Melton v. Lehmann

794 P.2d 650, 118 Idaho 61, 1990 Ida. App. LEXIS 98
CourtIdaho Court of Appeals
DecidedJuly 3, 1990
DocketNo. 18166
StatusPublished
Cited by2 cases

This text of 794 P.2d 650 (Melton v. Lehmann) is published on Counsel Stack Legal Research, covering Idaho Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Melton v. Lehmann, 794 P.2d 650, 118 Idaho 61, 1990 Ida. App. LEXIS 98 (Idaho Ct. App. 1990).

Opinion

CAREY, Judge Pro Tern.

This case involves cross-appeals from a judgment in favor of M.M. Melton on his claim against Stanley Lehmann for breach of a farm lease. The cross-appeals raise two issues: (1) should the district court have dismissed the claim against Lehmann after the claim against his co-defendant, Dan Potucek, was compromised? (2) Was the district court correct in refusing to award all the attorney fees claimed by Melton? The decision denying the motion to dismiss is affirmed and the award of attorney fees also is affirmed.

Melton leased a farm to Lehmann and Potucek for the crop years 1985 and 1986. The written lease included the following material language:

This agreement made and entered into this 15th day of February 1985 by and between M.M. Melton ... hereinafter referred to as Landlord and Stanley Lehman[n] ... and Dan Potucek ... hereinafter referred to as Tenants.
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LEASED PREMISES. The Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord that certain real property ... known as the Ascuena Farm____
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[63]*63TERM. The term of this lease shall be for two years which shall include the cropping year of 1985 and the cropping year of 1986____ This is a cash lease and the sum of $15,000.00 will be paid in cash for each cropping year. The sum of $5,000.00 to be paid on execution of this document and the sum of $10,000.00 to be paid on or before May 1, 1985. The sum of $5,000.00 to be paid on or before March 1, 1986 and the sum of $10,000.00 to be paid or before May 1, 1986____ ******
ATTORNEY FEES. It is specifically understood between each of the parties hereto that in the event either party to this agreement should default in any manner, whether by failure to make payments specified herein or otherwise, that all attorney fees and court costs incurred in such litigation, concerning such matters, shall be collectible by the prevailing party, in addition to such other remedies as the prevailing party may have under the terms of this agreement, or which may be provided by Idaho law.

Lehmann and Potucek made the 1985 lease payments but not those due in 1986. In February 1987, Melton filed a complaint against both tenants for breach of the lease agreement. They, in turn, filed various counterclaims and cross-claims, the facts of which are not material to the resolution of the issues in this appeal.

Prior to trial Melton and Potucek settled their dispute. Under the terms of the settlement agreement, Potucek consented to entry of a judgment in favor of Melton and against himself in the amount of $15,000 plus interest, costs, and attorney fees to be assessed at a later date. The resulting judgment, entered on January 11, 1988, also dismissed Potucek’s counterclaim against Melton.

In addition, the agreement required Potucek to execute a promissory note in favor of Melton in the amount of $6,000 and prohibited Melton from executing on or otherwise attempting to collect the Potucek judgment. Both Potucek and Melton lived up to the terms of the settlement agreement.

Melton apparently was concerned about the effect of the settlement on his claim against Lehmann, for the agreement provided:

4. It is expressly understood and agreed that Melton reserves for himself full and complete rights to pursue the pending litigation against Lehmann.
5. This covenant is given by Melton with full reservation of rights for damages claimed against Lehmann. This covenant is not a release, nor shall it be construed to be a release of any party, person, firm or corporation.

Melton’s claim against Lehmann went to trial. At the close of Melton’s evidence, Lehmann moved to dismiss the claim, arguing that he was not liable on the lease once the claim against his co-tenant had been compromised. The district court denied the motion and ultimately entered a money judgment in favor of Melton and against Lehmann. In its decision, the court gave Lehmann credit for a number of items, including a $6,000 credit for the Potucek promissory note. The final judgment, which adjudicated the claims remaining after the settlement, was entered on February 15, 1989, and was amended on May 10, 1989.

COMPROMISE OF THE CLAIM AGAINST THE CO-TENANT

Lehmann argues on appeal that the January 11 consent judgment entered only against Potucek barred further prosecution of the claim against him because the obli.gation owed to Melton was joint rather than joint and several; consequently the entire obligation was merged into and extinguished by the first judgment against one but not both joint obligors. Compare Balley v. Davis, 75 Idaho 73, 267 P.2d 631 (1954) (dismissal of claim against one defendant on a joint partnership obligation operates as a dismissal of claim against all partners). In effect Lehmann is asking that the rules encompassed by res judicata be applied in his favor on the basis of the consent judgment.

[64]*64The argument raises a serious policy question about the continuing validity of the traditional distinctions between multiple promises of the same performance that are “joint”, “several”, or “joint and several.” The distinctions have been criticized by many thoughtful commentators, but the question need not be resolved in this case, because the judgment against Potucek was not final until all the claims of the parties to the action were adjudicated.

Generally the rules of res judicata, including both claim preclusion and issue preclusion, apply only to final judgments. See Carpenter v. Double R Cattle Co., 105 Idaho 320, 669 P.2d 643 (Ct.App.1983), vacated on other grounds, 108 Idaho 602, 701 P.2d 222 (1985); Gilbert v. Nampa School Dist. No. 131, 104 Idaho 137, 657 P.2d 1 (1983); RESTATEMENT (SECOND) OF JUDGMENTS § 13. Under I.R.C.P. 54(b), a judgment which adjudicates some, but not all, claims presented in an action is not final unless so certified by the judge. The district judge did not issue a Rule 54(b) certificate upon entry of the consent judgment against Potucek. The judgment, therefore, was not final. In the absence of a determination and direction of finality, I.R.C.P. 54(b) provides:

any order or other form of decision, however designated, which adjudicates less than all the claims or the rights and liabilities of less than all the parties shall not terminate the actions as to any of the claims or parties, and the order or other form of decision is subject to revision at any time before the entry of judgment adjudicating all the rights and liabilities of the parties____

Because the judgment entered against Potucek on January 11, 1988, was provisional and subject to revision by the court at any time prior to entry of a final judgment, res judicata does not apply and Lehmann’s merger argument must fail.

The Bailey case, relied on by Lehmann, was decided in 1954, prior to promulgation of I.R.C.P. 54(b).

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Cite This Page — Counsel Stack

Bluebook (online)
794 P.2d 650, 118 Idaho 61, 1990 Ida. App. LEXIS 98, Counsel Stack Legal Research, https://law.counselstack.com/opinion/melton-v-lehmann-idahoctapp-1990.