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SUSS v. SCHAMMEL
Factual and Procedural Background
The dispute arose following the sale of a farm by Theodore J. Suss to his son, Howard J. Suss. Both the buyer and seller are deceased. The controversy involves Howard's surviving spouse, Bonnie G. Suss (plaintiff), and Theodore's other children (defendants), concerning the completion of the sale and conveyance of title to the farm. Howard died intestate in 1969, and his interest in the contract passed to Bonnie, who continued making payments to Theodore until Theodore's death in 1972. Theodore's vendor's interest then passed to his other children, including defendants. Plaintiff claimed she made the final payment and sought a warranty deed, but defendants refused to convey their interests despite her demands.
Plaintiff filed suit seeking specific performance of the contract (Count I) and damages for mental anguish and punitive damages due to defendants' refusal to convey (Count II). The trial court granted partial summary judgment in favor of plaintiff on Count I, ordering defendants to convey their interests upon final payment. When defendants failed to comply, the property was conveyed to plaintiff by commissioner's deed. The jury awarded damages and attorney fees on Count II, but the trial court set aside the damages and fees on defendants' post-trial motion. Both parties appealed, resulting in this consolidated appeal.
Legal Issues Presented
- Whether plaintiff was entitled to partial summary judgment on her claim for specific performance under the contract.
- Whether there was sufficient evidence to support the jury's award of punitive damages and attorney fees for defendants' alleged malicious refusal to convey the property.
- Whether the defendants' failure to execute a warranty deed constituted malice sufficient to justify punitive damages and attorney fees.
- Whether the trial court erred in granting judgment notwithstanding the verdict on the punitive damages and attorney fees awards.
Arguments of the Parties
Appellant's Arguments
- Plaintiff contended she fulfilled all contractual obligations, including tendering the final payment, and thus was entitled to specific performance.
- She argued there was sufficient evidence of malice to support the punitive damages and attorney fees awarded by the jury.
- Plaintiff challenged the timeliness of the cross-appeal by defendants, asserting the partial summary judgment was final.
Appellees' Arguments
- Defendants disputed that plaintiff tendered the final payment properly, questioning the circumstances of the tender, particularly her decision to handle payment through her attorney.
- They denied acting with malice or intent to harass and argued their refusal to convey was not wrongful but a breach of contract at most.
- Defendants asserted the partial summary judgment was interlocutory, making their cross-appeal timely.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| McGuire v. City of Cedar Rapids, 189 N.W.2d 592 (Iowa 1971) | Rule on finality of orders and timing of appeals. | Rejected plaintiff's contention that partial summary judgment was final; held it was interlocutory. |
| Shoemaker v. City of Muscatine, 275 N.W.2d 206 (Iowa 1979) | Partial summary judgment is interlocutory if it adjudicates only part of the petition. | Supported the court's determination that the cross-appeal was timely. |
| Brown v. Monticello State Bank, 360 N.W.2d 81 (Iowa 1984) | Standards for granting summary judgment under Iowa Rule of Civil Procedure 237(c). | Applied to affirm summary judgment where no genuine issue of material fact existed. |
| Iowa Civil Rights Commission v. Massey-Ferguson, Inc., 207 N.W.2d 5 (Iowa 1973) | Requirement that resisting party must set forth specific facts showing a genuine issue for trial. | Used to reject defendants' conclusory allegations as insufficient to defeat summary judgment. |
| Miller v. International Harvester Co., 246 N.W.2d 298 (Iowa 1976) | Failure to cite authority can result in waiver of issues on appeal. | Applied to ignore certain unbriefed contentions by plaintiff. |
| Schulte v. Mauer, 219 N.W.2d 496 (Iowa 1974) | Conclusions unsupported by specific facts are fatally defective in resisting summary judgment. | Supported rejection of defendants' pleadings and affidavits as mere conclusions. |
| Winter v. Honeggers' Co., 215 N.W.2d 316 (Iowa 1974) | Standards for reviewing judgment notwithstanding the verdict. | Guided the court's review of sufficiency of evidence supporting punitive damages. |
| Schiltz v. Cullen-Schiltz Associates, Inc., 228 N.W.2d 10 (Iowa 1975) | If reasonable minds differ on an issue, it is for the jury, not summary judgment. | Reinforced the standard for reviewing post-trial motions. |
| Pogge v. Fullerton Lumber Co., 277 N.W.2d 916 (Iowa 1979) | Malice requires willful or reckless disregard for rights; breach of contract alone insufficient for punitive damages. | Applied to reject punitive damages and attorney fees due to lack of malice. |
| Pringle Tax Service, Inc. v. Knoblauch, 282 N.W.2d 151 (Iowa 1975) | Actual damages must be shown to support punitive damages award. | Used to affirm denial of punitive damages due to insufficient evidence of actual damages. |
| Lickteig v. Iowa Department of Transportation, 356 N.W.2d 205 (Iowa 1984) | Attorney fees are generally not recoverable absent statute or contract. | Supported denial of attorney fees in this case. |
| Kuiken v. Garrett, 243 Iowa 785, 51 N.W.2d 149 (1952) | Attorney fees may be awarded on common law grounds when conduct is oppressive and malicious. | Distinguished as inapplicable here due to absence of malice. |
| Harmont v. Sullivan, 128 Iowa 309, 103 N.W. 951 (1905) | Attorney fees recoverable where one litigant connives to harass or injure another. | Not applied here due to lack of evidence of such conduct by defendants. |
Court's Reasoning and Analysis
The court first addressed jurisdiction and found the partial summary judgment interlocutory, making the defendants' cross-appeal timely. On the merits of the summary judgment, the court applied the standard under Iowa Rule of Civil Procedure 237(c) and found plaintiff met her burden by showing no genuine issue of material fact existed regarding tender and demand of final payment. Defendants' opposing evidence was conclusory and insufficient.
Regarding the judgment notwithstanding the verdict on punitive damages and attorney fees, the court reviewed the evidence in the light most favorable to plaintiff. It found no evidence that defendants acted with actual or legal malice, only a refusal to execute a warranty deed for property they had not personally contracted to convey. The court emphasized that breach of contract, even if intentional, does not justify punitive damages. Furthermore, plaintiff failed to show actual damages beyond frustration and exasperation, which is required to support punitive damages.
On attorney fees, the court reiterated the general rule that such fees are not recoverable absent statute or contract, except in extraordinary cases involving oppressive or malicious conduct. Since defendants' conduct lacked malice or intent to harass, the award of attorney fees was properly set aside.
Other issues raised were deemed moot by the court's rulings and were not discussed further.
Holding and Implications
The court AFFIRMED ON BOTH APPEALS.
The court held that plaintiff was entitled to specific performance via partial summary judgment and that defendants' cross-appeal was timely. It upheld the trial court's ruling granting judgment notwithstanding the verdict on punitive damages and attorney fees, finding no sufficient evidence of malice or actual damages to support those awards. The direct effect is that plaintiff obtains the property as ordered, but no punitive damages or attorney fees are awarded. The court did not establish new precedent but applied existing standards strictly, reinforcing the principle that breach of contract alone does not warrant punitive damages or attorney fees absent malice.
HARRIS, Justice.
This controversy arose after a farm was sold by its owner to one of his sons. Both the buyer and seller are deceased and the dispute is between the father's other children and the son's widow. On the widow's petition the trial court directed completion of the sale and conveyance of title. Defendants' cross-appeal is from that determination. The widow's additional claims for actual and punitive damages were allowed by a jury but were set aside on defendants' post-trial motion. That ruling is the subject of plaintiff's appeal. We affirm on both appeals.
Howard J. Suss, plaintiff's husband, died intestate on May 22, 1969, survived by plaintiff and their two sons, Scotty Joe Suss and Toddy Gene Suss. Howard was the contract purchaser of the 160 acres of land in Palo Alto County. His father, who sold him the farm, was Theodore J. Suss. Howard's interest in the contract passed to plaintiff as his surviving spouse and she continued to make annual payments to Theodore J. Suss until Theodore's death in 1972.
When Theodore died, his vendor's interest in the contract passed by will to Theodore R. Suss (another of Theodore J.'s sons), Scotty Joe, Toddy Gene, and to defendants. Defendants are Theodore J. Suss' remaining children. Plaintiff's sons each received a 1/14th interest in the contract while the others received a 1/7th interest. Plaintiff then made the payments through her attorney to the holders of the vendors' interest. In December of 1977, plaintiff claimed she made the final payment on the contract and expected to receive a warranty deed.
Defendants dispute that plaintiff did in fact tender the final payment. Dorothy I. Suss, widow of Theodore R. Suss, conveyed to plaintiff the 1/7th interest Dorothy inherited from her husband. Scotty and Toddy also conveyed their interests to plaintiff. Defendants, however, refused to convey their interests despite plaintiff's repeated demands. Plaintiff then brought this suit.
In count I of her petition, plaintiff sought specific performance, alleging she had fulfilled all her obligations under the contract. In count II, she sought $10,000 compensatory damages for "mental anguish and humiliation" she claims to have suffered because of defendants' failure to convey their interests. She also sought $10,000 in punitive damages, alleging "defendants' refusal to perform . . . was done with malice . . . and was done with the intention to harass and harm" her.
Count I of plaintiff's petition was resolved prior to trial by a ruling which sustained plaintiff's motion for partial summary judgment. The trial court granted plaintiff's motion and ordered defendants to convey their interests by warranty deed upon plaintiff's final payment. When defendants failed to do so the property was. conveyed to plaintiff pursuant to a commissioner's deed. See Iowa Code section 624.29 (1985). Count II of plaintiff's petition was later separately tried before a jury. The jury awarded $2,487.55 in attorney fees and $5,000 in punitive damages. No compensatory damages were awarded.
Defendants filed a motion for judgment notwithstanding the verdict. The trial court granted the motion, finding "insufficient evidence of malice, either actual or legal" to support the award of punitive damages. The court likewise disallowed the attorney fees because "attorney's fees under the common law . . . should be allowed only in those extraordinary situations where they are appropriate."
I. Although it is presented by way of cross-appeal, it seems appropriate to first review the trial court's ruling which granted plaintiff's motion for partial summary judgment on her claim under count I. As a preliminary matter we reject plaintiff's contention that we lack jurisdiction because the cross-appeal was untimely.
According to plaintiff the challenged ruling was final, not interlocutory, so that under rule of appellate procedure 5 notice of appeal should have been (though it was not) filed within thirty days. See McGuire v. City of Cedar Rapids, 189 N.W.2d 592, 596-98 (Iowa 1971). Plaintiff's contention is without merit. An order adjudicating only part of the petition against a particular defendant is interlocutory, not final. See Shoemaker v. City of Muscatine, 275 N.W.2d 206, 208 (Iowa 1979). Because the partial summary judgment was interlocutory and because the cross-appeal was taken within the period specified for cross-appeals under rule 5(a), the notice of cross-appeal was timely.
In reviewing the grant of summary judgment under rule of civil procedure 237(c) the question is whether the moving party demonstrated the absence of any genuine issue of material fact and showed entitlement to judgment on the merits as a matter of law. Brown v. Monticello State Bank of Monticello, 360 N.W.2d 81, 83-84 (Iowa 1984). It can be fatal to the party resisting the summary judgment motion to rely alone on a perceived weakness in the movant's contention. The resisting party "must set forth specific facts showing there is a genuine issue for trial." Iowa Civil Rights Commission v. Massey-Ferguson, Inc., 207 N.W.2d 5, 8 (Iowa 1973).
On this review we can and do ignore certain contentions because they are unaccompanied by any citation of authority as required under rule of appellate procedure 14(a)(3). A failure to cite authorities can result in a waiver of the issue. Miller v. International Harvester Co., 246 N.W.2d 298, 304 (Iowa 1976). We frequently find an issue has thus been waived. See McSpadden v. Big Ben Coal Co., 288 N.W.2d 181, 184 (Iowa 1980); Inghram v. Dairyland Mutual Insurance Co., 215 N.W.2d 239, 240 (Iowa 1974).
On the present assignment we accordingly consider only the issue for which authorities are cited, the contention that a material issue of fact existed on the question of tender and demand.
As we understand their argument, defendants do not deny tender and demand were made but question the circumstances. Defendants seem to challenge plaintiff's decision to turn the matter over to her attorney. We do not think this decision detracted from plaintiff's tender and demand. Plaintiff testified she
went to Fitzgibbons office with the money and they told me that I should not make the last payment until they gave — the Suss' gave me the deed and abstract; and so therefore the check was left there and there was communication back and forth, as I understand it, between Suss' and my attorneys, and as best I know there was nothing that ever came back from the Suss'.
In resisting plaintiff's showing, defendants raise only conclusory allegations, most of which are not even relevant to the case. See Schulte v. Mauer, 219 N.W.2d 496, 501 (Iowa 1974) ("defendants' pleadings, resistance to plaintiffs' summary judgment motion, affidavits, and other relevant documents stand as mere conclusions" and were thus "fatally defective").
Plaintiff met her burden of showing no issue of material fact existed. She was entitled to partial summary judgment.
II. There is no dispute over the scope of our review of the trial court's ruling granting judgment notwithstanding the verdict. See Iowa R. Civ. P. 243(b). The question is whether evidence, taken in the light most favorable to the party resisting the motion, regardless whether the evidence was contradicted, and taking every legitimate inference that might be fairly or reasonably deducted therefrom, showed that the movant was entitled to a directed verdict at the close of all evidence. See Winter v. Honeggers' Co., 215 N.W.2d 316, 321 (Iowa 1974). If reasonable minds could differ on the issue a jury question existed and summary judgment was inappropriate. Schiltz v. Cullen-Schiltz Associates, Inc., 228 N.W.2d 10, 17 (Iowa 1975).
Plaintiff contends there was sufficient evidence of malice to support both the punitive damage award and the award for attorney fees. We however agree with the trial court's finding to the contrary. We find nothing in the record to indicate defendants acted "with a willful or reckless disregard" for plaintiff's rights. See Pogge v. Fullerton Lumber Co., 277 N.W.2d 916, 920 (Iowa 1979).
Defendants' only failure was to refuse to execute, as demanded, a warranty deed to property they had not personally contracted to convey. It is true that defendants' predecessor in interest had contracted to convey. It is also true defendants succeeded to his interests and received payments under the contract of sale. But these facts support nothing more than breach of contract. As Pogge makes clear, a breach of contract alone, even if intentional, will not form the basis for punitive damages. 277 N.W.2d at 920.
A second ground supports the ruling. No actual damages were shown. An award of compensatory damages is not required to support a punitive damage award but a showing of actual damages is required. Pringle Tax Service, Inc. v. Knoblauch, 282 N.W.2d 151, 154 (Iowa 1975). Although plaintiff alleged actual damages her evidence showed only a feeling of frustration over her uncertainty about concluding the land transfer. Although plaintiff was obviously very exasperated with defendants' lack of cooperation it does not appear she suffered "humiliation" or "mental anguish" because of their actions. The trial court did not err in granting the motion for judgment notwithstanding the verdict on the issue of punitive damages.
III. The jury also allowed plaintiff $2,487.55 on her claim for attorney fees. As mentioned, this recovery was also set aside by the trial court's ruling on the post-trial motion. This ruling is the subject of a separate assignment of error.
Attorney fees are generally not recoverable as damages in the absence of a statute or a provision in a written contract. See, e.g., Lickteig v. Iowa Department of Transportation, 356 N.W.2d 205, 212 (Iowa 1984). This general rule, however, is subject to an exception. In Kuiken v. Garrett, we allowed attorney fees on common law theories because defendants' conduct was "oppressive and tinctured with legal malice." 243 Iowa 785, 800, 51 N.W.2d 149, 158 (1952). See also Harmont v. Sullivan, 128 Iowa 309, 317, 103 N.W. 951, 954 (1905) (attorney fees recoverable where there was "connivance" by one litigant to "harrass and injure" other litigant).
In the present case attorney fees should not be allowed for the same reasons punitive damages were not. There is simply no evidence that defendants acted maliciously or with intent to harrass or injure. The assignment is without merit.
IV. Other issues become moot by reason of the foregoing. To identify or discuss them would unnecessarily extend this opinion.
AFFIRMED ON BOTH APPEALS.
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