Webb v. First Nat. Bank of Hinsdale

711 P.2d 1352, 219 Mont. 160, 1985 Mont. LEXIS 962
CourtMontana Supreme Court
DecidedDecember 24, 1985
Docket84-531
StatusPublished
Cited by5 cases

This text of 711 P.2d 1352 (Webb v. First Nat. Bank of Hinsdale) 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
Webb v. First Nat. Bank of Hinsdale, 711 P.2d 1352, 219 Mont. 160, 1985 Mont. LEXIS 962 (Mo. 1985).

Opinions

MR. JUSTICE GULBRANDSON

delivered the Opinion of the Court.

This is an appeal from the District Court of the Seventeenth Judicial District, Valley County. John W. Webb, appellant, filed suit against the First National Bank of Hinsdale (Bank) alleging tortious interference with a contract for the sale of his cattle. He claimed that the Bank wrongfully induced the buyer, Glasgow Livestock Sales Company, Inc. (Glasgow Livestock) to place the Bank’s name on a check for the cattle as an additional payee. Appellant appeals an order granting the Bank’s motion for summary judgment. We affirm the District Court’s order.

From 1970 to 1977, appellant was a customer of the Bank and a good business relationship existed between them. In September 1977 the Bank refused to loan Webb additional money because of outstanding loans.

Appellant then secured financing from another lending institution, the first State Bank of Malta, and purchased 100 cows and 100 calves. He sold some of these cattle to Glasgow Livestock, in November 1978. The Bank, through its attorney, requested that Glasgow Livestock place the Bank’s name on the check for the cattle as an additional payee, along with the First State Bank of Malta and [162]*162another bank. The Bank claimed a right to have its name placed on the check because it claimed a security interest in appellant’s cattle based on past loans made to him. He countered that the money owed was secured only by certain trucking equipment and that the Bank could not collect this indebtedness out of the proceeds of the cattle sale.

Appellant delivered the check from Glasgow Livestock to the First Bank of Malta, where it was retained until appellant paid off their loan on January 31, 1979. The check was. then returned to appellant. Finally, on October 18, 1979, the Bank brought a collection action against appellant, Civil Action No. 15311.

Appellant responded by hiring an attorney and inquiring into the possibility of suing the Bank, claiming that it wrongfully induced Glasgow Livestock to place the Bank’s name on the check as a payee. The attorney reviewed the Bank’s records and concluded that such a suit would have no merit. He advised appellant to negotiate a settlement with the Bank. Subsequently, at appellant’s request, the attorney began settlement negotiations with the Bank. Appellant was at all times kept apprised of the negotiations. On December 18, 1979, his attorney and the Bank’s attorney stipulated that the collection action should be dismissed with prejudice. As part of this settlement, Webb endorsed the check from Glasgow Livestock over to the Bank and pursuant to the stipulation the Bank discounted its claim by the sum of $4,273.26. The collection action then was dismissed.

For nearly two years afterward there was no further communication between the parties. During that time, however, Webb hired a new attorney, and on November 6, 1981, filed the present action. He alleges that the Bank tortiously interfered with his contractual relations when it induced Glasgow Livestock to place the Bank’s name on the check as a payee. The Bank moved for summary judgment under Rule 56, M.R.Civ.P., claiming that the current action was fully settled when No. 15311 was dismissed by the stipulation. Webb responded that the stipulation for dismissal of Civil Action No. 15311 was intended for the settlement of that cause only and was not intended to settle all disputes between the parties. The stipulation and order to dismiss stated that the “above entitled action [No. 15311] be dismissed with prejudice as settled in full.” The District Court granted the Bank’s motion for summary judgment in the current action.

[163]*163Appellant appeals the granting of summary judgment. We consider three issues on the appeal:

(1) Whether the negotiated compromise was a full and final settlement which included appellant’s claim for tortious interference?

(2) Even if the compromise was a full and final settlement, are there genuine issues of material fact as to appellant’s intent, his counsel’s authority to enter the agreement and appellant’s ratification of the agreement which preclude summary judgment?

(3) Does either estoppel or res judicata bar the current litigation?

“. . . Rule 56(c), Mont.R.Civ.P. permits summary judgment to issue only when there is no genuine issue of material fact, and the moving party is entitled to the judgment as a matter of law.
“The moving party’s initial burden is two-fold. First, it must show the absence of any genuine issue as to material fact. Second, that party must also show that this set of facts entitles it to the judgment as a matter of law . . .
“In addressing the factual test, although the court has no duty to anticipate or speculate as to material facts to the contrary, it must nonetheless draw every inference in favor of the non-moving party.
“If the movant has met this burden, it then shifts to the non-moving party to demonstrate a genuine issue of material fact. Mere denial or speculation will not suffice, the non-moving party must show facts sufficient to raise a genuine issue.” (Citations omitted.) Gamble Robinson Co. v. Carousel Properties (Mont. 1984), [212 Mont. 305,] 688 P.2d 283, 286-287, 41 St.Rep. 1757, 1760-61.

In the first issue, the Bank argues the District Court properly granted summary judgment because the compromise and settlement in the first action is final and binding on the parties and bars the current action as a matter of law. Generally, a compromise agreement, when the basis for a final judgment operates “as a merger and bar of all preexisting claims and causes of action.” Rodriguez v. Fireman’s Fund Ins. Companies (Cal.1983), 142 Cal.App.3d 46, 54, 190 Cal.Rptr. 705, 709. In Rodriguez, the action concluded when the plaintiff accepted defendant’s settlement offer and the court entered a dismissal with prejudice. The California court equated this dismissal to a verdict and judgment on the merits barring any new actions. Rodriguez, 190 Cal.Rptr. at 710. Folsom v. Butte County Ass’n of Governments (1982), 32 Cal.3d 668, 186 Cal. Rptr. 589, 652 P.2d 437, characterizes a compromise agreement as “[concluding] all matters put in issue by the pleadings — that is, questions that otherwise [164]*164would have been resolved at trial.” Folsom, 186 Cal.Rptr. at 596, 652 P.2d at 444. In that case, the statutory rights to costs and attorney’s fees were held not to be part of the agreement since they were matters incident to the judgment rather than part of the cause of action. The court also noted the surrounding facts did not show the parties intended costs and fees be included in the agreement. These cases accord with the policy that “reciprocal rights flowing from a common source [should] be determined in a single action, thus avoiding not only unnecessary vexatious litigation but also the contingency of conflicting judgments . . . “ Kittle Mfg. Co. v. Davis (Cal.1935), 8 Cal.App.2d 504, 47 P.2d 1089, 1094, cited in Datta v. Staab (Cal.1959), 173 Cal.App.2d 613, 343 P.2d 977, 981.

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Cite This Page — Counsel Stack

Bluebook (online)
711 P.2d 1352, 219 Mont. 160, 1985 Mont. LEXIS 962, Counsel Stack Legal Research, https://law.counselstack.com/opinion/webb-v-first-nat-bank-of-hinsdale-mont-1985.