Last Pass Aviation v. Western Co-op Co.
892 N.W.2d 108
| Neb. | 2017Background
- In 2011 Last Pass Aviation (sellers) sold an aerial-spraying business to Western Cooperative Company (Westco); the purchase agreement included a 10‑year, four‑state covenant not to compete.
- In 2014 Last Pass sued for a declaratory judgment that the noncompete was overbroad and unenforceable; Westco counterclaimed for injunctive relief and later added breach‑of‑contract counterclaims seeking damages and goodwill loss.
- After trial, the district court (Sept. 28, 2015) held the covenant void as greater than reasonably necessary in geographic scope and duration; that order did not address Westco’s breach counterclaims or Last Pass’s posttrial motion for fees/damages tied to a temporary injunction.
- Westco filed an interlocutory appeal, which the Court of Appeals dismissed for lack of jurisdiction because the district court had not resolved all claims under Neb. Rev. Stat. § 25‑1315.
- The parties then stipulated to dismiss the remaining counterclaims and Last Pass’s fee/damages motion without prejudice and the district court entered a dismissal‑without‑prejudice order; Westco appealed that dismissal.
- The Nebraska Supreme Court held the dismissal‑without‑prejudice did not create a final, appealable order and dismissed Westco’s appeal for lack of jurisdiction.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the covenant not to compete was overbroad and unenforceable | Last Pass: covenant unreasonably broad in geography and duration; void | Westco: covenant reasonable to protect business interests; court should enforce or reform it | Court found covenant greater than reasonably necessary (void) in the Sept. 28 order (but that ruling is not here reviewed due to jurisdictional posture) |
| Whether a 10‑year duration was supported by evidence | Last Pass: no evidence supports 10‑year duration | Westco: evidence justified 10 years | Court below found no evidence supporting reasonableness of 10 years (not reviewed on appeal) |
| Whether appellate jurisdiction exists over the Sept. 28 ruling given unresolved claims | Last Pass: parties stipulated to dismissal without prejudice to allow appeal; creates finality | Westco: dismissal without prejudice creates appealable order allowing review | Court: dismissal without prejudice of unresolved claims does not render order final; appellate jurisdiction lacking — appeal dismissed |
| Whether parties could obtain interlocutory review by jointly dismissing remaining claims without prejudice | Last Pass: procedural mechanism acceptable | Westco: same | Court: parties may not manufacture finality by voluntary dismissal without prejudice; cannot seek interlocutory review that way |
Key Cases Cited
- Koch v. Aupperle, 277 Neb. 560 (Neb. 2009) (remedies/fees following issuance of temporary injunction discussed)
- Malolepszy v. State, 270 Neb. 100 (Neb. 2005) (finality rule: order not final unless all claims adjudicated or court makes express § 25‑1315 determination)
- Smith v. Lincoln Meadows Homeowners Assn., 267 Neb. 849 (Neb. 2004) (party cannot dismiss without prejudice to obtain interlocutory review of nonfinal order)
- Addy v. Lopez, 295 Neb. 635 (Neb. 2017) (reaffirming that joint stipulation to dismiss without prejudice does not create appellate jurisdiction)
