Opinion

Cattle Nat. Bank & Trust Co. v. Watson

  • 293 Neb. 943
  • 880 N.W.2d 906
Court
Nebraska Supreme Court
Filed
Jun 24, 2016
Status
Published
Cited by
39 cases
Authority
More cited than 86.6%

holding that garnishment proceeding “must be supported by a judgment in esse, that is, a judgment in actual existence or, literally, in being” (internal quotation marks omit- ted)

How later courts described this case

  • holding that garnishment proceeding “must be supported by a judgment in esse, that is, a judgment in actual existence or, literally, in being” (internal quotation marks omit- ted)
  • garnishment in aid of execution -3- issued before judgment is without jurisdiction and void, and not merely irregular; execution issued without judgment to support it is void

Written by the judges who cited it.

The opinion

Nebraska Supreme Court Online Library

www.nebraska.gov/apps-courts-epub/

06/24/2016 09:09 AM CDT

- 943 -

Nebraska A dvance Sheets

293 Nebraska R eports

CATTLE NAT. BANK & TRUST CO. v. WATSON

Cite as 293 Neb. 943

The Cattle National Bank & Trust Co., appellee, v.

Robert Watson and Shona Watson, appellees, and

Bill Watson and R ebecca Watson, appellants.

The Cattle National Bank & Trust Co., appellee, v.

Robert Watson, appellant and cross-appellee,

Shona Watson, appellee and cross-appellee,

and Bill Watson and R ebecca Watson,

appellees and cross-appellants.

___ N.W.2d ___

Filed June 24, 2016. Nos. S-15-512, S-15-872.

1. Summary Judgment: Appeal and Error. An appellate court will

affirm 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

the facts and that the moving party is entitled to judgment as a matter

of law.

2. ____: ____. 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.

3. Contracts: Judgments: Appeal and Error. The meaning of a contract

is a question of law, in connection with which an appellate court has an

obligation to reach its conclusions independently of the determinations

made by the court below.

4. Actions: Parties: Judgments: Appeal and Error. Neb. Rev. Stat.

§ 25-1315(1) (Reissue 2008) requires, in cases with multiple claims

or parties, an explicit adjudication with respect to all claims or parties

or, failing such explicit adjudication of all claims or parties, an express

determination that there is no just reason for delay of an appeal of an

order disposing of less than all claims or parties and an express direction

for the entry of judgment as to those adjudicated claims or parties.

- 944 -

Nebraska A dvance Sheets

293 Nebraska R eports

CATTLE NAT. BANK & TRUST CO. v. WATSON

Cite as 293 Neb. 943

5. Summary Judgment: Proof. A party moving for summary judgment

must make a prima facie case by producing evidence to demonstrate that

the movant is entitled to judgment if the evidence were uncontroverted

at trial.

6. ____: ____. Once the moving party makes a prima facie case, the bur-

den to produce evidence showing the existence of a material issue of

fact that prevents judgment as a matter of law shifts to the party oppos-

ing the motion.

7. Contracts: Guaranty: Debtors and Creditors: Words and Phrases. A

guaranty is a contract by which the guarantor promises to make payment

if the principal debtor defaults.

8. Contracts: Guaranty. A guaranty is interpreted using the same general

rules as are used for other contracts.

9. Contracts: Guaranty: Appeal and Error. To determine the obligations

of the guarantor, an appellate court relies on general principles of con-

tract and guaranty law.

10. Guaranty: Liability. When the meaning of a guaranty is ascertained, or

its terms are clearly defined, the liability of the guarantor is controlled

absolutely by such meaning and limited to the precise terms.

11. Actions: Contracts: Guaranty. A suit on a contractual guaranty pre­

sents an action at law.

12. Actions: Parties. The purpose of Neb. Rev. Stat. § 25-301 (Reissue

2008) is to prevent the prosecution of actions by persons who have no

right, title, or interest in the cause.

13. Actions: Parties: Standing. The focus of the real party in interest

inquiry is whether the party has standing to sue due to some real interest

in the cause of action, or a legal or equitable right, title, or interest in the

subject matter of the controversy.

14. ____: ____: ____. The purpose of the real party in interest inquiry is to

determine whether the party has a legally protectable interest or right in

the controversy that would benefit by the relief to be granted.

15. Declaratory Judgments. In Nebraska, a party may not simply move the

court for a declaratory judgment.

16. Right to Counsel: Effectiveness of Counsel. A self-represented litigant

will receive the same consideration as if he or she had been represented

by an attorney, and, concurrently, that litigant is held to the same stan-

dards as one who is represented by counsel.

17. Judgments: Garnishment: Jurisdiction. A garnishment in aid of exe-

cution issued before judgment is without jurisdiction and void, and not

merely irregular.

18. Judgments: Debtors and Creditors. An execution issued without a

judgment to support it is void.

- 945 -

Nebraska A dvance Sheets

293 Nebraska R eports

CATTLE NAT. BANK & TRUST CO. v. WATSON

Cite as 293 Neb. 943

19. Jurisdiction: Appeal and Error. Before reaching the legal issues pre-

sented for review, it is the power and duty of an appellate court to deter-

mine whether it has jurisdiction over the matter before it, irrespective of

whether the issue is raised by the parties.

20. Jurisdiction: Final Orders: Appeal and Error. For an appellate court

to acquire jurisdiction over an appeal, there must be a final order or final

judgment entered by the court from which the appeal is taken.

21. Final Orders: Appeal and Error. There are three types of final orders

that may be reviewed on appeal under the provisions of Neb. Rev. Stat.

§ 25-1902 (Reissue 2008): (1) an order which affects a substantial right

in an action and which in effect determines the action and prevents a

judgment, (2) an order affecting a substantial right made during a special

proceeding, and (3) an order affecting a substantial right made on sum-

mary application in an action after judgment is rendered.

22. Final Orders: Words and Phrases. A substantial right under Neb. Rev.

Stat. § 25-1902 (Reissue 2008) is an essential legal right.

23. Final Orders: Appeal and Error. A substantial right is affected if an

order affects the subject matter of the litigation, such as diminishing a

claim or defense that was available to an appellant before the order form

which an appeal is taken.

24. Final Orders. Substantial rights under Neb. Rev. Stat. § 25-1902

(Reissue 2008) include those legal rights that a party is entitled to

enforce or defend.

25. Summary Judgment: Claims: Garnishment. An interlocutory order

granting summary judgment on fewer than all of the claims in an action

cannot serve as the judgment required for an execution or garnishment

in aid of execution.

26. Final Orders. Since Neb. Rev. Stat. 25-1315(1) (Reissue 2008) is sub-

stantially similar to Fed. R. Civ. P. 54(b), federal cases construing rule

54(b) may be used for guidance in determining when a decision is a

“final judgment” for purposes of § 25-1315(1).

27. Appeal and Error. Appellate courts do not generally consider argu-

ments and theories raised for the first time on appeal.

28. Judgments: Collateral Attack. A void order may be attacked at any

time in any proceeding.

Appeals from the District Court for Lancaster County:

A ndrew R. Jacobsen, Judge. Final orders in No. S-15-512

vacated. Judgment in No. S-15-872 affirmed.

Bill Watson and Rebecca Watson, pro se, in Nos. S-15-512

and S-15-872.

- 946 -

Nebraska A dvance Sheets

293 Nebraska R eports

CATTLE NAT. BANK & TRUST CO. v. WATSON

Cite as 293 Neb. 943

John M. Guthery, of Perry, Guthery, Haase & Gessford, P.C.,

L.L.O., for appellee The Cattle National Bank & Trust Co., in

Nos. S-15-512 and S-15-872.

Robert Watson, pro se, in No. S-15-872.

Justin J. Knight, of Perry, Guthery, Haase & Gessford,

P.C., L.L.O., and Michael C. Cox, of Koley Jessen, P.C.,

L.L.O., for appellee The Cattle National Bank & Trust Co., in

No. S-15-872.

Heavican, C.J., Wright, Connolly, Cassel, and K elch, JJ.

Cassel, J.

I. INTRODUCTION

A bank’s action against four guarantors on their respective

personal guaranties of an entity’s debts has generated three

appeals by various guarantors. The first appeal was taken after

the district court granted the bank’s motions for summary judg-

ment but failed to adjudicate a cross-claim. The second appeal

was taken from execution and garnishment proceedings that

occurred while the first appeal was pending. Because of the

undisposed cross-claim, the Nebraska Court of Appeals dis-

missed the first appeal. One guarantor then moved to vacate

the summary judgment order. The district court denied the

motion and simultaneously dismissed the pending cross-claim.

The third appeal followed. We consider it first.

The third appeal raises three issues. First, were the guaran-

tors bound by the second page of the document? They were,

because the first page incorporated the second page and defined

“Undersigned” to include them. Second, can a guarantor assert

defenses arising from the entity’s underlying debt? For various

reasons, he cannot. Finally, did the district court err in failing

to vacate the summary judgment order? Because the guarantor

conflated the order’s initial lack of finality with its validity, the

court correctly overruled the motion. In the third appeal, we

affirm the district court’s judgment.

- 947 -

Nebraska A dvance Sheets

293 Nebraska R eports

CATTLE NAT. BANK & TRUST CO. v. WATSON

Cite as 293 Neb. 943

In the second appeal, the guarantors now argue a new

ground—that the execution and garnishment proceedings

were void because they were commenced prior to judgment.

Although the interlocutory order granting summary judgment

motions was not void, it was not a “judgment” sufficient to

support execution or garnishment in aid of execution. The

interlocutory order ultimately became part of a judgment. But

this did not validate the void process. We therefore vacate the

void execution and garnishments.

II. BACKGROUND

1. Guaranties

The action proceeded against four members of the Watson

family—Robert Watson, Shona Watson, Bill Watson, and

Rebecca Watson (collectively the Watsons). Robert, Shona, and

Rebecca were members of Reserve Design, LLC (Reserve),

a construction business. In 2007, the Watsons signed identi-

cal personal guaranties for the debts that Reserve owed to

The Cattle National Bank & Trust Co. (Bank). The guaranties

expressly included Reserve’s future indebtedness.

Each of the guaranties consisted of a single sheet of paper

with print on both sides. The pages were labeled “page 1 of 2”

and “page 2 of 2.” The Watsons’ signatures appear at the bot-

tom of page 1, and there is no dispute that they signed page 1.

Although page 2 included what appear to be lines for initials,

none of the Watsons initialed or otherwise signed page 2.

Several provisions on page 1 are relevant. First, a defini-

tion stated: “‘Undersigned’ shall refer to all persons who sign

this guaranty, severally and jointly.” This definition appeared

immediately below the last signature line and within its width.

The term “Undersigned,” appearing in the same initially capi-

talized form, was used throughout the document. Second, a

provision on the first page stated:

[T]he Undersigned guarantees to [the Bank] the payment

and performance of each and every debt, liability and

obligation of every type and description which [Reserve]

- 948 -

Nebraska A dvance Sheets

293 Nebraska R eports

CATTLE NAT. BANK & TRUST CO. v. WATSON

Cite as 293 Neb. 943

may now or at any time hereafter owe to [the Bank]

(whether such debt, liability or obligation now exists or is

hereafter created or incurred[)].

Third, the first page provided that the liability of “the

Undersigned” was “UNLIMITED.” Finally, page 1 stated, in

bold type: “This guaranty includes the additional provisions on

page 2, all of which are made a part hereof.”

Page 2 consisted of eight additional provisions. One per-

tained to the waiver of defenses. It stated, in relevant part:

The Undersigned waives any and all defenses, claims and

discharges of [Reserve], or any other obligor, pertaining

to Indebtedness, except the defense of discharge by pay-

ment in full. Without limiting the generality of the fore-

going, the Undersigned will not assert, plead or enforce

against [the Bank] any defense of . . . fraud . . . which

may be available to [Reserve] or any other person liable

in respect of any Indebtedness . . . .

Another provided that the Bank could “enter into transactions

resulting in the creation or continuance of Indebtedness, with-

out any consent or approval by the Undersigned and without

any notice to the Undersigned.”

2. Loan

In 2010, 3 years after the guaranties had been given to

the Bank, the Bank loaned Reserve $40,000 (loan). Robert

signed a loan agreement on behalf of Reserve as “Rob Watson,

Manager.” And he extended the loan’s maturity date on three

later occasions, signing each extension as “Rob Watson,

Manager.” Robert claims that the Bank’s loan officer prom-

ised him that if he signed the loan on behalf of Reserve, the

officer would later rewrite it as a third mortgage for Robert’s

personal residence. The loan was never rewritten as Robert’s

personal obligation.

In 2012, Reserve failed to make a required payment on the

loan, and the Bank declared default and demanded payment

from the Watsons on the guaranties. The Watsons refused to

- 949 -

Nebraska A dvance Sheets

293 Nebraska R eports

CATTLE NAT. BANK & TRUST CO. v. WATSON

Cite as 293 Neb. 943

pay. The Bank filed a complaint for breach of guaranty, naming

the Watsons as defendants.

Robert’s amended answer included a counterclaim for fraud

in the inducement. He claimed that he was fraudulently induced

to sign the loan in his capacity as manager of Reserve. He also

claimed that he was not bound by the terms on page 2 of the

guaranty, because he did not “undersign” it. Bill and Rebecca’s

answer asserted numerous defenses, but it did not assert the

absence of signatures or initials on page 2. Shona’s answer

included a cross-claim against Robert.

3. Summary Judgment

Robert and the Bank each filed motions for summary

judgment as to the breach of guaranty claims and Robert’s

counterclaim. One of Robert’s motions included a motion

“for Declaratory Judgment on contractual effect of Personal

Guarantees.”

The district court sustained the Bank’s motions and over-

ruled Robert’s motions in an October 17, 2014, order (hereinaf-

ter summary judgment order). Regarding the Bank’s claims for

breach of guaranty, it observed that there was no dispute that

the Watsons all signed the guaranties for the debt of Reserve.

And it noted that the guaranties provided that the Bank could

enter transactions resulting in the creation or continuance of

indebtedness without the Watsons’ notice or approval.

Regarding Robert’s counterclaim for fraud in the induce-

ment, the court first concluded that Robert was not a real party

in interest, because Reserve and the Bank were the only two

parties to the loan agreement. Therefore, because Reserve was

not a party to the action, Robert could not raise a claim for

fraud on its behalf. Second, it concluded that even if Reserve

was a party to the action, the defense of fraud in the induce-

ment was not available to the Watsons, because it was waived

under the terms on page 2. Finally, the court concluded that

Robert’s motion for a declaratory judgment was improper,

because the request was not made in the pleadings.

- 950 -

Nebraska A dvance Sheets

293 Nebraska R eports

CATTLE NAT. BANK & TRUST CO. v. WATSON

Cite as 293 Neb. 943

The court entered “judgment” for the Bank “against the

[Watsons] jointly and severally in the amount of $30,000 plus

interest of $1,839.45.” The summary judgment order did not

address Shona’s cross-claim against Robert, and it did not

direct the entry of final judgment pursuant to Neb. Rev. Stat.

§ 25-1315 (Reissue 2008).

Robert, Bill, and Rebecca filed the first appeal. It was dock-

eted in the Court of Appeals as case No. A-14-1028.

4. Execution and Garnishment

While the first appeal was pending, the Bank apparently

filed requests for writs of execution and garnishment, but its

requests are not in our record. The district court appears to

have issued the requested writs, but they, too, are not in our

record. In response, Robert and Bill filed objections to garnish-

ment and Bill and Rebecca filed an objection to execution.

These filings are also not in our record.

The court overruled the objections in two June 8, 2015,

orders, which are in our record. One concluded that the Bank

could proceed with the garnishments, because Robert and Bill

failed to show that they did not owe the debts in question.

And the other concluded that the Bank could proceed with the

execution, because Bill and Rebecca made no showing that

their property was exempt. According to the bill of exceptions,

there was no discussion at the hearing regarding whether the

summary judgment order was appealable or whether it was

a “judgment” sufficient to support a writ of execution or

garnishment.

Bill and Rebecca quickly filed the second appeal. It is

docketed in this court as case No. S-15-512. Although the

parties argue that an execution sale of a vehicle owned by

Bill and Rebecca took place after June 8, 2015, neither the

writ of execution nor any return of the writ is included in

our record.

To the extent shown in our record, the events that followed

are summarized below:

- 951 -

Nebraska A dvance Sheets

293 Nebraska R eports

CATTLE NAT. BANK & TRUST CO. v. WATSON

Cite as 293 Neb. 943

• July 8, 2015: Court of Appeals dismissed the first appeal,

concluding that the summary judgment order was not final

and appealable, because Shona’s cross-claim against Robert

was still pending.

• July 17, 2015: Robert filed motion in district court to vacate

the summary judgment order.

• August 25, 2015: District court dismissed Shona’s cross-

claim and overruled Robert’s motion to vacate.

• September 17, 2015: Robert filed notice of the third appeal,

which was taken from the summary judgment order and the

order overruling his motion to vacate. The third appeal is

docketed in this court as case No. S-15-872.

• September 18, 2015: Bill and Rebecca filed a notice of appeal

from the summary judgment order. Our clerk treated this as a

second notice of appeal1 in the third appeal.

We moved the second and third appeals to our docket,2 and

we consolidated them for argument and disposition.

III. ASSIGNMENTS OF ERROR

1. Second A ppeal (No. S-15-512)

Bill and Rebecca assign that the district court erred by

“[i]ssuing an order to execute and garnish on the statutorily

deficient” summary judgment order.

2. Third A ppeal (No. S-15-872)

Robert assigns, restated and consolidated, that the district

court erred in (1) finding that there was no genuine issue of

material fact regarding whether he is bound by the terms on

page 2, (2) failing to consider his defense of fraud, (3) failing

to find that the Bank has unclean hands, (4) finding that he

was not a real party in interest in his counterclaim, (5) fail-

ing to consider his request for a declaratory judgment, and (6)

failing to vacate the summary judgment order after the Court

1

See Neb. Ct. R. App. P. § 2-101(C) (2014).

2

Neb. Rev. Stat. § 24-1106(3) (Supp. 2015).

- 952 -

Nebraska A dvance Sheets

293 Nebraska R eports

CATTLE NAT. BANK & TRUST CO. v. WATSON

Cite as 293 Neb. 943

of Appeals, in Robert’s words, “found the [o]rder was statuto-

rily insufficient and non-final.”

On cross-appeal, Bill and Rebecca assign that the district

court erred in (1) finding that there was no genuine issue

of material fact regarding whether they were bound by the

provisions on page 2 of the guaranty, (2) not finding that the

Bank was required to give them “notice of further obligation

under the personal guaranties,” and (3) finding that they are

obligated on the loan, even though they were not notified

of it.

IV. STANDARD OF REVIEW

[1,2] An appellate court will affirm 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 the

facts and that the moving party is entitled to judgment as a

matter of law.3 In reviewing a summary judgment, an appel-

late 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.4

[3] The meaning of a contract is a question of law, in con-

nection with which an appellate court has an obligation to

reach its conclusions independently of the determinations made

by the court below.5

V. ANALYSIS

1. Third A ppeal (No. S-15-872)

Because the third appeal reaches the merits of the summary

judgment order, we address it first. In both Robert’s appeal

and Bill and Rebecca’s cross-appeal, they contend that there

3

Waldron v. Roark, 292 Neb. 889, 874 N.W.2d 850 (2016).

4

Id.

5

Braunger Foods v. Sears, 286 Neb. 29, 834 N.W.2d 779 (2013).

- 953 -

Nebraska A dvance Sheets

293 Nebraska R eports

CATTLE NAT. BANK & TRUST CO. v. WATSON

Cite as 293 Neb. 943

was a genuine issue of material fact regarding whether they

were bound by the provisions on page 2. Robert also attacks

the summary judgment order on other grounds and appeals

from the denial of his motion to vacate the summary judg-

ment order.

(a) Jurisdiction

We have jurisdiction of the third appeal. Although nearly

a year had expired after the entry of the summary judgment

order, it did not become final or appealable until the dismissal

of Shona’s cross-claim.

[4] We have made it clear that § 25-1315(1) requires, in

cases with multiple claims or parties, an explicit adjudication

with respect to all claims or parties or, failing such explicit

adjudication of all claims or parties, an express determination

that there is no just reason for delay of an appeal of an order

disposing of less than all claims or parties and an express

direction for the entry of judgment as to those adjudicated

claims or parties.6

Despite its terminology, the summary judgment order

was not a “judgment,” because it failed to adjudicate the

cross-claim. And the order clearly does not include the lan-

guage which might have purported to authorize an imme-

diate appeal.7 When the district court dismissed Shona’s

cross-claim, its series of orders formed a judgment—taken

together, these orders finally determined the rights of the par-

ties in the action.8 Only then did the appeal time begin to run

on the summary judgment order. And Robert’s appeal was

clearly timely.

6

Malolepszy v. State, 270 Neb. 100, 699 N.W.2d 387 (2005).

7

See § 25-1315(1). See, also, Cerny v. Todco Barricade Co., 273 Neb. 800,

733 N.W.2d 877 (2007) (power should be used only in infrequent harsh

case, based on likelihood of injustice or hardship to parties of delay in

entering final judgment as to part of case).

8

See Neb. Rev. Stat. § 25-1301(1) (Reissue 2008) (judgment is final

determination of rights of parties in action).

- 954 -

Nebraska A dvance Sheets

293 Nebraska R eports

CATTLE NAT. BANK & TRUST CO. v. WATSON

Cite as 293 Neb. 943

(b) Summary Judgment

[5,6] A party moving for summary judgment must make a

prima facie case by producing evidence to demonstrate that

the movant is entitled to judgment if the evidence were uncon-

troverted at trial.9 Once the moving party makes a prima facie

case, the burden to produce evidence showing the existence of

a material issue of fact that prevents judgment as a matter of

law shifts to the party opposing the motion.10

(i) Bill and Rebecca

All of Bill and Rebecca’s assigned errors and corresponding

arguments are based on their contention that because they did

not sign page 2, they did not agree to the provisions on that

page. Their first assignment argues generally that they did not

agree to page 2, and their second and third assignments argue

specifically that they are not bound by the waiver of notice

provision on page 2.

The Bank argues we cannot address Bill and Rebecca’s

assigned errors, because they did not raise the issue in their

answer. The pleadings frame the issues to be considered on a

motion for summary judgment.11 And an appellate court will

not consider an issue on appeal that was not presented to or

passed upon by the trial court.12

The Bank may be technically correct regarding the effect of

Bill and Rebecca’s answer, but, for two reasons, it makes no

significant difference. First, they did allege that the Bank failed

to properly notify them of the loan. That allegation raised the

issue of whether the Bank was required to give them notice,

which in turn depends upon the enforceability of the waiver of

notice on page 2.

9

Builders Supply Co. v. Czerwinski, 275 Neb. 622, 748 N.W.2d 645 (2008).

10

Id.

11

Stick v. City of Omaha, 289 Neb. 752, 857 N.W.2d 561 (2015).

12

Carlson v. Allianz Versicherungs-AG, 287 Neb. 628, 844 N.W.2d 264

(2014).

- 955 -

Nebraska A dvance Sheets

293 Nebraska R eports

CATTLE NAT. BANK & TRUST CO. v. WATSON

Cite as 293 Neb. 943

But more important, Robert argues in his first assignment

of error that there is a genuine issue of material fact regarding

whether he agreed to page 2. He explicitly raised this issue in

his amended answer below. Thus, Robert’s first assignment of

error squarely presents the issue.

(ii) Terms of Guaranty

Robert, Bill, and Rebecca argue that in order to agree to the

provisions on page 2, they had to “undersign” page 2. They

rely upon the term’s ordinary meaning but ignore the definition

of “Undersigned” on page 1. Their argument fails.

[7-9] A guaranty is a contract by which the guarantor prom-

ises to make payment if the principal debtor defaults.13 A guar-

anty is interpreted using the same general rules as are used for

other contracts.14 To determine the obligations of the guarantor,

an appellate court relies on general principles of contract and

guaranty law.15

[10] But when the meaning of a guaranty is ascertained, or

its terms are clearly defined, the liability of the guarantor is

controlled absolutely by such meaning and limited to the pre-

cise terms.16 And that is the situation here.

The district court correctly concluded that the provisions on

page 2 were part of the guaranty. Robert, Bill, and Rebecca do

not dispute that they signed page 1, which provided, in bold

type, that “[t]his guaranty includes the additional provisions

on page 2, all of which are made a part hereof.” This language

clearly and absolutely applied to make the terms on page 2 part

of the contract.

We have previously rejected similar arguments. In one case,

the front of the contract at issue had a place for a signature,

and immediately beneath the signature line, the following

13

Braunger Foods v. Sears, supra note 5.

14

Id.

15

Id.

16

Id.

- 956 -

Nebraska A dvance Sheets

293 Nebraska R eports

CATTLE NAT. BANK & TRUST CO. v. WATSON

Cite as 293 Neb. 943

was printed: “‘NOTE: SEE REVERSE SIDE FOR TERMS

AND CONDITIONS OF LEASE. ALL WARRANTIES

DISCLAIMED.’”17 We concluded that the defendant was bound

by the provisions on the reverse side of the contract. In another

case, the defendant signed the front of the contract, which

provided that he “‘purchase[d], subject to the terms and condi-

tions set forth below and upon the reverse side hereof.’”18 The

defendant “ignor[ed] the import of the words ‘and upon the

reserve side hereof’” and argued that the terms on the front of

the contract controlled.19 We rejected the defendant’s approach

and stated that “[o]bviously, the provisions on the reverse side

of the contract, except as they may be unenforceable in this

state, are a part of the contract and must be so considered.”20

We reached the same conclusion in yet another case.21 There,

the plaintiff signed the front of the contract, which included “a

specific and conspicuous reference to the limitation of liability

clause on the reverse side of the document.”22 But because

of an error in transmission, the plaintiff did not receive the

reverse side of the contract that contained the limitation of

liability clause until 3 days after it signed the front. We con-

cluded that the plaintiff “was clearly placed on notice that the

clause was intended to be included in the contract” and that the

clause was therefore part of the agreement.23

Applying our prior decisions to the facts of this case, it

is clear that the statement on page 1 that “[t]his guaranty

17

Oddo v. Speedway Scaffold Co., 233 Neb. 1, 3, 443 N.W.2d 596, 599

(1989).

18

General Motors Acceptance Corp. v. Blanco, 181 Neb. 562, 564, 149

N.W.2d 516, 518 (1967) (emphasis omitted).

19

Id. at 566, 149 N.W.2d at 519.

20

Id.

21

Ray Tucker & Sons v. GTE Directories Sales Corp., 253 Neb. 458, 571

N.W.2d 64 (1997).

22

Id. at 464, 571 N.W.2d at 69.

23

Id.

- 957 -

Nebraska A dvance Sheets

293 Nebraska R eports

CATTLE NAT. BANK & TRUST CO. v. WATSON

Cite as 293 Neb. 943

includes the additional provisions on page 2, all of which

are made a part hereof” was sufficient to incorporate the

provisions on page 2 into the contract. Page 2 was part of

the guaranty, and Robert, Bill, and Rebecca are bound by

its provisions.

Robert, Bill, and Rebecca’s arguments regarding the gen-

eral meaning of the term “Undersigned” do not change the

outcome. They note that the provisions on page 2 refer to “the

Undersigned,” and they argue that because they did not “under-

sign” page 2, none of its provisions apply to them. They rely

upon general law defining “undersigned” as “[s]omeone whose

name is signed on a document, esp. at the end.”24

Their arguments fail, because the definition of

“Undersigned” on page 1 controls. Immediately below the

signature lines on page 1 appears the following definition:

“‘Undersigned’ shall refer to all persons who sign this guar-

anty, severally and jointly.” Four signature lines were printed.

The second line had the same width as the first and was placed

immediately below it. The third and fourth lines followed in

like manner. The definition was placed within the width of

the last signature line and immediately below it. To any ordi-

nary reader, this content and placement made it plain that by

signing on one of the lines on page 1, they were expressly

included within the definition of “Undersigned.” And on their

respective guaranties, that was exactly where Robert, Bill,

and Rebecca signed. Throughout pages 1 and 2, the word

“Undersigned” always appears in the same initially capital-

ized form as the definition. This also conveys to an ordinary

reader that the same meaning applies to the term throughout

the document. Clearly, the meaning of “Undersigned” on

both pages is controlled by the definition on page 1. Robert,

Bill, and Rebecca all signed the guaranty, and therefore, they

constitute “the Undersigned” despite having not signed or

initialed page 2.

24

Black’s Law Dictionary 1758 (10th ed. 2014).

- 958 -

Nebraska A dvance Sheets

293 Nebraska R eports

CATTLE NAT. BANK & TRUST CO. v. WATSON

Cite as 293 Neb. 943

Because page 2 was part of the guaranty, all of Bill and

Rebecca’s assignments of error lack merit. We turn to the addi-

tional issues raised in Robert’s appeal.

(iii) Defense of Fraud

In this assignment, Robert asserts that the court failed

to consider his affirmative defense that he was fraudulently

induced to sign the loan document regarding the Bank’s loan to

Reserve. And he argues that the court should have found that

the loan agreement was unenforceable because of the alleged

fraud. At oral argument, he reiterated that he was not asserting

any fraud with respect to the guaranty. The court did not spe-

cifically address this defense in its order, but it did state that

“no issues of material fact exist with reference to any of [the

Watsons’] defenses.”

Because Robert waived all defenses belonging to Reserve,

the court correctly concluded that there is no genuine issue

of material fact as to this defense. The guaranty provided, in

relevant part: “The Undersigned waives any and all defenses,

claims and discharges of [Reserve] . . . . Without limiting the

generality of the foregoing, the Undersigned will not assert,

plead or enforce against [the Bank] any defense of . . . fraud

. . . which may be available to [Reserve] . . . .” The terms of

the guaranty are clear, and Robert cannot assert a defense that

he expressly waived.25 This assignment is meritless.

(iv) Unclean Hands

Robert claims that the district court should have concluded

that the Bank has unclean hands, because it fraudulently

induced him to sign the loan agreement. This formulation also

lacks merit.

25

See, 38A C.J.S. Guaranty § 125 (2008); Gateway Companies, Inc. v.

Vitech America, Inc. 33 Fed. Appx. 578, 580 (2d Cir. 2002) (observing

that “[w]hen guarantors have specifically disclaimed all defenses to the

enforcement of their guaranty, they are not allowed thereafter to raise a

defense of fraud in the inducement”).

- 959 -

Nebraska A dvance Sheets

293 Nebraska R eports

CATTLE NAT. BANK & TRUST CO. v. WATSON

Cite as 293 Neb. 943

Under the doctrine of unclean hands, a person who comes

into a court of equity to obtain relief cannot do so if he or she

has acted inequitably, unfairly, or dishonestly as to the contro-

versy in issue.26 The doctrine is specifically predicated upon

equitable rights, and is enforceable against a party seeking

equitable relief.27

[11] But a suit on a contractual guaranty presents an action

at law, not in equity.28 The doctrine of unclean hands has no

application here. This assignment is meritless.

(v) Counterclaim

Robert claims that in granting the Bank’s motion for sum-

mary judgment as to his counterclaim for fraudulent induce-

ment, the district court erred in finding that he was not a real

party in interest. We disagree.

[12-14] Nebraska’s real party in interest statute provides

that “[e]very action shall be prosecuted in the name of the real

party in interest . . . . ”29 The purpose of that section is to pre-

vent the prosecution of actions by persons who have no right,

title, or interest in the cause.30 The focus of the real party in

interest inquiry is whether the party has standing to sue due to

some real interest in the cause of action, or a legal or equitable

right, title, or interest in the subject matter of the controversy.31

The purpose of the inquiry is to determine whether the party

has a legally protectable interest or right in the controversy

that would benefit by the relief to be granted.32

Robert is not a real party in interest to prosecute the fraudu-

lent inducement claim, because the claim belongs to Reserve.

26

Burns v. Nielsen, 273 Neb. 724, 732 N.W.2d 640 (2007).

27

Id.

28

See Stauffer v. Benson, 288 Neb. 683, 850 N.W.2d 759 (2014).

29

Neb. Rev. Stat. § 25-301 (Reissue 2008).

30

Manon v. Orr, 289 Neb. 484, 856 N.W.2d 106 (2014).

31

Id.

32

Id.

- 960 -

Nebraska A dvance Sheets

293 Nebraska R eports

CATTLE NAT. BANK & TRUST CO. v. WATSON

Cite as 293 Neb. 943

He signed the loan agreement on behalf of Reserve, in his

capacity as manager of Reserve. Reserve, not Robert, was

obligated under the loan agreement. Robert was not a party to

the loan agreement, and he had no legally protectable interest

or right in the controversy that would benefit by the relief to

be granted.

And for several reasons, Robert cannot prosecute the claim

on behalf of Reserve. First, Reserve is not a party in this case.

Second, Reserve is a limited liability company, which is an

entity distinct from its members.33 Robert, who is not an attor-

ney, may not represent Reserve in courts of this state.34 Finally,

as we explained earlier, Robert’s personal guaranty expressly

waived any claim of fraud belonging to Reserve.

Because Robert is not the real party in interest in his

counterclaim, there is no genuine issue of material fact, and

the Bank was entitled to judgment as a matter of law as to

Robert’s counterclaim.

(vi) Declaratory Judgment

Robert filed a motion “for Declaratory Judgment on con-

tractual effect of Personal Guarantees,” together with a motion

for summary judgment as to the Bank’s complaint. He assigns

that the district court erred in overruling his motion for a

declaratory judgment and argues that the court should have

considered it to be part of his motion for summary judgment.

The district court declined to address the motion, because

Robert did not make the request for declaratory judgment in

his pleadings.

[15] The district court did not err in declining to address

Robert’s motion for declaratory judgment. In Nebraska, a party

may not simply move the court for a declaratory judgment.35

33

Steinhausen v. HomeServices of Neb., 289 Neb. 927, 857 N.W.2d 816

(2015).

34

See id.

35

Breci v. St. Paul Mercury Ins. Co., 288 Neb. 626, 849 N.W.2d 523 (2014).

- 961 -

Nebraska A dvance Sheets

293 Nebraska R eports

CATTLE NAT. BANK & TRUST CO. v. WATSON

Cite as 293 Neb. 943

No such summary proceeding is recognized in Nebraska.36 The

same case makes it clear that an action for declaratory judg-

ment is framed by a pleading,37 and Robert’s counterclaim did

not make any attempt to do so.

To the extent that Robert argues the matter was encompassed

in his motion for summary judgment, we find no merit to his

argument. The court considered and overruled his motion for

summary judgment. It therefore resolved Robert’s rights under

the contract, which was the issue he sought to have determined

in his “motion” for declaratory judgment.

The district court did not err in granting the Bank’s motion

for summary judgment as to its claims for breach of guaranty

and as to Robert’s counterclaim. It also did not err in overrul-

ing Robert’s motions for summary judgment and declaratory

judgment. Accordingly, we affirm the district court’s summary

judgment order.

(c) Failure to Vacate

Finally, Robert assigns that the district court erred in over-

ruling his motion to vacate the summary judgment order. He

argues that the district court should have vacated the order,

because “§ 25-1315(1) . . . requires a non-final order to be

written in such a way it can be modified. The . . . order was

not written to include or consider the effect of future rulings in

the matter and therefore must be vacated.”38

We digress to note that Robert’s motion to vacate addressed

only the summary judgment order. Thus, his motion did not

address the orders overruling objections to execution or gar-

nishments. Because Robert limited his motion in that way, the

district court was not asked to vacate these other orders. An

issue not presented to or passed on by the trial court is not

36

Id.

37

See id.

38

Brief for appellant in case No. S-15-872 at 39.

- 962 -

Nebraska A dvance Sheets

293 Nebraska R eports

CATTLE NAT. BANK & TRUST CO. v. WATSON

Cite as 293 Neb. 943

appropriate for consideration on appeal.39 Thus, in consider-

ing this assignment of error, we are limited by the scope of

Robert’s motion.

Robert relies on Murry Constr. Servs. v. Meco-Henne

Contracting40 to support his argument. In that case, the Nebraska

Court of Appeals stated: “It is our duty to dismiss appeals for

lack of jurisdiction and to direct the trial court to expunge from

its records actions or orders which are not valid.”41

Robert’s reliance on Murray Constr. Servs. is misplaced.

The rule in that case applies when an order is invalid under

§ 25-1301, which requires that a judgment be signed by the

court and file stamped and dated by the clerk of the court.

Here, the Court of Appeals did not conclude that the sum-

mary judgment order was invalid under § 25-1301. Rather,

it concluded that it lacked jurisdiction because the summary

judgment order did not adjudicate the cross-claim and, thus,

did not constitute a final judgment under § 25-1315(1). Murray

Constr. Servs. does not affect the validity of the summary judg-

ment order.

The summary judgment order was not invalid. Rather, as we

explained above, at the time of the first appeal, the summary

judgment order simply was not yet part of a judgment and,

thus, was not yet appealable. Therefore, we affirm the district

court’s order overruling Robert’s motion to vacate the sum-

mary judgment order.

2. Second A ppeal (No. S-15-512)

[16] Bill and Rebecca filed this appeal from the district

court’s orders overruling their objections to execution and

garnishments. Although they appeared with counsel before the

39

Aldrich v. Nelson, 290 Neb. 167, 859 N.W.2d 537 (2015).

40

Murray Constr. Servs. v. Meco-Henne Contracting, 10 Neb. App. 316, 633

N.W.2d 915 (2001).

41

Id. at 318, 633 N.W.2d at 916.

- 963 -

Nebraska A dvance Sheets

293 Nebraska R eports

CATTLE NAT. BANK & TRUST CO. v. WATSON

Cite as 293 Neb. 943

district court, they are self-represented in this court. We have

frequently stated that a self-represented litigant will receive

the same consideration as if he or she had been represented by

an attorney, and, concurrently, that litigant is held to the same

standards as one who is represented by counsel.42

Bill and Rebecca argue that the district court erred in over-

ruling their objections, because “[a]ny order issued for enforce-

ment of a statutorily deficient non-appealable, non-final order

is invalid and void.”43 Their argument lacks some precision.

But as we understand it, they argue that because the summary

judgment order was not a “judgment” within the meaning of

§ 25-1315, the execution and garnishments were void. They

did not raise this argument below.

(a) General Law on Premature

Execution or Garnishment

[17] We have long held that a garnishment in aid of execu-

tion issued before judgment is without jurisdiction and void,

and not merely irregular.44 These cases arose under an earlier

version of what is now codified as Neb. Rev. Stat. § 25-1056

(Reissue 2008), which governs garnishments after judgment.45

The garnishment proceeding must be supported by a “judg-

ment in esse,”46 that is, a judgment “[i]n actual existence” or,

literally, “in being.”47 Thus, the judgment must be in existence

before a garnishment in aid of execution. And even if there is

a judgment which is later reversed, the “garnishment becomes

42

See, e.g., Friedman v. Friedman, 290 Neb. 973, 863 N.W.2d 153 (2015)

(referring to self-represented litigant as “pro se litigant”).

43

Brief for appellants in case No. S-15-512 at 2.

44

See, Whitcomb v. Atkins, 40 Neb. 549, 59 N.W. 86 (1894); Clough v. Buck,

6 Neb. 343 (1877).

45

See id.

46

See Clough v. Buck, supra note 44, 6 Neb. at 347 (emphasis in original).

47

Black’s Law Dictionary 895 (10th ed. 2014).

- 964 -

Nebraska A dvance Sheets

293 Nebraska R eports

CATTLE NAT. BANK & TRUST CO. v. WATSON

Cite as 293 Neb. 943

wholly dissolved, for there is nothing left to support either the

one or the other.”48

[18] Although we have not found a Nebraska case directly

on point, it appears that the same rule applies to an execution

issued without a judgment. The general rule, in the absence

of a statutory provision to the contrary, is that an execution

issued without a judgment to support it is void.49 The Arizona

Supreme Court stated that “an execution issued without a

judgment to support it is void, no authority is conferred upon

the officer to whom it is directed, and even if a judgment is

subsequently obtained, it will not have a retroactive effect so

as to validate the execution.”50 And a Missouri court recited its

law that “‘[e]nforcement of a judgment by execution supposes

that the judgment is not merely interlocutory, but final.’”51

This rule seems consistent with our statutes.52 And we have

held that a proceeding in aid of a satisfied judgment was

a nullity.53

It seems clear that before enactment of § 25-1315, the

summary judgment order would have been considered a judg-

ment as between the Bank and the Watsons. Federal Land

Bank v. McElhose54 is instructive despite its reliance upon

48

Clough v. Buck, supra note 44, 6 Neb. at 347.

49

30 Am. Jur. 2d Executions § 55 (2005).

50

Jackson v. Sears, Roebuck and Co., 83 Ariz. 20, 21-22, 315 P.2d 871, 872

(1957).

51

State ex rel. Lumber Mut. Ins. Co. v. Ohmer, 131 S.W.3d 872, 874 (Mo.

App. 2004).

52

See, § 25-1056 (when judgment has been entered and creditor has filed

affidavit, garnishment summons shall issue); Neb. Rev. Stat. § 25-1501.01

(Cum. Supp. 2014) (person having judgment rendered by district court

may request clerk of court to issue execution); Neb. Rev. Stat. § 25-1504

(Reissue 2008) (land and tenements in county bound for satisfaction of

judgment when entered on judgment record, goods and chattels bound

from seizure in execution).

53

Yeiser v. Cathers, 73 Neb. 317, 102 N.W. 612 (1905).

54

Federal Land Bank v. McElhose, 222 Neb. 448, 384 N.W.2d 295 (1986).

- 965 -

Nebraska A dvance Sheets

293 Nebraska R eports

CATTLE NAT. BANK & TRUST CO. v. WATSON

Cite as 293 Neb. 943

obsolete procedures for rendition and entry of judgment. A

first pronouncement, followed by a trial docket entry on the

same day, “finally determined the rights of the parties and

constituted the rendition of a [judgment].”55 We held that this

judgment was final and appealable despite the later entry of

another judgment that partially contradicted the first judg-

ment. We observed that the “confusion presented by this

case can be avoided if trial courts will, as they should, limit

themselves to entering but one final determination of the

rights of the parties in a case.”56 And to deal with another

aspect of the multiple judgments problem, we later stated that

a trial court should defer entering a default judgment against

one of multiple defendants where doing so could result in

inconsistent and illogical judgments following determina-

tion on the merits as to the defendants not in default.57 And

in that case, we overruled two older cases permitting default

judgments to stand against one jointly liable defendant while

another defendant was adjudged not liable after a trial. The

Legislature adopted § 25-1315 at the next session after that

case was decided.

(b) Appellate Jurisdiction

[19] But before we can consider whether the adoption

of § 25-1315 leads to the conclusion that Bill and Rebecca

advance, we must consider whether we have jurisdiction over

the second appeal. Before reaching the legal issues presented

for review, it is the power and duty of an appellate court to

determine whether it has jurisdiction over the matter before it,

irrespective of whether the issue is raised by the parties.58 And

the question of our jurisdiction is not a simple matter.

55

Id. at 451, 384 N.W.2d at 297.

56

Id. at 452, 384 N.W.2d at 298.

57

State of Florida v. Countrywide Truck Ins. Agency, 258 Neb. 113, 602

N.W.2d 432 (1999).

58

In re Interest of Isabel P. et al., 293 Neb. 62, 875 N.W.2d 848 (2016).

- 966 -

Nebraska A dvance Sheets

293 Nebraska R eports

CATTLE NAT. BANK & TRUST CO. v. WATSON

Cite as 293 Neb. 943

[20] For an appellate court to acquire jurisdiction over an

appeal, there must be a final order or final judgment entered

by the court from which the appeal is taken.59 Our jurisdiction

depends upon the proper classification of the orders overruling

objections to execution and garnishment.

We are hampered somewhat by the state of the record. It

does not include any praecipes for execution or garnishment,

any writs of execution or garnishment, or any returns to any

such writs. Thus, all we can discern from the record is that

such writs were issued prior to the entry of judgment. At the

hearing on the objections, the parties’ arguments appear to

be premised upon a belief that the summary judgment order

was susceptible of execution or garnishment. But that hear-

ing took place before the Court of Appeals dismissed the

first appeal.

It is clear that the second appeal was not taken from a final

judgment. We have already determined that the district court’s

series of orders did not form a judgment until it dismissed

Shona’s cross-claim in August 2015, more than 2 months after

Bill and Rebecca filed their notice of appeal in the second

appeal. And their notice of appeal did not relate forward to the

August entry of judgment.60 We turn to the other possibility—a

final order.

[21] Our jurisdiction depends upon whether the June 8, 2015,

orders were “final orders.” Under Neb. Rev. Stat. § 25-1902

(Reissue 2008), the three types of final orders which may be

reviewed on appeal are (1) an order which affects a substantial

right in an action and which in effect determines the action and

prevents a judgment, (2) an order affecting a substantial right

made during a special proceeding, and (3) an order affecting

a substantial right made on summary application in an action

59

State v. Jackson, 291 Neb. 908, 870 N.W.2d 133 (2015).

60

See In re Guardianship & Conservatorship of Woltemath, 268 Neb. 33,

680 N.W.2d 142 (2004).

- 967 -

Nebraska A dvance Sheets

293 Nebraska R eports

CATTLE NAT. BANK & TRUST CO. v. WATSON

Cite as 293 Neb. 943

after a judgment is rendered.61 For convenience, we refer to

these as type “1,” “2,” or “3” orders. Each type requires that

the order affect a substantial right. The difference lies in the

type of proceeding or its effect upon the action.

We have not always used this terminology with precision.

For example, in one case, we said that an order overruling an

objection to a debtor’s examination was “made in a special

proceeding.”62 But we also said that the order was “made upon

a summary application in an action after judgment therein.”63

Thus, we intermingled terminology from types 2 and 3. We

perpetuated this confusion in a later case.64

One thing is clear—the orders overruling objections to exe-

cution and garnishments were not type 1 final orders. To be a

type 1 final order, it must dispose of the whole merits of the

case and leave nothing for the court’s further consideration.65

These orders did neither. They occurred prior to judgment. And

they did not prevent the judgment, which followed upon the

dismissal of the cross-claim.

We conclude that we must classify the proceedings before

the district court as summary applications in an action after

judgment is rendered. Thus, it would necessarily follow that

the district court’s orders would be type 3 final orders. The

anomaly, of course, is that no “judgment” had actually been

rendered. Nonetheless, the Bank was pursuing an execution

and a garnishment in aid of execution, both of which necessar-

ily follow a judgment.

61

State v. Harris, 292 Neb. 186, 871 N.W.2d 762 (2015).

62

Clarke v. Nebraska Nat. Bank, 49 Neb. 800, 802, 69 N.W. 104, 104

(1896).

63

Id.

64

Bourlier v. Keithley, 141 Neb. 862, 865, 5 N.W.2d 121, 123 (1942) (“[a]

proceeding in aid of execution is a special proceeding made upon a

summary application in an action after judgment”).

65

See Big John’s Billiards v. State, 283 Neb. 496, 811 N.W.2d 205 (2012).

- 968 -

Nebraska A dvance Sheets

293 Nebraska R eports

CATTLE NAT. BANK & TRUST CO. v. WATSON

Cite as 293 Neb. 943

[22-24] And the orders affected substantial rights. A sub-

stantial right under § 25-1902 is an essential legal right.66

A substantial right is affected if an order affects the sub-

ject matter of the litigation, such as diminishing a claim

or defense that was available to an appellant before the

order from which an appeal is taken.67 The orders eliminated

the Watsons’ objections to the execution and garnishments.

Moreover, substantial rights under § 25-1902 include those

legal rights that a party is entitled to enforce or defend.68

The execution and garnishments authorized the seizure of

property or money that would otherwise have remained in the

Watsons’ ownership and control. Thus, the orders affected a

substantial right.69

Because the second appeal was timely filed after the entry

of the orders overruling objections to execution and garnish-

ments, we have jurisdiction of the second appeal.

(c) Validity of Orders on Execution

and Garnishments

Having concluded that we have jurisdiction of the second

appeal, we turn to the dispositive issue. The execution and gar-

nishments in aid of execution were issued prior to a final judg-

ment under §§ 25-1301 and 25-1315. We conclude that these

execution and garnishment proceedings were void.

The key is the second sentence of § 25-1315(1), which

states:

In the absence of such determination [that there is no

just reason for delay] and direction [for the entry of

66

Id.

67

Id.

68

Id.

69

See In re Estate of McKillip, 284 Neb. 367, 375, 820 N.W.2d 868, 876

(2012) (concluding that “the rights of the devisees to retain the real

estate in kind is a substantial right that is affected by the order to sell the

property”).

- 969 -

Nebraska A dvance Sheets

293 Nebraska R eports

CATTLE NAT. BANK & TRUST CO. v. WATSON

Cite as 293 Neb. 943

judgment], any order or other form of decision, however

designated, which adjudicates fewer than all the claims

or the rights and liabilities of fewer than all the parties

shall not terminate the action as to any of the claims or

parties, and the order or other form of decision is subject

to revision at any time before the entry of judgment adju-

dicating all the claims and the rights and liabilities of all

the parties.

(Emphasis supplied.) Most of our cases involving § 25-1315

have addressed attempts to invoke the authority granted by the

first sentence.70 Here, we confront a form of decision charac-

terized as a judgment but which failed to dispose of a defend­

ant’s cross-claim.

The pending cross-claim prevented the summary judgment

order from serving as a final judgment. We have previously

written in depth regarding the purpose of the statute with

regard to the “‘salutary goal of certainty with respect to juris-

diction of appeals.’”71

[25] It seems equally fundamental that an interlocutory

order granting summary judgment on fewer than all of the

claims in an action cannot serve as the judgment required for

an execution or garnishment in aid of execution. The plain

language of § 25-1315(1) makes it clear that the form of the

order cannot control. Here, the summary judgment order stated

that “[j]udgment is entered in favor of the [Bank and] against

the [Watsons] jointly and severally . . . .” The statute requires

explicit adjudication of all of the claims and of all of the rights

and liabilities of all of the parties. The summary judgment

order did not do so.

70

See, e.g., Castellar Partners v. AMP Limited, 291 Neb. 163, 864 N.W.2d

391 (2015); Cerny v. Todco Barricade Co., supra note 7; Keef v. State, 262

Neb. 622, 634 N.W.2d 751 (2001).

71

Malolepszy v. State, supra note 6, 270 Neb. at 106, 699 N.W.2d at 391

(quoting Federal Sav. & Loan Ins. Corp. v. Huff, 851 F.2d 316 (10th Cir.

1988)).

- 970 -

Nebraska A dvance Sheets

293 Nebraska R eports

CATTLE NAT. BANK & TRUST CO. v. WATSON

Cite as 293 Neb. 943

The same purpose of providing certainty applies to a judg-

ment which will be sufficient to support the issuance of final

process. A writ of execution is recognized as a final process of

a court for the enforcement of a judgment.72 If an interlocutory

order remains subject to change, it cannot support the court’s

final process. The officers required by law to execute a court’s

process need certainty that the process is supported by a final

judgment. And this clarity is equally important to the parties

and the general public.

[26] We have not found any federal cases suggesting oth-

erwise. Since § 25-1315(1) is substantially similar to Fed. R.

Civ. P. 54(b) (Rule 54(b)), we will look to federal cases con-

struing Rule 54(b) for guidance.73 In a case from the District

of Columbia Circuit, a party was “confronted by a judgment

non-final in terms of Rule 54(b) but ostensibly the predicate

for an execution.”74 The court observed that “[a]n execution

ordinarily may issue only upon a final judgment,”75 and it

said: “We think the role Rule 54(b) plays with reference to the

finality of a judgment for purposes of appeal has implications

as regards its finality for purposes of execution as well.”76 It

noted that the lower court had not made a Rule 54(b) deter-

mination, and it stated that “the more likely conclusion upon

the merits of the appeal is that unless and until [the Rule 54(b)

determination] is done [the appellee] has no judgment upon

which an execution may issue prior to adjudication of the case

in its entirety.”77 It therefore denied the appellee’s motion for

72

See State, ex rel. Warren, v. Raabe, 140 Neb. 16, 299 N.W. 338 (1941).

73

Bailey v. Lund-Ross Constructors Co., 265 Neb. 539, 657 N.W.2d 916

(2003).

74

Redding & Company v. Russwine Construction Corporation, 417 F.2d 721,

724 (D.C. Cir. 1969).

75

Id. at 727.

76

Id.

77

Id.

- 971 -

Nebraska A dvance Sheets

293 Nebraska R eports

CATTLE NAT. BANK & TRUST CO. v. WATSON

Cite as 293 Neb. 943

a supersedeas bond as a condition of the stay of execution

issued during the pendency of the appeal.78 In another case,

a Second Circuit court noted that “the validity of [an] execu-

tion order . . . depends upon the finality of the earlier default

judgments which that execution order is intended to satisfy.”79

Because the order was susceptible of two interpretations, one

consistent with finality and the other not, the court remanded

the matter for entry of a new judgment.80

Although we have read the district court’s orders together

in order to determine the existence of a final judgment, this

should not be necessary. Where a series of orders, taken

together, would constitute a final judgment, we encourage the

trial courts to make the judgment explicit in the last order of

the series.

[27,28] Although Bill and Rebecca did not raise this precise

argument before the district court, we conclude that we can

consider it. Appellate courts do not generally consider argu-

ments and theories raised for the first time on appeal.81 But

it is a longstanding rule in Nebraska that a void order may

be attacked at any time in any proceeding.82 We have already

recited the case law making it clear that executions and gar-

nishments in aid of execution issued prior to judgment are

void. The district court’s orders overruling objections to the

void orders are likewise void. The summary judgment order

was then only an interlocutory order. At that time, it did not

78

See, also, Gerardi v. Pelullo, 16 F.3d 1363 n.13 (3d Cir. 1994) (noting that

“a judgment that is not otherwise final, i.e., usually meaning final as to all

issues and parties, is not subject to execution until the certification under

Rule 54(b) is entered”).

79

International Controls Corp. v. Vesco, 535 F.2d 742, 745 (2d Cir. 1976).

80

International Controls Corp. v. Vesco, supra note 79.

81

Bedore v. Ranch Oil Co., 282 Neb. 553, 805 N.W.2d 68 (2011).

82

See, Kuhlmann v. City of Omaha, 251 Neb. 176, 556 N.W.2d 15 (1996);

Lammers Land & Cattle Co. v. Hans, 213 Neb. 243, 328 N.W.2d 759

(1983).

- 972 -

Nebraska A dvance Sheets

293 Nebraska R eports

CATTLE NAT. BANK & TRUST CO. v. WATSON

Cite as 293 Neb. 943

support the issuance of final process, and Bill and Rebecca

could raise this issue for the first time on appeal.

Based on the record before us in the second appeal, we

determine that the writs of execution and garnishment issued

before the entry of a final judgment, and the proceedings had

for their enforcement, were void. We therefore vacate the final

orders overruling the Watsons’ objections to execution and

garnishments.

But that is the full extent of the relief we can provide on this

record. In our decision regarding the Watsons’ third appeal, we

have affirmed a judgment sufficient for the issuance of final

process. As we have already explained, the later judgment does

not have a retroactive effect to validate the void writs of execu-

tion and garnishment. We express no opinion regarding any

action or process available to the Watsons regarding the void

execution and garnishments, or regarding the effect, if any, of

the Bank’s later judgment on such action or process.

VI. CONCLUSION

For the reasons discussed above, in case No. S-15-872, we

affirm the district court’s order granting the Bank’s motions

for summary judgment as to its claims for breach of guaranty

and as to Robert’s counterclaim. We also affirm the district

court’s order overruling Robert’s motion to vacate. In case No.

S-15-512, we vacate the district court’s orders overruling the

Watsons’ objections to execution and garnishments.

Final orders in No. S-15-512 vacated.

Judgment in No. S-15-872 affirmed.

Miller-Lerman and Stacy, JJ., not participating.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

A word about cookies

We need a few to keep you signed in and the library working. The rest help us see which pages people use and where they get stuck. They stay off unless you say yes.