Pantano v. McGowan

530 N.W.2d 912, 247 Neb. 894, 1995 Neb. LEXIS 111
CourtNebraska Supreme Court
DecidedMay 5, 1995
DocketS-93-760
StatusPublished
Cited by66 cases

This text of 530 N.W.2d 912 (Pantano v. McGowan) 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
Pantano v. McGowan, 530 N.W.2d 912, 247 Neb. 894, 1995 Neb. LEXIS 111 (Neb. 1995).

Opinion

Fahrnbruch, J.

Ross A. Pantano wanted to buy Business Interiors and Design, Inc. (Company), a family-owned corporation, by purchasing all of its outstanding capital stock for $1,060,000.

Pursuant to a written agreement with the Company and its shareholders, Pantano purchased 345 shares of the Company’s stock for $40,000. In the agreement, the shareholders granted Pantano an option to purchase the Company’s remaining outstanding capital stock. John J. McGowan, the Company’s *895 majority shareholder, agreed that if Pantano did not exercise his option, that he, McGowan, would personally purchase Pantano’s 345 shares of stock for $40,000.

After Pantano failed to obtain financing, he did not exercise his option to purchase the remaining outstanding stock. Pursuant to the written agreement, Pantano demanded in writing that McGowan purchase from him the 345 shares Pantano had purchased from the Company’s shareholders. Pantano’s demand was sent by certified mail to, and received by, McGowan. McGowan refused to purchase Pantano’s stock.

Pantano successfully sued McGowan for breach of the written contract in which McGowan agreed to purchase Pantano’s stock. McGowan filed two counterclaims against Pantano, but those were dismissed by the trial court.

McGowan appealed the judgment entered by the district court for Douglas County to the Nebraska Court of Appeals, but on appeal he did not assign any errors. In order to regulate the caseloads of the appellate courts of this state, we removed this case to the Supreme Court.

Because McGowan failed to assign any error, we limit our review to plain error. Noting plain error, we vacate the district court’s award of prejudgment interest.

ADDITIONAL FACTS

The written agreement between Pantano and the Company and its shareholders was entered into on October 23, 1991.

Paragraph 11 of the agreement provides: “All notices, offers, acceptances, exercise of options, waivers and other acts under this Agreement shall be in writing and shall be deemed to have been duly given when delivered in person or sent by certified mail addressed to the Company . . . .” (Emphasis supplied.)

Paragraph 12(a) of the agreement provides: “This instrument and the agreements referred to herein contain the entire agreement among the parties . . . and no modification shall be binding upon a party unless set forth in writing and duly executed by each party affected.” (Emphasis supplied.)

Also on October 23, McGowan, as president of the Company, executed an employment contract under which the Company hired Pantano for 1 year, retroactive from July 1991 to July *896 1992, at a salary of $6,250 per month for the first 6 months and thereafter at $4,166.66 per month plus commissions.

Paragraph 16 of the employment agreement provides: “This Agreement and the Agreement referred to in the recitals hereto constitutes the full and complete understanding and agreement of the parties . . . and cannot be amended, changed, or modified without the consent, in writing, of the parties hereto.” (Emphasis supplied.)

On March 10, 1993, Pantano filed his petition seeking $40,000 plus interest because of McGowan’s refusal to personally purchase the 345 shares of stock Pantano had bought from the Company’s shareholders.

In his answer, McGowan alleged that between July and September 1992, Pantano and McGowan had orally modified the stock purchase agreement so that McGowan would continue to pay Pantano the original salary of $6,250 per month “until such time [Pantano] exercised his option.”

As previously stated, McGowan also filed two counterclaims. The first counterclaim alleged that the oral agreement to employ Pantano at $6,250 per month until such time as Pantano exercised his option modified the stock purchase agreement and the employment contract. McGowan alleged that the oral modification caused Pantano to receive enhanced wages. McGowan sought $27,083.42 in damages plus interest and attorney fees due to McGowan’s reliance on the purported oral modification of the two agreements.

In the second counterclaim, McGowan alleged that since June 1991, “extraordinary events” reduced the Company’s net worth approximately 66 percent. McGowan sought damages in his second counterclaim in the amount of between $244,100.14 and $739,697.40 plus interest and attorney fees because of Pantano’s alleged breach of the alleged oral modification to the stock purchase agreement.

Pantano filed a demurrer to McGowan’s answer and counterclaims, and the district court sustained the demurrer based upon the statute of frauds contained in Neb. U.C.C. § 8-319 (Reissue 1992). The court dismissed the counterclaims after McGowan elected to stand on them.

Pantano then filed a motion for summary judgment which *897 was sustained by the district court. The court entered judgment for Pantano in the amount of $40,000 plus prejudgment interest from March 2, 1993, the date McGowan received Pantano’s demand letter for the $40,000.

ANALYSIS

Initially, we note that the proper manner in which to challenge the appropriateness of a counterclaim is by a motion to strike rather than by a demurrer. Barks v. Cosgriff Co., ante p. 660, 529 N.W.2d 749 (1995). We will treat Pantano’s action as a demurrer because both parties and the district court treated it as such. See id.

As previously stated, McGowan’s brief does not contain any assignment of error. To be considered by an appellate court, an error must be assigned and discussed in the brief of the one claiming that prejudicial error has occurred. Gravel v. Schmidt, ante p. 404, 527 N.W.2d 199 (1995). See, also, Neb. Ct. R. of Prac. 9D(l)d (rev. 1992). Thus, errors which are argued but not assigned will not be considered by an appellate court. Manske v. Manske, 246 Neb. 314, 518 N.W.2d 144 (1994).

Where an appellant fails to assign any specific error, the decision appealed from will be affirmed unless the court elects to note plain error. In re Interest of A.W., 224 Neb. 764, 401 N.W.2d All (1987). Plain error is error plainly evident from the record and of such a nature that to leave it uncorrected would result in damage to the integrity, reputation, or fairness of the judicial process. First Nat. Bank in Morrill v. Union Ins. Co., 246 Neb. 636, 522 N.W.2d 168 (1994). Plain error may be noted by an appellate court on its own motion. See Long v. Hacker, 246 Neb. 547, 520 N.W.2d 195 (1994).

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Bluebook (online)
530 N.W.2d 912, 247 Neb. 894, 1995 Neb. LEXIS 111, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pantano-v-mcgowan-neb-1995.