Newell v. Krause

722 P.2d 530, 239 Kan. 550, 1986 Kan. LEXIS 382
CourtSupreme Court of Kansas
DecidedJuly 18, 1986
Docket57,911, 58,038
StatusPublished
Cited by31 cases

This text of 722 P.2d 530 (Newell v. Krause) 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
Newell v. Krause, 722 P.2d 530, 239 Kan. 550, 1986 Kan. LEXIS 382 (kan 1986).

Opinions

The opinion of the court was delivered by

McFarland, J.:

This is an action by Kenneth D. Newell, a real estate broker, against his principals (Carl N. and James C. Brollier) and others involved directly or indirectly with the purchasers of the farms, wherein plaintiff seeks damages arising from the sales of several tracts of farmland. All defendants, except James C. Brollier, were removed from the action on assorted grounds prior to submission of the case to the jury. The jury returned a verdict in favor of plaintiff and against James C. Brollier in the amount of $171,733.20 actual damages and $150,000.00 punitive damages. Plaintiff and defendant James C. Brollier appeal and cross-appeal, respectively. Defendants Gary Krause and Paradise Valley Farms, Inc., have filed cross-appeals that are contingent in nature — coming up for consideration only in the event this court disturbs the trial court’s removal of these defendants from the jury’s consideration.

The facts involved in this action are extraordinarily complex. To set them out in full at this point in the opinion would only result in much duplication as the various issues are discussed. Still, it is necessary to provide a basic factual foundation and introduce the cast of parties before turning to the issues. Carl N. and James C. Brollier (father and son) owned a farming operation in western Kansas consisting of several farms. In 1977, plaintiff Newell entered into an exclusive six-month listing agreement to [552]*552sell six of the Brollier farms. Sales of farmland were slow at the time and plaintiff had no success selling the farms through his regular channels. Plaintiff made contact with defendant Krause in an effort to sell the farms to European investors (a market which he believed Krause had access to). At the time Krause was an employee of Builders, Inc. (nota party hereto). Builders, Inc., and all of the named corporate defendants are, or were, parts of the Wichita based Garvey organization. Through Krause, plaintiff seeks to impose liability on all the corporate defendants. Two of the farms were sold within the time period of the listing agreement to Paradise Valley Farms. Plaintiff received his commission on these. The other four farms were sold (also to Paradise Valley Farms) after the expiration of the listing agreement. In this action plaintiff contends the Brollier defendants conspired to delay the four sales in order to cheat him out of his commission. Additionally, he contends he was entitled, through an oral agreement with Krause, to fifty percent of the net profits on the resale of the farms by Paradise Valley Farms. The actual damage award consisted of a six percent commission on the sales of the four farms plus prejudgment interest.

For convenience, the issues will be grouped as to the particular defendant or defendants involved herein.

CARL N. BROLLIER

The only issue relative to Carl N. Brollier is whether the trial court erred in dismissing plaintiff s action against him on the ground of lack of personal jurisdiction.

Carl N. Brollier had an office in Moscow, Kansas. On August 9, 1979, service of process was attempted on Carl Brollier and his wife (the latter no longer being in the action and no issue relative to her is involved in this appeal). The sheriff s return stated the following:

“(2) By leaving on the 9th day of August, 1979, for each of the within-named defendants At their usual place of business for Carl N. Brollier by leaving w/their son, James Brollier . . . (Emphasis supplied.)

K.S.A. 60-304 provides:

“The summons and petition shall be served together. The plaintiff shall furnish the clerk such copies of the petition as are necessary. Service shall be made as follows:
“(a) Individual. Upon an individual other than a minor or an incapacitated person, by delivering a copy of the summons and of the petition to the individual personally or by leaving copies thereof at such individual’s dwelling house or [553]*553usual place of abode with some person of suitable age and discretion then residing therein or by delivering a copy of the summons and of the petition to an agent authorized by appointment or by law to receive service of process, but if the agent is one designated by statute to receive service, such further notice as the statute requires shall be given. A judge of the district court, upon a showing that service as prescribed above cannot be made with due diligence, may order service to be made by leaving a copy of the summons and of the petition at the defendant’s dwelling house or usual place of abode.” (Emphasis supplied.)

Clearly this statute was not complied with. Service was attempted at Carl’s place of business. James was not “an agent authorized by appointment or by law to receive service of process.” Plaintiff does not contend the service was proper. Rather, plaintiff contends Carl waived his defense of lack of personal jurisdiction and that the trial court erred in holding otherwise.

The record reflects the attempted service occurred on August 9,1979. On October 2,1979, Carl filed his answer to the petition. Therein he stated that he did “not waive but [would] expressly reserve, rely upon and affirmatively plead the following defenses: . . . insufficiency of service of process . . . .’’(Emphasis supplied.) Apparently, plaintiff made no effort to determine the basis for this asserted defense.

The pretrial conference of this case was held on August 15, 1984. A defense asserted in the pretrial order by Carl was “lack of jurisdiction.” The case was called for trial on January 21, 1985. At that time the court sustained Carl’s motion to dismiss on the ground of lack of personal jurisdiction.

Plaintiff contends Carl had waived this defense. Crucial to his argument is his claimed distinction betwéen defenses of “lack of personal jurisdiction” and “insufficiency of process.” K.S.A. GO-212 provides in part:

“(a) When defenses and objections presented. A defendant shall serve his answer within twenty (20) days after the service of the summons and petition upon him ....
“(b) How presented. Every defense, in law or fact, to a claim for relief in any pleading, whether a claim, counterclaim, cross-claim, or third-party claim, shall be asserted in the responsive pleading thereto if one is required, except that the following defenses may at the option of the pleader be made by motion: (1) Lack of jurisdiction over the subject matter, (2) lack of jurisdiction over the person, (3) improper venue, (4) insufficiency of process, (5) insufficiency of service of process, (6) failure to state a claim upon which relief can be granted, (7) failure to join a party under K.S.A. 60-219.” (Emphasis supplied.)

Carl asserted “insufficiency of service of process” in his answer. [554]*554Failure to list this defense at pretrial operates as a waiver thereof, argues plaintiff.

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Cite This Page — Counsel Stack

Bluebook (online)
722 P.2d 530, 239 Kan. 550, 1986 Kan. LEXIS 382, Counsel Stack Legal Research, https://law.counselstack.com/opinion/newell-v-krause-kan-1986.