Reeves v. Agee

769 P.2d 745, 1989 WL 10950
CourtSupreme Court of Oklahoma
DecidedFebruary 24, 1989
Docket60289
StatusPublished
Cited by113 cases

This text of 769 P.2d 745 (Reeves v. Agee) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reeves v. Agee, 769 P.2d 745, 1989 WL 10950 (Okla. 1989).

Opinions

OPALA, Vice Chief Justice.

In a malicious prosecution action, in which judgment was rendered on the defendants’ demurrers to the petition and the plaintiffs’ new trial motion was denied, the issues presented for decision are: 1) Were the errors committed in the malicious prosecution suit preserved for our review by specific allegations in the plaintiffs’ new trial motion or by argument presented in open court and without objection at the hearing of that motion? 2) Were the present plaintiffs a “prevailing party” in the former suit, with legal status to bring a malicious prosecution action? 3) Was the challenged malicious prosecution petition vulnerable to defendant-Agee’s demurrer for want of an allegation that the antecedent suit had been brought without probable cause? 4) Was the petition facially untimely under the applicable statute of limitations? 5) Was the defendants’ interposition of a supervening-cause barrier to the plaintiffs’ claim available as a ground for demurrer to the petition? and 6) Were errors in ruling on the slander-of-title theory of recovery preserved for our review? We answer the first and second questions in the affirmative, and the third, fourth, fifth and sixth in the negative.

THE ANATOMY OF LITIGATION

Douglas D. Reeves and Carol Ann Reeves [collectively called Reeves] brought a malicious prosecution action against Lamar Lawson [Supplier] and Lawson’s legal counsel, Alan Agee [Agee or lawyer]. The trial court gave judgment to both defendants on their separate demurrers to the petition and denied Reeves’ new trial motion.

A. The Challenged Petition’s Allegations

Reeves were engaged in the cement block manufacturing business. During the period between 1972 and 1974 they had received and paid for sand sold to them by the Supplier on open account. Some of the sand delivered in 1972 was used for the construction of a building on Reeves’ business property. In March 1975 the Supplier delivered for use in manufacturing cement blocks a load of contaminated sand; Reeves refused to pay both for that load as well as for some others — initially pure sand —that, after being intermixed with the later-furnished contaminated material, also became utterly unusable. The Supplier threatened to place a lien on Reeves’ property unless the entire balance due were paid. At a meeting where the circumstances of Reeves’ default were discussed, Reeves’ then attorney informed the Supplier that the materials for which collection was sought were not lienable, though an action could be brought to recover their price on open account. Contrary to this advice, the Supplier, acting in concert with Agee, caused a lien to be placed on Reeves’ property by means of a false statement reciting that some of the material for which payment was being sought had been [749]*749incorporated in a building on Reeves’ premises.

Reeves had made arrangements to convey their plant premises to the First National Bank of Pauls Valley [Bank] in exchange for full release of a secured obligation. When prepared documents were scheduled for execution, the Supplier’s lien claim surfaced and the Bank delayed closing so Reeves could have this cloud removed. Reeves then met with Agee and disclosed to him all the facts showing the lien statement to be false and the Supplier’s claim to have been impressed for the purpose of coercing Reeves’ payment of an “unjust open account debt.” Agee also became aware that the lien was blocking Reeves’ transfer of the premises to the Bank. The Supplier and Agee reacted by amending the original lien statement to allege that the sales contract with Reeves had its inception three years earlier. With full knowledge of the falsity of the original and the amended lien statements, the Supplier and Agee, acting in concert and conspiracy, caused a foreclosure suit to be brought against Reeves and the Bank, with the malicious intent of ‘tieing up’ Reeves’ real estate. The Supplier’s foreclosure suit, instituted without probable cause and to secure priority over the Bank’s first mortgage lien, destroyed Reeves’ opportunity to avoid further liability on their mortgage to the Bank by deeding the premises to the latter. The Bank then pressed its suit for mortgage foreclosure and later secured a deficiency judgment.

The trial court adjudged on August 31, 1978 that the Supplier had no material-men’s lien claim against Reeves’ property. Reeves rely on this ruling, from which no appeal was lodged, as the successful termination of the antecedent litigation and the foundation for their malicious prosecution action. The essence of Reeves’ claim is that the Supplier wrongfully encumbered their property with a false lien for more than two years, which prevented them from escaping the legal consequences of impending foreclosure. Actual damages, alleged to be $57,087.28 (the amount the Bank would have taken for the property had it been unencumbered), and punitive damages of $150,000 were sought.

B. The Trial Court’s Judgment on Demurrers and its Postjudgment ruling on New Trial Motion

On January 7, 1983 the trial court gave judgment to Agee and to the Supplier on their separate demurrers to the petition,1 assigning but one reason for its decision— the antecedent Supplier’s lien foreclosure suit against Reeves did not terminate in Reeves’ favor. Taking judicial notice of that suit, to which reference was made in Reeves’ petition, the trial court ruled that the Supplier was the only prevailing party in the prior case. He was the one awarded the full amount of recovery on open account even though his lien claim was later defeated.2 When the successor judge denied Reeves’ new trial motion on May 3, 1983, he added two other reasons for the earlier judgment — (1) the malicious prosecution action was time-barred; and (2) as a matter of law, there could be no causal connection between the Supplier’s filing of a materialmen's lien statement and Reeves' allegedly lost opportunity to give the Bank a cloud-free title in the mortgaged premises. We now reverse the nisi prius decision and remand the cause for further proceedings.

[750]*750This case, decided under the Code of Civil Procedure,3 is governed and must be reviewed according to the norms of that procedural regime, although it has since been repealed and now stands replaced by the Oklahoma Pleading Code.4

C. Interconnected Appellate Litigation

The Supplier’s suit spawned a number of interconnected appellate litigation, all initiated by Reeves. The first of these was their unsuccessful appeal from a default ruling for the Supplier on the money phase of the claim, rendered after Reeves had failed to appear at trial and to present a defense [Reeves J].5 Reeves’ second appeal from the deficiency judgment for the Bank also met with an adverse outcome [Reeves II].6 The present appeal is from judgment on the defendants’ demurrers in Reeves’ malicious prosecution action against the Supplier and Agee for pressing a false lien claim [Reeves III].

I

THE APPEAL IS NOT DISMISSIBLE FOR REEVES’ FAILURE TO PRESERVE ERRORS IN THEIR NEW TRIAL MOTION

The Supplier and Agee urge this appeal is dismissible because the errors in the resolution of the malicious prosecution claim, which they present for review, were not preserved by specific allegations in Reeves’ new trial motion.

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Cite This Page — Counsel Stack

Bluebook (online)
769 P.2d 745, 1989 WL 10950, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reeves-v-agee-okla-1989.