Midland Properties v. Wells Fargo, 893 N.W.2d 460

Jerry Morgan bought a Douglas County property with a loan secured by a deed of trust, later conveyed to his company Midland Properties, L.L.C.
Wells Fargo, N.A. was assigned the note and deed of trust and conducted a nonjudicial trustee’s sale after Morgan defaulted; HBI purchased the property and later conveyed it to H & S Partnership, LLP.
Morgan and Midland filed an amended complaint alleging wrongful foreclosure, irregularities in assignments and the trustee’s sale, and tortious interference with tenant relationships (seeking declaratory relief, quiet title, damages, and equitable relief).
Wells Fargo moved for summary judgment; the district court found Wells Fargo established a prima facie case, excluded portions of Morgan’s affidavit/deposition as hearsay and lacking foundation, and dismissed the amended complaint.
Appellants moved for leave to file a second amended complaint to add another defendant (Wells Fargo’s independent contractor); the court denied leave as untimely and futile.
The Nebraska Supreme Court affirmed, holding excluded evidence failed to create genuine issues of material fact and denial of leave to amend was not an abuse of discretion.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Right to foreclose	Morgan testified Wells Fargo reps told him not to pay and that they would not foreclose	Wells Fargo produced records showing default, notice, denial of modification, and compliance with sale procedures	Court: Excluded Morgan’s testimony for lack of foundation; Wells Fargo entitled to summary judgment on foreclosure/quiet title/declaratory relief
Admissibility of Morgan’s phone-conversation testimony	Testimony of verbal promises by unnamed Wells Fargo reps proves no default/notice	Testimony lacked identification of speakers/dates and thus inadequate foundation; hearsay	Court: Exclusion not an abuse of discretion; testimony inadmissible for lack of foundation
Tortious interference with business relationships	Tenants were contacted/harassed by Wells Fargo reps (reported to Morgan) causing $50,000 in damages	Wells Fargo produced tenant affidavit denying contact and records showing only occupancy checks by an independent contractor	Court: Morgan’s secondhand reports were hearsay and lacked personal knowledge; no genuine issue of material fact; claim dismissed
Leave to amend to add independent contractor	Appellants only recently learned contractor identity and need to add as defendant	Wells Fargo identified contractor months earlier; amendment was untimely and would be futile	Court: Denial of leave was not an abuse of discretion; amendment would be untimely and futile

Bixenmann v. Dickinson Land Surveyors, 294 Neb. 407, 882 N.W.2d 910 (discussing summary judgment standard)
State v. Casterline, 293 Neb. 41, 878 N.W.2d 38 (evidentiary foundation and abuse of discretion review)
Golnick v. Callender, 290 Neb. 395, 860 N.W.2d 180 (procedural standards for pleadings and summary judgment review)
SID No. 196 of Douglas Cty. v. City of Valley, 290 Neb. 1, 858 N.W.2d 553 (summary judgment burdens and inferences)
Linch v. Carlson, 156 Neb. 308, 56 N.W.2d 101 (principles on evidence and personal knowledge)
Steinhausen v. HomeServices of Neb., 289 Neb. 927, 857 N.W.2d 816 (elements of tortious interference)
Green v. Box Butte General Hosp., 284 Neb. 243, 818 N.W.2d 589 (standards for leave to amend pleadings)