Ristau v. Likely Land & Livestock CA3

CourtCalifornia Court of Appeal
DecidedApril 21, 2023
DocketC095204
StatusUnpublished

This text of Ristau v. Likely Land & Livestock CA3 (Ristau v. Likely Land & Livestock CA3) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ristau v. Likely Land & Livestock CA3, (Cal. Ct. App. 2023).

Opinion

Filed 4/21/23 Ristau v. Likely Land & Livestock CA3 NOT TO BE PUBLISHED California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA THIRD APPELLATE DISTRICT (Placer) ----

HEATH RISTAU, as Special Administrator, etc., et C095204 al., (Super. Ct. No. SCV0042799) Plaintiffs, Cross-defendants and Appellants,

v.

LIKELY LAND & LIVESTOCK CO., INC., et al.,

Defendants, Cross-complainants and Respondents.

Plaintiffs Heath Ristau, as Special Administrator of the Estate of Shirley A. Wright, and Heath Ristau, as Successor Trustee of the Wright 1990 Trust, dated November 14, 1990, sued defendant Likely Land & Livestock Co., Inc. (the Company) and defendants John Flournoy, David Flournoy, William Flournoy, Myles Flournoy, Jennifer Flournoy, and Frieda Fisher-Dubois (the individual defendants) (the Company and individual defendants are collectively referred to as the defendants) for claims arising

1 out of a property transfer from Shirley Wright to the Company prior to Shirley’s death.1 Plaintiffs explain the gravamen of the action “was financial elder abuse and the misrepresentation of defendants in inducing [Shirley] to transfer ownership of her ranch to [the Company].”2 The Company filed a cross-complaint against plaintiffs seeking specific performance of two agreements, a 1987 Option Agreement (Option Agreement) and a 2017 Exercise Option Agreement (Exercise Agreement). The trial court bifurcated the legal and equitable issues, holding the jury trial on plaintiffs’ complaint first. The trial court heard the evidence presented during the jury trial and then held the court trial on the cross-complaint immediately following the jury’s verdict. The jury found in favor of the individual defendants on all causes of action. The jury further found in favor of the Company on all causes of action, except for negligent misrepresentation. As to the negligent misrepresentation finding against the Company, the jury awarded plaintiffs $300,000 for past economic loss. In the court trial that followed, the trial court said it took the jury’s verdicts “as advisories as to the issues contained herein” and granted specific performance of the Option Agreement and Exercise Agreement, as requested in the cross-complaint. The trial court directed plaintiffs to dismiss their complaint, withdraw “their claims for return of property,” and “tender the funds and transfer said real property.” Plaintiffs appeal.

1 We refer to Shirley Wright and George Wright by their first names due to the commonality of their last name. No disrespect is intended. We further refer to John Flournoy by his first name for the same reason. Placer Title Company was also named as a defendant but was dismissed from the action prior to trial. We list plaintiffs as they are identified in the judgment. 2 As explained post, we do not have a copy of the complaint or cross-complaint in the record.

2 Plaintiffs assert the judgment should be reversed because the trial court lacked authority to set aside the jury’s negligent misrepresentation verdict against the Company, which was effected by requiring plaintiffs to dismiss their complaint. Relatedly, plaintiffs argue the trial court lacked authority to disregard the jury’s negligent misrepresentation verdict “as advisory” and “substitute its subsequent inconsistent ruling on the equitable cause of action.” Plaintiffs further raise evidentiary error arguments. We find no merit in plaintiffs’ evidentiary error claims but agree the trial court erred in requiring plaintiffs to dismiss the complaint, which effectively set aside the jury’s negligent misrepresentation verdict against the Company. We further agree the trial court misunderstood the scope of its discretion during the bench trial when it viewed the jury’s negligent misrepresentation verdict as advisory. As explained herein, because the jury trial preceded the bench trial in equity, the trial court “must follow the jury’s factual determinations on common issues of fact.” (Hoopes v. Dolan (2008) 168 Cal.App.4th 146, 158 (Hoopes).) The trial court did not consider whether the jury’s factual determinations as to negligent misrepresentation precluded the equitable relief requested in the cross-complaint. We accordingly reverse the judgment with a directive for the trial court to enter judgment in favor of plaintiffs, as provided in the jury’s negligent misrepresentation verdict. Upon entry of the judgment in that regard, the Company may pursue any relief it otherwise has to challenge the judgment. The matter is further remanded to the trial court to reconsider its ruling on the cross-complaint consistent with this opinion. FACTUAL AND PROCEDURAL BACKGROUND We initially admonish the parties for failing to provide record citations for each fact presented in their statements of facts. Some of the background facts stated herein were unsupported by citations to the record; however, the parties agreed on the unsupported facts, which we treat as mutual concessions. (Meddock v. County of Yolo (2013) 220 Cal.App.4th 170, 175, fn. 3.) Other background facts were drawn from the

3 information available to us in the record. In that regard, plaintiffs are also admonished for not providing this court with a complete record. For example, plaintiffs did not provide this court with a copy of the operative complaint or cross-complaint. We thus do not know the specifics alleged therein. We set forth the general background here and provide additional factual background pertinent to plaintiffs’ evidentiary arguments in the Discussion post, as necessary. In 1987, George and Shirley Wright entered into the Option Agreement with the Company; John signed on behalf of the Company.3 The Option Agreement provided the Company would have the first option to purchase the Wrights’ property for $72,179.96 (regardless of market value) if the Wrights ever decided to sell it, or upon the Wrights’ deaths. In 2017, after George had passed away, Shirley and the Company signed the Exercise Agreement, which appears to memorialize the early exercise of the Option Agreement, and Shirley accordingly transferred the Wrights’ property to the Company. John signed the Exercise Agreement on behalf of the Company. Plaintiffs filed suit against defendants, asserting defendants each took advantage of Shirley because she was suffering from progressive dementia and was in poor physical health. Plaintiffs alleged two financial elder abuse causes of action and causes of action for conversion, breach of fiduciary duty, intentional misrepresentation, and negligent misrepresentation. The trial court bifurcated the legal and equitable issues, holding the jury trial on plaintiffs’ complaint first.

3 In the trial court, plaintiffs argued the Option Agreement was between the Wrights and Lively Land and Livestock, a Nevada Corporation—a corporation that does not exist. The trial court, however, found the Option Agreement was a valid agreement between the Wrights and the Company, and plaintiffs do not challenge the trial court’s finding in that regard on appeal.

4 The jury returned verdicts in favor of all defendants on the causes of action for financial elder abuse, conversion, breach of fiduciary duty, and intentional misrepresentation. As to the negligent misrepresentation cause of action, the jury found in favor of plaintiffs against the Company but otherwise found in favor of the individual defendants. The jury awarded plaintiffs $300,000 for past economic loss.

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Ristau v. Likely Land & Livestock CA3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ristau-v-likely-land-livestock-ca3-calctapp-2023.