MacPhail v. Sagner

293 A.2d 257, 266 Md. 318, 1972 Md. LEXIS 740
CourtCourt of Appeals of Maryland
DecidedJuly 6, 1972
Docket[No. 247, September Term, 1971.]
StatusPublished
Cited by1 cases

This text of 293 A.2d 257 (MacPhail v. Sagner) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MacPhail v. Sagner, 293 A.2d 257, 266 Md. 318, 1972 Md. LEXIS 740 (Md. 1972).

Opinion

Proctor, J.,

delivered the opinion of the Court.

On October 27, 1969, in an interim opinion, Judge *321 Solomon Liss expressed the fond hope that this proceeding was then “in its last furlong.” Although that segment of this endurance contest was not the last furlong, this is.

On July 19, 1961, the famous Maryland bred stallion Saggy, owned by the late Stanley Sagner (Sagner), 1 was moved from the Country Life Farm of Joseph Pons to Glenangus Farms, Inc. (Glenangus), owned by Larry S. MacPhail (MacPhail), (Glenangus and MacPhail being herein collectively referred to as appellants). The transfer was pursuant to a proposed syndication agreement, negotiations for which had begun a month or two earlier. Saggy’s value as a studhorse had increased substantially in the summer of 1960 when one of his get, Carry Back, won both the Kentucky Derby and the Preakness. Sagner desired the syndication for tax purposes — MacPhail because it gave standing to his horse farm.

The syndicate agreement, after a number of drafts, reached final form in the latter part of August, 1961. Its pertinent provisions were: (1) Purchase price — $160,-000; (2) Shares to be sold — thirty-two at $5,000; (3) Purchase price of each share to be evidenced by a negotiable promissory note payable to Sagner, $1,000 to be paid on or before February 1, 1962, $2,000, on or before February 1, 1963, and $2,000, on or before February 1, 1964; (4) Saggy to be kept at Glenangus during the 1962, 1963 and 1964 breeding seasons under the personal management of MacPhail; (5) MacPhail to manage the syndicate, and (6) Rights of shareholders were detailed and breeding conditions were specified. Finally it was agreed that “In the event the syndication of the stallion be not completed, for any reason, prior to February 1, 1962, *322 then the first party (Sagner) shall return to each subscriber the promissory negotiable note executed by said subscriber as aforesaid.” MacPhail joined in the agreement to bind him to carry out his obligations thereunder. In a prior appeal, Sagner v. Glenangus Farms, Inc., 234 Md. 156, 164, 198 A. 2d 277 (1964), this Court found that “The final draft of the Saggy agreement would seem to have been as much MacPhail’s as Sagner’s.”

By September 19, 1961, only five shares had been subscribed. On October 24, 1961, having become disenchanted with MacPhail’s efforts to promote the syndicate, Sagner made an abortive effort to cancel the agreement. One of the subscribers withdrew at that time. Correspondence between counsel for the parties ensued. On December 4, 1961, Sagner’s attorney wrote MacPhail’s attorney that:

“If there is a failure of such sale (i.e. of shares), the contract is void, and we are entitled to return of the horse on February 2, 1962 upon paying to Mr. MacPhail all legitimate expenses to which he has been subjected and for which we would normally be liable. We intend to live up to the literal terms of the language of the agreement with respect to returning to prospective purchasers any notes which are in our possession, if on February 1, 1962, all 32 shares are not sold. In the event that Mr. MacPhail refuses to turn over to us the horse upon payment of his legitimate claims for expenses, we shall hold him strictly accountable for the value of the horse plus all losses of earnings which we have reason to expect for the breeding seasons in which Mr. MacPhail would continue to deprive us of our rights of ownership.”

No additional snares were sold. On January 27, 1962, MacPhail filed declaratory judgment proceedings against Sagner and refused to return Saggy. That proceeding was decided in favor of MacPhail on May 22, 1963. That judgment was reversed by this Court on March 11, 1964. *323 A motion to modify the opinion or for a rehearing was denied on April 16, 1964. Thereafter MacPhail persisted in his refusal to return Saggy, for the first time claiming an agistor’s lien. On June 2, 1964, this replevin proceeding was instituted by Sagner against MacPhail and Glenangus. A replevin bond was filed by Sagner and Saggy was finally returned to the Country Life Farm on June 3, 1964.

MacPhail filed pleas and a counterclaim, alleging that Sagner’s “wrongful action and conduct” had caused “this Defendant to suffer great loss and damage.” Glenangus filed pleas and three counterclaims. The first was based on an alleged agreement by Sagner to pay for board and other expenses at the rate of $300 per month from July 19, 1961, to June 3, 1964, or a total of $9,562.15. The second alleged an understanding between it and Sagner under which he was to pay the reasonable cost of board and other expenses which was $300 per month for the period from July 19, 1961, to June 3, 1964. The third was for damages attributable to Sagner’s alleged delay in the preparation of the Syndication Agreement and his alleged premature attempts to cancel the agreement.

Glenangus filed a motion for summary judgment on the issue that it was entitled to reimbursement for board and other expenses for the period from July 19, 1961, to April 16, 1964 (first and second counterclaims). On June 13, 1969, Judge David Ross entered judgment on that motion on the issue of liability alone in favor of Glenangus, for the reasonable cost of board, keep and maintenance of Saggy for the period September 1, 1961, through January 31, 1962, and in favor of Sagner on the claim for such costs for all periods subsequent to January 31, 1962.

Sagner filed motions for summary judgments (1) on the replevin suit for the stallion Saggy and for damages caused by his detention; and (2) on MacPhail’s counterclaim and the third counterclaim of Glenangus. On July 10, 1969, Judge David Ross entered judgment on the motion in favor of Sagner “with respect to the replevin ac *324 tion as to liability only, leaving for determination by the jury the amount of damages, if any.” On February 20, 1970, Judge Solomon Liss dismissed the counterclaim of MacPhail and the third counterclaim of Glenangus “with prejudice”. By that order Judge Liss also ruled,

“That the Plaintiffs are entitled, subject to proof, to the reasonable value of the stud fees lost by the Plaintiffs by reason of the detention of Saggy from February 1, 1962, including any stud fees received by MacPhail and Glenangus Farms while the horse was in their possession against which fees must be charged a reasonable management fee, as determined by the custom of the trade, but not the cost of board and maintenance incurred by MacPhail and Glenangus, together with other damages properly recoverable in a replevin action, including the costs of this suit.”

Appellants moved for summary judgment in their favor on Sagner’s claim for damages, apart from costs, bond and punitive damages in favor of Sagner, for one cent nominal damages. The basis for this motion was the contention that Saggy was in fact owned by a partnership. On June 1, 1970, this motion was denied by Judge Shirley B. Jones.

The case was tried on the question of damages before a jury, Judge Jones presiding, between June 11 and 18, 1970. The jury returned a verdict in favor of Sagner in the amount of $131,000.

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Bluebook (online)
293 A.2d 257, 266 Md. 318, 1972 Md. LEXIS 740, Counsel Stack Legal Research, https://law.counselstack.com/opinion/macphail-v-sagner-md-1972.