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

Court of Appeals of Iowa·Decided November 7, 2018·No. 17-0718·Published

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.

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.

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

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).

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. The crucial question in determining whether substantial evidence supports a district court finding is not whether the evidence would support a different finding, but whether the evidence supports the finding actually made.

Id. at 230 (citations omitted).

B. Trespass.

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

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).

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) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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)