Positive Progressions, LLC v. Landerman

2015 WY 138, 360 P.3d 1006, 2015 Wyo. LEXIS 155, 2015 WL 6437030
CourtWyoming Supreme Court
DecidedOctober 23, 2015
DocketNos. S-14-0250, S-14-0313
StatusPublished
Cited by10 cases

This text of 2015 WY 138 (Positive Progressions, LLC v. Landerman) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Positive Progressions, LLC v. Landerman, 2015 WY 138, 360 P.3d 1006, 2015 Wyo. LEXIS 155, 2015 WL 6437030 (Wyo. 2015).

Opinion

HILL, Justice.

[T1] Appellant Nathan Cook appeals a judgment awarding Appellee Amy Lander-man $149,189.48 after the district court found Mr. Cook fraudulently obtained shares of Ms. Landerman's company, Northern Developmental Disability Service Providers, Inc., a Wyoming Corporation.

[¶ 2] We will affirm the district court in all respects.

ISSUES

[¶ 3] Appellants present four issues for our review:

1. Whether the trial judge erred as a matter of law in finding that Nathan Cook committed fraud and the fraud warranted an award of punitive damages?
2. Whether the trial judge erred as a matter of law in disregarding the written contract of the parties?
8. Whether the trial judge erred as a matter of law in ordering reformation of a written share purchase agreement?
4. Whether the cumulative errors in the case constitute deprivation of the rights of the [Appellants] to a fair trial?

[1009]*1009STANDARD OF REVIEW

[14] In general, we apply the following standard when reviewing a district court's decision after a bench trial:

The factual findings of a judge are not entitled to the limited review afforded a jury verdict. While the findings are presumptively correct, the appellate court may examine all of the properly admissible evidence in the record. Due regard is given to the opportunity of the trial judge to assess the credibility of the witnesses, and our review does not entail re-weighing disputed evidence, Findings of fact will not be set aside unless they are clearly erroneous. A finding is clearly erroneous when, although there is evidence to support it, the reviewing court on the entire evidence is left with the definite and firm conviction that a mlstake has been committed.

Moore v. Wolititch, 2015 WY 11, ¶9, 341 P.3d 421, 423 (Wyo.2015) (quoting Miner v. Jesse & Grace, LLC, 2014 WY 17, ¶ 17, 317 P.3d 1124, 1131 (Wyo.2014)).

[15] With regard to the trial court's fmdmgs of fact,

"we assume that the evidence of the prevailing party below is true and give that party every reasonable inference that can fairly and reasonably be drawn from it."

Moore, ¶ 10, 341 P.3d at 423 (quotmg Miner, ¶ 17, 317 P.3d at 1131).

[16] ~The district court's conclusions of law, however, are subject to our de novo standard of review. Morris v. CMS Oil & Gas Co., 2010 WY 37, ¶ 12, 227 P.3d 325, 330 (Wyo.2010), (quoting Lieberman v. Mossbrook, 2009 WY 65, 1 40, 208 P.3d 1296, 1308 (Wyo.2009) (citations omitted)).

FACTS

[T7] -In November of 2010, Amy Lander-man approached Nathan Cook about buying her business, Northern Developmental Disability Service Providers, Inc. (Northern) Mr. Cook expressed interest in buying the business. On January 24, 2011, Ms. Lander-man e-mailed Mr, Cook and offered to sell Northern for $247,500. Mr. Cook indicated his interest in buying the business and the two agreed to meet at Northern's office on February 28, 2011.

[T8] At the February 23, 2011, meetmg between Ms. Landerman and Mr. Cook, Mr. Cook's friend and "member of his financial team," Rich Hydo, was also present. At the beginning of the meeting, Mr. Cook said that he was comfortable with Ms. Landerman's sale price of $247,500, but had specific payment terms in mind. Mr. Cook proposed $175,000 down at closing, with the $72,500 balance of the purchase price to be paid in quarterly installments over three to five years. Ms. Landerman and Mr. Cook agreed to those terms and the remainder of the meeting was devoted to the parties' discussion about religion.

[¶ 9] On March 28, 2011, Mr. Cook delivered a "soft agreement" to Ms. Landerman. The Agreement stated that Mr. Cook would pay $175,000 at closing with thirty-six months of installments of 3% profits, payable quarterly. Ms. Landerman responded to Mr. Cook in an e-mail that same evening. Ms. Landerman reiterated that the purchase price was $247,000.1 She also reiterated that she would agree to a $175,000 down payment and the installments proposed by Mr. Cook, but if those installments did not total $72,000, a balloon payment would have to make up the difference at the end of three years.

[¶ 10]. Mr. Cook responded by e-mail on March 28 and said he wanted a conference call "to get this finalized and then I can pass it along to my lawyer to work on the final contract." He did not dispute terms discussed in previous e-mails. At trial, Mr. Cook testified that he, Mr. Hydo, and Ms. Landerman had a conference call on March 29, 2011, where they all agreed to something different than the initial terms. The district court found Mr. Cook's testimony as to this [1010]*1010particular: conference» call was not credible and "unbelievable."

[¶ 11] As Mr. Cook and Ms. Landerman had apparently agreed to the sale terms, other steps were being taken to finalize the business sale. On April 1, 2011, Ms. Lander-man and Mr. Cook notified Northern's clients and their case managers that an agreement for the sale of the business had been made and would close by the end of the month,. The notice was prepared together by Ms. Landerman and Mr, Cook. Ms. Landerman also notified the Commission on Accreditation of Rehabilitation Facilities (CARF), which approves the ownership change of associated facilities. Also, the State of Wyoming's Department of Health required transition meetings and final authorization of the ownership change. On April 29, Mr. Cook and Ms. Landerman both participated in a phone call with the supervisory State regulators at the Wyoming State Department of Health's Developmental Disabilities Division (DDD). In fact, the head of DDD requested that Ms. Landerman be excused from the Medicaid transfer discussion for confidentiality reasons, "if everybody is comfortable, this transfer is happening-you are set, it's going to be soon, any day." Mr. Cook assured everyone present that the transfer would take place, and Ms. Landerman was then dismissed from the meeting. A second letter was sent to all of Northern's clients on May 9, 2011 stating that Mr. Cook was purchasing Northern, and instructing clients to contact the DDD within 30 days of the closing, which the letter stated "We anticipate that the purchase will be on or before June 1, 2011." By the end of May, the transfer of the CARF accreditation and the Medicaid authority was complete, both of which had included Mr. Cook's full participation. Also by the end of May, Mr. Cook had the keys to Northern's building. |

[¶ 12] While things seemed to be progressing, DDD expressed concern that there was ambiguity surrounding the actual date of change of ownership because certain regulations specified that transition interviews with clients had to be completed within 80 days of the transfer in ownership. Mr. Cook assured DDD that there was an agreement in place. Mr. Cook even indicated that there were technical paperwork hurdles at the bank that would be resolved, but in the meantime, he offered to give Ms. Landerman a $25,000 earnest money deposit, In fact, Mr. Cook paid that amount to Ms. Landerman within five business days.

[¶ 13] Mr. Cook testified at trial about the steps he took to secure financing from Wells Fargo Bank during May of 2011. He applied for financing at Wells Fargo, but did so listing Northern as the borrower, unbeknownst to Ms. Landerman, for the amount of $140,000.

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Bluebook (online)
2015 WY 138, 360 P.3d 1006, 2015 Wyo. LEXIS 155, 2015 WL 6437030, Counsel Stack Legal Research, https://law.counselstack.com/opinion/positive-progressions-llc-v-landerman-wyo-2015.