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Hawley v. Skradski
304 Neb. 488
| Neb. | 2019
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Background

  • Hawley (the only named plaintiff) sued Skradski for breach of contract, conversion, and tortious interference, claiming Skradski operated an HVAC business Hawley had purchased and converted its assets.
  • The 2008 asset purchase agreement showed KNR Capital Corp. (KNR), not Hawley individually, bought the HVAC business; KNR later sold it in 2011.
  • Hawley testified he was a KNR shareholder/officer and said KNR was dissolved and "transferred the remaining assets" (the claim) to him, but produced no written assignment document.
  • During trial Hawley sought to amend pleadings to allege an assignment from KNR or to add KNR as a plaintiff; the court refused to add KNR but allowed pleadings to be conformed to the evidence alleging an assignment.
  • The district court found an oral assignment to Hawley, proceeded to the merits, and granted Skradski a directed verdict; the Supreme Court reviewed whether Hawley had standing and whether the assignment met statutory requirements.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Standing / real party in interest Hawley: he is KNR's assignee and thus the real party in interest Skradski: KNR (not Hawley) owned the claim and no valid assignment exists Held: Hawley lacked standing; claim belonged to KNR absent a valid written assignment
Validity of assignment under Neb. Rev. Stat. § 25-304 Hawley: KNR orally assigned the claim to him (trial evidence) Skradski: § 25-304 requires a written assignment to confer standing Held: § 25-304 requires assignments in writing; oral assignment insufficient as a matter of law
Pleading amendment / adding KNR as plaintiff Hawley: amendment or adding KNR should be allowed to conform to evidence Skradski: untimely; fairest to require written assignment or KNR as plaintiff Held: Court refused to add KNR but allowed pleadings to conform; absence of written assignment remained fatal
Review of merits after lack of subject-matter jurisdiction Hawley: directed verdict on merits was erroneous Skradski: lack of standing deprives trial and appellate courts of jurisdiction Held: Without subject-matter jurisdiction appellate court may not review merits; judgment vacated and appeal dismissed

Key Cases Cited

  • Jacobs Engr. Group v. ConAgra Foods, 301 Neb. 38, 917 N.W.2d 435 (2018) (standards for subject-matter jurisdiction, standing, and review of factual findings)
  • Bohaboj v. Rausch, 272 Neb. 394, 721 N.W.2d 655 (2006) (de novo review of jurisdictional questions apart from factual findings)
  • Archer v. Musick, 147 Neb. 1018, 25 N.W.2d 908 (1947) (assignees of choses in action are real parties in interest when assignment is for purpose of collection)
  • Holmstedt v. York County Jail Supervisor, 275 Neb. 161, 745 N.W.2d 317 (2008) (subject-matter jurisdiction is a threshold issue to resolve before merits)
  • State ex rel. Rhiley v. Nebraska State Patrol, 301 Neb. 241, 917 N.W.2d 903 (2018) (appellate court lacks jurisdiction to review merits if lower court lacked subject-matter jurisdiction)
  • State ex rel. Sorensen v. Weston Bank, 125 Neb. 612, 251 N.W. 164 (1933) (corporate property belongs to the corporation, not its shareholders)
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Case Details

Case Name: Hawley v. Skradski
Court Name: Nebraska Supreme Court
Date Published: Nov 15, 2019
Citation: 304 Neb. 488
Docket Number: S-18-849
Court Abbreviation: Neb.