WRK v. Wiegert

CourtNebraska Court of Appeals
DecidedJuly 1, 2025
DocketA-24-143
StatusUnpublished

This text of WRK v. Wiegert (WRK v. Wiegert) is published on Counsel Stack Legal Research, covering Nebraska Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
WRK v. Wiegert, (Neb. Ct. App. 2025).

Opinion

IN THE NEBRASKA COURT OF APPEALS

MEMORANDUM OPINION AND JUDGMENT ON APPEAL (Memorandum Web Opinion)

WRK V. WIEGERT

NOTICE: THIS OPINION IS NOT DESIGNATED FOR PERMANENT PUBLICATION AND MAY NOT BE CITED EXCEPT AS PROVIDED BY NEB. CT. R. APP. P. § 2-102(E).

WRK, LLC, APPELLANT, V.

ZACH WIEGERT, APPELLEE.

Filed July 1, 2025. No. A-24-143.

Appeal from the District Court for Lancaster County: ANDREW R. JACOBSEN, Judge. Reversed and remanded for further proceedings. Daniel J. Epstein, of Goosmann Law Firm, P.L.C., for appellant. Heather Voegele and Andreanna C. Smith, of Voegele Anson Law, L.L.C., for appellee.

RIEDMANN, Chief Judge, and BISHOP and ARTERBURN, Judges. BISHOP, Judge. I. INTRODUCTION WRK, L.L.C. (WRK), filed a complaint against Zach Wiegert for breach of contract regarding a covenant not to compete. Wiegert then filed a counterclaim against WRK for tortious interference with business and potential business relationships. The Lancaster County District Court entered summary judgment in favor of Wiegert on WRK’s breach of contract claim. Wiegert subsequently requested and an order was entered dismissing his counterclaim without prejudice. WRK appealed the summary judgment order. We first conclude that we have jurisdiction over WRK’s appeal despite the voluntary dismissal without prejudice of Wiegert’s counterclaim. We also conclude that there are genuine issues of material fact which prevent summary judgment as a matter of law. We therefore reverse the order granting summary judgment in favor of Wiegert on WRK’s breach of contract claim, and we remand the cause to the district court for further proceedings.

-1- II. BACKGROUND 1. PARTIES, AGREEMENTS, AND COVENANT NOT TO COMPETE WRK is a real estate development and investment firm, and Wiegert is a commercial and residential real estate developer. For a period of time, WRK, Wiegert, and another privately held real estate development company out of Salt Lake City, Utah, named Woodbury Corporation (Woodbury), worked on projects together, including a project in Lincoln, Nebraska, referred to as “Project Oscar” or “Project Oscar 1.” According to Woodbury’s senior vice president/general counsel, when “it became apparent that the parties could no longer work together,” they “basically divided up assets, debts and territory.” The parties negotiated a document “to basically divorce.” As relevant to the present litigation, the negotiated documents included a covenant not to compete provision contained in a “Settlement Agreement” and a “West Haymarket Agreement,” to which WRK and Wiegert were parties. Specifically, the West Haymarket Agreement, effective as of August 24, 2012, prohibited Wiegert, and other individuals and entities, from competing in the “West Haymarket Redevelopment Project Area,” except for “NE Block 3,” “as a developer of a new building construction, or as an owner, landlord, or tenant of real estate” for a period of 7½ years. In 2018, before the 7½-year period had expired, WRK learned that Wiegert was involved in a development referred to as “Project Oscar 2.0” or “Project Oscar 2.” This development was within the West Haymarket Redevelopment Project Area outside of “NE Block 3.” The West Haymarket Agreement included a provision for “Default and Remedies” (emphasis in original) in the event there was a failure to comply with the covenant not to compete. That provision is found in section 13(a) and provides: i. If WRK has reasonable cause to believe that the defaulting party(ies) is failing to comply with the covenant not to compete provision . . . WRK has the right to deliver to the defaulting party(ies) a written notice demanding that the defaulting party(ies) immediately cease any and all competing activities or else be subject to liquidated damages as described herein . . . (“Special Notice”). ii. If the defaulting party(ies) immediately cures and complies with the covenant not to compete provision within three (3) days after receiving the Special Notice, then WRK would still have the option to seek any remedy at law or in equity without notice or demand against the defaulting [sic] for the alleged failure to comply with the covenant not to compete that occurred on or before three (3) days after delivery of the Special Notice. iii. If the defaulting party(ies) fails to cure and comply with the covenant not to compete provision within three (3) days after delivery of the Special Notice, then WRK shall have the sole remedy of liquated [sic] damages described herein against the defaulting party(ies). For a proven default of the covenant not to compete provision after receipt of the Special Notice, the defaulting party(ies) is liable (or jointly liable if two or more defaulting parties) to pay WRK the sum of Three Million Five Hundred Thousand and No/100 Dollars ($3,500,000.00) as full liquidated damages for such default of the covenant not to compete provision. The parties hereto acknowledge and agree that it is impossible at the present time to more precisely estimate the damages to be suffered by WRK upon the defaulting party’s(ies’) default and such sum is a reasonable estimate of the damages

-2- that would be incurred by WRK for a default of the covenant not to compete by the defaulting party(ies). The liquidated damages provision is intended not as a penalty, but as full liquidated damages.

(Emphasis in original.) 2. COMPLAINT, COUNTERCLAIM, AND MOTIONS FOR SUMMARY JUDGMENT In June 2019, WRK filed a complaint against Wiegert for breach of contract. WRK alleged as follows. The covenant not to compete contained in the West Haymarket Agreement would terminate 7½ years after the date of the West Haymarket Agreement, which was approximately February 24, 2020. A new building was being constructed in the West Haymarket area outside of the NE Quarter of Block 3, on land “owned by Project Oscar 2.0, LLC, (hereinafter “Project Oscar 2.0”).” As of May 2018, Wiegert, individually and on behalf of his related entities, held himself out as a developer of Project Oscar 2.0. On September 6, 2018, WRK, pursuant to the West Haymarket Agreement, provided a Special Notice to Wiegert that WRK had reasonable cause to believe that he or an affiliated entity were failing to comply with the covenant not to compete, and WRK demanded Wiegert immediately cease any and all competing activities in accordance with the terms of the West Haymarket Agreement. Wiegert and/or one of his related entities failed to cure and comply with the covenant not to compete within 3 days after delivery of the Special Notice. Pursuant to the West Haymarket Agreement, WRK had the sole remedy of liquidated damages in the event a party failed to cure and comply with the covenant not to compete provision within 3 days after delivery of the Special Notice. Wiegert did not cure and comply with the Special Notice within 3 days after delivery of the Special Notice and WRK sought $3.5 million as “full liquidated damages” for Wiegert’s alleged breach of the covenant not to compete. In addition to praying for a judgment against Wiegert in the amount of $3.5 million, pre-judgment and post-judgment interest, attorney fees, and costs, WRK also prayed for “any other relief this Court deems just and equitable, including any other damages allowed under the Settlement Agreement and/or the West Haymarket Agreement.” In September 2020, Wiegert filed an amended answer and counterclaim. In his answer, Wiegert denied WRK’s allegations of breach of contract.

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Bluebook (online)
WRK v. Wiegert, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wrk-v-wiegert-nebctapp-2025.