D.J. Nelson v. World Wide Lease

D.J. Nelson, a farmer, sued World Wide Lease, Inc., for damages after it repossessed two center pivot irrigation systems (pivots) that Nelson was leasing. Nelson alleged that World Wide had converted one pivot being leased by Nelson from another company, and had also breached its own lease agreement with Nelson when it took the other pivot. World Wide counterclaimed, alleging Nelson had breached the lease by defaulting in payments. At trial the jury returned a special verdict finding that World Wide had converted a pivot in which World Wide had no interest. The jury awarded Nelson damages resulting from that conversion. However, the jury also found that World Wide had not breached its lease agreement with Nelson by repossessing either pivot. The jury awarded World Wide damages on its counterclaim against Nelson for a deficiency owing under the lease. World Wide has appealed from the net judgment entered against it. World Wide raises four issues on appeal: (1) whether the trial court had personal jurisdiction over World Wide; (2) whether there was sufficient evidence to establish that the person who actually repossessed the pivots was acting as an agent of World Wide; (3) whether the district court erred in admitting testimony which World Wide contends is hearsay; and (4) whether the lost profits due to the conversion were established by Nelson at trial with reasonable certainty. Nelson has cross-appealed, raising an additional issue of whether the district court erred in failing to instruct on punitive damages. Finally, Nelson requests attorney fees on appeal. For the reasons discussed below, we vacate the judgment and remand for a new trial.