Title: Idaho Resources v. Freeport-McMoran Gold Co.
Citation: 874 P.2d 742
Docket Number: 23387
State: Nevada
Issuer: Nevada Supreme Court
Date: May 19, 1994

874 P.2d 742 (1994) IDAHO RESOURCES, INC., An Idaho Corporation, a/k/a Nevada-Idaho Resources, Inc.; Fireman's Fund Insurance Company, a California Corporation, Appellants/Cross-Respondents, v. FREEPORT-McMORAN GOLD COMPANY, a Delaware Corporation, as Agent for the Freeport-FMC Jerritt Canyon Joint Venture, a Joint Venture Between Freeport-McMoran Gold Company and FMC Jerritt Canyon Corporation, a Delaware Corporation, Respondent/Cross-Appellant. No. 23387. Supreme Court of Nevada. May 19, 1994. *743 Wilson &amp; Barrows, Elko; Aherin &amp; Rice, Lewiston, ID, for appellants/cross-respondents. Bible, Hoy, Trachok, Wadhams &amp; Zive and Mark S. Sertic, Reno, for respondent/cross-appellant. PER CURIAM: Respondent/cross-appellant Freeport-McMoran Gold Company (Freeport), a mining company, contracted with appellant/cross-respondent Idaho Resources, Inc. (Idaho Resources) to process ore extracted by Freeport at Freeport's mine. When Idaho Resources failed to process the quantity of ore required by the contract, Freeport terminated the contract. Freeport brought suit against Idaho Resources, averring, inter alia, that Idaho Resources breached the contract by failing to process the quantity of ore called for in the contract. Idaho Resources counterclaimed against Freeport, alleging that Freeport breached its contract obligations to Idaho Resources by failing to deliver to Idaho Resources sufficient quantities of ore to be processed. After a bench trial, the district court found that Idaho Resources breached the contract and that Freeport did not breach the contract. Since the record contains substantial evidence to support this conclusion of the district court, it must be upheld. See Hermann Trust v. Varco-Pruden Buildings, 106 Nev. 564, 566, 796 P.2d 590, 591-92 (1990); Pandelis Constr. Co. v. Jones-Viking Assoc., 103 Nev. 129, 130, 734 P.2d 1236, 1237 (1987). The district court, however, also concluded that Freeport could not recover damages on Idaho Resources' breach because Freeport was estopped from terminating the contract for cause. We conclude that the district court's application of the doctrine of equitable estoppel in the instant case constituted error. Equitable estoppel is an affirmative defense and must be affirmatively pleaded. NRCP 8(c). If an affirmative defense is not properly asserted, or tried by consent, it is waived. Second Baptist Ch. v. First Nat'l Bank, 89 Nev. 217, 220, 510 P.2d 630, 632 (1973). Idaho Resources never raised the issue of estoppel in any pleadings or any other papers filed with the court, including its answer, pretrial statement, or post-trial brief. The record suggests that the issue of equitable estoppel was never litigated by the parties and was first raised in the judgment itself. NRCP 54(c) states, "[E]very final judgment shall grant the relief to which the party in whose favor it is rendered is entitled, even if the party has not demanded such relief in his pleadings." Courts in other jurisdictions have construed the identical rule narrowly, however. The Utah Supreme Court stated: Combe v. Warren's Family Drive-Inns, Inc., 680 P.2d 733, 735-36 (Utah 1984) (citations omitted). In Evans Products Co. v. West American Ins. Co., 736 F.2d 920 (3d Cir. 1984), the Third Circuit Court of Appeals reversed the district court after the district court went outside the pleadings and arguments at trial to reach its decision, stating: Id. at 923-24 (citations omitted). In National Medical Care, Inc. v. Zigelbaum, 18 Mass. App.Ct. 570, 468 N.E.2d 868 (1984), the court stated: Id. at 875 (citations omitted). Therefore, we conclude that it was error for the district court to raise an estoppel issue here which had not been either pleaded or litigated by the parties. We have considered all other contentions on appeal and we conclude that they either lack merit or need not be addressed in light of this disposition. Accordingly, we vacate the judgment of the district court insofar as it estops Freeport from recovering damages on Idaho Resources' breach of contract and remand the matter to the district court for a calculation of damages.