Ronnfeldt Farms v. Arp , 32 Neb. Ct. App. 490 ( 2023 )


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    Nebraska Court of Appeals Advance Sheets
    32 Nebraska Appellate Reports
    RONNFELDT FARMS V. ARP
    Cite as 
    32 Neb. App. 490
    Ronnfeldt Farms, Inc., a Nebraska corporation,
    appellant and cross-appellee, v. Jason Arp, Knee
    Deep, LLC, a Nebraska limited liability company,
    Brian Frost, and Frosty’s Dragline, LLC,
    a Nebraska limited liability company,
    appellees and cross-appellants.
    ___ N.W.2d ___
    Filed December 19, 2023.   No. A-23-116.
    1. Summary Judgment: Appeal and Error. An appellate court affirms a
    lower court’s grant of summary judgment if the pleadings and admitted
    evidence show that there is no genuine issue as to any material facts or
    as to the ultimate inferences that may be drawn from those facts and that
    the moving party is entitled to judgment as a matter of law. In reviewing
    a summary judgment, an appellate court views the evidence in the light
    most favorable to the party against whom the judgment was granted and
    gives that party the benefit of all reasonable inferences deducible from
    the evidence.
    2. Summary Judgment: Proof. A party moving for summary judgment
    has the burden to show that no genuine issue of material fact exists
    and must produce sufficient evidence to demonstrate that it is entitled
    to judgment as a matter of law. If the movant meets this burden, then
    the nonmovant must show the existence of a material issue of fact that
    prevents judgment as a matter of law.
    3. Trial: Evidence. Where reasonable minds could draw different conclu-
    sions from the facts presented, there is a triable issue of material fact.
    4. Evidence: Proof. Failure of proof concerning an essential element of the
    nonmoving party’s case necessarily renders all other facts immaterial.
    5. Joint Ventures: Partnerships: Contribution. A joint venture is in the
    nature of a partnership and exists when (1) two or more persons con-
    tribute cash, labor, or property to a common fund (2) with the intention
    of entering into some business or transaction (3) for the purpose of
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    RONNFELDT FARMS V. ARP
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    32 Neb. App. 490
    making a profit to be shared in proportion to the respective contribu-
    tions and (4) each of the parties has an equal voice in the manner of its
    perform­ance and control of the agencies used therein, though one may
    entrust perform­ance to the other.
    6.   Joint Ventures: Proof. The moving party bears the burden to prove a
    joint venture or enterprise exists by clear and convincing evidence.
    7.   Joint Ventures: Intent. The relationship of joint venturers depends
    largely upon the intent of the alleged parties as manifested from the
    facts and circumstances involved in each particular case.
    8.   Joint Ventures. A joint venture can exist only by voluntary agreement
    of the parties and cannot arise by operation of law. Even a close rela-
    tionship between two parties does not create an implied joint venture.
    9.   Appeal and Error. Generally, an issue not presented to the trial court
    may not be raised on appeal.
    10.   Pleadings. Pleadings frame the issues upon which the cause is to be
    tried and advise the adversary as to what the adversary must meet.
    11.   ____. The issues in each case will be limited to those which are pled.
    12.   Election of Remedies. Parties are permitted to plead alternative theories
    of recovery unless the theories are so inconsistent that a party cannot
    logically choose one without renouncing the other.
    13.   Negligence: Proof. To prevail in any negligence action, a plaintiff must
    show a legal duty owed by the defendant to the plaintiff, a breach of
    such duty, causation, and resulting damages.
    14.   Negligence. The threshold inquiry in any negligence action is whether
    the defendant owed the plaintiff a duty.
    15.   Negligence: Words and Phrases. A “duty” is an obligation, to which
    the law gives recognition and effect, to conform to a particular standard
    of conduct toward another.
    16.   Negligence. If there is no duty owed, there can be no negligence.
    17.   ____. An actor ordinarily has a duty to exercise reasonable care when
    the actor’s conduct creates a risk of physical harm.
    18.   ____. In a negligence action, in order to determine whether appropriate
    care was exercised, the fact finder must assess the foreseeable risk at the
    time of the defendant’s alleged negligence.
    19.   ____. The extent of foreseeable risk depends on the specific facts of
    the case and cannot be usefully assessed for a category of cases; small
    changes in the facts may make a dramatic change in how much risk is
    foreseeable. Thus, courts should leave such determinations to the trier of
    fact unless no reasonable person could differ on the matter.
    20.   Trial: Waiver: Appeal and Error. A party may not waive an error,
    gamble on a favorable result, and, upon obtaining an unfavorable result,
    assert the previously waived error.
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    Nebraska Court of Appeals Advance Sheets
    32 Nebraska Appellate Reports
    RONNFELDT FARMS V. ARP
    Cite as 
    32 Neb. App. 490
    Appeal from the District Court for Burt County: Bryan C.
    Meismer, Judge. Affirmed in part, and in part reversed and
    remanded for further proceedings.
    Stephen D. Mossman and Andrew R. Spader, of Mattson
    Ricketts Law Firm, for appellant.
    Joel D. Nelson and Joel Bacon, of Keating, O’Gara, Nedved
    & Peter, P.C., L.L.O., and David V. Drew, of Drew Law Firm,
    P.C., L.L.O., for appellees.
    Pirtle, Chief Judge, and Moore and Arterburn, Judges.
    Arterburn, Judge.
    I. INTRODUCTION
    Ronnfeldt Farms, Inc., filed an action against Brian Frost
    and his company, Frosty’s Dragline, LLC (collectively Frost),
    in the district court for Burt County, Nebraska, asserting that
    Frost was a subcontractor to Jason Arp and his company, Knee
    Deep, LLC (collectively Arp). Following discovery, Ronnfeldt
    Farms adjusted its allegation to claim that Frost was engaged
    in a joint venture with Arp. Ronnfeldt Farms argued that as
    a joint venturer, Frost was liable for Arp’s breach of contract
    and negligence in the manner in which Frost pumped manure
    from a hog confinement facility that, according to Ronnfeldt
    Farms, led to an outbreak of disease. Additionally, Ronnfeldt
    Farms asserted that Frost owed Ronnfeldt Farms an indepen-
    dent duty of care that was also breached during the pump-
    ing job.
    In September 2022, Frost filed a motion for summary judg-
    ment on all of Ronnfeldt Farms’ claims, which was granted by
    the district court. Ronnfeldt Farms appeals from the court’s
    order. On cross-appeal, Frost asserts that the district court
    erred in failing to hold that Ronnfeldt Farms could not prove
    proximate causation as a matter of law. Frost also alleges that
    Ronnfeldt Farms committed spoliation and that thus, Frost is
    entitled to an adverse inference against Ronnfeldt Farms.
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    RONNFELDT FARMS V. ARP
    Cite as 
    32 Neb. App. 490
    For the reasons set forth below, we affirm the district court’s
    order granting summary judgment as to Ronnfeldt Farms’ joint
    venture breach of contract and negligence actions but reverse
    the court’s order regarding the independent negligence claim.
    We remand the cause for further proceedings.
    II. BACKGROUND
    1. Factual Background
    (a) 2020 Contract
    Ronnfeldt Farms is a Nebraska corporation with its prin-
    cipal place of business in Burt County. As a food producer,
    Ronnfeldt Farms is engaged in commercial activities, includ-
    ing a swine farrow to finish operation and a retail multiplying
    genetics business. Ronnfeldt Farms owns Windy Hill sow facil-
    ity (Windy Hill), also located in Burt County, which houses the
    Ronnfeldt Farms’ breeding sows and gilts.
    In October 2020, Ronnfeldt Farms entered into an oral
    contract with Arp to provide manure pumping services for
    Windy Hill. Generally stated, manure pumping at Windy Hill
    consists of agitating and pumping manure from a pit located
    beneath the swine barn. The manure is pumped through a
    hose to nearby farm fields and injected into the fields for
    fertilizer.
    Arp had pumped manure for Ronnfeldt Farms since 2016.
    A written contract was never created for the annual pump-
    ing work. In October 2020, Tavis Christiansen, a 50-percent
    owner in and operator of Ronnfeldt Farms, reached out to Arp
    to discuss that year’s manure pumping schedule. Christiansen
    told Arp that he did not want pumping to extend “more than a
    couple days into November.”
    To meet the requested early November deadline, Arp
    reached out to Frost to see if Frost could help pump at Windy
    Hill. Frost operated his own manure pumping business. Arp
    and Frost had been friends for roughly 30 years. Both were
    involved with raising and selling hogs. During the pumping
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    season, they were in frequent contact with each other, talking
    3 to 4 days a week. Although the companies are separate enti-
    ties with their own customers, Arp and Frost have a history of
    assisting each other on large or time-sensitive jobs. No written
    agreements or subcontractor agreements exist between Arp
    and Frost.
    Frost agreed to help Arp with pumping at Windy Hill. Frost
    informed Arp that Frost was currently working at a swine
    finishing barn in Colfax County, Nebraska, and asked what
    needed to be done prior to arriving at Windy Hill. Arp told
    Frost that the equipment needed to be cleaned, dried, and dis-
    infected for a specific period of time prior to pumping. Frost
    thought Arp stated the proper period was 24 hours, whereas
    Arp believes he stated the proper period was 48 hours. In any
    event, Frost’s vehicles and equipment were disinfected twice
    before arriving at Windy Hill, which was unusual in Frost’s
    practice. Frost testified he disinfected twice “just because we
    were going to a sow farm. That was the only reason.” He also
    testified that the first occasion of cleaning and disinfecting
    occurred 2 calendar days prior to pumping at Windy Hill.
    (b) Biosecurity Protocols at Windy Hill
    In accord with the swine industry generally, Ronnfeldt
    Farms monitors biosecurity closely at its various hog barns
    and facilities. Among other concerns, there is a risk of dis-
    eases such as porcine reproductive and respiratory syndrome
    (PRRS) transferring from one farm to another. A predominant
    goal of swine producers is to keep PRRS out of every barn,
    as it seriously impacts swine health and overall production.
    PRRS is a foreign animal disease, specifically a virus, that
    causes failure of breeding stock and respiratory tract illness
    in young pigs. PRRS can be transmitted through physical
    contact or airborne exposure. The virus can be carried by
    hogs or other animals, people accessing the farm, vehicles or
    equipment entering the farm, and dust in the air. Even with
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    RONNFELDT FARMS V. ARP
    Cite as 
    32 Neb. App. 490
    reasonable biosecurity measures in place, there is still a risk of
    PRRS exposure in hog farms.
    While the swine industry attempts to prevent PRRS out-
    breaks in all barns, sow barn biosecurity is given the highest
    priority. This is because sows and newborn piglets are more
    affected by PRRS than other pigs.
    Biosecurity protocols vary with each farm, and these proto-
    cols are ever changing. In his deposition, Christiansen stated
    that Ronnfeldt Farms has two key requirements for outside
    contractors: (1) Pumping personnel should not pump at another
    hog facility directly before coming to Ronnfeldt Farms, but,
    instead, should pump cattle manure from cattle barns, dairy
    barns, or feedlots, and (2) pumping personnel must stay out
    of the barns. Christiansen was less concerned regarding the
    downtime between when the equipment had been cleaned fol-
    lowing the last job and when pumping began at Windy Hill.
    His concern was centered on what residue remained inside the
    pumping equipment and hoses. He elaborated that the “solu-
    tion to pollution is dilution,” meaning that pumping cattle
    manure flushes the equipment and hoses of viruses potentially
    transferable and harmful to hogs. In other words, whatever
    residue left from the prior pumping job involving cattle that
    is released through the hoses on the current job is not likely
    to infect the sows and newborn pigs located at the Windy
    Hill facility.
    Christiansen testified he verbally informed Arp of
    Ronnfeldt Farms’ specific biosecurity expectations in 2016
    and reminded Arp of those requirements every year thereafter
    during their scheduling conversations. However, there was no
    evidence that Ronnfeldt Farms ever provided Arp with any
    written biosecurity protocols.
    In October 2020, Christiansen texted Arp, asking him
    whether Frost was “aware of the [b]iosecurity expectations
    before, during and on completion” of manure pumping at
    Windy Hill. Christiansen told Arp that if Frost was not aware
    of the expectations, they should have a conference call to
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    RONNFELDT FARMS V. ARP
    Cite as 
    32 Neb. App. 490
    discuss and review biosecurity measures. Arp responded,
    “They are aware of [b]iosecurity . . . [Frost] will do whatever
    I tell him to do.” Based on Arp’s representations, Ronnfeldt
    Farms did not organize or host a biosecurity conference call
    with Arp or Frost.
    Unbeknownst to Ronnfeldt Farms, on November 4, 2020,
    Frost pumped manure at a swine finishing barn in Colfax
    County. This was the last job Frost performed before pump-
    ing at Windy Hill. Frost informed Arp that his crew was cur-
    rently pumping manure at a swine finishing barn. However,
    no evidence exists in the record that would indicate that any-
    one associated with Arp told Frost or his employees of any
    requirement that his crew not pump at Windy Hill unless it had
    pumped at a cattle facility immediately before.
    (c) November 2020 Pumping at Windy Hill
    Christiansen emailed Arp a schedule and two maps of Windy
    Hill and designed a pumping plan with Arp through phone
    calls and text messages. Before pumping began, there was no
    communication between Ronnfeldt Farms and Frost. The 2020
    Windy Hill manure pumping began on November 6 and con-
    cluded on November 9. Frost arrived on November 7, and both
    Arp and Frost had teams pumping throughout the weekend.
    According to the testimony of the manager in charge of Windy
    Hill, he normally would have personally met Frost’s crew at
    the gate and discussed biosecurity protocols. However, in this
    instance, he allowed a member of Arp’s crew to let Frost’s
    group in. As a result, when Frost’s crew arrived, the manager
    conducted no inspection of Frost’s equipment and no review of
    biosecurity protocols; nor did he inquire where Frost had last
    pumped. Any discussion of biosecurity would have involved
    only the crews of Arp and Frost.
    When pumping was completed, Arp sent several invoices
    to Ronnfeldt Farms. All but one invoice was paid. Frost never
    sent any invoices or billing materials to Ronnfeldt Farms.
    Instead, Frost told Arp how many gallons Frost pumped, and
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    RONNFELDT FARMS V. ARP
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    32 Neb. App. 490
    Arp added that amount into its invoice calculations. The plan
    was that once Ronnfeldt Farms paid Arp, Arp would pay
    Frost. This was consistent with Arp and Frost’s arrangement
    where they met once a year to discuss the jobs they collabo-
    rated on and determined how to “settle up for the year.”
    Frost was never fully compensated for Frost’s portion of
    the pumping at Windy Hill. At his deposition, Frost testified
    that Arp told him that Ronnfeldt Farms had not fully paid
    Arp for the job. Frost “did not feel it was right . . . to collect
    money when [Arp] did not collect money.” Arp did, however,
    write Frost a check for an undisclosed amount.
    (d) PRRS Outbreak
    From November 11 to November 13, 2020, Windy Hill
    employees began to observe clinical symptoms of PRRS in
    sows in the farrowing barn. Blood samples taken from symp-
    tomatic sows tested positive for PRRS. Ronnfeldt Farms also
    conducted antibody testing on the pigs. The tests revealed that
    the pigs were negative for PRRS antibodies. This narrowed the
    timeline for exposure, as the earliest a pig’s immune system
    makes antibodies is 5 days after exposure.
    Ronnfeldt Farms conducted an audit in an attempt to locate
    the origin of the PRRS outbreak. The audit reviewed employee
    illnesses and paid time off, logsheets documenting visitors,
    grounds maintenance records, barn entry protocols, and sanita-
    tion measures. External video footage of the pumping teams’
    activities was reviewed as well.
    The specific genetic sequence of PRRS detected in the
    Windy Hill sows was compared to other genetic sequences
    associated with other outbreaks in the area and documented
    in an authoritative database, but no matches were detected.
    Ronnfeldt Farms also took samples from areas and objects
    involved in the pumping operation, such as the pit ports
    where Arp and Frost pumped, but those tests were negative
    for PRRS.
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    The record suggests that during the audit, Ronnfeldt Farms
    learned that Frost had pumped at the Colfax County swine
    finishing barn immediately prior to pumping at Windy Hill.
    Veterinarian Luke Strehle, employed by Ronnfeldt Farms,
    attempted to investigate a possible connection between the
    Windy Hill PRRS outbreak and Frost’s Colfax County job.
    Strehle asked the owner of the Colfax County pigs if he could
    collect samples from the Colfax County farm to test for PRRS
    and, if they tested positive, compare their genetic sequence to
    the Windy Hill sequence. In his deposition, Strehle testified
    that the owner was comfortable with Strehle’s taking samples
    only if Frost was present. Strehle further testified that Frost
    refused to go and that therefore, he did not have an opportunity
    to take or test samples. Frost, however, testified that the owner
    simply did not consent to Strehle’s conducting the test.
    Nonetheless, Frost and the owner decided to take a sample
    from the Colfax County farm and test it for PRRS. The sample
    was positive, but the sample was not genetically sequenced.
    Christiansen concluded that the results of the audit demonstrate
    that the pumping teams were responsible for the outbreak.
    2. Procedural Background
    Ronnfeldt Farms’ complaint named Arp and Frost as
    defend­ants. Two causes of action were listed: one for breach
    of contract and the other for negligence. In its complaint,
    Ronnfeldt Farms alleges that Frost was a subcontractor to Arp
    and Arp’s contract with Ronnfeldt Farms. Ronnfeldt Farms
    further argues that by violating biosecurity protocols, Arp
    and Frost breached the contract. In addition, Ronnfeldt Farms
    alleges that Arp and Frost owed a duty to Ronnfeldt Farms to
    follow biosecurity protocols and that by failing to do so, they
    were negligent.
    The record suggests that sometime during discovery,
    Ronnfeldt Farms abandoned its subcontractor theory in favor
    of a joint venture theory, claiming that Arp and Frost engaged
    in a joint venture when they collaborated on the Windy Hill
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    pumping job. Ronnfeldt Farms did not file an amended plead-
    ing to reflect this shift in its theory of the case.
    In September 2022, Frost filed a motion for summary judg-
    ment. Ronnfeldt Farms opposed the motion and filed a brief
    that detailed its joint venture theory for the first time. Ronnfeldt
    Farms’ subcontractor theory was also briefly mentioned, but
    this was mainly to acknowledge that both Arp and Frost had
    denied that Frost was Arp’s subcontractor.
    A hearing on the motion was held in January 2023, and that
    same month, the district court entered an order granting Frost’s
    motion for summary judgment. On the breach of contract
    cause of action, the court first found that there was no contract
    between Ronnfeldt Farms and Frost. The court also found that
    Frost was not a subcontractor and that Arp and Frost were not
    involved in a joint venture. Thus, the court concluded that
    Frost could not be held liable for any breach of contract com-
    mitted by Arp. On Ronnfeldt Farms’ independent negligence
    claim against Frost, the district court found that while Frost
    had a duty to Arp, that duty did not extend to Ronnfeldt Farms.
    The court concluded there was no genuine issue of material
    fact and granted summary judgment for Frost.
    That same month, but prior to the filing of the court’s order
    on summary judgment, Ronnfeldt Farms and Arp filed a stipu-
    lation and a joint motion to dismiss Arp from the case with
    prejudice. The district court granted the motion, and thus, from
    that point forward, Frost became the sole defendant remaining
    in the case.
    Ronnfeldt Farms appeals, and Frost cross-appeals.
    III. ASSIGNMENTS OF ERROR
    In its brief, Ronnfeldt Farms makes 12 assignments of
    error, which consolidated and restated assert that the district
    court erred in (1) misidentifying undisputed facts and applying
    the wrong standard of review for summary judgment, (2) find-
    ing that no joint venture existed between Arp and Frost, (3)
    not granting Ronnfeldt Farms leave to amend its complaint,
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    and (4) determining that Frost did not owe an independent
    legal duty to Ronnfeldt Farms.
    On cross-appeal, Frost assigns that the district court erred
    in failing to conclude that (1) Ronnfeldt Farms cannot dem-
    onstrate Frost proximately caused the damages as a matter of
    law and (2) Ronnfeldt Farms’ failure to preserve certain evi-
    dence warrants an inference against Ronnfeldt Farms.
    IV. STANDARD OF REVIEW
    [1] An appellate court affirms a lower court’s grant of sum-
    mary judgment if the pleadings and admitted evidence show
    that there is no genuine issue as to any material facts or as
    to the ultimate inferences that may be drawn from those facts
    and that the moving party is entitled to judgment as a matter
    of law. Clark v. Scheels All Sports, 
    314 Neb. 49
    , 
    989 N.W.2d 39
     (2023). In reviewing a summary judgment, an appellate
    court views the evidence in the light most favorable to the
    party against whom the judgment was granted and gives that
    party the benefit of all reasonable inferences deducible from
    the evidence. 
    Id.
    V. ANALYSIS
    [2-4] A party moving for summary judgment has the burden
    to show that no genuine issue of material fact exists and must
    produce sufficient evidence to demonstrate that it is entitled
    to judgment as a matter of law. Wynne v. Menard, Inc., 
    299 Neb. 710
    , 
    910 N.W.2d 96
     (2018). If the movant meets this
    burden, then the nonmovant must show the existence of a
    material issue of fact that prevents judgment as a matter of
    law. 
    Id.
     Where reasonable minds could draw different conclu-
    sions from the facts presented, there is a triable issue of mate-
    rial fact. Williamson v. Bellevue Med. Ctr., 
    304 Neb. 312
    , 
    934 N.W.2d 186
     (2019). Failure of proof concerning an essential
    element of the nonmoving party’s case necessarily renders all
    other facts immaterial. Freeman v. Hoffman-La Roche, Inc.,
    
    300 Neb. 47
    , 
    911 N.W.2d 591
     (2018).
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    1. Undisputed Facts and Summary
    Judgment Standard
    Ronnfeldt Farms argues that the district court misidentified
    undisputed facts and applied the wrong standard of review for
    summary judgment. We find these arguments unpersuasive.
    Ronnfeldt Farms asserts that the following two facts, which
    were deemed undisputed by the district court, are disputed:
    “At some point in the days leading up to the Windy Hill
    pumping in 2020, [Arp] asked [Frost if he] would help pump
    at Windy Hill,” and “[Frost] had no customer-contractor rela-
    tionship or agreement with [Ronnfeldt Farms].” Ronnfeldt
    Farms argues that these facts are disputed because Arp and
    Frost were engaged in a joint venture. Our analysis below
    addresses and rejects Ronnfeldt Farms’ joint venture theory.
    Further, after reviewing the record, we find that these facts are
    undisputed. Both Arp and Frost testified that Arp asked Frost
    to help pump at Windy Hill. No one testified or alleged other-
    wise. In fact, Christiansen admitted that he approved of Arp’s
    request to ask Frost for help. The evidence also demonstrates
    that Frost did not form a contractual relationship or agree-
    ment with Ronnfeldt Farms. Frost did not communicate with
    Ronnfeldt Farms until pumping had begun. Thus, because
    the evidence showed these facts were undisputed, this argu-
    ment fails.
    Additionally, Ronnfeldt Farms argues that the district court
    applied the wrong standard of review for summary judg-
    ment. Specifically, Ronnfeldt Farms alleges that the court
    only reviewed the undisputed facts in a light most favor-
    able to Ronnfeldt Farms. To support its argument, Ronnfeldt
    Farms points to the following sentence in the court’s summary
    judgment order: “But in reviewing the undisputed facts in
    a light most favorable to [Ronnfeldt Farms] here, the Court
    does not agree that . . . Arp and Frost were involved in a
    Joint Venture with regard to the work done at Windy Hill.”
    (Emphasis supplied.)
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    The record indicates that the district court’s use of the
    phrase “undisputed facts” was inadvertent. Clerical errors “are
    defined as errors which result ‘from a minor mistake or
    inadvertence’ especially in ‘writing or copying something.’”
    Eicher v. Mid America Fin. Invest. Corp., 
    275 Neb. 462
    , 473,
    
    748 N.W.2d 1
    , 11-12 (2008) (quoting Black’s Law Dictionary
    582 (8th ed. 2004)). The district court correctly stated the sum-
    mary judgment standard of review earlier in its order:
    Summary judgment is justified when there is no genu-
    ine issue as to any material fact and the moving party is
    entitled to judgment as a matter of law. . . . On a motion
    for summary judgment, the evidence is to be viewed most
    favorably to the nonmoving party. . . . The question at
    that stage “is not how a factual issue is to be decided, but
    whether any real issue of material fact exists.”
    (Citations omitted.) The court reviewed both disputed and
    undisputed facts in its order. Other than the offending phrase
    Ronnfeldt Farms has pointed out, there is nothing to suggest
    that the district court declined to review all of the evidence in
    a light most favorable to Ronnfeldt Farms. We, therefore, find
    that the district court applied the correct standard of review.
    2. Ronnfeldt Farms’ Joint Venture Claim
    (a) Arp and Frost Were Not Engaged
    in a Joint Venture
    [5-8] Ronnfeldt Farms next argues that there is a genuine
    dispute of material fact as to whether Arp and Frost were
    engaged in a joint venture. A joint venture is in the nature of
    a partnership and exists when (1) two or more persons con-
    tribute cash, labor, or property to a common fund (2) with the
    intention of entering into some business or transaction (3) for
    the purpose of making a profit to be shared in proportion to
    the respective contributions and (4) each of the parties has an
    equal voice in the manner of its performance and control of
    the agencies used therein, though one may entrust perform­
    ance to the other. Kohout v. Bennett Constr., 
    296 Neb. 608
    ,
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    894 N.W.2d 821
     (2017). The moving party bears the burden
    to prove a joint venture or enterprise exists by clear and
    convincing evidence. 
    Id.
     The relationship of joint ventur-
    ers depends largely upon the intent of the alleged parties as
    manifested from the facts and circumstances involved in each
    particular case. 
    Id.
     A joint venture can exist only by voluntary
    agreement of the parties and cannot arise by operation of law.
    Even a close relationship between two parties does not create
    an implied joint venture. 
    Id.
    The district court found that Arp and Frost both contributed
    labor and entered into a business transaction for the purpose
    of making a profit. However, the court held that Frost did not
    have an equal voice or equal right to control the performance
    at Windy Hill. As such, the court determined that Arp and Frost
    were not engaged in a joint venture.
    We begin our analysis by noting that the joint venture claim
    was not raised by Ronnfeldt Farms in its complaint or in any
    amended pleadings. The joint venture argument is first raised
    in Ronnfeldt Farms’ brief in opposition to Frost’s motion for
    summary judgment.
    [9] Generally, an issue not presented to the trial court may
    not be raised on appeal. See Eletech, Inc. v. Conveyance
    Consulting Group, 
    308 Neb. 733
    , 
    956 N.W.2d 692
     (2021).
    We question whether Ronnfeldt Farms should have made a
    motion for leave to amend its complaint and plead the joint
    venture theory formally. However, the Nebraska Supreme
    Court has recognized that even when claims are not clearly
    articulated by an appellant in his or her pleadings or at trial,
    the claims may still be considered by an appellate court if the
    district court evaluated them. See V.C. v. Casady, 
    262 Neb. 714
    , 
    634 N.W.2d 798
     (2001). Therefore, because the district
    court evaluated the joint venture theory, we, too, consider
    this argument.
    Viewing the evidence in a light most favorable to Ronnfeldt
    Farms, we find that the first three joint venture elements are
    met. The evidence clearly shows that both Arp and Frost
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    contributed labor and property to the Windy Hill pumping
    job. Arp and Frost brought their own teams and their own
    pumping equipment to Windy Hill. In addition, both Arp and
    Frost had an intention of entering into a mutually beneficial
    transaction. Arp asked Frost for assistance to meet Ronnfeldt
    Farms’ early November 2020 deadline, and in return, Frost
    expected compensation. Further, for Arp and Frost, the pur-
    pose of the Windy Hill transaction was to share profits in
    proportion to their respective contributions. When the Windy
    Hill pumping was completed, Frost provided Arp with a
    statement of the total amount of gallons Frost had pumped,
    and Arp added that amount to the invoices sent to Ronnfeldt
    Farms. Once Ronnfeldt Farms paid Arp in full, Arp intended
    to pay Frost a portion respective to the amount of gallons
    Frost pumped.
    However, even when viewing the evidence in a light most
    favorable to Ronnfeldt Farms, we find that Ronnfeldt Farms
    failed to demonstrate the existence of a material issue of
    fact regarding the equal voice element. Arp was the domi-
    nant voice in the performance of and control over the Windy
    Hill pumping job because of its longstanding business rela-
    tionship with Ronnfeldt Farms. Ronnfeldt Farms was Arp’s
    customer and had been since 2016. Before assisting with
    pumping at Windy Hill in 2020, Frost had never pumped for
    Ronnfeldt Farms.
    Arp and Ronnfeldt Farms planned the 2020 pumping job
    together through emails, phone calls, and text messages.
    Frost was not a part of these conversations and did not com-
    municate with Ronnfeldt Farms in any manner until the 2020
    pumping job commenced. Arp also told Ronnfeldt Farms,
    “[Frost] will do whatever I tell him to do.” One of Arp’s team
    members met Frost’s team members at the Windy Hill gates
    to let them in and instruct them on biosecurity protocols.
    Further, Arp, not Frost, controlled the payment plan for the
    job. Once pumping was completed, Frost informed Arp of the
    total gallons Frost pumped. Arp then independently calculated
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    a total charge for Ronnfeldt Farms and sent invoices to be
    paid directly to Arp. It was expected that once Ronnfeldt
    Farms paid Arp, Arp would then pay Frost.
    Ronnfeldt Farms asserts that Frost had an equal voice
    because Frost had the freedom to decide whether to assist
    Arp and because Frost disinfected their equipment more times
    than Arp instructed. We disagree. These facts do not speak to
    Frost’s control over the Windy Hill pumping job. They speak
    merely to Frost’s control over its own schedule and equipment.
    Ronnfeldt Farms also asserts that Frost had an equal voice
    because Frost spoke with Ronnfeldt Farms’ veterinarian and
    declined to assist in the postoutbreak audit. Assuming without
    deciding that this allegation is true, this postpumping event
    does not indicate that Frost exercised control over the actual
    pumping job at Windy Hill.
    Arp and Frost’s history of assisting each other on jobs from
    time to time appears to reflect an informal, friendly relation-
    ship between similar businesses rather than a joint venture, at
    least as it relates to the facts of this case. There is no evidence
    that either party defendant intended to form a joint venture.
    Arp and Frost own two distinct and separate manure pumping
    companies. They each have their own incorporated names and
    their own customers. They do not jointly own equipment or
    employ the same team members. Significantly, Frost did not
    have an equal voice on the Windy Hill pumping job. For all
    these reasons, we find that the district court did not err in find-
    ing there was no joint venture here.
    In so holding, we also reject Ronnfeldt Farms’ argu-
    ment that this case requires a holding similar to the one in
    Fangmeyer v. Reinwald, 
    200 Neb. 120
    , 
    263 N.W.2d 428
    (1978). In Fangmeyer, the Supreme Court held that because
    it could not be said as a matter of law that the informal busi-
    ness relationship at issue did not constitute a joint venture,
    it was not error to submit the issue to a jury. Here, although
    Arp and Frost’s relationship is informal, the evidence is
    clear that their relationship does not meet all of the elements
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    required to constitute a joint venture as it relates to the Windy
    Hill pumping job. Thus, this argument fails. Consequently,
    since no joint venture existed, Frost cannot be held liable for
    any breach of contract or negligence committed by Arp. The
    district court did not err by granting summary judgment on
    these claims.
    Additionally, because we have found that no joint venture
    existed, we need not reach Frost’s contention that the dismissal
    of one joint venturer releases all joint venturers.
    (b) District Court Not Required to Define
    Arp and Frost’s Relationship Outside
    of Theories Asserted in Pleadings
    [10-12] Ronnfeldt Farms also argues that without defining
    the legal relationship between Arp and Frost, the district court
    could not make a finding as to whether any legal duties existed
    between Arp and Frost and therefore erred in granting sum-
    mary judgment. We disagree. Pleadings frame the issues upon
    which the cause is to be tried and advise the adversary as to
    what the adversary must meet. Spanish Oaks v. Hy-Vee, 
    265 Neb. 133
    , 
    655 N.W.2d 390
     (2003). The issues in each case will
    be limited to those which are pled. 
    Id.
     Additionally, parties are
    permitted to plead alternative theories of recovery unless the
    theories are so inconsistent that a party cannot logically choose
    one without renouncing the other. See Thurston v. Nelson, 
    21 Neb. App. 740
    , 
    842 N.W.2d 631
     (2014).
    Applying those propositions of law here, Ronnfeldt Farms
    had the responsibility to plead what contractual or legal rela-
    tionship existed between Arp and Frost. Ronnfeldt Farms could
    have pled alternative theories of recovery beyond subcontract-
    ing and joint venture, but failed to do so. Therefore, the district
    court did not err by declining to address issues that were not
    pled by the parties or presented to it for disposition.
    Based on this finding, we need not address Frost’s theo-
    retical argument that if Arp and Frost were in a principal-agent
    relationship, Arp’s dismissal bars Ronnfeldt Farms from any
    recovery against Frost.
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    3. Amending Complaint
    Ronnfeldt Farms also argues that the district court should
    have granted Ronnfeldt Farms leave to amend its complaint
    and erred in limiting its review of the joint venture theory. We
    disagree on both fronts. First, the record provided on appeal
    does not contain a motion to amend or reform the pleadings as
    argued by Ronnfeldt Farms during oral argument. Moreover,
    our review of the hearing on the motion for summary judg-
    ment also reveals no oral motion to amend. Instead, Ronnfeldt
    Farms acknowledged that a contractor-subcontractor relation-
    ship between Arp and Frost did not exist, then argued that
    they were involved in a joint venture. The court need not
    grant leave to amend or reform the pleadings without receiv-
    ing a motion asking it to do so. In any event, the district court
    did not limit its review of the joint venture theory. The court
    directly addressed this issue in its order, stating: “In [its] brief,
    [Ronnfeldt Farms] argues that . . . Frost, if not a subcontractor,
    must have been involved in a joint venture. Though this cause
    of action is not pled in the Complaint, the Court will address
    that argument as well.” The court then proceeded to evaluate
    the joint venture argument in full, as outlined above. These
    assignments are without merit.
    4. Ronnfeldt Farms’ Independent
    Negligence Claim Against Frost
    (a) Frost Owed Ronnfeldt Farms
    Duty of Reasonable Care
    [13-16] Ronnfeldt Farms also argues that the district court
    erred in holding that Frost did not owe an independent legal
    duty to Ronnfeldt Farms. To prevail in any negligence action,
    a plaintiff must show a legal duty owed by the defendant to
    the plaintiff, a breach of such duty, causation, and resulting
    damages. Lewison v. Renner, 
    298 Neb. 654
    , 
    905 N.W.2d 540
    (2018). The threshold inquiry in any negligence action is
    whether the defendant owed the plaintiff a duty. McReynolds
    v. RIU Resorts & Hotels, 
    293 Neb. 345
    , 
    880 N.W.2d 43
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    (2016). A “duty” is an obligation, to which the law gives
    recognition and effect, to conform to a particular standard of
    conduct toward another. If there is no duty owed, there can be
    no negligence. 
    Id.
    [17-19] The Supreme Court has explained that an actor ordi-
    narily has a duty to exercise reasonable care when the actor’s
    conduct creates a risk of physical harm. A.W. v. Lancaster Cty.
    Sch. Dist. 0001, 
    280 Neb. 205
    , 
    784 N.W.2d 907
     (2010). In a
    negligence action, in order to determine whether appropriate
    care was exercised, the fact finder must assess the foresee-
    able risk at the time of the defendant’s alleged negligence.
    Perry v. Buchanan, 
    31 Neb. App. 715
    , 
    988 N.W.2d 537
     (2023)
    (petition for further review denied May 23, 2023). The extent
    of foreseeable risk depends on the specific facts of the case
    and cannot be usefully assessed for a category of cases; small
    changes in the facts may make a dramatic change in how
    much risk is foreseeable. 
    Id.
     Thus, courts should leave such
    determinations to the trier of fact unless no reasonable person
    could differ on the matter. 
    Id.
    The district court found that Frost had a duty to Arp and
    that Arp had a duty to Ronnfeldt Farms. Specifically, the
    court found that Frost’s duty to Arp was to meet the expecta-
    tions Arp provided regarding pumping at Windy Hill. It was
    deemed unreasonable to expect Frost to go beyond Arp and
    coordinate directly with Ronnfeldt Farms. Thus, the court con-
    cluded that “it is not reasonable to carry Frost’s duty to Arp
    beyond Arp and to [Ronnfeldt Farms] here.”
    In its brief on appeal, Ronnfeldt Farms argues Frost owed
    a duty of reasonable care to Ronnfeldt Farms. We agree. The
    standard of care owed by a manure pumping company to the
    owner of a facility being pumped and whether the pumper’s
    actions satisfied that standard are issues of fact for the jury
    to resolve. As an actor at Ronnfeldt Farms’ facility, Frost
    had a general duty to exercise reasonable care when its con-
    duct created a risk of physical harm. See A.W. v. Lancaster
    Cty. Sch. Dist. 0001, 
    supra.
     We note that in Frost’s answer,
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    Frost admits that there was a general duty to exercise reason-
    able care in the performance of manure pumping operations.
    Thus, even though no specific contractual relationship was
    identified between Ronnfeldt Farms and Frost, the district
    court erred in ruling Frost owed no duty to Ronnfeldt Farms.
    However, we agree with the district court’s findings to the
    extent that the court found that Frost did not necessarily have
    a duty to inquire of Ronnfeldt Farms as to its biosecurity
    protocols. Relying on Arp alone for that information was suf-
    ficient unless the general standard of care would demonstrate
    that Frost knew or should have known that additional steps
    should have been taken as part of a general standard of care
    in the industry as it relates to the pumping of manure at a
    sow barn.
    Frost’s contention that this negligence claim is truly a
    breach of contract claim is without merit. Ronnfeldt Farms
    does not premise this claim on a failure to meet contractual
    obligations. This claim is based on the general duty of reason-
    able care. Ronnfeldt Farms alleges that Frost breached their
    duty of care when pumping at Windy Hill immediately after
    pumping at a different hog farm, due to the risk of physical
    harm this practice posed based on the possibility that diseases
    such as PRRS could have been carried within Frost’s equip-
    ment. There is no implication of contractual duties or obliga-
    tions here.
    In addition, to the extent that Frost argues that public policy
    surrounding principal-agent relationships requires us to resist
    imposing a duty here, we reject that argument as well. Here,
    Frost alludes to the idea that Frost was an agent to Arp, but
    elsewhere, Frost refuses to explicitly adopt that relationship
    in their brief. In their answer, Frost admits that they have “a
    general duty to exercise reasonable care in the performance
    of manure pumping operations being performed for a third
    party.” Determining that Frost owed Ronnfeldt Farms a duty
    of reasonable care does not conflict with public policy. This
    is not a duty affecting a principal-agent relationship. It does
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    not, as Frost argues, require agents to assume everything the
    principal communicates is wrong or require agents to commu-
    nicate directly with the principal’s customer.
    Frost also argues that even if they owed Ronnfeldt Farms
    a duty, no breach of the standard of care occurred. But in
    order to determine whether appropriate care was exercised,
    the fact finder must assess the foreseeable risk at the time of
    the defendant’s alleged negligence. See Perry v. Buchanan, 
    31 Neb. App. 715
    , 
    988 N.W.2d 537
     (2023) (petition for further
    review denied May 23, 2023). Courts should leave such deter-
    minations to the trier of fact unless no reasonable person could
    differ on the matter. 
    Id.
     We find that reasonable minds could
    differ on whether Frost exercised appropriate care, and as such,
    we leave this issue to be resolved by a fact finder.
    Having found a general duty of reasonable care exists, we
    do not reach Ronnfeldt Farms’ argument that a no-duty deter-
    mination must be based upon certain legislative facts.
    (b) Ronnfeldt Farms Cannot Revive or
    Revisit Its Subcontractor Theory
    In arguing its independent negligence claim, Ronnfeldt
    Farms proposes that if Frost was a subcontractor, they would
    have owed Ronnfeldt Farms a modified duty to disregard obvi-
    ously dangerous instructions with respect to biosecurity prac-
    tices. However, the record clearly demonstrates that Ronnfeldt
    Farms abandoned its former position that Frost was a sub-
    contractor to Ronnfeldt Farms. At the hearing on the motion
    for summary judgment, counsel for Ronnfeldt Farms stated:
    “When we originally filed this complaint in this matter, I
    believe that there was . . . an allegation that [Frost] was a
    subcontractor to . . . Arp. As we have gone through discovery
    in this case, it’s apparent that that’s not the case.” Ronnfeldt
    Farms then proceeded on its joint venture theory.
    [20] As stated above, parties are permitted to plead alterna-
    tive theories of recovery unless the theories are so inconsistent
    that a party cannot logically choose one without renouncing
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    the other. See Thurston v. Nelson, 
    21 Neb. App. 740
    , 
    842 N.W.2d 631
     (2014). However, a party may not waive an error,
    gamble on a favorable result, and, upon obtaining an unfavor-
    able result, assert the previously waived error. Eletech, Inc.
    v. Conveyance Consulting Group, 
    308 Neb. 733
    , 
    956 N.W.2d 692
     (2021).
    When Ronnfeldt Farms abandoned its theory that Frost
    was a subcontractor, it essentially retracted this issue from its
    pleadings and our purview. Further, arguing that Frost is not a
    subcontractor for one theory and then arguing Frost is a sub-
    contractor for another is inconsistent to the point that Ronnfeldt
    Farms cannot logically choose one theory without renouncing
    the other. Thus, we do not consider the subcontractor theory
    or any negligence-based duties Ronnfeldt Farms asserts would
    arise from a subcontractor relationship.
    In conclusion, we find that Frost owed Ronnfeldt Farms a
    general duty of care. Summary judgment was, therefore, inap-
    propriate on Ronnfeldt Farms’ limited claim of independent
    negligence against Frost. What standard of care was required
    of Frost and whether Frost’s actions or inactions constituted a
    breach of that standard are questions for the finder of fact.
    5. Frost’s Cross-Appeal
    On cross-appeal, Frost assigns and argues that the district
    court erred when it declined to find that as a matter of law,
    Ronnfeldt Farms cannot show proximate causation. Frost also
    assigns and argues that Ronnfeldt Farms’ failure to preserve
    certain evidence warrants an inference that Ronnfeldt Farms
    cannot demonstrate causation.
    The district court did not reach the issue of causation or
    the issue of evidence preservation in its order granting sum-
    mary judgment. Based on the conclusions the court made, it
    was not necessary for the court to consider these issues. We
    decline to consider these issues that were not addressed by the
    district court. An appellate court will not consider an issue on
    appeal that was not passed upon by the trial court. Hinson v.
    Forehead, 
    30 Neb. App. 55
    , 
    965 N.W.2d 793
     (2021).
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    VI. CONCLUSION
    For the foregoing reasons, we affirm the district court’s
    order granting summary judgment as to Ronnfeldt Farms’
    breach of contract and negligence claims based on a theory
    that Frost was engaged in a joint venture with Arp. Frost
    cannot be held liable for Arp’s alleged breach of contract or
    alleged negligent behavior. However, we find that the district
    court erred by finding that Frost did not have a general duty
    of care with respect to the work they performed at Ronnfeldt
    Farms and in granting summary judgment to Frost based on
    that finding. Therefore, we reverse the portion of the court’s
    order granting summary judgment on Ronnfeldt Farms’ inde-
    pendent negligence claim against Frost and remand the cause
    for further consideration of the remaining issues raised in the
    motion for summary judgment related to Ronnfeldt Farms’
    independent negligence claim.
    Affirmed in part, and in part reversed and
    remanded for further proceedings.
    

Document Info

Docket Number: A-23-116

Citation Numbers: 32 Neb. Ct. App. 490

Filed Date: 12/19/2023

Precedential Status: Precedential

Modified Date: 12/19/2023