Opinion ID: 1613673
Heading Depth: 2
Heading Rank: 2

Heading: Diminution in Value of Herd I Caused by Failure to Bangs Vaccinate.

Text: The trial court, in its Memorandum Opinion, noted the Cutlers' failure to Bangs vaccinate thirty-nine of the Herd I cattle prohibited their resale through sale barns in South Dakota as breeding stock. See SDCL 40-7-20 (1991) (this statute was amended in 1990; the amendments reworded the statute but do not cause us to alter our analysisit was amended again in 1992, subsequent to all events relevant to this appeal). Accordingly, it discounted the value of thirty-nine of the cattle. [4] The Cutlers argue this was improper because they did not know at the time the agreement was originally entered into the cattle would be used for breeding purposes. They argue further that, by the time Cutlers decided to change to a calf operation, it was too late to Bangs vaccinate the remaining cattle. Finally, they did not know Mash would be reselling the cattle. Dale testified they sold the cattle from Herd I which were not eligible for breeding and substituted seventy cattle. He further testified the thirty-nine non-Bangs-vaccinated cattle were part of Mash's original herd. The Cutlers' argument would be more persuasive except for the fact it was the Cutlers' breach of the stipulation which caused Mash to sell the unacceptable cattle. By stipulation dated August 31, 1988, the Cutlers agreed to deliver 151 head of bred cattle with 143 calves at side. Seventy-six of the cattle were to be three-year-old registered Simmental cattle. The registration papers for the same were to accompany the cattle. Seventy-five of the cattle were to be two-year-old crossbred cattle. Instead, sixty head were two years old, twelve head were three years old, twenty head were four years old, eight head were five years old, ten head were six years old, thirteen head were seven years old, six head were eight years old, three head were nine years old, and one cow was of an undetermined age. Over one-half of the cattle delivered did not conform to the stipulation. Further, it is standard procedure to Bangs vaccinate all cattle to maintain the option of selling them as breeders. In construing a contract where ambiguities exist, established trade customs and usages may ordinarily be considered. 17A Am.Jur.2d Contracts § 355 (1991). Finally, we note the Cutlers agreed to replace cattle not suitable for breeding purposes (some of the original Herd I cattle were implanted with male hormones). If the seventy cattle from Mash's original Herd I contained non-Bangs-vaccinated cattle, the Cutlers should have replaced them pursuant to their agreement. We uphold the trial court's award of damages based on the presence of non-Bangs-vaccinated cattle in Herd I.