W. P. BISTRO TULSA v. HENRY REAL ESTATE

2022 OK CIV APP 24, 514 P.3d 1091
CourtCourt of Civil Appeals of Oklahoma
DecidedOctober 19, 2021
StatusPublished

This text of 2022 OK CIV APP 24 (W. P. BISTRO TULSA v. HENRY REAL ESTATE) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
W. P. BISTRO TULSA v. HENRY REAL ESTATE, 2022 OK CIV APP 24, 514 P.3d 1091 (Okla. Ct. App. 2021).

Opinion

W. P. BISTRO TULSA v. HENRY REAL ESTATE
2022 OK CIV APP 24
514 P.3d 1091
Case Number: 119168
Decided: 10/19/2021
Mandate Issued: 06/22/2022
DIVISION I
THE COURT OF CIVIL APPEALS OF THE STATE OF OKLAHOMA, DIVISION I


Cite as: 2022 OK CIV APP 24, 514 P.3d 1091

W. P. BISTRO TULSA, LLC, Plaintiff/Appellee,
v.
HENRY REAL ESTATE, LLC, and TONY R. HENRY, Defendants/Appellants,
and
ALL NATURAL BURGERS OF TULSA #2, LEFTYS ON GREENWOOD, LLC, SUCCESS FOODS MANAGEMENT GROUP, LLC, PATRICK JOHNSON d/b/a EAST VILLAGE BOHEMIAN PIZZA, AMY MCMILLAN d/b/a EAST VILLAGE BOHEMIAN PIZZA, JOHN DOES 1-10, CURTIS RESTAURANT SUPPLY AND EQUIPMENT CO., JAMES E. BLACKETER, JR., AMERICAN BANK & TRUST CO., PENNY MAPLEWOOD INVESTMENTS, LLC, Defendants.

APPEAL FROM THE DISTRICT COURT OF
TULSA COUNTY, OKLAHOMA

HONORABLE JEFFERSON D. SELLERS, TRIAL JUDGE

AFFIRMED

James C. Hodges, JAMES C. HODGES, PC, Tulsa, Oklahoma, for Plaintiff/Appellee,

E. Kathleen Pence, PENCE LAW FIRM, PC, Jenks, Oklahoma, for Defendants/Appellants.

THOMAS E. PRINCE, JUDGE:

¶1 Henry Real Estate, LLC ("HRE") and Tony R. Henry ("Henry") (the "Appellants") appeal the trial court's September 26, 2020 Journal Entry of Judgment in favor of Appellee W. P. Bistro Tulsa, LLC, following a non-jury trial, on the claim of conversion, including the awards for damages, plus interest thereon, and for expenses in connection with the pursuit of the items Appellants converted. This Court holds that there is competent evidence to support the trial court's judgment in the amount of $105,923.75, jointly and severally, against both Appellants. Accordingly, the trial court's September 26, 2020 Journal Entry of Judgment is affirmed.

BACKGROUND

¶2 This dispute arose out of a series of transactions related to the opening, operation, and closure of several restaurants in a single restaurant space in Tulsa, Oklahoma. Appellee was formed in 2009 as a limited liability company and was subsequently licensed to operate a restaurant known as Wolfgang Puck Bistro. Appellee executed a sublease for commercial restaurant space with HRE. The restaurant, Wolfgang Puck Bistro, opened in July 2010 before closing in October 2013. A second restaurant, HopBunz, 'owned by Defendant All Natural Burgers of Tulsa #2 ("ANB"), operated in the space from October 2014 untill September 2016. In 2017, Torchy's Tacos (owned by Defendant Success Foods Management Group, LLC) opened and continues to operate today.

¶3 After the Appellee's concept failed, the space was subsequently leased by HRE to ANB. Concurrently, Henry, on behalf of the Appellee, negotiated the sale of furniture, fixtures, and equipment ("FF&E") and leasehold improvements located in the restaurant space to ANB. Under the approved terms of the sale from Appellee to ANB, Appellee took the purchase price partly in cash and partly in the form of a note, secured by a perfected lien on the FF&E and leasehold improvements. While ANB initially made payments on the note, HopBunz ultimately closed and ANB defaulted on the note.

¶4 Once HopBunz closed its doors, Henry began marketing the restaurant space to new tenants and, in March 2017, HRE granted a sublease to Torchy's Tacos. Once the Appellee learned of HRE's sublease with Torchy's Tacos, the Appellee began making efforts to find out whether its assets could be gathered and the collateral sold. In addition to making inquiries with Henry, Dr. James Rodgers ("Rodgers"), the Appellee's manager, hired Don Eller ("Eller"), an asset recovery specialist, to dissolve Appellee and "to assess [Appellee's] situation, investigate[,] and act on behalf of [Appellee's] failed enterprise." See Pl.'s Ex. 47 (Letter Memorializing Agreement Between Rodgers and Eller).

¶5 HRE's sublease with Torchy's Tacos incorporated various items affixed to the realty and also conferred upon Torchy's Tacos the right to renovate the space, including to demolish it. Although HopBunz had closed, it left in place all of the major FF&E and the leasehold improvements that, at least according to Jeremy Smith ("Smith"), Torchy's Tacos Senior Director of Design & Construction, made it "appear that the business had just closed down . . . without removing anything." See Aug. 27, 2020 Dep. Jeremy Smith at 7, lns. 6--7.Id. at 11, lns. 10--11. The record establishes that Henry then cleared the space by sale and other means.

¶6 On June 13, 2018, Appellee filed an action for indebtedness, foreclosure, conversion, and avoidance of fraudulent transfers against the Appellants and the above-named Defendants. In the Amended Petition, filed on December 4, 2018, the Appellee alleged, inter alia, that the Appellants and the above-named Defendants "committed conversion by knowingly and wrongfully transferring and disposing of some part or all of the FF&E . . . in complete disregard for the [Appellee's] ownership and/or its perfected security interest" (original emphasis omitted). Over the next several months, the Appellee dismissed claims and obtained judgments against other Defendants. On June 8, 2020, Appellants filed a motion for summary judgment under seal, which the trial court denied.

¶7 The Appellee's conversion claim against the Appellants came on for non-jury trial September 14--16, 2020. The trial court rendered judgment in favor of the Appellee on the conversion claim, finding that the Appellants were jointly and severally liable to the Appellee in the amount of $78,500.00, as the value of the collateral converted, interest in the amount of $17,073.75, plus the reasonable cost of recovery of the items converted in the amount of $10,350.00, for a total judgment of $105,923.75.

¶8 This timely appeal followed.

STANDARD OF REVIEW

¶9 When a motion for summary judgment is denied (as it was in this case) and a trial occurs, this Court will not inquire "into the correctness of the pretrial ruling" nor "review th[e] case on pretrial submissions alone" because the post-trial review of a motion for summary judgment is not reviewable on appeal. Myers v. Missouri Pacific Railroad Co., 2002 OK 6052 P.3d 1014Myers, 2002 OK 60id. ¶ 39.

¶10 This appeal also raises questions about the jurisdictional power of the trial court, including questions of standing, which this Court reviews under the de novo standard of review. Bank of America, NA v. Kabba, 2012 OK 23276 P.3d 1006

¶11 This appeal is taken from the judgment of the trial court in an action at law resolved via non-jury trial. In such cases, "the trial judge acts as the trier of fact[,] and those findings are entitled to the same weight and consideration that would be given to a jury's verdict." Hagen v. Independent School District No. I-004, 2007 OK 19157 P.3d 738Id. (citation omitted). Where the trial court's findings are supported by competent evidence, we must accept them. Id. Because the trial court is the finder of fact in non-jury trials, the trial court also determines issues of the credibility of witnesses and the weight of testimony "[b]ecause the trial court is in the best position to evaluate the demeanor of the witnesses and to gauge the credibility of the evidence." Stephens Production Co. v. Larsen, 2017 OK 36394 P.3d 1262

ANALYSIS

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Bluebook (online)
2022 OK CIV APP 24, 514 P.3d 1091, Counsel Stack Legal Research, https://law.counselstack.com/opinion/w-p-bistro-tulsa-v-henry-real-estate-oklacivapp-2021.