Opinion ID: 4557525
Heading Depth: 1
Heading Rank: 2

Heading: facts

Text: In this section, we summarize only the central facts and procedures. Additional background will be set forth in the analy­ sis section. Jason McDermott and Brandon Hoy were the sole for- mer shareholders of Nebraska Medical Mart II, Inc. (NMM). In April 2015, McDermott and Hoy hired Results Business Advisors LLC (RBA) to broker a sale of NMM. Chris Nielsen of RBA represented McDermott and Hoy. In June 2015, Patrick S. Nathan and Kelsey M. Nathan communicated with RBA and entered into negotiations for the purchase of NMM. During the negotiations, most communications with the Nathans went through Nielsen. During the due diligence period, McDermott and Hoy sent several financial statements to the Nathans. These statements were unaudited. In July 2015, the Nathans executed an agreement with McDermott and Hoy to purchase all the shares of NMM for $1.1 million. The Nathans paid $990,000 at the time of closing and executed promissory notes to McDermott and Hoy for the remaining balance. McDermott’s promissory note was for - 221 - Nebraska Supreme Court Advance Sheets 306 Nebraska Reports NATHAN v. McDERMOTT Cite as 306 Neb. 216 $66,000, and Hoy’s note was for $44,000. The Nathans made no payments on the promissory notes. The district court’s order stated, “After gaining control of NMM, the Nathans reviewed NMM’s books and financial records and discovered that the information and documents provided during negotiations contained misrepresentations about NMM’s financial situation.” In mid-October 2015, the Nathans emailed documents detailing the financial discrepancies to their attorney. In mid-December 2015, the Nathans’ attorney sent a formal notice of their claims and a demand for indemnification to McDermott and Hoy. In the amended complaint, the Nathans sought damages for breach of contract, bad faith, misrepresentation, and breach of fiduciary duty against McDermott, Hoy, RBA, and Nielsen. In McDermott and Hoy’s answer, they counterclaimed for breach of contract concerning the promissory notes. The parties filed several motions. RBA and Nielsen filed a motion to dismiss the Nathans’ complaint for failure to state a claim. McDermott and Hoy filed a motion for summary judgment on all claims and counterclaims and sought attorney fees. The Nathans filed a motion for partial summary judgment on their claims against McDermott and Hoy. The district court granted RBA and Nielsen’s motion to dismiss. The district court granted McDermott and Hoy’s motion for summary judgment on all claims and counterclaims. It denied McDermott and Hoy’s motion for attorney fees. The Nathans moved to alter or amend the district court’s order on summary judgment. The court granted the motion in order to address the affirmative defense of recoupment but did not modify the judgment, because, the court concluded, the Nathans were not entitled to recoupment. The Nathans filed a timely appeal, and McDermott and Hoy cross-appealed. We moved the case to our docket. 1 1 See Neb. Rev. Stat. § 24-1106(3) (Cum. Supp. 2018). - 222 - Nebraska Supreme Court Advance Sheets 306 Nebraska Reports NATHAN v. McDERMOTT Cite as 306 Neb. 216 As authorized by court rule, we submitted the case without oral argument. 2