Omaha Cold Storage Terminals, Inc. v. Patterson

733 N.W.2d 219, 15 Neb. Ct. App. 548, 26 I.E.R. Cas. (BNA) 405, 2007 Neb. App. LEXIS 84
CourtNebraska Court of Appeals
DecidedMay 15, 2007
DocketA-05-713
StatusPublished
Cited by1 cases

This text of 733 N.W.2d 219 (Omaha Cold Storage Terminals, Inc. v. Patterson) 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.

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Omaha Cold Storage Terminals, Inc. v. Patterson, 733 N.W.2d 219, 15 Neb. Ct. App. 548, 26 I.E.R. Cas. (BNA) 405, 2007 Neb. App. LEXIS 84 (Neb. Ct. App. 2007).

Opinion

Irwin, Judge.

I. INTRODUCTION

John Patterson appeals from orders of the district court for Douglas County, Nebraska, denying Patterson’s request for a jury trial in this action to determine whether Patterson’s employment claim was subject to arbitration, and ruling, on the merits of the action, that the parties had not entered into an agreement containing a provision for arbitration. On appeal, Patterson assigns various errors concerning the court’s denial of his request for a jury trial and the court’s ruling on the merits of the action. Because we find that Patterson was entitled to a jury trial, we reverse, and remand for a new trial.

II. BACKGROUND

Patterson began employment with Omaha Cold Storage Terminals, Inc. (OCST), in 1984. Patterson resigned from OCST approximately 1 year after starting. Patterson returned to OCST, as president, in 1993. When Patterson returned to OCST in 1993, he was hired pursuant to a written employment contract.

In 1998, Patterson and OCST had discussions concerning Patterson’s contract. OCST presented Patterson with a new *549 contract, which Patterson rejected. Patterson then contacted an attorney to draft a new employment contract. In June, an OCST board meeting was held. OCST informed Patterson that his draft of the new employment contract was not acceptable.

According to Patterson, OCST presented him with another proposed employment contract in July 1998. According to Patterson, he then had his attorney review the OCST proposal and draft another proposed employment contract. On July 13, a meeting was held involving Patterson and OCST board members, at which meeting the proposed employment contracts were discussed. The parties dispute exactly what occurred and whether any of the proposed employment contracts were accepted.

Patterson continued as OCST president and continued to be paid a salary and receive bonuses. In April 2004, OCST terminated Patterson’s employment.

On August 12, 2004, Patterson filed a claim with the “United States Arbitration and Mediation Association.” Patterson alleged that he and OCST had entered into a written employment contract in July 1998, that he had exercised an option to extend the contract in 2003, and that his employment had been wrongfully terminated by OCST. Patterson attached a copy of the alleged employment contract to his claim, which contract includes a provision requiring arbitration “[i]n the event a dispute shall arise between the parties.”

On August 23, 2004, OCST filed a complaint in district court. OCST alleged that there did not exist a valid written agreement to submit claims to arbitration. OCST alleged that Patterson had continued to work for OCST without a written employment contract, as an at-will employee, between 1998 and 2004. On August 31, 2004, OCST filed a motion for a temporary stay of the arbitration proceedings.

On September 1, 2004, Patterson filed an answer and counterclaim. Patterson alleged the existence of a written employment contract and the existence of an arbitration provision.

On September 13, 2004, OCST filed an amended complaint which, for purposes of our discussion, is substantially the same as the original complaint. On October 7, Patterson filed an answer to the amended complaint, in which answer he made substantially the same assertions as in his prior answer.

*550 On October 25 and November 24, 2004, the court entered pretrial orders. The November 24 order indicated trial dates of February 16 and 17, 2005.

On February 2, 2005, Patterson filed a motion requesting a jury trial. On February 14, the district court entered an order overruling Patterson’s motion. In overruling the motion, the district court cited the following reasons: because Patterson waited until approximately 2 weeks prior to trial to request a jury; because Patterson’s requests for arbitration and a jury trial on the issue of whether there existed an agreement to arbitrate were “inconsistent”; and because the gravamen of the case was whether there existed an agreement to arbitrate pursuant to Neb. Rev. Stat. § 25-2603(b) (Cum. Supp. 2006), which provides that the issue “shall be forthwith and summarily tried,” which language the court interpreted to mean “ ‘without a jury.’ ”

A bench trial was held on February 16 and 17, 2005. On April 14, the district court entered an order on the merits of the case, finding that there was no written employment agreement. This appeal followed.

III. ASSIGNMENTS OF ERROR

Patterson has assigned six errors on appeal concerning the district court’s denial of his request for a jury trial and concerning the court’s finding that there was no written employment agreement. We find that this appeal is disposed of by consideration of Patterson’s three assignments of error concerning the court’s denial of his request for a jury trial.

IV. ANALYSIS

One of the issues raised by Patterson in this appeal is his assertion that the district court erred in denying his request for a jury trial. We agree, and we find that each basis for the district court’s denial of the request was erroneous.

First, we find that the district court erred in denying Patterson’s request for a jury trial on the basis that Patterson waited until “approximately two weeks before the trial” to make his request. The district court cited no authority for this basis, OCST has cited no authority on appeal to support this basis, and we are unaware of any authority that suggests that a party waives his *551 right to a jury trial by not requesting such more than 2 weeks prior to the scheduled trial date.

Second, we find that the district court erred in denying Patterson’s request for a jury trial on the basis that Patterson’s request for a jury trial was “inconsistent” with his request to have his underlying wrongful termination claim submitted to arbitration. We see nothing inconsistent about Patterson’s position that there was a written agreement containing an arbitration clause which required the wrongful termination claim to be decided by an arbiter on one hand and his request to have a jury determine whether such an agreement existed on the other hand. Patterson’s position has consistently been simply that the case should be resolved outside of the court setting, through arbitration; OCST brought the issue of whether there existed an employment agreement into court, but Patterson’s position concerning arbitration does not preclude him from requesting a jury trial. The district court has cited no authority in support of its position in this regard, OCST has cited no authority in support of the position, and we are aware of no authority in support of the position.

The third, and crucial, basis for the district court’s denial of Patterson’s request for a jury trial is premised on the court’s interpretation of the language of § 25-2603(b) concerning the issue of whether there exists an agreement to arbitrate.

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733 N.W.2d 219, 15 Neb. Ct. App. 548, 26 I.E.R. Cas. (BNA) 405, 2007 Neb. App. LEXIS 84, Counsel Stack Legal Research, https://law.counselstack.com/opinion/omaha-cold-storage-terminals-inc-v-patterson-nebctapp-2007.