Westlake v. Osborne

750 P.2d 444, 230 Mont. 364, 45 State Rptr. 277, 1988 Mont. LEXIS 50
CourtMontana Supreme Court
DecidedFebruary 16, 1988
Docket87-359
StatusPublished
Cited by2 cases

This text of 750 P.2d 444 (Westlake v. Osborne) 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
Westlake v. Osborne, 750 P.2d 444, 230 Mont. 364, 45 State Rptr. 277, 1988 Mont. LEXIS 50 (Mo. 1988).

Opinion

MR. JUSTICE GULBRANDSON

delivered the Opinion of the Court.

Vernon Westlake appeals an Eighteenth Judicial District Court judgment awarding damages and attorneys’ fees to the Osbornes. The facts surrounding Westlake’s initial complaint are more fully set forth in Westlake v. Osborne (Mont. 1986), [220 Mont. 91,] 713 P.2d 548, 43 St.Rep. 200. In the first appeal of this case, this Court affirmed the District Court’s grant of partial summary judgment to the Osbornes on Westlake’s complaint.

This appeal concerns the District Court’s judgment on the Osbornes’ remaining counterclaims. The District Court found Westlake individually liable pursuant to Section 72-3-612, MCA, and as personal representative of the estate, for unlawfully withholding possession of real property and awarded $8,265 in lost rental income to the Osbornes. The District Court also awarded $4,058.78 in costs and attorneys’ fees pursuant to a clause contained in the original contract for sale. Westlake appeals the District Court judgment and the Osbornes cross-appeal. We affirm.

The facts pertinent to this appeal are undisputed. Before his death, Harry Larson sold his house to the Osbornes. The Osbornes paid some money down with the balance to be paid in monthly installments over a thirty-six month period. The Osbornes in turn leased the premises back to Larson. Larson’s lease payments satisfied the Osbornes’ monthly installment payments. The balance of the purchase price was to be deemed satisfied in the event Larson died before the end of the thirty-six month period. Larson died eight months after the transaction was closed. Westlake, as personal representative of Larson’s estate, immediately took possession of the property after Larson’s death and denied access to the Osbornes.

Westlake brought this action on behalf of the estate of Harry Lar *367 son to set aside the contract of sale, deed and lease-back based on allegations of fraud, misrepresentation, undue influence, and unconscionability. The Osbornes counterclaimed for attorneys’ fees and for lost rent during the period they were denied possession of their property. The Osbornes’ counterclaim alleged that Westlake was liable as an individual and as personal representative of the estate. Westlake completely distributed the estate’s assets despite the existence of the counterclaims.

In this appeal regarding the Osbornes’ counterclaims, Westlake raises the following issues for our review:

1. Did the District Court err in not dismissing the Osbornes’ counterclaims on the basis that this Court’s previous ruling in Westlake v. Osborne (Mont. 1986), [220 Mont. 91,] 713 P.2d 548, 43 St.Rep. 200, rendered such counterclaims res judicata?

2. Did the District Court err in holding Westlake personally liable for his acts as the personal representative of the estate of Harry D. Larson?

3. Did the District Court err in awarding attorneys’ fees to the Osbornes?

4. Is there substantial credible evidence to support the Osbornes’ action for unlawful detainer?

The Osbornes’ cross-appeal and raise two issues:

5. Did the District Court err in refusing to treble damages?

6. Did the District Court err in computing attorneys’ fees?

Westlake first contends that the Osbornes’ counterclaims were rendered res judicata by our holding in Westlake v. Osborne (Mont. 1986), [220 Mont. 91,] 713 P.2d 548, 43 St.Rep. 200. We note that it was Westlake who moved the District Court to certify the partial summary judgment as a final judgment so he could pursue the first appeal to this Court. Thereafter, the Osbornes filed a memorandum to request that the District Court certify the partial summary judgment pursuant to Rule 54(b), M.R.Civ.P., so Westlake could appeal. The District Court certified the partial summary judgment as final and specifically retained jurisdiction of the Osbornes’ counterclaims pending the outcome of the first appeal. Westlake appealed and our review was limited to the question of whether the District Court erred in granting the motions for partial summary judgment. We affirmed the District Court and did not address the merits of the Osbornes’ counterclaims at that time.

Westlake now claims that because the first appeal was premature, the counterclaims were rendered res judicata by our decision in *368 Westlake, supra. Westlake’s argument is without merit. In Roy v. Neibauer (1980), 188 Mont. 81, 86, 610 P.2d 1185, 1189, we stated that “Rule 54(b) [M.R.Civ.P.] requires that before a certification be made the trial court must find that there be ‘no just reason for delay.’ ” The District Court expressly and carefully considered our decision in Roy, the factors contained therein, found no just reason for delay, and concluded that Rule 54(b) certification was proper. Certification was not contested by either of the parties or by this Court.

The District Court specifically retained jurisdiction of the counterclaims pending the first appeal. The partial summary judgment was properly certified for appeal and our decision in Westlake did not consider the merits of the Osbornes’ counterclaims. The counterclaims were not, therefore, res judicata and the District Court did not err in denying Westlake’s motion to dismiss.

The second issue presented for our review concerns Westlake’s individual liability for his actions as personal representative of the estate. Westlake first argues that he was not properly joined in this action in an individual capacity. The Osbornes counterclaimed against Westlake both individually and as personal representative. Westlake answered the counterclaim and alleged that he was not liable in his individual capacity. It was not until trial of the counterclaims that Westlake’s counsel moved for dismissal of claims against him in an individual capacity. The Osbornes’ attorney, though not conceding that it was necessary, also moved that Westlake be joined in his individual capacity. The District Court took both motions under advisement and eventually entered judgment against West-lake as an individual and as personal representative of the estate.

Joinder of parties under Rule 21, M.R.Civ.P., is discretionary with the district court. State ex rel. Stenberg v. Nelson (1971), 157 Mont. 310, 486 P.2d 870. We will not reverse the District Court’s decision to join Westlake in his individual capacity absent a clear showing of an abuse of discretion. Our review of the District Court’s decision to join Westlake as an individual is governed by the liberal standards applicable to amendments under Rule 15, M.R.Civ.P. White v. Lobdell (Mont. 1984), [208 Mont. 295,] 678 P.2d 637, 641, 41 St.Rep. 346, 351.

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750 P.2d 444, 230 Mont. 364, 45 State Rptr. 277, 1988 Mont. LEXIS 50, Counsel Stack Legal Research, https://law.counselstack.com/opinion/westlake-v-osborne-mont-1988.