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This summary was computer-generated without any editorial revision. It is not official, has not been checked for accuracy, and is NOT citable.

Facts

  • In May 2014, Staerkel entered into a property management agreement with Prudential Lynch Realty, which later became Berkshire Hathaway Homeservices Lynch Realty (BHHLR). This agreement included a "Hold Harmless Clause" requiring Staerkel to indemnify the company. BHHLR hired Muller for clearing trees and brush on Staerkel's property. In February 2016, Muller ignited a slash pile that grew out of control, spreading to the Plaintiffs' property, causing damage. Muller was charged and pleaded guilty to improper handling of a fire (para 3).

Procedural History

  • District Court, August 2018: Granted summary judgment in favor of Defendants, determining they had no control over Muller's work and were not liable for the damages caused on Plaintiffs' property (para 4).
  • District Court, December 18, 2018: Signed and entered a stipulated judgment (2018 Judgment) against all Defendants, including those previously granted summary judgment, based on a compromise between Plaintiffs and Muller, mistakenly indicating all parties agreed to the compromise (para 5).
  • District Court: Issued an order vacating the 2018 Judgment and awarded Rule 1-011 sanctions against Plaintiffs, in the form of attorney fees and costs, for the motion to vacate (para 6).

Parties' Submissions

  • Plaintiffs: Argued that the district court improperly granted summary judgment and abused its discretion in awarding Rule 1-011 sanctions against Plaintiffs’ attorney. Contended that the district court considered inadmissible evidence and failed to consider other evidence opposing summary judgment. Additionally, argued that the district court should have considered Muller's late-filed answer and a 2018 affidavit in their motion to reconsider (paras 11-16).
  • Defendants: Maintained that the Plaintiffs' appeal was untimely and argued that they had no liability for the damages caused by Muller, as he was an independent contractor. They also contended that the 2018 Judgment was entered without their approval, despite the summary judgment ruling in their favor, and sought sanctions under Rule 1-011 (paras 7-9, 20).

Legal Issues

  • Whether the appeal was timely and Defendants had standing to challenge the 2018 Judgment (para 7).
  • Whether the district court properly granted summary judgment in favor of Defendants (para 11).
  • Whether the district court abused its discretion in awarding Rule 1-011 sanctions against Plaintiffs’ attorney (para 18).

Disposition

  • The Court of Appeals affirmed the district court's grant of summary judgment in favor of Defendants and the award of Rule 1-011 sanctions against Plaintiffs' attorney (para 1).

Reasons

  • WRAY, Judge: Concluded the appeal from the 2018 Judgment was not untimely as the MTR Order was not a final, appealable order without an express determination required by Rule 1-054(B). Defendants remained parties to the action and were not required to intervene to object to the 2018 Judgment. The district court did not abuse its discretion in granting summary judgment as Defendants established a prima facie case that was unrebutted by Plaintiffs. The district court also did not abuse its discretion in refusing to consider the 2018 Affidavit in support of Plaintiffs’ motion to reconsider. Regarding Rule 1-011 sanctions, the district court did not abuse its discretion as Plaintiffs’ counsel did not establish good grounds for submitting the 2018 Judgment, and attorney fees are an appropriate sanction under Rule 1-011 (paras 8-24).
    Concurred: JACQUELINE R. MEDINA, Judge; MEGAN P. DUFFY, Judge.
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