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John E. Murray v. Greg Stine

Date: 06-19-2015

Case Number: 291 Neb. 125

Judge: Per Curiam

Court: Supreme Court of Nebraska on appeal from the District Court, Douglas County

Plaintiff's Attorney: James D. Sherrets, Diana J. Vogt, and Jared C. Olson, of

Sherrets, Bruno & Vogt, L.L.C., for appellants John E. Murray

et al. in No. S-14-389 and appellees John E. Murray et al. in

No. S-14-753.

Defendant's Attorney: Thomas J. McCusker, Michael J. Mills, and Ryan A. Steen,

of Gettman & Mills, L.L.P., for appellees Dennis A. O’Neal

et al.



William R. Reinsch, of Reinsch, Slattery, Bear & Minahan,

P.C., L.L.O., for appellee Ken Grigsby.



Steven D. Davidson, of Baird Holm, L.L.P., for appellee

Vance D. Gardiner.



William F. Hargens and Lauren R. Goodman, of McGrath,

North, Mullin & Kratz, P.C., L.L.O., for appellees Greg Stine

and Premier Bank in No. S-14-389 and appellants Greg Stine

and Premier Bank in No. S-14-753.



John P. Passarelli and Todd C. Kinney, of Kutak Rock,

L.L.P., for appellees William J. Lindsay, Jr., et al.

Description:
Because of unresolved motions for attorney fees, we lack

jurisdiction and must dismiss two attempts to appeal from an

action for breach of fiduciary duties. The fee motions were

filed after summary judgment motions were heard but before

they were decided. The first appeal followed the summary

judgment ruling. The undisposed fee motions prevented that

ruling from being final. The second appeal followed the district

court's refusal, citing lack of jurisdiction, to rule on the fee

motions. Until the fee motions are decided, there is no final

judgment and no appellate jurisdiction.

BACKGROUND

The cotrustees of a trust filed suit against a number of parties.

The cotrustees alleged, among other causes of action, that

the defendants breached their fiduciary duties.

Upon motions to dismiss, the district court dismissed

five of the cotrustees' eight causes of action. The remaining

defendants then filed answers, some of which specifically

requested attorney fees under Neb. Rev. Stat. § 25-824

(Reissue 2008).

Subsequently, the remaining defendants filed motions for

summary judgment. The district court heard the motions on

April 7, 2014. On April 8 and 9, several defendants filed

motions seeking attorney fees under § 25-824. The motions

were set to be heard on May 12.

On April 16, 2014, the district court entered orders granting

the motions for summary judgment. The orders were silent

as to attorney fees. On May 2—10 days before the scheduled

hearing on the motions for attorney fees—the cotrustees filed

a notice of appeal in the district court, which was docketed as

our case No. S-14-389.

The district court subsequently entered an order finding that

it did not have jurisdiction to hear the motions for attorney

fees because of the pending appeal. Several defendants timely

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filed an appeal from that order, which appeal was docketed as

our case No. S-14-753.

The appeals were consolidated for briefing and disposition,

and we moved them to our docket.1

ASSIGNMENTS OF ERROR

The cotrustees assign seven errors which, consolidated and

restated, allege that the district court erred in (1) dismissing

their first five causes of action for failure to state a claim and

(2) granting summary judgment and dismissing their sixth

through eighth causes of action.

Several defendants included in the consolidated briefing

what they characterized as cross-appeals challenging the district

court's refusal to rule on their motions for attorney fees

under § 25-824.

STANDARD OF REVIEW

[1] A jurisdictional question that does not involve a factual

dispute presents a question of law.2

ANALYSIS

[2] Before reaching the legal issues presented for review, it

is the duty of an appellate court to determine whether it has

jurisdiction.3

We must determine whether the absence of a ruling

on the motions for attorney fees prevents us from acquiring

jurisdiction over the appeals.

[3-5] Attorney fees, where recoverable, are generally treated

as an element of court costs.4

And an award of costs in a judgment

is considered a part of the judgment.5

We have stated

1 See Neb. Rev. Stat. § 24-1106(3) (Reissue 2008).

2 Shasta Linen Supply v. Applied Underwriters, 290 Neb. 640, 861 N.W.2d

425 (2015).

3 Id.

4 See Olson v. Palagi, 266 Neb. 377, 665 N.W.2d 582 (2003).

5 Id.

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that a party seeking statutorily authorized attorney fees, for

services rendered in a trial court, must make a request for such

fees prior to a judgment in the cause.6

Two lines of authority with divergent consequences are

implicated by the procedural background of this case. On the

one hand, some defendants requested attorney fees in their

answers, and the judgment contained no explicit ruling on the

issue. On the other hand, some defendants also filed separate

motions for attorney fees before entry of judgment, and the

hearing on the motions had not yet occurred at the time the

cotrustees filed their notice of appeal. We discuss the consequences

of each situation in more detail.

[6] We have stated that silence of a judgment on the issue

of attorney fees must be construed as a denial of the request.7

In Olson v. Palagi,

8

the defendant's answer requested attorney

fees under a statute9

authorizing such an award in a child

support modification proceeding. The trial court's judgment

did not explicitly rule on the request, and the court's docket

entry stated that there were no matters under advisement.

After entry of judgment, the defendant filed a separate application

for attorney fees and the plaintiff appealed prior to the

scheduled hearing on attorney fees. The defendant did not

cross-appeal on the issue of attorney fees, and the Nebraska

Court of Appeals and the parties treated the judgment as a

final order. We stated, "The silence of the judgment on the

issue of attorney fees must be construed as a denial of [the

defendant's] request under these circumstances.”10 Similarly,

in NEBCO, Inc. v. Murphy,

11 a party sought an award of

6 See Salkin v. Jacobsen, 263 Neb. 521, 641 N.W.2d 356 (2002).

7 See Olson v. Palagi, supra note 4.

8 Id.

9 See Neb. Rev. Stat. § 42-351 (Reissue 2008).

10 Olson v. Palagi, supra note 4, 266 Neb. at 380, 665 N.W.2d at 585.

11 NEBCO, Inc. v. Murphy, 280 Neb. 145, 784 N.W.2d 447 (2010).

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attorney fees under § 25-824 in a responsive pleading to two

different complaints. The court explicitly denied the request

in one case, but its order in the other case was silent on the

issue of attorney fees. We noted that the defendant did not file

a separate motion for attorney fees and stated that the court

rejected both requests, either explicitly or implicitly.

[7] But we have also held that when a motion for attorney

fees under § 25-824 is made prior to the judgment of the court

in which the attorney's services were rendered, the judgment

will not become final and appealable until the court has ruled

upon that motion.12 Additionally, we have declined to exercise

jurisdiction when an appeal is filed before a scheduled hearing

or when the trial court has reserved ruling on attorney

fees. In Billingsley v. BFM Liquor Mgmt.,

13 the parties stipulated

prior to trial that the trial court would reserve ruling on

the plaintiff's request for equitable relief until after the jury

determined any damages. After the court entered judgment on

the jury verdict, the plaintiff filed a motion seeking an order

regarding the equitable relief he had requested, as well as

attorney fees. The defendant appealed before the scheduled

hearing on the motion. We concluded that a determination of

whether the plaintiff was entitled to equitable relief or attorney

fees was necessary to completely dispose of the matter,

and thus, the "judgment” on the jury verdict was not final

and appealable. In In re Guardianship & Conservatorship of

Woltemath,

14 a responsive pleading requested attorney fees

under § 25-824 and the trial court's order dismissing the petition

specifically reserved the issue of attorney fees. We concluded

that the appeals taken prior to a ruling on attorney fees

were premature.

12 Salkin v. Jacobsen, supra note 6.

13 Billingsley v. BFM Liquor Mgmt., 259 Neb. 992, 613 N.W.2d 478 (2000).

14 In re Guardianship & Conservatorship of Woltemath, 268 Neb. 33, 680

N.W.2d 142 (2004).

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Even if the order granting the summary judgment motions

implicitly denied the requests for attorney fees included in the

respective answers, it clearly did not dispose of the separate

motions for attorney fees. In addition to requests for attorney

fees asserted in answers, several defendants also filed separate

motions seeking such fees under § 25-824. These motions

were properly made before the court entered its orders granting

summary judgment. It is noteworthy that a hearing on attorney

fees was scheduled but had not yet occurred at the time

the court entered its orders. Under these circumstances, the

court's silence on the issue cannot be considered a denial of the

request. We conclude that the absence of a ruling on attorney

fees left a portion of the judgment unresolved and that thus,

the orders from which the cotrustees appealed were not final.

We must dismiss the appeal in case No. S-14-389 for lack of a

final, appealable order.

[8] Because the cotrustees appealed from nonfinal orders,

the district court never lost jurisdiction of the case. A notice

of appeal from a nonappealable order does not render void for

lack of jurisdiction acts of the trial court taken in the interval

between the filing of the notice and the dismissal of the appeal

by the appellate court.15 The cotrustees' appeal from nonfinal

orders did not divest the district court of jurisdiction to rule

on the motions for attorney fees. Because the court declined to

rule on the motions, they are still pending. Thus, the situation

in the second appeal does not differ materially from that in

the first appeal. Because the motions for attorney fees remain

undisposed, the district court has not entered a judgment or

final order from which an appeal may be taken. We therefore

dismiss the appeal in case No. S-14-753.

CONCLUSION

Requests for attorney fees under § 25-824 were made

prior to judgment and were set for a hearing. But before the

15 In re Guardianship of Sophia M., 271 Neb. 133, 710 N.W.2d 312 (2006).

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scheduled hearing occurred, the district court entered orders

granting summary judgment and the cotrustees filed an appeal

from those orders. Because the absence of a ruling on attorney

fees left a portion of the judgment unresolved, the orders

from which the cotrustees appealed were not final. Thus,

we lack jurisdiction of the first appeal. Although the district

court retained jurisdiction to rule on the motions for attorney

fees, it believed that it lacked jurisdiction. The court declined

to rule on the motions, which are still pending before that

court. Because the motions have not been disposed, we also

lack jurisdiction of the second appeal. We therefore dismiss

both appeals.

Outcome:
Appeals dismissed.

Plaintiff's Experts:
Defendant's Experts:
Comments:

About This Case

What was the outcome of John E. Murray v. Greg Stine?

The outcome was: Appeals dismissed.

Which court heard John E. Murray v. Greg Stine?

This case was heard in Supreme Court of Nebraska on appeal from the District Court, Douglas County, NE. The presiding judge was Per Curiam.

Who were the attorneys in John E. Murray v. Greg Stine?

Plaintiff's attorney: James D. Sherrets, Diana J. Vogt, and Jared C. Olson, of Sherrets, Bruno & Vogt, L.L.C., for appellants John E. Murray et al. in No. S-14-389 and appellees John E. Murray et al. in No. S-14-753.. Defendant's attorney: Thomas J. McCusker, Michael J. Mills, and Ryan A. Steen, of Gettman & Mills, L.L.P., for appellees Dennis A. O’Neal et al. William R. Reinsch, of Reinsch, Slattery, Bear & Minahan, P.C., L.L.O., for appellee Ken Grigsby. Steven D. Davidson, of Baird Holm, L.L.P., for appellee Vance D. Gardiner. William F. Hargens and Lauren R. Goodman, of McGrath, North, Mullin & Kratz, P.C., L.L.O., for appellees Greg Stine and Premier Bank in No. S-14-389 and appellants Greg Stine and Premier Bank in No. S-14-753. John P. Passarelli and Todd C. Kinney, of Kutak Rock, L.L.P., for appellees William J. Lindsay, Jr., et al..

When was John E. Murray v. Greg Stine decided?

This case was decided on June 19, 2015.