Noah's Ark Processors v. UniFirst Corp.

310 Neb. 896
CourtNebraska Supreme Court
DecidedFebruary 11, 2022
DocketS-21-086
StatusPublished
Cited by1 cases

This text of 310 Neb. 896 (Noah's Ark Processors v. UniFirst Corp.) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Noah's Ark Processors v. UniFirst Corp., 310 Neb. 896 (Neb. 2022).

Opinion

Nebraska Supreme Court Online Library www.nebraska.gov/apps-courts-epub/ 04/15/2022 12:08 AM CDT

- 896 - Nebraska Supreme Court Advance Sheets 310 Nebraska Reports NOAH’S ARK PROCESSORS v. UNIFIRST CORP. Cite as 310 Neb. 896

Noah’s Ark Processors, LLC, a Minnesota limited liability company, appellant, v. UniFirst Corporation, a Massachusetts corporation, appellee. ___ N.W.2d ___

Filed February 11, 2022. No. S-21-086.

1. Appeal and Error. An appellate court is not obligated to engage in an analysis that is not necessary to adjudicate the case and controversy before it. 2. Arbitration and Award: Judgments: Appeal and Error. Whether a stay of proceedings should be granted and arbitration required is a ques- tion of law. When reviewing questions of law, an appellate court has an obligation to resolve the questions independently of the conclusion reached by the trial court. 3. Equity: Appeal and Error. In an appeal of an equity action, an appel- late court tries factual questions de novo on the record and reaches a conclusion independent of the findings of the trial court; provided, where the credible evidence is in conflict on a material issue of fact, the appellate court considers and may give weight to the fact that the trial judge heard and observed the witnesses and accepted one version of the facts rather than another. 4. Trial: Evidence: Appeal and Error. A trial court has the discretion to determine the relevancy and admissibility of evidence, and such deter- minations will not be disturbed on appeal unless they constitute an abuse of that discretion. 5. Rules of Evidence: Hearsay: Appeal and Error. Apart from rulings under the residual hearsay exception, an appellate court reviews for clear error the factual findings underpinning a trial court’s hearsay ruling and reviews de novo the court’s ultimate determination to admit evidence over a hearsay objection or exclude evidence on hearsay grounds. - 897 - Nebraska Supreme Court Advance Sheets 310 Nebraska Reports NOAH’S ARK PROCESSORS v. UNIFIRST CORP. Cite as 310 Neb. 896

6. Evidence: Appeal and Error. In a civil case, the admission or exclu- sion of evidence is not reversible error unless it unfairly prejudiced a substantial right of the complaining party. 7. Estoppel. To impose equitable estoppel, the court must find as to the party estopped, (1) conduct which amounts to a false representation or concealment of material facts or, at least, which is calculated to convey the impression that the facts are otherwise than, and inconsistent with, those which the party subsequently attempts to assert; (2) the intention, or at least the expectation, that such conduct shall be acted upon by, or influence, the other party or other persons; (3) knowledge, actual or con- structive, of the real facts; as to the other party, (4) lack of knowledge and of the means of knowledge of the truth as to the facts in question; (5) reliance, in good faith, upon the conduct or statements of the party to be estopped; and (6) action or inaction based thereon of such a character as to change the position or status of the party claiming the estoppel, to his or her injury, detriment, or prejudice. 8. Appeal and Error. An appellate court will not consider an argument or theory that is raised for the first time on appeal. 9. Trial: Evidence: Presumptions. In a bench trial, the court is presumed to have considered only competent and relevant evidence in making its decision. 10. Judgments: Words and Phrases: Appeal and Error. An abuse of discretion, warranting reversal of a trial court’s evidentiary decision on appeal, occurs when a trial court’s decision is based upon reasons that are untenable or unreasonable or if its action is clearly against justice or conscience, reason, and evidence.

Appeal from the District Court for Douglas County: Gregory M. Schatz, Judge. Affirmed. W. Patrick Betterman, P.C., L.L.O., for appellant. Max Kelch and Matt Davis for appellee. Heavican, C.J., Miller-Lerman, Cassel, Stacy, Funke, Papik, and Freudenberg, JJ. Funke, J. Noah’s Ark Processors, LLC (Noah’s), notified UniFirst Corporation (UniFirst) that it was terminating their busi- ness agreement. Pursuant to an arbitration clause, UniFirst - 898 - Nebraska Supreme Court Advance Sheets 310 Nebraska Reports NOAH’S ARK PROCESSORS v. UNIFIRST CORP. Cite as 310 Neb. 896

commenced an arbitration proceeding against Noah’s seeking damages. Noah’s sought a declaration in district court that because Noah’s was not a signatory to the agreement, Noah’s was not bound by the agreement or the arbitration provision. Following a bench trial, the court dismissed the complaint of Noah’s, determined that Noah’s was equitably estopped from contesting that it is bound by the agreement and arbitration provision, and directed Noah’s to participate in arbitration. Noah’s appeals. The appeal is without merit. We affirm.

BACKGROUND UniFirst, a Massachusetts corporation, is a supplier of indus- trial worker uniforms. Nebraska Prime Group LLC (Prime) is a Nebraska limited liability company, which operated a meatpacking business in Hastings, Nebraska. In 2013, UniFirst and Prime entered into a customer service agreement (CSA), under which UniFirst agreed to provide uniforms and related services for Prime’s meatpacking business. The initial term of the CSA was 60 months, through April 2018, and then on a ­month-to-month basis thereafter. The CSA included separate line items with pricing and stated, “The Customer orders from [UniFirst] for all of Customer’s requirements for garments and other items (‘Merchandise’) of the type listed on the reverse, at the prices and upon the terms and conditions outlined. Additional Merchandise requested by Customer, verbally or in writing, will also be covered by this Agreement.” The CSA required arbitration for “[a]ll disputes of whatever kind between Customer and UniFirst.” The CSA stated, “Customer agrees that in the event it sells or transfers its business, it will require the purchaser or transferee to assume all obligations and responsibilities under this Agreement.” Noah’s is a Minnesota limited liability company doing busi- ness in Omaha, Nebraska. In 2014, through foreclosure of a lien, Noah’s acquired Prime’s assets, including the meat­ packing operation. Prime continued its operations at the plant until January 1, 2015. On January 2, Noah’s took possession - 899 - Nebraska Supreme Court Advance Sheets 310 Nebraska Reports NOAH’S ARK PROCESSORS v. UNIFIRST CORP. Cite as 310 Neb. 896

of the property and began operating the plant and assets for its own account. UniFirst continued to provide services to the plant under the CSA, until January 2018, when Noah’s issued a termination letter. In June 2018, UniFirst filed an arbitration demand against Noah’s, seeking $141,054.01 in damages and requesting that the arbitration occur in Topeka, Kansas. In September, Noah’s filed a complaint in the district court for Douglas County, Nebraska, seeking a declaration that the CSA is not binding against it and a determination of any balance due to UniFirst under an oral arrangement. UniFirst filed an answer deny- ing the allegations and asserting affirmative defenses that (1) Noah’s ratified the CSA, (2) Noah’s continued Prime’s opera- tion of the plant business and utilization of services under the CSA, and (3) Noah’s was estopped from denying the existence of a valid contract. Noah’s moved for summary judgment, arguing that it was not bound by the CSA or, in the alternative, that UniFirst had waived its right to arbitration. The court granted the motion of Noah’s with respect to UniFirst’s ratification and successor liability affirmative defenses, but denied the motion as to the equitable estoppel affirmative defense, finding genuine issues of material fact.

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Noah's Ark Processors v. UniFirst Corp.
310 Neb. 896 (Nebraska Supreme Court, 2022)

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