Opinion ID: 1865146
Heading Depth: 1
Heading Rank: 3

Heading: Cross-Appeal: Damages.

Text: Defendant cross-appeals claiming that the district court erred in its award of damages to Freeman. Defendant has three complaints which we consider separately. A. Defendant argues that the $96,000 award for Freeman's monthly payments under the agreement was improper because these payments were made by the corporation owned solely by Freeman rather than by Freeman individually. The district court found that the monthly payments Freeman wrote on the corporation's checks were merely a matter of bookkeeping convenience. Freeman urges us to reach the same conclusion. Freeman was personally liable under the purchase agreement. Rather than having the corporation write a check to her so she could write a personal check to make the contract payments, she simply wrote a check on the corporate account directly to Neenan. We agree with the district court's conclusion that the procedure of writing checks on the corporation's account was merely a matter of bookkeeping convenience. In reality, Freeman made the payments of $96,000. Consequently, she may recover these payments as an item of her damages. B. Defendant also claims that even if these payments can be attributed to Freeman, she should only recover the amount of her payments above what the business was actually worth. The trial court found the business had a value of $60,000. Defendant contends, therefore, that the $96,000 Freeman expended in monthly payments should be reduced by $30,000 because this amount plus her down payment of $30,000 equal the actual value of the business. Freeman responds that she no longer has the business and therefore, defendant should not receive a credit against her losses for something she does not own. We agree with Freeman. Because of her inability to make the contract payments, contrary to what Brems had represented, she had to transfer the business back to Neenan to avoid any further liability under the contract. Clearly, she did not end up with a business worth $60,000. Therefore, her damages should not be reduced by the actual value of the business. C. Finally, defendant argues that Freeman's losses are duplicative because the $96,000 paid by the corporation on Freeman's monthly contract obligation could have been available to pay Freeman a salary. The defendant concludes, therefore, that Freeman is compensated twice when she is awarded the contract payments of $96,000 and lost wages. However, defendant overlooks the fact that Brems told Freeman that the business would pay for itself and pay her a salary. Consequently, she had the right to recover her contract payments and lost wages. The trial court properly computed Freeman's damages.