Wayne L. Ryan Revocable Trust v. Ryan
297 Neb. 761
| Neb. | 2017Background
- Streck, Inc., a family-owned Nebraska corporation, was sued in 2014 by the Wayne L. Ryan Revocable Trust (RRT) alleging shareholder oppression and seeking dissolution; Dr. Wayne Ryan is RRT beneficiary and family members hold various voting/nonvoting shares.
- Streck elected under Neb. Rev. Stat. § 21-20,166 to purchase RRT’s shares rather than dissolve; the court stayed proceedings to determine fair value after the parties failed to agree.
- The district court granted cross-motions for partial summary judgment: it held discounts should not apply to fair value and that Streck validly exercised its election to purchase the RRT’s shares; only fair value remained to be decided.
- Stacy Ryan (a non-shareholder income beneficiary of a related trust) filed an initial intervention complaint during the stay and it was denied; no appeal was taken from that denial.
- More than a year after Streck’s election and after summary judgment, Stacy and four adult children (the intervenors) filed a second complaint in intervention seeking to challenge the validity of Streck’s election and to reopen discovery; the district court struck that complaint and the intervenors appealed.
- The Nebraska Supreme Court affirmed: intervenors sought to relitigate issues already decided, lacked a direct legal interest in the remaining fair-value proceeding, and could not use intervention to undo prior determinations.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether order denying intervention is appealable | Intervenors argued denial was final and appealable | Streck argued appellate jurisdiction lacking under § 25-1315 | Court: Denial of intervention is a final, appealable order; jurisdiction exists |
| Whether intervenors had statutory right to intervene under § 25-328 | Intervenors claimed direct legal interest as income beneficiaries of ERRT and that Streck’s election would dilute ERRT value | Streck/Connie argued intervenors only had indirect interest (non-shareholders) and the only remaining issue was fair value | Court: Intervenors lacked the required direct and legal interest; their interest was indirect |
| Whether intervention was timely | Intervenors argued timeliness despite prior rulings | Defendants argued intervention was untimely because summary judgment on election was already granted | Court: Intervention was untimely to the extent it sought to relitigate already-decided issues |
| Whether court could grant relief sought (reopen/relitigate election) | Intervenors sought to vacate/alter prior summary-judgment ruling and conduct full discovery on election validity | Defendants argued intervention cannot be used to relitigate matters already determined and an intervenor must take the case as it stands | Court: Relief unavailable; intervenors cannot relitigate previously decided issues, so complaint properly struck |
Key Cases Cited
- Ruzicka v. Ruzicka, 262 Neb. 824 (2001) (intervenor may only raise claims involving the same core issue as existing parties)
- Spear T Ranch v. Knaub, 271 Neb. 578 (2006) (intervenor must have a direct and legal interest that will be affected by the judgment)
- Trainum v. Sutherland Assocs., 263 Neb. 778 (2002) (appellate courts review questions of law de novo)
- School Dist. of Gering v. Stannard, 196 Neb. 367 (1976) (an intervenor is bound by determinations made before intervention)
- Drainage District v. Kirkpatrick-Pettis Co., 140 Neb. 530 (1941) (an intervenor must take the suit as he finds it; cannot relitigate decided matters)
- Arizona v. California, 460 U.S. 605 (1983) (general principle that intervention does not permit relitigation of already-decided issues)
