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Borowiak v. Neafus Land & Cattle Company

8/20/2002

(not designated for permanent publication)


INTRODUCTION


Neafus Land & Cattle Company (Neafus) appeals the decision of the district court for Garden County, Nebraska, denying Neafus' motion for a final order or, in the alternative, a motion to vacate or modify judgment. For the following reasons, we affirm.


BACKGROUND


This case has a long and tangled procedural history, and our review of the present appeal requires us to examine the record of the previous appeal in this case because resolution of the present appeal is closely interwoven with, and interdependent upon, our consideration of procedural events occurring prior to and during the pendency of the first appeal. See J.B. Contracting Servs. v. Universal Surety Co., 261 Neb. 586, 624 N.W.2d 13 (2001) (when cases are interwoven and interdependent and controversy involved has already been considered and determined by court in former proceedings involving one of parties now before it, court has right to examine its own records and take judicial notice of its own proceedings and judgments in former action).


Paul D. Borowiak, Sharon L. Borowiak, and Circle D Ranch, Inc. (Circle D), filed their initial petition for declaratory judgment against Neafus, Paul Smith, and Linda Smith on April 17, 1998. The Borowiaks and Circle D sought judgment against the defendants, declaring that a contract for the lease of certain property with an option to buy (the contract) remained in effect and that any interest in the property claimed by the Smiths was inferior to that of the Borowiaks and Circle D. A flurry of various responsive and amended pleadings ensued. The Borowiaks and Circle D filed a notice of dismissal of their claim against the Smiths on December 10.


In response to the Borowiaks and Circle D's second amended petition, Neafus alleged breach or repudiation of the lease, filed a cross-petition against the Borowiaks and Circle D for the breach, and motioned to join the Smiths, who had been employees of the Borowiaks and were allegedly responsible for damages, as third-party defendants. In its cross-petition, Neafus sought judgment against the Borowiaks, Circle D, and the Smiths, jointly and severally, in the amount of $21,674.68, which was the amount of its alleged expenses for repairs to the leased property, plus additional damages for spraying noxious weeds, as proved at trial.


The Borowiaks and Circle D subsequently added Butch White as a co-defendant of Neafus, as the party in possession of the property during the pendency of the proceeding and subject to rulings by the court as to the validity of the lease and possession of the property. In their third amended petition, the Borowiaks and Circle D set forth what they labeled as four separate "causes of action." The Borowiaks and Circle D identified their first "cause of action" as seeking to quiet title to their leasehold and option interest in the disputed property. The Borowiaks and Circle D asserted that White held possession of the property by virtue of an oral lease with Neafus.


The Borowiaks and Circle D next asserted a "cause of action" for declaratory judgment. Under this "cause," they sought an order declaring, among other things, that the purported termination of the lease was wrongful and ineffective and that the lease and option to purchase remained in full force and effect.


For their third "cause of action," the Borowiaks and Circle D asserted their entitlement to a constructive trust (1) on all lease agreements with third persons and all other arrangements by Neafus for deriving income from the property during the term of the lease and (2) on all rents from third parties and other

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