NO. 94-392
IN THE SUPREME COURT OF THE STATE OF MONTANA
1995
JEAN Y. OWENS & LARRY T. OWENS,
Plaintiffs/Counterclaim Defendants
and Appellants,
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RODERICK J. MCNEIL, individually;
BIOLOGICAL EXTRACTION TECHNOLOGIES, INC.:
and HESARCO, a Utah mining corporation,
Defendants/Counterclaim Plaintiffs
and Respondents,
ROD MCNEIL, d/b/a Montana Refining Research,
Plaintiff,
HIGH LONESOME MINING, INC.,
a Montana Corporation,
Defendant.
APPEAL FROM: District Court of the Third Judicial District,
In and for the County of Powell,
The Honorable Ted Mizner, Judge presiding.
COUNSEL OF RECORD:
For Appellants:
Patrick M. Springer, Kalispell, Montana
For Respondents:
David Dalthorp, William P. Driscoll, Gough,
Shanahan, Johnson & Waterman, Helena, Montana
Submitted on Briefs: December 22, 1994
Decided: March 30, 1995
Filed:
Justice James C. Nelson delivered the Opinion of the Court.
Plaintiffs Jean and Larry Owens (hereinafter Owens), appeal
from an opinion and order of the Third Judicial District Court,
Powell county, granting Defendants', Rod McNeil, for himself and
for Biological Extraction Technologies and HESARCO, (hereinafter
McNeil) motion for summary judgment. The Owens also appeal the
court's denial of the motion to intervene filed by certain
shareholders of High Lonesome Mining, Inc. (hereinafter HLM).
We affirm.
The Owens, raise three issues on appeal:
1. Whether the District Court erred in granting
McNeil's motion for summary judgment?
2. Whether the District Court erred in finding that
the contract dated July 26, 1992, was a valid
contract for deed?
3. Whether the District Court erred in denying the
motion to intervene?
This is a consolidated action consisting of a quiet title
action, which was filed by McNeil on November 12, 1992, and an
action for unlawful detainer, which was filed by the Owens on
January 27, 1993. Both actions concerned a dispute over the
ownership of a metal refining plant, including the building,
equipment and grounds (hereinafter the Deer Lodge facility)
Although this case contains many convoluted facts, the genuine
issues of material fact are not in dispute. For clarity, we first
address the facts relating to McNeil's involvement with the
property at issue, and then set forth the Owens' involvement with
the property at issue.
On July 26, 1992, Defendant, Rod McNeil, and Marty Puryer,
president of HLM, entered into a written agreement whereby McNeil,
acting as sole proprietor of Montana Refining Research (hereinafter
MRR), agreed to purchase the Deer Lodge facility for the sum of
$120,000. The terms required a $12,000 down payment, with the
balance due in two years. Upon full payment of the $120,000, HLM
was required to transfer full unencumbered title to the Deer Lodge
facility to MRR. It is undisputed that McNeil paid the $12,000
down payment.
Jean Owens became a shareholder of HLM in July 1991, by
investing $10,000 in the company. Jean Owens subsequently made two
additional investments in HLM totaling $10,000. In September 1992,
Ms. Owens loaned HLM $50,000, so that HLM could make payments on
the Deer Lodge facility which was due under their contract with
Base Metal and Energy (hereinafter BME). (HLM had contracted with
BME to buy the Deer Lodge facility.)
In October of 1992, Larry Owens, a HLM shareholder, notified
Jean Owens that a dispute existed concerning the ownership of the
Deer Lodge facility as a result of the July 26, 1992 contract
between McNeil and Puryer. Subsequently, Ms. Owens decided to take
title to the Deer Lodge facility by paying the remaining amount due
under Hm~ s contract with BME. Accordingly, HLM executed a
warranty deed to Jean Owens on November 10, 1992, three months
after HLM sold the property to McNeil through the July 26, 1992
contract.
McNeil filed a quiet title action on November 12, 1992, and
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the Owens filed an unlawful detainer action on january 27, 1993.
McNeil filed a motion to consolidate the two cases arguing that
both cases concerned the issue of the ownership of the property.
After considering the parties' briefs and arguments, the court
consolidated the two cases by order dated August 19, 1993. McNeil
filed a motion for summary judgment on December 30, 1993. On
February 16, 1994, certain HLM shareholders filed a motion to
intervene. A hearing on the motions was held April 14, 1994, and
the District Court issued its opinion and order on April 14, 1994,
grant,ing McNeil's motion for summary judgment, and denying the
shareholder's motion to intervene on the grounds that the motion
was moot. The Owens appeal from this order.
Summary judgment is appropriate when there is no genuine issue
of material fact, and the moving party is entitled to judgment as
a matter of law. Rule 56(c), M.R.Civ.P. This Court's standard in
reviewing a summary judgment order is the same as that utilized by
the District Court. That is, we use the same criteria initially
used by the District Court under Rule 56, M.R.Civ.P. Minnie v.
City of Roundup (1993), 257 Mont. 429, 431, 849 P.2d 212, 214.
1. SUMMARY JUDGMENT
The Owens challenge the validity of the July 26, 1992 contract
alleging that HLM did not consent to enter the contract because of
fraud. However, the Owens did not specifically plead or allege the
elements of fraud at the District Court level.
To avoid summary judgment on the issue of contract fraud, the
party alleging fraud must make out a prima facie case for each of
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the nine elements of fraud. Avco Financial Services V. Foreman-
Donovan (1989), 237 Mont. 260, 263, 772 P.2d 862, 863-64. Here the
Owens not only failed to make a prima facie case for the nine
elements of fraud, but failed to raise the issue of fraud at the
District Court level. Accordingly we will not consider this issue
which was raised for the first time on appeal. Bengala v.
Conservative Savings Bank (19911, 250 Mont. 101, 108, 818 P.2d 371,
375.
2. CONTRACT FOR DEED
The Owens claim the District Court erred in finding that the
July 26, 1992 contract was a valid contract for deed. The Owens
argue that the agreement at best is an executory contract, which
was intended to be formalized at a later date. The District Court
however, found that the July 26, 1992 contract met all the elements
of a binding contract pursuant to § 28-2-102, MCA. The court
ruled:
The Court has carefully reviewed the document in question
and finds that there are identifiable parties capable of
contracting. Plaintiffs have never contended that Puryer
was not the president of HLM or that he did not have the
authority to enter into the contract. Even if it's
admitted that Plaintiffs and the directors of HLM did not
know that Puryer had executed the contract, it is not
invalidated. There is no proof that the consent of both
parties was not freely given nor that the object and
purpose of the contract was not lawful. Finally, there
is not allegation or proof that the consideration for the
contract was not sufficient. McNeil has paid $12,000 on
the $120,000 contract price with the balance due at a
definite future date.
1n addition, a contract is not invalid simply because it is
executory, if it otherwise meets the requirements of a valid
contract. An executory contract is simply a contract whose object
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has not been fully performed. Section 28-2-104, MCA. Because the
July 26, 1992 contract meets all of the requirements for a valid
contract, we hold that the District Court did not err in concluding
that the July 26, 1992 contract was a valid contract for deed
3. MOTION TO INTERVENE
The Owens maintain that the interveners should have been
allowed to intervene. However, the Owens do not have standing to
raise this issue on appeal.
The motion to intervene was made by attorney Terry Wallace on
behalf of his clients who were not parties to the instant action.
The Owens were not parties to the motion to intervene. The
interveners did not appeal the denial of their motion to intervene,
rather, the Owens attempt to do so for them.
According to Rule 1, M.R.App.P., only a party aggrieved may
appeal from a judgment or order
A party is aggrieved when it has a "direct, immediate and
substantial interest in the subject which would be
prejudiced by the judgment or benefitted by its
reversal." Conversely, a party who is not aggrieved by
a judgment may not appeal from it. [Citations omitted. 1
Branstetter v. Beaumont Supper Club, Inc. (1986), 224 Mont. 20, 25,
727 P.2d 933, 936.
The parties who filed the motion to intervene were the parties
aggrieved by the court's denial of the motion to intervene. The
Owens were not parties to that motion and therefore cannot appeal
from the court's order dismissing the motion. Accordingly we hold
that the Owens do not have standing to appeal the motion to
intervene.
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Pursuant to Section I, Paragraph 3(c), Montana Supreme Court
1988 Internal Operating Rules, this decision shall not be cited as
precedent and shall be published by its filing as a public document
with the Clerk of this Court and by a report of its result to the
West Publishing Company.
AFFIRMED
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prepaid, to the
COURT
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