DocketNumber: 89-CV-1545
Judges: Rogers, Chief Judge, and Schwelb and Wagner, Associate Judges
Filed Date: 12/11/1992
Status: Precedential
Modified Date: 10/26/2024
This appeal arises out of an action for sale of real property in lieu of partition and for an accounting pursuant to D.C.Code § 16-2901 (1989). Appellant contends that he was denied procedural due process in the proceedings in the trial court which resulted in the sale of two properties and an order approving the sale of a third. Appellant also argues that the trial court erred in rejecting his offer to purchase a third property which he made at the hearing held pursuant to an order nisi and in confirming a published offer for it.
I
Procedural Background
The procedural history of this case is somewhat complicated, but it must be recounted in some detail for an understanding of our disposition of the case. On April 25, 1988, appellees, James and Jeffrey Lynn, a father and son, filed a complaint for the sale in lieu of partition of real property and for an accounting against appellant, Peter Lynn, who is also the son of James Lynn.
Appellant did not file an opposition to the motion for partial summary judgment, and Judge Harriett Taylor entered an order on November 22, 1988 granting the motion as unopposed.
Pursuant to the order of partial summary judgment, three separate hearings were held to confirm contracts submitted and published in accordance with Rule 308(c). On September 14, 1989, an order was entered finally ratifying the sale of 115 D Street, S.E., Unit G-3, and on May 30, 1989 after a hearing, the court confirmed the sale of Unit G-4 in the same building. No appeal was taken from these orders.
On November 14, 1989, a hearing was held before Judge William Gardner on the trustee’s motion for entry of an order nisi to sell the Independence Avenue property. Prior to that time, appellant had submitted to the trustee a written contract containing a higher offer to purchase the property, which he requested the trustee to publish.
II
The Nisi Hearing
The published offer for the Independence Avenue property was for a total purchase price of $212,000. The original offerors paid a cash deposit of $5,000, and their contract provided for an additional $5,600 to be paid at settlement to complete the down payment. Their contract was contingent upon the purchasers securing a commitment for financing the $201,400 balance within forty-five calendar days of ratification of the contract, and the purchasers agreed to make application and file documents for processing the loan within seven days. The offerors attached to their con
At the hearing scheduled to consider the original offerors’ contract and to entertain higher offers pursuant to the order nisi, appellant offered $233,211 for the property. Appellant initially offered to make a down payment of $63,200, of which a deposit of $5,000 would be a part, with the balance to be obtained through financing of $110,000 and a credit given for his 50% ownership interest in the property at $60,000. However, appellant stated repeatedly that if his request for a credit for his interest were cause for denial of his bid, he would raise his offer by a higher cash payment.
Appellant first represented, and subsequently testified, that he had been self-employed since 1977 and that he was a member in good standing of the Maryland Bar, doing some consulting and conducting a small real estate business. Appellant offered to bear the cost of any delay if his offer to purchase were not completed, including posting a bond. Thereafter, appellant was called as a witness in his own behalf.
In response to questioning by the court, appellant testified that he had cash on deposit in two banks totalling between $113,-000 and $123,000. He reported a capital gain of $70,000 for 1988. Appellant testified that he had real estate tax losses of roughly $10,000 for 1988. When the court inquired of appellant if he had received any W-2 or 1099 tax forms, he responded that he had not. For the three months preceding the hearing, appellant testified that his income, not considering the properties in dispute, was $4,000. Appellant also indicated that for tax purposes he expected to show tax losses as a result of this law suit, depreciation and returns on other real estate. Although appellant testified he had consulting work in the last sixty days, he said he had had no such work in the last thirty days. However, appellant offered to provide a creditor’s financial statement under oath to demonstrate that he had sufficient cash backing for the contract. He testified that he owned other real estate and that the lender was willing to finance the purchase, apparently on that basis. He also testified that it would be standard practice for a financing company to provide the loan with such a large down payment on what appellant thought was significantly undervalued property.
The motions judge found that since appellant had no W-2’s or 1099’s, he had “no formal employee or contract income, contract of employment income.” The court observed that appellant’s gross income for 1988 was referable to the proceeds of sale of real estate. The court considered appellant’s $10,000 loss reported in 1988, his unquantified, anticipated real estate losses for the preceding three months, and appellant’s report of only “slight consulting” business in the last sixty days. Based on these findings, the court concluded as follows:
It is the Court’s general recollection that the service a $110,000 mortgage would require at least $1200 a month mortgage payment, and probably somewhat more in terms of the — insurance requirements. And a — this would require a regular gross income of something on the order of 3500 to $4,000 per month, and there just is simply no indication of anything like that in this case. So I have to conclude that the offer at a higher price is not a bona fide one and should not displace the offer which appears — which is subject to the order nisi which appears on its face — accepted.
Ill
First, appellant argues that the trial court erred in ordering a private sale of the real property involved in this action without first holding a hearing as required by Super.Ct.Civ.R. 308(c)(1). The order for private sale of the property was a provision of the court’s order granting partial summary judgment in favor of appellees. That order was entered without a hearing.
Appellant makes the argument that dismissal of the earlier appeal has no issue preclusion effect for two reasons: (1) the prior order was not appealable and, (2) the prior appeal was dismissed on procedural grounds. If the order were not appealable as appellant contends, then this court lacked jurisdiction to consider the prior appeal, and the case would be in the same posture after dismissal as it would have been if no appeal had been noted. Therefore, we turn first to the appealability issue raised by appellant.
Generally, orders which do not dispose of the entire case are unappealable. Urciolo v. Urciolo, 449 A.2d 287, 289 (D.C.1982); Dameron v. Capitol House Assoc., Ltd., 431 A.2d 580, 585 (D.C.1981). There are exceptions, one of which is applicable in this case. The order involved here is covered by D.C.Code § ll-721(a)(2)(C) (1989) which lodges jurisdiction in this court for appeals from orders of the Superior Court “changing or affecting the possession of real property.” We have held that an order appointing a trustee to sell real proper
Appellant noted a timely appeal from that order. See note 9, supra. When that appeal was dismissed because of appellant’s failure to designate the record, that dismissal finally concluded appellant’s right to challenge the order subsequently, and the judgment became final as to appellant upon disposition of the appeal. It is the “law of the case” principle which precludes reopening questions resolved by an earlier appeal in the same case. See Kleinbart v. United States, 604 A.2d 861, 866 (D.C.1992); see also Lehrman v. Gulf Oil Corporation, 500 F.2d 659, 662-63 (5th Cir.1974), cert. denied, 420 U.S. 929, 95 S.Ct. 1128, 43 L.Ed.2d 400 (1975). Under that doctrine, “appellate courts generally adhere to a ruling made on a prior ... appeal.” Kleinbart, 604 A.2d at 866. The general rule is that “if the issues were decided, either expressly or by necessary implication, those determinations of law will be binding on remand and on a subsequent appeal.” Lehrman, 500 F.2d at 663 (citations omitted). Dismissal of the earlier appeal was a final disposition of it, which operates as a bar to appellant raising the same issues between the same parties again in this court. Parsons, supra, 328 A.2d at 384-85 (dismissal of appeal for lack of prosecution made final the order appealed from).
Appellant argues that Parsons supports his position that an order authorizing a private sale of real property is not an ap-pealable one and, therefore, the court has no jurisdiction over the prior appeal. Thus, appellant argues the “law of the case” principle does not apply. Parsons is distinguishable from this case on the question of the appealability of the order for partial summary judgment. A review of the facts in Parsons is essential to understanding the distinguishing features. In Parsons, during administration of a conservatorship, the conservator sought to enter negotiations to sell his ward’s one-half interest in real property when the trustee for the co-owner said he intended to sell or seek partition.
In addition, the order authorizing negotiations for a sale in Parsons involved no transfer of possession of the property from its owner to another as the order in this case does. In Parsons, the conservator was already in possession and control of the ward’s property, subject to the jurisdiction of the court, pursuant to his statutory powers. See D.C.Code §§ 21-143, -1503 (1981). The nephew who objected, unlike appellant, had no ownership interest which entitled him to possession and other rights incident thereto. In this case, it was the order granting partial summary judgment which decided the rights of ownership among the parties and effected a transfer of possession of the property from appellant to a trustee with specific powers, including the power to sell.
Even though the “law of the case” doctrine generally precludes reexamination of the issues raised in a prior appeal, under exceptional circumstances, the court will revisit an issue. See Kleinbart, supra, 604 A.2d at 866-67. Such circumstances include that: “ ‘the evidence on a subsequent trial was substantially different, controlling authority has since made a contrary decision of the law applicable to such issues, or the decision was clearly erroneous and would work a manifest injustice.’ ” United States v. Turtle Mountain Band of Chippewa Indians, 612 F.2d 517, 521, 222 Ct.Cl. 1 (1979) (quoting White v. Murtha, 377 F.2d 428, 431 (5th Cir.1967)); see also Kleinbart, supra, 604 A.2d at 867 (where previous ruling not sufficiently final or clearly erroneous in light of change in substantive law or newly presented facts, doctrine will not be applied). A second review is not precluded if required to meet the goal of doing substantial justice. Lehrman, supra, 500 F.2d at 663. We need not consider whether such exceptional circumstances are present here because a jurisdictional bar forecloses our review of the partial summary judgment order and the two orders finally ratifying the sales of Units G-3 and G-4 at 115 D Street, S.E., entered on September 14, 1989 and May 30, 1989, respectively. Appellant failed to note a separate appeal from any of the three orders. Our appellate rules require that notice of appeal be filed within thirty days after entry of the judgment or order from which the appeal is taken unless otherwise provided by statute. D.C.App.R. 4(a)(1). Since appellant did not note any further appeal from the order granting partial summary judgment and the orders for sale of the D Street units, we are precluded from considering appellant’s challenges to them. See In re E.G.C., 373 A.2d 903, 905 (D.C.1977). Failure to note an appeal from an order within the time provided in the rule is jurisdictional. Frain v. District of Columbia, 572 A.2d 447, 449 (D.C.1990); In re C.I.T. & C.M.T., 369 A.2d 171, 172 (D.C.1977); Farmer, supra, 526 A.2d at 1371. Therefore, the only issue properly before the court on appeal is whether the trial court abused its discretion in rejecting appellant’s offer to purchase the Independence Avenue property at the nisi hearing. We turn to that issue.
IV
Appellant argues that the trial court erred in finding that the offer he made at the nisi hearing was not a bona fide one. See Super.Ct.Civ.R. 308(c)(4). We review for abuse of discretion. The court is obli
The trial court’s determination that appellant’s offer was not a bona fide one was based on facts not in evidence. The court concluded that appellant could not qualify for a loan of $110,000 in spite of a statement from a lending institution that he so qualified. This finding was premised in part upon the court’s apparent personal knowledge of what would be required to service the loan and what the lender would require to grant it. The court made an assumption that the payment would be at least $1,200 per month and that the lender would require appellant to have an income of $3,500 to $4,000 per month to make the loan.
The trial court also seems to have confused appellant’s losses for income tax purposes with real losses. The court’s conclusion that the failure to receive W-2’s and 1099’s means that appellant had no assets or prospects of income likewise appears to be based improperly on the court’s personal knowledge, rather than on the evidence. Whether such income reporting forms are required for every type of income was not before the court. Again, we conclude that the court improperly relied upon matters of its own personal knowledge, see Lewis, 833 F.2d at 1385, and rejected all the unrebut-ted evidence presented by appellant as to his income and assets.
The trial court also rejected appellant’s higher offer without considering imposing conditions proposed by appellant to assure his completion of the transaction and to protect appellee from damages in the event appellant failed to do so.
V
Therefore, we remand the case with instructions to the trial court to consider appellant’s offer, evidence of his present ability to consummate the sale and “such conditions as the court may prescribe” to assure protection of the sellers. In the event further proceedings do not result in confirmation of a sale to appellant, the court is instructed to require the trustee to comply with the provisions of Rule 308(c) with respect to any new offer.
Reversed and Remanded with instructions.
. The rule governing procedures for confirmation of a private sale of real property provides for publication of the terms of an offer to pur
Order nisi increased offer; confirmation. At least 10 days before confirmation of a private sale the terms thereof shall be published in such newspaper or newspapers of general circulation in the District of Columbia as the Court may direct, and the sale shall not then be confirmed if a bona fide offer has been made, under such conditions as the Court may prescribe, which guarantees at least a 10 per cent net increase over the price specified in such published offer.
Super.Ct.Civ.R. 308(c)(4).
. Lynn v. Lynn, et al., No. 88-1628 (D.C.C.A. July 17, 1989).
. For convenience, the parties will be referred to as appellant and appellees.
. According to appellant’s testimony, he is a member of the Bar of Maryland. The time within which the answer was to be filed had been extended by the court until August 15, 1988.
. Appellees’ response to the motion asserts that one of them filed a prior complaint against appellant in a separate case which he voluntarily dismissed under Super.Ct.Civ.R. 41(a).
. Appellant wrote two letters to Judge Stephen Eilperin dated November 4, 1988 and November 17, 1988 asserting that James Lynn was indebted to him for in excess of $200,000 arising out of other claims and for James Lynn’s default on matters associated with the property.
. The properties ordered to be sold included 1216 Independence Avenue, S.E. and Units G-3 and G-4 at 115 D Street, S.E. The order recites that each of the three parties own an undivided one-third interest in each unit on D Street, while appellee, James Lynn, and appellant, Peter Lynn, own an undivided one-half interest in the Independence Avenue property.
. After the grant of summary judgment, appellant wrote a letter to Judge Burgess which Judge Burgess transmitted to Judge Taylor. Judge Taylor filed the letter in the jacket and treated it as a motion for reconsideration. On January 12, 1988, Judge George Mitchell denied the motion for reconsideration, concluding that even if appellant had complied with all procedural requirements, he offered no facts indicating that material facts were in dispute which precluded the grant of partial summary judgment.
. The record reflects that the order was signed out of the presence of the parties on November 22, 1988 and docketed on November 30, 1988. Thus, the prior appeal was noted timely on December 29, 1988. See D.C.App.R. 4(a)(1) and (a)(3) (time for noting an appeal in civil case begins to run from date of entry of the judgment or order on the civil docket with additional five days allowed under D.C.App.R. 4(a)(3) when order entered outside presence of the parties and counsel); see also Singer v. Singer, 583 A.2d 689 (D.C.1990) (treating as two separate time periods the thirty days allowed under D.C.App.R. 4(a)(1) and five days under D.C.App.R. 4(a)(3), effectively extending date of entry of order on the docket by five days, excluding Saturdays, Sundays and holidays pursuant to D.C.App.R. 26(a)).
. Although the order of dismissal does not specify the grounds upon which it is based, the order was entered following appellees’ motion to dismiss the appeal on the grounds that appellant had failed to file the designation of record as previously ordered by the court.
. Although appellant’s contract was $3,000 higher than that of the original offerors, it contained a financing contingency, and standard language requiring the purchaser to make application for financing immediately was deleted. Appellant’s contract also provided for a credit to appellant of $60,000 in consideration of his ownership interest in the property.
. Appellant has informed this court, and appel-lees do not dispute, that the original offer has been withdrawn.
.The original offerors’ contract provided for a broker’s commission of 6%. Assuming that a broker’s commission were payable on appellant's bid, there is no dispute that the bid would yield an amount more than 10% above the original offer.
. Each party’s entitlement to the proceeds of sale is subject to increase or reduction based on the accounting for rents, expenses and profits, which remains to be resolved.
. Three appraisers appointed by the court appraised the Independence Avenue property at $245,000, $230,000 and $236,000, respectively.
. The court has discretion to decide a motion for summary judgment filed pursuant to Super.Ct.Civ.R. 56 without a hearing. Pagan v. Horton, 464 A.2d 146, 148 (D.C.1983); see Super.Ct.Civ.R. 12 — 1(f), formerly Super.Ct.Civ.R. 12 — I(i). However, Super.Ct.Civ.R. 308(c) governs the procedure for obtaining an order for private sale of real property pursuant to court order. The pertinent portion of the rule reads as follows:
(1) Order for. A private sale may be ordered after a hearing of which notice to all interested parties is given by publication or otherwise as the Court may direct, if the Court finds the best interests of the estate will be conserved thereby.
Since we conclude that appellant is precluded from challenging again the court’s order for partial summary judgment, we do not reach appellant’s claim that the court erred in entering the order prior to holding the hearing prescribed by Rule 308(c).
. Under the law then in effect, a duly appointed and qualified conservator of the estate of a ward had control of the real and personal property of the ward, subject to the supervision of the court. D.C.Code § 21-1503 (1981). At that time, the powers of the conservator with respect to the ward’s property were the same as those of guardians for the estates of infants under prior law. D.C.Code § 21-1503 (1981). The requirement for a court order for sale of the ward's property then applicable is found in D.C.Code § 21-143 (1989).
. Such hearings are scheduled to consider objections by interested parties who are given notice, pursuant to Super.Ct.Civ.R. 308(c). Interested parties include the ward’s nearest known heirs-at-law or next-of-kin. See Super.Ct.Civ.R. 310(a)(4).
. In Farmer v. Farmer, 526 A.2d 1365 (D.C.1987), a footnote appears citing Parsons for the proposition that there is no appealable order when the court merely authorizes appointment of a third party to arrange a sale subject to court approval. 526 A.2d at 1368 n. 3. The issue addressed in Farmer for which the reference to Parsons is made was whether the Family Division of Superior Court had jurisdiction to approve the sale. Id. at 1368. The portion of the note pertinent to the disposition of the issue in Farmer was that jurisdictional questions could be raised for the first time on appeal. Id. at n. 3. Therefore, we do not view that reference in Farmer to be controlling here. On the facts of this case, the appealability of the order is controlled by statute, D.C.Code § 11-721(a)(2)(C) (1989). See Robinson, supra, 554 A.2d at 335.
. No doubt, a lender would also consider the value of the borrower’s assets in determining his or her credit worthiness. The extent to which the lender would do so is not a matter so readily determinable with certainty or so well known that it can be judicially noticed any more than the fact which the court assumed or noticed here. See Poulnot v. District of Columbia, 608 A.2d 134, 141—42 (D.C.1992).
. Cf. Poulnot, supra note 20, 608 A.2d at 141-42 (facts may be judicially noticed when ‘"well known by all reasonably intelligent people in the community’ ’’ or “ 'easily determinable with certainty from unimpeachable sources’ ” (quoting Harper v. Killion, 345 S.W.2d 309, 311 (Tex.Civ.App.) aff’d, 162 Tex. 481, 348 S.W.2d 521 (1961)).
. Instead of relying upon the testimony presented at the nisi hearing, our dissenting colleague relies, in part, upon information extracted from the record of earlier proceedings in the case. The trial court did not base its findings on that information as shown by the judge’s oral decision, which is reproduced in its entirety in the dissenting opinion. See post at 20-21. Rather, the trial court focused on whether appellant could obtain financing. Even assuming the court properly could consider as evidence matters outside the hearing, there was also information in the court’s record showing that appellant had sources of substantial assets. For example, appellant had received the proceeds of sale of two other parcels of real property as a result of this case, and appellant had sold his residence and received a substantial sum for it. Such factors would undercut the conclusion posited by our dissenting colleague that there was an adequate basis for the trial court to
. A bidder at a nisi hearing is not expected to arrive with a loan commitment at the time of the bid. Except for the original offeror, potential bidders generally learn of the offer of sale only ten days before it occurs. See D.C.Super.Ct.Civ.R. 308(c)(4). The final terms of the contract of sale, including the price, are not set until after the bidding is concluded. See id. Thus, arrangements for a loan commitment consistent with the contract cannot be made until the contract is signed and approved by the court. Therefore, the fact that appellant had no commitment is given too much weight by our dissenting colleague, if not considered improperly. On the other hand, the original offerors had at least a signed contract, contingent on court approval. Yet, even they did not provide a loan commitment. The original bidders, about whom the court knew nothing and from whom it sought no financial information even though they promised almost no cash, were on an equal footing with appellant insofar as the letter from the lender indicating conditional approval for the loan was concerned. In addition, appellant already had an undivided 50% interest in the property, subject to an accounting with the co-owner.
. We do not intend by this order to foreclose the parties from selling the property pursuant to any valid settlement agreement.