Lide v. Cline

537 F. Supp. 643, 1982 U.S. Dist. LEXIS 11806
CourtDistrict Court, E.D. Arkansas
DecidedApril 9, 1982
DocketNos. PB-73-C-229, PB-C-80-53 and PB-C-80-195
StatusPublished

This text of 537 F. Supp. 643 (Lide v. Cline) is published on Counsel Stack Legal Research, covering District Court, E.D. Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lide v. Cline, 537 F. Supp. 643, 1982 U.S. Dist. LEXIS 11806 (E.D. Ark. 1982).

Opinion

MEMORANDUM OPINION

WOODS, District Judge.

FINDINGS OF FACT

1. Jurisdiction of this Court is based on diversity pursuant to 28 U.S.C. § 1332. The plaintiff David M. Lide, Jr. is a citizen and resident of Texas. Defendant C. Hugh Cline is a citizen and resident of Louisiana, and the Bank of Oak Grove, Louisiana is a Louisiana banking corporation. The amount in controversy exceeds the sum of $10,000.00 exclusive of interest and costs.

2. In 1971 Lide and Cline entered into a joint venture agreement for the purpose of raising of Charoláis cattle. Cline was responsible for maintaining the herd and Lide for merchandising the progeny.

3. As part of the maintenance and care of the cattle, the Bank of Oak Grove extended credit to Cline and took a chattel mortgage in return.

4. The parties became involved in a highly acrimonious dispute, the background and aspects of which are not really pertinent to the judgment which we will enter herein. Lide sued Cline and the Bank of Oak Grove on December 7, 1973 for wrongful conversion of the cattle and requested an accounting.

5. After substantial discovery the parties entered into a settlement agreement under which the original claims and pleadings would be dismissed and the parties would be committed to new undertakings which were spelled out in considerable detail. The Court would retain jurisdiction only for the purpose of enforcing the settlement agreement. This agreement dated September 17, 1975 is attached hereto as Exhibit “A”. It was signed by all the parties, and its validity and binding effect is not questioned. In its present posture this litigation is concerned only with whether the parties breached or induced breach of the settlement agreement.

6. The mutual undertakings of the respective parties in the settlement agreement was as follows: (1) Cline relinquished possession of the following members of the herd: 29 cows, 13 unweaned calves, 12 heifers, 10 progeny and 4 weaned calves; (2) Cline was to deliver these cattle to an auction barn at Delhi, Louisiana; (3) the Bank of Oak Grove would release the above cattle from any existing mortgages; (4) Lide promised to satisfy a judgment obtained by Charoláis International, Inc. against Cline in the amount of $9,775.00; (5) Cline and the Bank of Oak Grove would satisfy a judgment obtained by David A. Witts against Cline on a note in the amount of $9,775.00 given by Cline in conjunction with the establishment of the herd; and (6) the agreement was to be fully performed no later than January 10, 1976.

7. On September 30, 1975 upon stipulation of the parties and pursuant to the release agreement, the complaint, counterclaims and setoffs were dismissed with prejudice by order of the Court. The Court retained jurisdiction to enforce the settlement agreement.

[645]*6458. The settlement would doubtless have proceeded apace but for a dispute which arose in connection with item (5) in paragraph 6, supra, i.e. the obligation of Cline and the Bank of Oak Grove to satisfy the Witts judgment. The latter claimed that plaintiff Lide was interfering with their efforts to procure the judgment at a reduced sum.

9. I find that at the time the settlement agreement was executed by the parties, the Bank of Oak Grove thought that it had a binding agreement to purchase the Witts judgment for $3,000.00. Mr. Witts, however, approached Lide about selling the judgment to him since the note forming the basis of the judgment had been endorsed by Lide, the payee, with recourse. Another factor in Witt’s approach to Lide was the pending of other litigation in the U. S. District Court in Dallas involving other transactions between Lide and Witts, which Witts was trying to settle. I find that Witts was the moving party in these approaches and contacts. While Lide had some interest in the Witts judgment because of his endorsement of the note, the paramount interest in this judgment resided in Witts and the Bank of Oak Grove. The latter had an unqualified obligation under the settlement agreement to satisfy the judgment. The former wanted to transfer it for the highest possible consideration.

10. Cline and the Bank were represented by the same attorney, who refused to authorize transfer of the cattle to Lide until the difficulty with the Witts note was resolved. I find that this refusal to ship the cattle forthwith was unjustified. The settlement agreement imposed an absolute duty on Cline and the Bank to forthwith satisfy the Witts judgment. If this required paying the face value of the judgment, they were so obligated. The fact that Witts reneged on selling them the judgment at a substantial discount did not justify Cline’s refusal to ship the cattle and the Bank’s encouragement of this refusal. I find that the Bank and its attorneys were the moving spirits in the decision not to comply with the clear terms of the agree-' ment by shipping the cattle.

11. Cline, whose financial situation was desperate during all of the pertinent period, finally reached the end of his rope about December 1, 1975. His solution was simply to move off his farm, leaving the cattle unattended and without feed or water. As a result a substantial number of the animals died of starvation.

,12. On December 12, 1975 Mr. Lide’s counsel wrote to the joint counsel for Cline and the Bank stating that Lide stood ready and willing to perform all his obligations under the agreement and demanded that defendants perform their obligation (PX 8). It is noted that on October 10, 1975 Lide had acquired the Charoláis judgment as he was obligated to do under the release agreement. Charoláis executed a satisfaction of the judgment on this date, but it was not filed in the Clerk’s office of West Carrol Parish, Louisiana until November 16, 1979. We do not regard the late filing as significant since a satisfaction of judgment had been executed by the judgment creditors on October 10, 1975. We therefore find that by this date Lide had substantially complied with his obligations under the agreement.

13. On January 7, 1976 one of the Bank’s attorneys (who had not been involved in the instant litigation and was unaware of the settlement agreement) was given the responsibility to enforce certain security instruments held by the Bank in connection with various loans to Cline. He forthwith secured a writ of sequestration (DX 10) under which the sheriff of the parish seized all of Cline’s chattels, including the cattle involved in the release agreement.

14. At the time that the cattle were seized under the writ of sequestration, they had already begun to starve as a result of Cline’s abandonment. While an officer of the Bank made desultory attempts to feed and water the cattle from personal humane motivations, the cattle were not afforded the intensive care, medical attention, and maintenance justified by their previous maltreatment.

[646]*64615. The Delhi Livestock Auction in Delhi, Louisiana would not handle the transfer of the cattle contemplated by the settlement agreement, but Lide arranged for handling by the West Monroe Livestock Auction and so advised defendants through his counsel by letter of December 12, 1975 (PX 8).

16. The defendants failed to comply with the terms of the release agreement by January 10, 1976, and plaintiff moved the Court on January 15, 1976 for an order compelling compliance. Such an order was entered on January 23, 1976 by U. S.

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Bluebook (online)
537 F. Supp. 643, 1982 U.S. Dist. LEXIS 11806, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lide-v-cline-ared-1982.