Titan Machinery v. Kluver
- Titan Machinery, Inc., Plaintiff and Appellee
Renewable Resources, LLC., Defendant and Third-Party Plaintiff
Shawn Kluver and Little Knife
Disposal, LLC., Third-Party Defendants and Appellants
Titan Machinery, Inc., Plaintiff and Appellee
Shawn Kluver Defendant and Third-Party Plaintiff
Renewable Resources, LLC., Third-Party Defendant and Appellee
- Case Type
- CIVIL APPEAL : CONTRACTS
- Appeal From
Case No. 2017-CV-03746
East Central Judicial District, Cass County
Tristan Jones Van de Streek
Parties' Statement of Issues
1. Whether the district court erred in its findings of fact.
2. Whether the district court erred in holding Shawn Kluver liable on a personal guarantee, the purpose of which was to secure an account in Renewable Resources’ name, after Renewable terminated his employment.
3. Whether the district court erred in holding Shawn Kluver liable on the personal guarantee beyond the $15,000 limit stated in the guarantee.
4. Whether the district court erred in holding Little Knife Disposal liable for use of an excavator that was rented by Renewable, used in its business, and only brought to the Little Knife site during a time when Renewable Resources and its owners had wrongfully excluded Kluver and Little Knife from the site.
5. Whether the district court erred in concluding that Kluver and Little Knife are required to indemnify Renewable for debts that Renewable incurred for its own benefit.
6. Whether the district court erred in failing to require Renewable to indemnify Kluver for his liability under the personal guarantee that secured Renewable’s use of the rented excavator in its business.
Renewable Resources Statement of Issues:
I. The district court did not err in its findings of fact.
A. There is overwhelming evidence that the Case CX290B excavator rented from Titan Machinery benefited Little Knife Disposal and Shawn Kluver.
B. The evidence supports holding Shawn Kluver responsible for Titan’s Machinery’s pick-up charge.
II. The district court did not err in holding Little Knife Disposal liable for use of the Case CX290B excavator, when the extended use of the excavator was necessitated by Renewable Resource’s excavator being used at Little Knife Disposal and the rented excavator later being moved to the Little Knife Disposal location for use by Shawn Kluver and his company.
III. The district court did not err in concluding that Shawn Kluver and Little Knife Disposal are required to indemnify Renewable Resources for a portion of the sums due and owing Titan Machinery when such sums were incurred because Little Knife Disposal was using Renewable Resources’ excavator and later used the rented excavator for their own benefit.
IV. The district court did not err in failing to require Renewable Resources to indemnify Shawn Kluver for his liability under the personal guaranty
Titan Machinery, Inc.Statement of Issues:
I. The district court did not err in its findings of fact.
A. The district court’s findings of fact and conclusions of law identified by Kluver and Little Knife are not subject to reversal.
B. The district court did not err in finding that the contracts are commercially reasonable. i The Guaranty is not procedurally unconscionable.
ii. The Guaranty is not substantively unconscionable.
II. The district court did not err in holding Kluver liable under the Guaranty. A. Kluver executed an enforceable guaranty of payment.
i. There was mutual consent between Titan and Kluver as to the Guaranty.
ii. The Guaranty is both procedurally and substantively conscionable.
B. Kluver is liable under the Guaranty whether the Guaranty was signed by Kluver or at Kluver’s direction and on Kluver’s behalf.
III. The district court did not err in determining the extent of Kluver’s liability under the Guaranty.
A. Kluver is liable for all amounts due and owing from Renewable Resources to Titan under the Guaranty.
B. The handwritten notation to the Credit Application does not limit Kluver’s liability under the Guaranty.
C. Kluver waived notice of any modification, amendment, or extension of the Rental Agreement pursuant to the express terms of the Guaranty.
D. Kluver waived notice of any modification, amendment, or extension of the Rental Agreement by his conduct.
Shawn Kluver and Little Knife Disposal, LLC, appeal after they were ordered to pay $140,042.83 to Titan Machinery, Inc., and $100,731.62 to Renewable Resources, LLC.
Kluver was the general manager of Renewable Resources and the sole member of Little Knife Disposal. In July 2016, Renewable Resources leased an excavator and other equipment from Titan. Kluver executed a personal guaranty to ensure Renewable Resources’ payment obligations under the lease agreement. Renewable Resources returned the leased equipment in October 2017. The excavator was damaged during the lease and the excavator’s bucket was not returned. In November 2017, Titan sued Renewable Resources, and in October 2018, Titan obtained a $140,042.83 money judgment against Renewable Resources.
In January 2018, Renewable Resources sued Kluver and Little Knife, claiming they used the equipment leased from Titan and did not reimburse Renewable Resources. Renewable Resources requested that Kluver and Little Knife repay Renewable for their use of the equipment. In 2019, Titan sued Kluver, claiming he was liable for Renewable Resources’ obligations under the judgment Titan obtained against Renewable Resources.
After a November 2019 trial, the district court found Kluver and Little Knife used the equipment leased by Renewable Resources for their own benefit. The court found Kluver’s use of the leased equipment without authorization resulted in $100,731.62 in additional costs to Renewable Resources. The court also concluded Kluver was liable for all of Renewable Resources’ obligations under the judgment in favor of Titan.
On appeal, Kluver and Little Knife argue the district court erred in ruling they were liable for Renewable Resources’ obligations under the judgment in favor of Titan. They also claim the court erred in requiring them to indemnify Renewable Resources for their use of the leased equipment.
(Note: Attachments may not be available for recently filed cases and/or confidential documents.)
|Seq. #||Filing Date||Description||Attachment|
|1||01/23/2020||NOTICE OF APPEAL : 01/23/2020|
|2||01/23/2020||ORDER FOR TRANSCRIPT : 01/28/2020|
|3||01/27/2020||Rec' $125.00 filing fee (receipt #27504)|
|4||01/28/2020||NOT. OF FILING NOT. OF APPEAL AND PROOF OF SERV.|
|5||01/28/2020||Notice Served on Ariston E. Johnson, James M. Cailao, Jon R. Brakke and Jonathan P. Sanstead|
|6||02/21/2020||ELEC. RECORD ON APPEAL DATED FEBRUARY 20, 2020 (ENTRY NOS. #1- #256)|
|7||03/05/2020||ELECTRONIC TRANSCRIPT DATED NOVEMBER 12, 2019|
|8||03/05/2020||ELECTRONIC TRANSCRIPT DATED NOVEMBER 13, 2019|
|10||03/31/2020||1ST ELEC. SUPP. RECORD ON APPEAL DATED MARCH 30, 2020 (ENTRY NOS. 257-265)|
|11||03/31/2020||ELEC. SUPP. RECORD ON APPEAL DATED MARCH 30, 2020 (ENTRY NOS. 266-267)|
|12||04/12/2020||MOT. EXT/TIME APPELLANT BRIEF|
|13||04/13/2020||ACTION BY CLERK - Granted : 05/14/2020|
|14||05/01/2020||3RD ELEC. SUPP. RECORD ON APPEAL DATED APRIL 30 (ENTRY NOS. 268-273)|
|17||05/15/2020||Oral Argument Request by Appellant|
|18||05/18/2020||Rec'd 5 copies of ATB & ATA from CSD|
|19||05/16/2020||4TH ELEC. SUPP. RECORD ON APPEAL DATED MAY 15, 2020(ENTRY NOS. 274-281)|
|20||05/19/2020||5TH ELEC. SUPP. RECORD ON APPEAL DATED MAY 19, 2020 (ENTRY NOS. 282-284)|
|21||05/28/2020||6TH ELEC. SUPP. RECORD ON APPEAL DATED MAY 27 (ENTRY NOS. 285-287 )|
|22||06/12/2020||APPELLEE BRIEF (Titan Machinery, Inc.)||View|
|23||06/12/2020||Oral Argument Request by Appellee (Titan Machinery, Inc.)|
|24||06/15/2020||APPELLEE BRIEF (RENEWABLE RESOURCES)||View|
|25||06/15/2020||Oral Argument Request by Appellee (Renewable Reources)|
|26||06/15/2020||APPELLEE APPENDIX (RENEWABLE RESOURCES)|
|27||06/17/2020||Rec'd 5 copies of AEB (Titan Machinery Inc.) back from CSD|
|28||06/21/2020||Rec'd non-substantive corrections to AEB and AEA (Renewable Resource|
|29||06/24/2020||Rec'd 4 copies of AEB/AEA (RR) from Central Duplicating|
|30||07/14/2020||7TH ELEC. SUPP. RECORD ON APPEAL DATED JULY 13, 2020 (ENTRY NOS. 288-289)|
|31||07/15/2020||8TH ELEC. SUPP. RECORD ON APPEAL DATED JULY 14, 2020 (ENTRY NOS. 290-292)|
|32||08/12/2020||NOTICE OF ORAL ARGUMENT SENT|
|33||08/24/2020||9TH ELEC. SUPP. RECORD ON APPEAL DATED AUGUST 21, 2020 (ENTRY NOS. 293-300)|
|34||09/02/2020||MOTION FOR PARTIAL DISMISSAL|
|35||09/02/2020||MOTION TO WAIVE ARGUMENT BY TITAN MACHINERY, INC.|
|36||09/02/2020||ACTION BY SUPREME COURT - Granted|
|37||09/03/2020||APPEARANCES: Ariston E. Johnson; Jonathan P. Sanstead|
|38||09/03/2020||ARGUED: Ariston E. Johnson; Jonathan P. Sanstead|
|39||09/03/2020||ORAL ARGUMENT WEBCAST|