South Gallatin Land Corp. v. Yetter

801 P.2d 575, 245 Mont. 320, 1990 Mont. LEXIS 358
CourtMontana Supreme Court
DecidedNovember 15, 1990
Docket90-160
StatusPublished
Cited by2 cases

This text of 801 P.2d 575 (South Gallatin Land Corp. v. Yetter) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
South Gallatin Land Corp. v. Yetter, 801 P.2d 575, 245 Mont. 320, 1990 Mont. LEXIS 358 (Mo. 1990).

Opinion

JUSTICE HARRISON

delivered the Opinion of the Court.

In 1984 South Gallatin Land Corporation petitioned the Eighteenth Judicial District Court, Gallatin County, for a declaratory judgment to close a real estate contract transaction. The court bifurcated the counterclaims of defendant, Gerald P. Yetter, from the declaratory judgment action. The parties stipulated to a compromise, reviewed by the court, which entered judgment January 6, 1986, in favor of South Gallatin. Yetter appealed a subsequent order of the District Court, and this Court dismissed his appeal on April 23,1987. Yetter filed further motions which were dismissed for lack of jurisdiction. On December 19, 1989, the District Court, because of lack of jurisdiction, dismissed defendant’s motions to allow additional counterclaims and to compel discovery. From this order, Yetter appeals. We affirm.

The parties present the following issues:

1. Can bifurcated counterclaims be disposed of without a hearing?

2. Did the District Court err in denying permission to file a supplemental counterclaim on the ground that the court lacked jurisdiction?

3. Should this appeal be dismissed because the appeal was not timely filed?

South Gallatin Land Corporation’s predecessor in interest, Randolph S. White, agreed to purchase real estate from Gerald P. Yetter, as evidenced by an Agreement for Sale and Purchase of Real Property signed June 30, 1982. After White’s interest was assigned to South Gallatin Land Corporation, Yetter refused to accept payment and tried to back out of the transaction. South Gallatin petitioned the District Court for a declaratory judgment clarifying the rights of the parties.

In his answer to South Gallatin’s petition, Yetter counterclaimed for damages, alleging claims which he characterized as “bad faith.” South Gallatin moved to bifurcate the bad faith claims on the basis that “a decision in favor of the Plaintiff would terminate any right the Defendant had to the counterclaim he alleges against this Plaintiff.” During a December 24, 1984, hearing, the corut granted the motion to bifurcate the counterclaims.

*323 After a two-day hearing in November 1985, the parties agreed in writing to abide by the Agreement for Sale, with certain changes stipulated to by the parties. The court found that South Gallatin had not breached the Agreement for Sale and was not in default in performance of the contract. The court stated that it had examined the stipulation between the parties and ordered that portions of the stipulation constitute an amendment to the contract.

Yetter still refused to complete the closing, and on August 19,1986, the District Court ordered the public administrator to sign the necessary deeds and other papers. The court further ordered that “neither interest nor time for computation of annual payments shall commence unless the Defendant acknowledges and receives the balance of the purchase price.”

On September 4, 1986, Yetter appealed that order and “from the previous Orders entered in the case which refused to dismiss the case or to require the Plaintiff to tender or pay deposit in court, the balance of the down payment and annual payments and interest in the contract and, from the Order denying Summary Judgment to the Defendant.” This Court dismissed Yetter’s appeal on the ground that since the order from which Yetter appealed had been performed, a controversy no longer existed.

On October 13, 1987, Yetter moved for substitution of another judge in the case. Although Judge Gary found the motion to be “untimely and improperly made,” he elected to recuse himself. On November 15, 1988, Yetter moved for payment of real estate taxes and delinquent payments. South Gallatin asserted that the corporation was complying with the comb’s August 19, 1986, order because Yetter refused to acknowledge receipt of the balance of the down payment. The District Court dismissed Yetter’s motions on the basis that the court lacked jurisdiction.

Yetter then moved to amend the counterclaims originally filed in the action and to compel discovery. Two orders were entered denying these last motions, one on December 19, 1989, and one on January 18, 1990. Both orders denied the motions on the same ground: the District Court’s lack of jurisdiction since the litigation was effectively terminated by this Court’s dismissal of Yetter’s first appeal. From the court’s denial of the motion to amend counterclaims, Yetter appeals.

I

Can bifurcated counterclaims be disposed of without a hearing?

*324 Separate or bifurcated trials can be ordered by a district court pursuant to Rule 42(b), M.R.Civ.R:

“The court in furtherance of convenience or to avoid prejudice may order a separate trial of any claim, cross-claim, counterclaim, or third-party claim, or of any separate issue or of any number of claims, cross-claims, counterclaims, third-party claims, or issues.”

Rule 42(b) is essentially the same as Rule 42(b) of the Federal Rules of Civil Procedure, except the federal rule provides that separate trials shall always preserve “inviolate the right of trial by jury as declared by the Seventh Amendment to the Constitution or as given by a statute of the United States.” In 1966 the federal rule was amended by adding a condition or ground for a grant of separate trials: “when separate trials will be conducive to expedition and economy.” F.R.Civ.P., 42(b); 9 C. Wright & A. Miller, Federal Practice and Procedure § 2381 (1971). However, no difference in result exists between the federal rule and its Montana counterpart when an order for a separate trial is considered. State ex rel. Fitzgerald v. District Court (1985), 217 Mont. 106, 116, 703 P.2d 148, 155.

Yetter argues that his counterclaims, which were bifurcated and reserved for trial by jury, were never addressed by the district court. Often the reason for separate trials pursuant to Rule 42(b) is that one issue may be dispositive of other claims in the case, as noted by Wright & Miller in their discussion of Rule 42(b), F.R.Civ.P.:

“If a single issue could be dispositive of the case, and resolution of it might make it unnecessary to try the other issues, separate trial of that issue may be desirable to save the time of the court and reduce the expenses of the parties.”

9 C. Wright & A. Miller, supra § 2388, at 280. In this case, the parties entered into a compromise agreement regarding the contract, and the court, after reviewing the stipulation, entered final judgment. The Stipulation Pursuant to Judgment provides:

“That upon payment as decreed then the action shall be dismissed and the parties will be governed by this stipulation and decree and by the contract where it has not been modified and that contract is hereby confirmed and satisfied.”

Acompromise agreement, when the basis for a final judgment, bars all preexisting claims and causes of action. Robinson v.

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Bluebook (online)
801 P.2d 575, 245 Mont. 320, 1990 Mont. LEXIS 358, Counsel Stack Legal Research, https://law.counselstack.com/opinion/south-gallatin-land-corp-v-yetter-mont-1990.