Kroeger Properties & Development, Inc. v. Silver State Title Co.
Kroeger Properties & Development, Inc. v. Silver State Title Co.
Opinion of the Court
OPINION
In this breach of contract action, the jury found that respondent, Silver State Title Company, violated an escrow agreement by conveying appellants’ properties. We are faced with the question of whether the trial court erred in ordering a new trial based on insufficiency of the evidence, where the court found that the evidence was not so overwhelming as to justify granting judgment notwithstanding the verdict. We hold that such order was erroneous, and reverse with instructions to reinstate the jury verdict.
The Kroegers’ contention was that Sievers and Gura Nevada, Inc. did not enter into the development agreement, and therefore the conveyance of the Kroegers’ properties to a third party was in breach of the escrow contract. The jury agreed, awarding the Kroegers $3,100,000.
Silver State moved for judgment notwithstanding the verdict or, in the alternative, for a new trial. The trial court concluded that “the facts and inferences are not sufficiently overwhelming in favor of the defendant to justify judgment non obstante ver-dicto.” However, the court granted a new trial based on “the failure of plaintiff to meet the burden of disproving the existence of the Sievers-Gura Nevada, Inc. agreement.” This amounts to granting a new trial based on insufficiency of the evidence. In 1969 this court amended NRCP 59 to eliminate insufficiency of the evidence as a ground for granting a new trial. Although an exception has been recognized where there is plain error or manifest injustice (Price v. Sinnott, 85 Nev. 600, 607, 460 P.2d 837, 841 (1969); Rees v. Roderiques, 101 Nev. 302, 701 P.2d 1017 (1985)), this exception will be strictly construed.
In order to find manifest injustice a case must be presented where “the verdict or decision strikes the mind, at first blush, as manifestly and palpably contrary to the evidence. ...” Price, 85
We cannot say in this case that a new trial was warranted. The key issue was whether Sievers and Gura Nevada, Inc. did enter into the development agreement. The fact that Silver State did not possess even a copy of such an agreement is strong circumstantial evidence of its non-existence. There was testimony by James Owens,
The order is reversed, with instructions to enter judgment according to the verdict.
Owens' testimony concerning the existence of such a development agreement was vague and contradictory. He testified at various times that he didn't believe he had seen such an agreement prior to conveying the properties, that he didn't recall whether he had ever seen an agreement, that he believed he had seen an agreement, and that he didn't know how many pages the agreement was or where he had seen it.
The escrow contract specified that the written development agreement had to be reached by February 28, 1978; however, Gura Nevada, Inc. had an option to extend that date by 60 days. Although Silver State produced an "Exercise of Option" extending the time, Owens testified that Silver State did not possess a copy of that document at the time the properties were conveyed.
A document entitled “DECLARATION OF COMPLIANCE WITH AGREEMENT OF JANUARY 18, 1978” was introduced. That document, signed in April of 1979 by Ferdi Sievers and a representative of Gura Nevada, Inc., recited that the development agreement contemplated by the escrow contract was entered into on February 28, 1978.
Reference
- Full Case Name
- KROEGER PROPERTIES & DEVELOPMENT, INC., a Nevada Corporation, KROEGER PROPERTIES, INC., a California Corporation HENRY KROEGER and KATHRYN KROEGER, Husband and Wife v. SILVER STATE TITLE COMPANY, a Nevada Corporation
- Cited By
- 4 cases
- Status
- Published