George Clift Enters. v. Oshkosh Feedyard Corp.
947 N.W.2d 510
Neb.2020Background
- GCE (George Clift Enterprises) signed an exclusive 12-month listing (July 2013) with Oshkosh Feedyard for $4.5M and a 4.5% brokerage fee; the contract included a 2‑month post‑term protection clause and a $4,000 upfront listing fee (paid).
- In spring–summer 2014 Bretz (GCE’s agent) communicated with prospective buyers (Betley, Braun, Matzke); Bretz encouraged them to continue direct discussions with seller Jessen and said he and the owner "would deal with the listing agreement."
- The buyers formed Oshkosh Heifer Development (Aug 2014) with Jessen as a member; the purchase agreement closed Dec 2014 for $2.5M—after both the 12‑month listing and 2‑month protection periods expired.
- GCE sued in 2014 (dismissed for lack of prosecution), refiled in Sept. 2017 alleging breach of the listing and conspiracy/tortious interference; discovery disputes ensued and depositions were not taken before defendants moved for summary judgment in Jan. 2019.
- The district court granted summary judgment for defendants (Apr. 2019), finding no ready/willing/able buyer within the listing period and that GCE waived the referral prohibition; the court also found the suit frivolous and awarded attorneys’ fees to all defendants.
- On appeal the Supreme Court affirmed summary judgment, reversed the fee award in part (concluding the conspiracy claim was not frivolous), and remanded for recalculation/allocation of fees limited to defense of the first (contract) claim.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the summary judgment hearing was premature and the court abused its discretion by denying a continuance to take depositions | GCE: depositions were "absolutely essential" and discovery remained incomplete; continuance required under §25‑1335 | Defs: case pending long, GCE dilatory in taking depositions, written discovery largely available | Court: No abuse of discretion; GCE was dilatory and failed to show specific facts that additional discovery would produce; continuance not required |
| Whether GCE earned a commission (broker produced a ready, willing, and able buyer within listing or protection period) | GCE: its efforts/contacts (via Bretz) produced prospective buyers who ultimately purchased the property; commission due despite closing after the period | Defs: no buyer was ready/willing/able on seller’s terms during listing/protection periods; negotiations and sale terms reached after the periods; Bretz consented to direct talks (waiver) | Court: No genuine issue—GCE did not produce a ready, willing, and able buyer in time; protection clause not triggered; GCE waived the referral restriction by consenting to direct negotiations |
| Whether the conspiracy / tortious‑interference claim was actionable and supported by evidence | GCE: defendants conspired to delay/structure the sale to avoid paying a broker commission | Defs: no agreement/intent to delay; buyers unaware of listing early on; Bretz encouraged direct talks; no underlying tort or proximate causation | Court: Claim was cognizable but GCE failed to show facts establishing agreement, intent, or proximate cause; summary judgment on merits affirmed, but appellate court held the conspiracy claim was not frivolous for purposes of fees |
| Whether the court properly awarded and allocated attorney fees as sanctions and whether counsel should be disqualified / held jointly and severally liable | GCE: fees improper; counsel should not be held liable; disqualification opposed | Defs: claims frivolous and in bad faith; fees justified and may include allocation against attorneys | Held: Trial court did not clearly err in finding the contract claim frivolous and awarding fees for defending that claim against Jessen/Oshkosh Feedyard; appellate court reversed fee awards to buyer‑defendants (who were only defendants to conspiracy claim) and remanded to reassess and limit fees to defense of the first cause; disqualification issue was moot; no abuse in not imposing joint and several liability on GCE’s counsel given the record |
Key Cases Cited
- Lombardo v. Sedlacek, 299 Neb. 400 (2018) (standards for discovery/continuance and district court discretion)
- Korth v. Luther, 304 Neb. 450 (2019) (appellate review of attorney‑fee awards for frivolous litigation)
- McCully, Inc. v. Baccaro Ranch, 284 Neb. 160 (2012) (broker entitled to commission where buyer procured within listing period even if closing later)
- Dworak v. Michals, 211 Neb. 716 (1982) (broker commission earned when purchaser ready, willing, and able on owner's terms)
- Coldwell Banker Town & Country Realty v. Johnson, 249 Neb. 523 (1996) (no commission where terms effectuating sale were reached by seller after listing expired)
- Denali Real Estate v. Denali Custom Builders, 302 Neb. 984 (2019) (elements of tortious interference with business relationship)
- Pearce v. ELIC Corp., 213 Neb. 193 (1982) (contract waiver may be shown by express acts or conduct inducing belief of waiver)
