Murante v. Murante

CourtNebraska Court of Appeals
DecidedMarch 24, 2020
DocketA-19-362
StatusPublished

This text of Murante v. Murante (Murante v. Murante) is published on Counsel Stack Legal Research, covering Nebraska Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Murante v. Murante, (Neb. Ct. App. 2020).

Opinion

IN THE NEBRASKA COURT OF APPEALS

MEMORANDUM OPINION AND JUDGMENT ON APPEAL (Memorandum Web Opinion)

MURANTE V. MURANTE

NOTICE: THIS OPINION IS NOT DESIGNATED FOR PERMANENT PUBLICATION AND MAY NOT BE CITED EXCEPT AS PROVIDED BY NEB. CT. R. APP. P. § 2-102(E).

JOHN MURANTE, APPELLEE, V.

SAM MURANTE, SR., APPELLANT.

Filed March 24, 2020. No. A-19-362.

Appeal from the District Court for Douglas County: TIMOTHY P. BURNS, Judge. Affirmed. Matthew V. Rusch, of Erickson & Sederstrom, P.C., for appellant. Michael L. Storey, Brian J. Brislen, and Patrick D. Wier, of Lamson, Dugan & Murray, L.L.P., for appellee.

PIRTLE, RIEDMANN, and BISHOP, Judges. BISHOP, Judge. I. INTRODUCTION John Murante (John) sued his brother Sam Murante, Sr. (Sam), and Property Ventures, LLC (Property Ventures), for default on a promissory note and unjust enrichment. John sought recovery of a judgment in the amount due and owing on the note. After Property Ventures filed for bankruptcy, the matter proceeded solely against Sam. Thereafter, John and Sam filed cross-motions for summary judgment. The Douglas County District Court granted John’s motion, overruled Sam’s motion, and entered judgment in John’s favor in the amount of the accrued balance of the note ($309,447.66) and any further accruing interest. Sam appeals the district court’s entry of summary judgment in John’s favor, and also claims the district court failed to dispose of John’s unjust enrichment claim. We affirm.

-1- II. BACKGROUND 1. EVENTS SURROUNDING EXECUTION OF PROMISSORY NOTE In 1999, John and his then-wife entered into a joint investment with Sam and his then-wife, Gloria Murante (Gloria), in property at 5622 Ames Street in Omaha, Nebraska, which the record reflects was a commercial property. Each couple was cumulatively a 50-percent owner of that property. By some point in 2011, both couples had divorced, and only John and Gloria each owned a 50-percent interest in the property. Around that time, a limited liability company for the property was formed, called 5622 Ames, LLC. We refer to both the property itself and the property as a limited liability company as “5622 Ames.” In 2002, Property Ventures was the successful bidder for the purchase and renovation of the South Omaha City Hall (SOCH) building located in Omaha. Sam, as a managing member of Property Ventures, needed $100,000 for the acquisition of SOCH. Sam and John agreed that John would provide $50,000 to Property Ventures in exchange for a 12.5-percent ownership in SOCH. Sam’s son agreed to the same. Those agreements were set forth in a single 2002 “Conveyance Agreement” (Conveyance Agreement) signed by Sam as a grantor (on behalf of Property Ventures) and John and Sam’s son as grantees (in their individual capacities). To finance his SOCH investment, John said he transferred about $50,000 from his capital account at 5622 Ames to himself (in an affidavit, John said he paid $50,213 toward the SOCH project); he said that he was personally entitled to those funds and that transaction was “treated on the books as a loan.” John said he then transferred those funds to Property Ventures. Sam agreed that John took $50,000 from 5622 Ames and that at that moment John had possession and ownership of that money before using it for the SOCH project; 5622 Ames did not give that money directly to Property Ventures. In 2007, Sam wrote a letter to John offering to memorialize John’s ownership interest as a result of John’s investment in SOCH per the Conveyance Agreement. The letter also reflected that Property Ventures owed John a “receivable” related to his SOCH investment. During his deposition for this case, Sam could not recall if the arrangement to memorialize John’s ownership interest as proposed in the letter ever occurred. John asserted in an affidavit that he never received a memorialized ownership interest in SOCH. John said he received the 2007 letter along with an accounting document confirming his investment and setting forth the cash flow and tax credits that Sam and Property Ventures owed to him. According to John, Sam presented him an affidavit with an attached promissory note in 2013. The promissory note itself showed it was executed by Sam in 2006, promising to pay John $101,768.12 in a lump-sum payment no later than June 2010. Interest would accrue at a rate of 5 percent per annum on the unpaid principal balance. Upon default, the interest rate would increase to the lesser of a rate of 16 percent per annum or the highest rate legally permissible. The note identified Sam as the “Borrower.” Sam signed the note both individually and as the managing member of Property Ventures. The note was “the joint and several obligation of each Borrower.” There are apparent revisions completed by Sam in handwritten form upon the original note in May 2010, including an agreement to extend the date to pay John back to the “ABSOLUTE DEADLINE” of December 31, 2013. Another revision indicated that the amount due regarded “3 LOAN TOTAL | FROM 56&AMES TO PVLLC in 2002.” The handwritten revisions were signed

-2- by Sam individually and as managing member of Property Ventures. The affidavit that accompanies the note was signed by Sam (individually) in August 2013. In the affidavit, Sam affirmed that he was the borrower in the note and the debt was owed to John under the note. The affidavit stated it was meant to encumber three properties to secure payment of the debt owed to John. Sam later testified that he “crafted” the promissory note contemporaneously with the 2013 affidavit, adding the handwritten revisions on the note to make it look “better.” He said he authored the affidavit to “support the attached note in an effort to encumber the property to make it more difficult for a potential judgment lienholder to acquire the property [described in the affidavit].” But Sam also said the note regarded “monies owed from the loan repayment from Property Ventures.” According to John, sometime in 2005, 2006, or 2007, Sam verbally told John that Sam had executed the note to “protect” John’s interest under the Conveyance Agreement that was “funded from a loan from 5622 Ames.” John believed the note guaranteed repayment for his SOCH investment. The Conveyance Agreement included a provision which allowed Sam to buy out John’s (or Sam’s son’s) ownership interest based on the greater of: $125,000 or the actual value of John’s (or Sam’s son’s) ownership interest based upon a current appraisal. The Conveyance Agreement also provided that John and Sam’s son would receive tax credits. John thought the principal amount of the note ($101,768.12) was larger than his SOCH investment as stated in the Conveyance Agreement ($50,000) because the note was “essentially” a buyout of his ownership and also factored in the tax credits promised to him under the Conveyance Agreement. John estimated that factoring in interest, the buyout amount would have been “somewhere in that vicinity” of $101,768.12 in 2006 (when Sam executed the promissory note). However, John said he did not “author” or “create” the principal amount of the note. From November 13 to 15, 2015, Sam initiated an email exchange with John about a dispute between John and Gloria concerning 5622 Ames, even though Sam no longer had an ownership interest in 5622 Ames at this point and was divorced from Gloria.

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

Related

Davenport Ltd. v. 75th & Dodge I
780 N.W.2d 416 (Nebraska Supreme Court, 2010)
Professional Recruiters, Inc. v. Oliver
456 N.W.2d 103 (Nebraska Supreme Court, 1990)
Five Points Bank v. White
437 N.W.2d 460 (Nebraska Supreme Court, 1989)
Washa v. Miller
546 N.W.2d 813 (Nebraska Supreme Court, 1996)
Wynne v. Menard, Inc.
299 Neb. 710 (Nebraska Supreme Court, 2018)
Bloedorn Lumber Co. of N. Platte, Corp. v. Nielson
300 Neb. 722 (Nebraska Supreme Court, 2018)
Wintroub v. Nationstar Mortg. LLC
303 Neb. 15 (Nebraska Supreme Court, 2019)
Kaiser v. Union Pacific RR. Co.
303 Neb. 193 (Nebraska Supreme Court, 2019)

Cite This Page — Counsel Stack

Bluebook (online)
Murante v. Murante, Counsel Stack Legal Research, https://law.counselstack.com/opinion/murante-v-murante-nebctapp-2020.