Opinion ID: 1920442
Heading Depth: 1
Heading Rank: 3

Heading: Summary judgment in favor of Limpert and against Bail on theories of breach of contract and conversion.

Text: Summary judgment is properly awarded only when the moving party clearly shows that he is entitled to judgment as a matter of law because there is no genuine issue as to any material fact. SDCL 15-6-56(c); Groseth Int'l, Inc. v. Tenneco, Inc., 410 N.W.2d 159 (S.D.1987); Bego v. Gordon, 407 N.W.2d 801 (S.D.1987); Hamaker v. Kenwel-Jackson Machine, Inc., 387 N.W.2d 515 (S.D.1986). The evidence must be viewed most favorably to the nonmoving party and reasonable doubts should be resolved against the moving party. Groseth, supra at 164. See also Wilson v. Great Northern Ry. Co., 83 S.D. 207, 157 N.W.2d 19 (1968). Summary judgment is an extreme remedy and is not intended as a substitute for trial. Bego, supra ; Wilson, supra . A belief that the nonmoving party will not prevail at trial is an inappropriate basis for granting summary judgment on issues not shown to be sham, frivolous, or so unsubstantial as to obviate the futility of their litigation. Laber v. Koch, 383 N.W.2d 490 (S.D.1986); American Indian Agricultural Credit Consortium, Inc. v. Fort Pierre Livestock, Inc., 379 N.W.2d 318 (S.D.1985); Wilson, supra . If reasonable persons, upon examining the evidence, might reach different conclusions, a motion for summary judgment should be denied and the case tried on the merits. See Laber, supra . In support of our conclusion that the motion for summary judgment in favor of Limpert should have been denied, we examine Limpert's claim of conversion. Limpert asserts that because Bail resold the allegedly defective cattle, rather than returning them, he is guilty of conversion for failure to comply with SDCL 57A-2-603, which requires a buyer to follow seller's instructions with respect to the goods after rejection. There is a clear factual dispute as to whether Limpert's remarks regarding the allegedly defective cattle constituted instructions to Bail as to the disposition of the defective cattle. The UCC also provides that on a rightful rejection, a buyer has a security interest in goods in his possession or control for any payments made on their price and any expenses reasonably incurred in their inspection, receipt, transportation, care and custody, and may hold such goods and resell them. SDCL 57A-2-711. Thus, factual questions exist whether Bail's revocation was justifiable and whether he exercised good faith in reselling the goods. SDCL 57A-1-203. Limpert's complaint also alleges breach of contract. In light of the above-cited statute providing for buyer's remedy of rejection and resale, the question arises whether a breach did in fact occur by virtue of Bail's resale. If a breach has occurred, the issue of damages will also be in dispute. Further, the claim of breach based on nonpayment for the seventeen head raises the issue whether the issuance of the second check was intended to constitute an accord and satisfaction. Cases involving intent are not usually suited for summary disposition. Ahl v. Arnio, 388 N.W.2d 532 (S.D.1986). Summary judgment is also improper where defendant's defenses involve questions of fact. See Bahr v. Bahr, 85 S.D. 240, 180 N.W.2d 465 (1970). Here, Bail's defenses of fraud and deceit are questions of fact. See Commercial Credit Equipment Corp. v. Johnson, 87 S.D. 411, 209 N.W.2d 548 (1973). Likewise, whether a party relied on the claimed fraud to its detriment is a question of fact for the jury. Id. Bail's assertion that Limpert misrepresented the condition of the cows and that he, Bail, relied to his detriment on that representation presents a genuine issue of material fact. Accordingly, we conclude that Bail has set forth specific facts showing there are genuine issues for trial as required by SDCL 15-6-56(e). We reverse and remand summary judgment in favor of Limpert and against Bail.