S-19-0857 AVG Partners I, LLC v. Genesis Health Clubs of Midwest and 24 Hour Fitness (Appellants)
Douglas County District Court, Judge J. Russell Derr
Attorneys: William F. Hargens, Lauren R. Goodman (McGrath North Mullin & Kratz, PC LLO), Gregory M. Bordo, Christopher J. Petersen (Blank Rome LLP, pro hac vice) (Attorneys for Appellees/Cross-appellants) – W. Patrick Betterman (W. Patrick Betterman, PC LLO, for Appellants)
Civil: Breach of lease agreements
Proceedings Below: The trial court overruled Appellant’s motions to dismiss for lack of standing and for directed verdict at the close of evidence based on Appellee/Cross-appellant’s failure to prove ownership of any interest in the leases. The jury returned special verdicts in favor of Appellees/Cross-appellants in the amounts of: $1,657,800.00 and $303,974.96 for “Unpaid rent and late fees” and $264,937.47 and $236,745.77 for “Unpaid taxes payable to the present.” The jury rejected Appellant’s mitigation defense. The trial court found Appellees/Cross-appellants’ claims were liquidated and awarded prejudgment interest of $270,629.28.
Issues: The Appellant assigns the following errors (renumbered and restated): 1) the trial court erred in overruling Appellant’s motion to dismiss for lack of standing and motion for a directed verdict, and their post-trial motion to set aside the jury verdict and enter judgment dismissing the third amended complaint; 2) the trial court erred in admitting the opinion of Appellee’s Chief Financial Office (CFO) on ownership of the properties and ruling her opinion proved Appellee’s ownership of the properties; 3) the trial court alternatively erred in awarding pre-judgment interest; 4) the trial court alternatively erred in failing to reduce the special verdict; 5) the trial court erred in including tax penalties that the jury added to the real estate taxes for each property in the judgment for taxes; 6) the trial court erred in failing to reduce the special verdict and resulting judgments in favor of Appellees for “unpaid taxes payable to the present,” because of insufficient evidence; 7) the trial court erred in admitting evidence, including specific exhibits and testimony of the CFO relating to phone conversations she had with the county assessor’s office over hearsay objections; 8) the trial court erred in overruling Appellant’s objections to Exhibits 117 and 123 as hearsay and for lack of foundation; 9) the trial court committed plain error in inserting “late fees” in the verdict form after “rent”; 10) alternatively the trial court erred in failing to grant Appellants a new trial on late fees only; 11) the trial court alternatively committed plain error in including $8,443.74 in the judgment for late fees for which there was insufficient evidence and the complaint did not state a claim; 12) the judgments entered are excessive, contrary to law, and not supported by the evidence; 13) the trial court erred and abused its discretion in determining it had jurisdiction to award sanctions as a result of Appellant’s request for a continuance on the eve of trial; and 14) the trial court erred in failing to rule on Appellant’s specific objections related to the admission of an affidavit by Gregory Bordo.
The Appellees/Cross-Appellants assert that the district court erred in sustaining Appellant’s hearsay objections to the admission of Exhibit 132.