Opinion ID: 1613718
Heading Depth: 3
Heading Rank: 1

Heading: Trial Court's Calculation of Compensatory Damages.

Text: The trial court awarded Ducheneaux actual damages of $103,832.28. [13] Miller alleges the trial court made several errors in its computation. We will discuss his most convincing allegations first. Miller first alleges the trial court used the contract price, $375,586.00, as its beginning point when, in fact, Ducheneaux never paid the full contract price. Ducheneaux asserts in his brief that, as of early 1988, he had paid $357,773.53 on the contract, which would leave an outstanding balance of $17,812.47. Put another way, Miller's counterclaim asserted, on February 4, 1987, an outstanding balance of $109,116 existed together with accrued interest owing of $3,186.42 (any outstanding balance after October 15, 1987 was subject to a thirteen percent interest charge). On that date, Ducheneaux paid $91,303.53, leaving an outstanding balance of $20,998.89, or approximately $21,000 (which is still accruing interest). SDCL 57A-2-607(1) (1988) provides where a buyer accepts goods (here cattle), the buyer must pay at the contract rate for the goods accepted. [14] Thus, the trial court clearly erred in failing either to award Miller his counterclaim for $21,000 or to deduct that amount from Ducheneaux's damages. Miller next claims the trial court erred by failing to deduct from the damage award $16,450.00 in proceeds Ducheneaux received from the sale of forty-seven mix lite calves either to Weber or through Weber. Ducheneaux admitted during redirect examination he forgot to deduct this amount in his damages exhibit. Thus, the trial court clearly erred in failing to reduce Ducheneaux's damage award by this amount. It does not appear from the record, and Ducheneaux does not claim, he incurred any added expense in connection with this sale which was caused by Miller's breach. Therefore, the expenses incurred in selling these calves will not be added to Ducheneaux's allowable expense award. The out of pocket loss must be reduced by the gross sales amount of $16,450.00. Miller next argues the trial court improperly granted an award for feed expense in the amount of $28,373.96. It appears $22,947.22 of this amount was paid to Jeff Weber for feed supplement to be fed to the cattle while they remained at the Funk ranch. The trial court found Ducheneaux agreed to pay for feeding the cattle at the Funk ranch, yet included this feed bill as allowable expense in its damage award ( see supra note 13). That Ducheneaux did, in fact, agree to pay the feed expense associated with keeping the cattle at the Funk ranch was specifically set out in the extension agreement. This element of damages is clearly erroneous. The remainder of the feed expense, $5,426.74, was a result of Miller's breach and was properly awarded as damages. The other alleged errors propounded by Miller are less convincing. Many of these involve conflicting testimony. The trial court is in a better position to judge the credibility of witnesses and to resolve conflicts in testimony. Accordingly, [w]e are not at liberty to change findings where the trial court has resolved conflicts in the evidence. Gross, 361 N.W.2d at 266. Accord Mulder, 85 S.D. 544, 186 N.W.2d 884. The alleged errors involve the amount the trial court awarded Ducheneaux for expenses involved in caring for and reselling the cattle. The trial court awarded $107,014.17 as allowable expenses. In discussing the proper measure of damages incurred where a buyer breached an agreement to purchase livestock, this court stated, [T]he excess, if any, of the expenses properly incurred in carrying the property to market over those which would have been incurred for the carriage thereof, if the buyer had accepted it, is recoverable by the party claiming a breach of the contract. Olson v. Rydl, 25 S.D. 268, 126 N.W. 587, 588 (1910). Miller first attacks the sale-barn charges for brand inspections, commission expenses, beef check off, health inspection, and yardage fees in an amount of $5,376.36. While it is true Ducheneaux intended to sell the entire herd by December of 1987, it is doubtful he would have incurred as much expense as was incurred here due to Miller's breach. Under any damage model, `there need only be a reasonable basis for measuring the loss and it is only necessary that damages can be measured with reasonable certainty.' Tri-State Refining, 452 N.W.2d at 110 (quoting Schmidt, 261 N.W.2d at 118). Where doubt exists as to certainty of damages, those doubts should be resolved against the wrongdoer. Id. The trial court's award of these damages is not clearly erroneous. Miller next argues the trial court improperly awarded $8,061.85 in trucking expense. Although it is true Ducheneaux knew the cattle were in Nebraska and would have to be trucked to his ranch in South Dakota, it is also true that, had Miller not breached the contract, Ducheneaux would only have been required to ship the cattle once. As a result of the breach, Ducheneaux was forced to truck the cattle to various stockyards in sometimes unsuccessful attempts to sell them. In addition, the cattle had to be shipped 250 miles to the Funk ranch as the Dukat ranch was no longer suitable for grazing. Moreover, when Ducheneaux first learned of the quarantine, he already had arranged to have the cattle shipped, resulting in a wasted trip for the trucking company he had hired. We uphold this element of the trial court's award. Miller next quarrels with the awarded veterinary expenses of $2,077.00. These expenses were incurred as a result of Miller's breach. The heifer calves could only be brought into South Dakota if they were spayed because they originated from a herd which contained suspects and reactors. Certain calf implants were necessary because the calves were in poor shape. This award of damages was proper. Finally, Miller challenges the $8,000.00 award for expenses incurred in hiring twenty bulls to service the herd. Miller claimed he already paid this expense to Weber on Ducheneaux's behalf. Suffice it to say there was conflict in the testimony as to this fact and we cannot say the trial court's award was clearly erroneous. Miller is currently suing Weber and, if appropriate, can recover this amount from him.