Miller v. GLACIER DEVELOPMENT CO., LLC

270 P.3d 1065, 293 Kan. 665, 2011 Kan. LEXIS 627
CourtSupreme Court of Kansas
DecidedDecember 23, 2011
Docket101,097
StatusPublished
Cited by15 cases

This text of 270 P.3d 1065 (Miller v. GLACIER DEVELOPMENT CO., LLC) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miller v. GLACIER DEVELOPMENT CO., LLC, 270 P.3d 1065, 293 Kan. 665, 2011 Kan. LEXIS 627 (kan 2011).

Opinions

The opinion of the court was delivered by

Johnson, J.:

Lester M. Dean, Jr. challenges the entry of a personal judgment against him for an excess condemnation award which had been paid to Glacier Development Co., L.L.C. (Glacier), a limited liability company (LLC) of which Dean was the sole and managing member. Finding that the district court did not have jurisdiction to make the findings necessary to hold Dean personally liable for an LLC debt, we reverse.

Factual and Procedural Overview

Glacier owned certain property in Kansas City, Kansas, which the Kansas Department of Transportation (KDOT) took for highway purposes on August 13, 2003. KDOT’s eminent domain petition did not individually name Dean as a defendant or allege that he personally owned any of tire property. The court-appointed appraisers awarded Glacier $2.19 million as the fair market value of the property. Glacier applied to withdraw the appraisers’ award, subject to the payment of certain liens and other fees. The court subsequently granted the application, and the court clerk distributed the landowner’s share of the award to Glacier.

On August 29, 2003, KDOT appealed the appraisers’ award. Its notice of appeal to the district court listed a number of defendants, including Glacier, but it did not identify Dean, individually, as a landowner. However, certain attorneys filed an entry of appearance which declared that they were appearing “on behalf of Defendants, Glacier Development Company, L.L.C. and Lester M. Dean, Jr.” Thereafter, both parties and the district court included Dean in the case caption and referred to him as one of the landowners.

[667]*667In June 2005, a jury trial was conducted, resulting in a verdict that the subject property’s value was $800,000. The district court accepted the jury’s valuation and opined that “[a]s a result of the verdict, [KDOT] is entitled to judgment against the Defendants in the amount of $1,390,000, the difference between the amount previously paid by Condemnor and the jury’s verdict of just compensation, plus interest at the statutory rate from the date of taking until satisfied.” The court’s journal entry of judgment, file-stamped July 15, 2005, ordered that a judgment was awarded in favor of plaintiff KDOT “against the Defendants,” without specifically stating whether Dean, as an individual, was to be jointly and severally hable with the LLC for the excess distribution of the appraisers’ award.

The landowner appealed the jury verdict, continuing to utilize the modified caption that named Dean as a defendant and continuing to refer to Dean as an owner of the condemned property. However, while the appeal was pending, Glacier and Dean filed a motion in the district court, seeking either a nunc pro tunc order or relief from the district court judgment. Specifically, the motion requested that Dean’s name be removed from the judgment because he did not own the subject property in his personal capacity; he was not personally named as a defendant in KDOT’s petition; and he was not served with process in his personal capacity. On December 5, 2005, the district court denied the motion, finding that it could not characterize the naming of Dean as a defendant to be a clerical error or simple oversight that would be amenable to a nunc pro tunc order. Further, the district court opined that it did not have jurisdiction to address the substantive claim because the appeal had been docketed with the Clerk of the Appellate Courts, i.e., the assumption of jurisdiction by the appellate courts had terminated the district court’s jurisdiction over substantive questions.

Thereafter, Dean sought to set aside or stay the enforcement of the judgment in the State of Missouri based upon the fact that he was not a party to the Kansas eminent domain proceeding. That avenue of challenge was ultimately unsuccessful. See Miller v. Dean, 289 S.W.3d 620 (Mo. App. 2009).

[668]*668Back in Kansas, a divided Supreme Court affirmed the jury’s valuation verdict in a plurality opinion filed July 13, 2007. Miller v. Glacier Development Co., 284 Kan. 476, 161 P.3d 730 (2007). Thereafter, Dean filed a motion for relief from judgment in the district court, asserting that he was not properly a party defendant in the eminent domain appeal. The district court denied the motion, finding that its prior order in December 2005 was res judicata on the issue. Dean’s appeal of that ruling is now before us.

This opinion began its journey with then-Chief Justice Robert Davis participating in the decision and voting to affirm the imposition of personal liability upon Dean. The former Chief Justice did not have an opportunity to consider the current versions of the majority and dissenting opinions. Nevertheless, given that a majority of the court agrees with the current result, we deem it unnecessary to rehear the case with a substitute jurist. We will simply reflect that Chief Justice Davis dissents.

Res Judicata

The district court’s denial of Dean’s current challenge to its jurisdiction was based upon the doctrine of res judicata. From the beginning, all members of this court have been unanimous in finding that the district court’s reliance on res judicata was erroneous.

Standard of Review

Whether the doctrine of res judicata applies in a certain situation is an issue of law over which appellate courts exercise de novo review. Rhoten v. Dickson, 290 Kan. 92, 106, 223 P.3d 786 (2010).

Analysis

“Res judicata requires a prior final judgment on the merits.” State v. Flores, 283 Kan. 380, 384, 153 P.3d 506 (2007). In 2005, the district court correctly opined that it did not have jurisdiction to decide the substantive issue presented because a district court loses jurisdiction over a case when an appeal is docketed. See State v. McDaniel, 255 Kan. 756, 761, 877 P.2d 961 (1994). Obviously, if the district court was jurisdictionally precluded from ruling on the merits of an issue, it could not have entered the prior final judgment on the merits that is a prerequisite to invoking the doc[669]*669trine of res judicata. Accordingly, the district court erred in finding that the doctrine of res judicata governed.

Jurisdiction

The dispositive question in this matter is whether the district court had die authority to adjudge Dean personally liable to.KDOT for the amount of the appraisers’ award paid out to Glacier that exceeded the. compensation finally awarded on appeal. We find that it did not.-

Whether a judgment is void for lack of jurisdiction is a question of law over which an appellate court’s review is unlimited. Harsch v. Miller, 288 Kan. 280, 286, 200 P.3d 467 (2009).

The parties devote considerable effort arguing over whether Dean submitted to the personal jurisdiction of the district court after KDOT failed to personally name Dean as a defendant landowner in its appeal petition or to serve process on Dean in his personal capacity.

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Miller v. GLACIER DEVELOPMENT CO., LLC
270 P.3d 1065 (Supreme Court of Kansas, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
270 P.3d 1065, 293 Kan. 665, 2011 Kan. LEXIS 627, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-v-glacier-development-co-llc-kan-2011.