downpayment, as well as the promissory note in the amount of $159,052.50. According to the Larsens, Hass never did deliver their 50-percent share of the proceeds.

Hass, according to the allegations by the Larsens, was indebted to Westside, and as security for that indebtedness Westside took a written assignment of the promissory note and a written security interest in the promissory note from Hass. Upon becoming aware of this transaction, the Larsens entered into a junior pledge agreement for security with Hass, Roger L. Hass, Inc., and Westside.

The petition goes on to allege that Hass, in 1986, attempted to borrow money from Ralston, that Ralston obtained the payoff figure from Westside on its loan to Hass, that Westside delivered a written assignment of its interest in the promissory note to Ralston notwithstanding the existence of the junior pledge agreement for security and the prior assignment from Hass to the Larsens, and that Ralston thereafter obtained a written assignment from Hass of his interest in the promissory note and obtained a written security agreement from Hass using the promissory note as collateral.

After alleging that there were several wrongful acts on the part of Westside in its delivery of the promissory note to Ralston and that Ralston was not a good faith purchaser [882]*882without notice, the Larsens state that a dispute exists between the Larsens and Ralston as to who has a prior perfected security interest in the note — the Larsens by filing a security instrument or Ralston by its possession of the note. The Larsens conclude their petition with a prayer for judgment declaring the Larsens to be the legal titleholders of the promissory note; declaring and adjudicating the respective rights, priorities, and duties of all the parties; declaring that Ralston is not a good faith purchaser without notice; and determining the status of the parties in respect to the promissory note.

In its answer, Ralston admits the transactions in general, but denies that it ever had notice of the Larsens’ alleged interest in the promissory note by reason of the junior pledge agreement. Ralston also denies that the promissory note is a general intangible under the Uniform Commercial Code, as alleged by the Larsens, but asserts that the promissory note was a negotiable instrument. Ralston prays that the Larsens’ petition be dismissed. Ralston then filed a motion for summary judgment requesting the court order summary judgment “declaring that plaintiffs take nothing by their petition.”

Westside, apparently without filing an answer, filed a motion for summary judgment generally moving the court for judgment in its favor.

The district court first entered an order dated October 6, 1988, finding that the promissory note was not a negotiable instrument as defined by the Uniform Commercial Code, granting Westside’s motion for summary judgment, and denying the motion of Ralston. On November 4, 1988, the court reconsidered that portion of the October 6 order which denied Ralston’s motion for summary judgment, and determined that the promissory note was an “instrument” under the Uniform Commercial Code and that Ralston was entitled to summary judgment based on its prior perfected security interest. Finally, on November 22, 1988, the court entered an order nunc pro tunc, which among other things concluded as follows:

IT IS, THEREFORE, ORDERED, ADJUDGED AND DECREED BY THE COURT, that the Court’s docket entry of November 4,1988, is corrected to read as [883]*883follows: On reconsideration the Court vacates the Order of October 6, 1988, which denies Ralston Bank’s Motion for Summary Judgment, and grants the First Westside Bank’s Motion for Summary Judgment. That the Court finds only that the July 3, 1982, Promissory Note at issue is an “instrument” under Nebraska U.C.C. § 9-105(l)(i) and that Ralston Bank is entitled to summary judgment in this respect based on its prior perfected security interest in the instrument. The First Westside Bank’s Motion for Summary Judgment is denied. All remaining legal and factual issues are to be determined at trial incorporating the Court’s determination of the Promissory Note as an “instrument”.

(Emphasis supplied.)

Before addressing the merits, this court must raise on its own motion the question of jurisdiction over this purported appeal.

In the absence of a judgment or order finally disposing of a case, the Supreme Court has no authority or jurisdiction to act, and in the absence of such judgment or order the appeal will be dismissed. Lewis v. Craig, ante p. 602, 463 N.W.2d 318 (1990).

To be final, an order must dispose of the whole merits of the case and must leave nothing for the further consideration of the court. Thus, when no further action of the court is required to dispose of a pending cause, the order is final. However, if the cause is retained for further action, the order is interlocutory. Brozovsky v. Norquest, 231 Neb. 731, 437 N.W.2d 798 (1989). Furthermore, if a party’s substantial rights are not determined by the court’s order and the cause is retained for further action, the order is not final. Lewis v. Craig, supra; Martin v. Zweygardt, 199 Neb. 770, 261 N.W.2d 379 (1978).

The.mere fact that an appeal was prosecuted from an order sustaining a partial summary judgment is not determinative of this case. Whether a partial summary judgment is a final and appealable order depends upon its effect. Blankenship v. Omaha P. P. Dist., 195 Neb. 170, 237 N.W.2d 86 (1976). In that case the action was brought as a class action, and the partial summary judgment challenged the plaintiff’s right to bring such an action as representative of the class. The trial court sustained [884]*884the motion for summary judgment and ordered the action dismissed without prejudice to the right of the plaintiff to sue on his own behalf.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cerny v. Longley
661 N.W.2d 696 (Nebraska Supreme Court, 2003)
In Re Interest of Clifford M.
606 N.W.2d 743 (Nebraska Supreme Court, 2000)
City of Omaha v. Morello
602 N.W.2d 1 (Nebraska Supreme Court, 1999)
Hake v. Hake
594 N.W.2d 648 (Nebraska Court of Appeals, 1999)
O'CONNOR v. Kaufman
582 N.W.2d 350 (Nebraska Supreme Court, 1998)
Elliott v. First Security Bank
544 N.W.2d 823 (Nebraska Supreme Court, 1996)
In Re Interest of Cassandra L.
543 N.W.2d 199 (Nebraska Court of Appeals, 1996)
Larsen v. First Bank
515 N.W.2d 804 (Nebraska Supreme Court, 1994)
Rohde v. Farmers Alliance Mutual Insurance
509 N.W.2d 618 (Nebraska Supreme Court, 1994)
Metropolitan Life Insurance v. Beaty
493 N.W.2d 627 (Nebraska Supreme Court, 1993)
In Re Interest of LW
486 N.W.2d 486 (Nebraska Supreme Court, 1992)
Henderson v. Forman
486 N.W.2d 182 (Nebraska Supreme Court, 1992)
Metrejean v. Gunter
481 N.W.2d 176 (Nebraska Supreme Court, 1992)
Wicker v. Waldemath
471 N.W.2d 731 (Nebraska Supreme Court, 1991)
Larsen v. Ralston Bank
464 N.W.2d 329 (Nebraska Supreme Court, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
464 N.W.2d 329, 236 Neb. 880, 1991 Neb. LEXIS 42, Counsel Stack Legal Research, https://law.counselstack.com/opinion/larsen-v-ralston-bank-neb-1991.