Thunder & Lightning, Inc. v. 435 Grand Avenue, LLC, d/b/a 435 E. Grand Ave., LLC, Santokh Nagra, Peter Sand, and Loyd Ogle

CourtCourt of Appeals of Iowa
DecidedNovember 7, 2018
Docket17-0718
StatusPublished

This text of Thunder & Lightning, Inc. v. 435 Grand Avenue, LLC, d/b/a 435 E. Grand Ave., LLC, Santokh Nagra, Peter Sand, and Loyd Ogle (Thunder & Lightning, Inc. v. 435 Grand Avenue, LLC, d/b/a 435 E. Grand Ave., LLC, Santokh Nagra, Peter Sand, and Loyd Ogle) is published on Counsel Stack Legal Research, covering Court of Appeals of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thunder & Lightning, Inc. v. 435 Grand Avenue, LLC, d/b/a 435 E. Grand Ave., LLC, Santokh Nagra, Peter Sand, and Loyd Ogle, (iowactapp 2018).

Opinion

IN THE COURT OF APPEALS OF IOWA

No. 17-0718 Filed November 7, 2018

THUNDER & LIGHTNING, INC., Plaintiff-Appellant,

vs.

435 GRAND AVENUE, LLC, d/b/a 435 E. GRAND AVE., LLC, SANTOKH NAGRA, PETER SAND, and LOYD OGLE, Defendants-Appellees. ________________________________________________________________

Appeal from the Iowa District Court for Polk County, Lawrence P. McLellan,

Judge.

In this consolidated appeal, we consider Thunder & Lightning, Inc.’s direct

appeals of the order dismissing its trespass claims and a certiorari action

concerning sanctions awarded against Thunder & Lightning and its attorney.

REVERSED AND REMANDED; WRIT ANNULLED.

Cornelius S. Qualley of Qualley Law, P.L.C., Des Moines, for appellant.

Paul J. Statler of Statler Law, PLLC, Des Moines, for appellee.

Heard by Danilson, C.J., and Potterfield and Doyle, JJ. 2

DOYLE, Judge.

This appeal consolidates Thunder & Lightning, Inc.’s direct appeal of the

order dismissing its trespass claims against the defendants and a certiorari action

concerning an order awarding sanctions against Thunder & Lightning and its

attorney for violating Iowa Rule of Civil Procedure 1.413. Because the defendants

entered the leased premises without consent, Thunder & Lightning proved the

defendants committed trespass. Accordingly, we reverse the dismissal of its

claims for trespass and conspiracy to commit trespass and remand to the district

court to determine the amount of Thunder & Lightning’s damages. Because the

district court did not abuse its discretion in sanctioning Thunder & Lightning and its

attorney for violating rule 1.413 by failing to conduct a reasonable inquiry before

initiating a contempt action, we annul the writ of certiorari.

I. Background Facts and Proceedings.

Thunder & Lightning leased commercial space from 435 Grand Avenue

LLC, d/b/a 435 E. Grand Ave., LLC (435 Grand) for a five-year term beginning

August 1, 2011, and ending July 31, 2016.1 Thunder & Lightning operated the

premises as the Lime Lounge. The parties’ relationship soured and can be

described as contentious, though another apt descriptor would be litigious. Three

years into the lease, 435 Grand filed a petition alleging Thunder & Lightning

breached the lease by failing to pay property taxes, and Thunder & Lightning

counterclaimed for lack of notice of default, libel, and reimbursement for

1 The leased premises are located at 435 E. Grand Avenue in Des Moines. 3

remodeling costs. Although the parties later dismissed the claims, the litigation did

not end there.

Thunder & Lightning initiated the present action against 435 Grand in

September 2015. It alleged multiple claims of breach of contract against 435

Grand, in addition to a claim of libel. Thunder & Lightning also sought specific

performance of a lease provision that provided it with an exclusive option to

purchase the real estate during the first forty-eight months of the lease. Following

events that occurred in January 2016, Thunder & Lightning later amended the

petition to add 435 Grand’s principal, Santokh Nagra, and two of its attorneys,

Peter Sand and Loyd Ogle, as parties. It also added claims of breach of covenant

of quiet enjoyment, trespass (against Nagra, Sand, and Ogle), civil conspiracy to

commit trespass (against Nagra, Sand, and Ogle), fraudulent misrepresentation,

and fraudulent nondisclosure. The district court severed the claims of trespass

and civil conspiracy to commit trespass for a separate trial.

The two trespass claims were tried to the court in February 2017. On the

last day of trial, Thunder & Lightning filed a motion for rule to show cause, alleging

435 Grand was in contempt of a court order relating to the first trial on the bulk of

its claims. In an April 2017 order, the district court dismissed both trespass claims

and denied Thunder & Lightning’s motion for rule to show cause. On its own

initiative, the court found Thunder & Lightning and its attorney violated Iowa Rule

of Civil Procedure 1.413 in filing the motion for rule to show cause and allowed the

defendants ten days to suggest an appropriate sanction. In a May 2017 order, the

court assessed a total of $1120 in sanctions jointly and severally against Thunder

& Lightning and its attorney, Cornelius Qualley (Qualley), to compensate the 4

defendants for the attorney fees expended in defending the motion for rule to show

cause.

Thunder & Lightning appealed the dismissal of its trespass claims and the

order awarding sanctions. The Iowa Supreme Court consolidated the appeals and

transferred the matter to this court. Additional facts will be discussed below.

II. Trespass Claims.

Thunder & Lightning first appeals the dismissal of its claims for trespass and

civil conspiracy to commit trespass.2 It argues the district court erred in failing to

find the defendants committed trespass by entering and remaining upon the leased

property without its consent.

A. Scope and Standard of Review.

Our review is for correction of errors at law. See Iowa R. App. P. 6.907.

The trial court’s fact findings are binding upon us if supported by substantial

evidence. See Iowa R. App. 6.904(3)(a). “Substantial evidence supports a factual

finding when the finding ‘may be reasonably inferred from the evidence

2 It is the appellant’s duty to prepare and file an appendix containing parts of the district court record designated by the parties. See Iowa R. App. P. 6.905(2). Rule 6.905(7)(c), which concerns transcripts of proceedings and depositions, requires the appellant to insert the name of the witness whose testimony is included in the appendix at the top of each page it appears in the appendix. This was not done for the 220 pages of trial transcript included within the 651-page appendix. Rule 6.905(4)(b) requires the table of contents to state the name of each witness whose testimony is included and the appendix page at which each witness’s testimony begins. This was not done. Defendant’s exhibits referenced in the table of contents do not include a concise description of the exhibit. Iowa R. App. P. 6.905(4)(c). Our mention of these failures to comply with rule 6.905 is not just nitpicking; “[r]ule compliance lightens the court’s burden and promotes judicial efficiency because compliance begets uniformity, and uniformity eases the court’s navigation through the thousands of briefs and appendices it reviews each year.” City of Monroe v. Nicol, 898 N.W.2d 899, 901 (Iowa Ct. App. 2017). 5

presented.’” Hutchison v. Shull, 878 N.W.2d 221, 229-30 (Iowa 2016) (quoting

Vaughan v. Must, Inc., 542 N.W.2d 533, 538 (Iowa 1996)).

When reviewing a claim that substantial evidence does not support a district court finding, we are required to view the evidence in the light most favorable to the judgment and liberally construe the court’s findings to uphold, rather than defeat, the result reached. Evidence supporting a district court finding is not insubstantial merely because we may draw a different conclusion from it.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Barreca v. Nickolas
683 N.W.2d 111 (Supreme Court of Iowa, 2004)
Vaughan v. Must, Inc.
542 N.W.2d 533 (Supreme Court of Iowa, 1996)
Wright v. Brooke Group Ltd.
652 N.W.2d 159 (Supreme Court of Iowa, 2002)
Barnhill v. Iowa District Court for Polk County
765 N.W.2d 267 (Supreme Court of Iowa, 2009)
Botsko v. Davenport Civil Rights Commission
774 N.W.2d 841 (Supreme Court of Iowa, 2009)
Bernet v. Rogers
519 N.W.2d 808 (Supreme Court of Iowa, 1994)
Robert's River Rides, Inc. v. Steamboat Development Corp.
520 N.W.2d 294 (Supreme Court of Iowa, 1994)
Alexander v. Medical Associates Clinic
646 N.W.2d 74 (Supreme Court of Iowa, 2002)
Gimzo v. Iowa District Court for Hardin County
561 N.W.2d 833 (Court of Appeals of Iowa, 1997)
Larson v. Great West Casualty Co.
482 N.W.2d 170 (Court of Appeals of Iowa, 1992)
Basic Chemicals, Inc. v. Benson
251 N.W.2d 220 (Supreme Court of Iowa, 1977)
Harms v. City of Sibley
702 N.W.2d 91 (Supreme Court of Iowa, 2005)
City of Monroe v. Dustin M. Nicol and Michelle R. Street
898 N.W.2d 899 (Court of Appeals of Iowa, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
Thunder & Lightning, Inc. v. 435 Grand Avenue, LLC, d/b/a 435 E. Grand Ave., LLC, Santokh Nagra, Peter Sand, and Loyd Ogle, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thunder-lightning-inc-v-435-grand-avenue-llc-dba-435-e-grand-iowactapp-2018.