Schauf v. Schauf

107 P.3d 1237, 33 Kan. App. 2d 665, 2005 Kan. App. LEXIS 182
CourtCourt of Appeals of Kansas
DecidedMarch 4, 2005
Docket91,783
StatusPublished
Cited by2 cases

This text of 107 P.3d 1237 (Schauf v. Schauf) is published on Counsel Stack Legal Research, covering Court of Appeals of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schauf v. Schauf, 107 P.3d 1237, 33 Kan. App. 2d 665, 2005 Kan. App. LEXIS 182 (kanctapp 2005).

Opinion

Per Curiam:

Michael D. Schauf (Mike) and his wife JoAnn M. Schauf appeal the district court’s order adopting the findings of fact and conclusions of law of the “special” master, who determined the nature and extent of an implied partnership relation with Mike’s parents, Roman and Leona Schauf, following a jury determination that such a partnership relation existed. Mike and JoAnn argue that (i) tire court and the master failed to give due credit to the juiy determination and allowed relitigation of issues that were inherent in the special jury verdict; (ii) they were entitled to a jury trial on some of tire issues determined by the master; and (hi) the court erred in appointing a master and ordering that person to also serve as mediator. We review the extensive record and affirm the district court.

Factual Overview

This litigation involves an aged and contentious family feud between parents and their son and his wife to dissolve and separate this son’s alleged interests in tire family farming operation. From the time of his childhood, Mike lived and worked on the family dairy operation in Butler County, Kansas. Upon his graduation *667 from college in 1971, lie returned home, moved into the family residence, and assisted in the daily operation. He continued his active participation in the family dairy business until August 1992, although his devotion of time to the business diminished in the later years when he pursued separate agricultural pursuits. During this 21-year period, there was never any written partnership agreement and there has been a substantial dispute regarding discussions about Mike’s “interests” in the business, but Leona and Roman deny that there were ever any discussions promising Mike any interest in the business.

Although management of the dairy operation was the subject of family discussion and some operational decisions were made by Mike, Leona maintained total control of all financial aspects at all times. All income was paid to Leona, who determined randomly how much would be paid to family members. After April 1985, Leona decided to divide the “second” monthly milk checks into one-third shares to Leona, Mike, and younger brother Jaye and to similarly share the proceeds from the sales of any male calves. The parties also agreed to hold separate ownership of the female cattle by tagging them with colored ear tags to distinguish ownership among Leona, Mike, and Jaye. These income distribution and cattle ownership decisions were accepted by the acquiescence of all parties until Mike’s departure. At no time was there a demand for an accounting among alleged partners, nor was there ever a partnership bank account, a partnership tax identification number, a partnership tax return, or the issuance of partner schedules showing any income from a partnership. Jaye denies the existence of any partnership.

During the period from 1971 to 1992, the parties conducted substantial separate business and real estate transactions. The parties never treated these separate operations as joint or partnership activities and made no demands for any accountings or shares of profits. Real estate owned by the parties was titled to each party or parties without regard for any alleged partnership interests of the others. At no time until this litigation did Mike express or assert in any way his alleged rights as a partner in any assets, business activities, or real estate interests of his parents.

*668 Procedural History

In November 1992, Leona and Roman initiated this litigation by filing an eviction action against Mike and JoAnn, who responded with a counterclaim alleging equitable ownership of real and personal property, requesting an accounting of all profits from the farming operation since 1971 and an injunction against “removal of equipment and products,” and demanding a trial by jury. In June 1995, Mike and JoAnn sought and procured an “order bifurcating the issue of the existence of a partnership between the parties from the issues of [an] accounting and damages flowing therefrom.” A special verdict of the jury found simply that “the parties were in a partnership relation.” Extensive and contentious discovery then ensued over the course of nearly 6 years on a host of issues.

In October 2000, the district judge wrote to counsel and advised that “because of the extensive accounting issues involved in this case, I am giving serious consideration to the appointment of a master to tiy all issues.” The remaining issues were then listed by the court before requesting a written response from counsel. Counsel for Mike and JoAnn timely responded, stating that some of the remaining issues “were inherently tried” before the jury and suggesting that appointment of a master would not be appropriate. Their response concluded:

“Obtaining someone outside of the judicial system to serve as a master in this case would be extraordinarily time consuming and expensive. It is our belief that those issues not triable to a jury, if any truly exist, should be simply tried to the court without a master who will not have the authority, ultimately, to make the decisions necessary in this case. Accordingly, we request Your Honor not appoint a master.” (Emphasis added.)

On July 10, 2001, tire district court appointed Senior Judge James P. Buchele as mediator pursuant to K.S.A. 5-501 et seq. “to assist the parties in resolving all disputes herein” and as master pursuant to K.S.A. 60-253 “to faithfully hear and determine all issues necessary for a final resolution of all justiciable controversies raised by the pleadings and not previously ruled upon by the Court.” No objections were made by any party to this order of appointment at any time until after the master’s report was filed.

*669 The mediation apparently failed, and after trial of all remaining issues to the master, on March 11, 2002, the 17-page “Report of Special Master” was issued, containing 68 numbered findings of fact, 12 conclusions of law, and 12 itemized determinations, essentially concluding that the implied partnership was limited to the parties’ agreement by acquiescence as to the distribution of incomes from the daily operation and sales of male calves and recommending that Mike be awarded judgment for only the average sales price for 10 head of cows in the amount of $5,053 that he was to receive as a wedding gift and for $7,369.76 from the final sales of male calves. The master expressly concluded that “Mike Schauf does not now nor did he ever acquire any rights or interest in the real estate, cattle, income, bank accounts, savings or other cash assets titled in the name of Leona or Roman Schauf.” After receiving written objections and comments from counsel, and entertaining argument on same, the district court adopted the master’s report as its judgment. Mike and JoAnn have appealed.

Did the Report of the Master Disregard the Jury Verdict and Address Issues Already Determined by the Jury?

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Related

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Cite This Page — Counsel Stack

Bluebook (online)
107 P.3d 1237, 33 Kan. App. 2d 665, 2005 Kan. App. LEXIS 182, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schauf-v-schauf-kanctapp-2005.