Opinion ID: 2137508
Heading Depth: 1
Heading Rank: 5

Heading: Set-off Against Jensen's Contractual Obligation

Text: The trial court's order to Weyrens to specifically perform the contract for deed also required Jensen to perform his obligations by paying Weyrens the principal and accrued interest owed as of the date Jensen stopped making installment payments: $13,712. See SDCL 21-9-4. Jensen claims the court abused its discretion by failing to offset the damages Jensen claims as a result of Weyrens' breach of the contract for deed. Specifically, Jensen wants his contract obligations reduced by (1) three years' lost rent from the prematurely terminated five-year lease, and (2) the sums Jensen paid or owes in taxes, interest, attorney fees and insurance. Except for attorney fees (see Issue 2), a court sitting in equity may award pecuniary compensation when the decree of specific performance does not provide full and complete relief. Berendes, 385 N.W.2d at 121; Wiggins, 374 N.W.2d at 116. The general rule is that a court of equity may award pecuniary compensation in addition to specific performance if necessary to restore the injured party to his position but for the breach. 71 Am.Jur.2d Specific Performance §§ 216, 217 (1973). However, this rule contemplates a situation in which the seller breached the contract by withholding possession of the property from the purchaser. Id., § 219. Throughout this case, Jensen had undisputed possession of the improvements on the contract property and most of the bargained-for shoreline. [I]f the purchaser [was] in possession of the property throughout the delay ... he is chargeable with interest on the purchase price during the delay[.] Id. § 219. Although Jensen's possession of a portion of his land was under challenge until the court resolved the dispute to his satisfaction, specific performance with compensation will be refused a vendee where it would be entirely impracticable to ascertain what sum of money would be an adequate compensation under the circumstances of the case. Id., § 216 (emphasis added). Simply put, specific performance provides an adequate remedy where an award of additional pecuniary compensation would be largely speculative or would put the injured party in a better position than he would be otherwise. See, e.g., Fletcher v. Jones, 314 N.C. 389, 333 S.E.2d 731, 738 (1985); Rusiski v. Pribonic, 511 Pa. 383, 515 A.2d 507, 512-513 (1986); Goldman v. Bloom, 90 Wis.2d 466, 280 N.W.2d 170, 177-178 (1979). A final consideration is that in his initial complaint in suit # 88-1030, Jensen sought specific performance or money damages in the alternative. The court granted Jensen specific performance. Gross states, and Weyrens implies, that in view of the alternative pleading, it would be inconsistent for the court to grant Jensen both specific performance and money. This is not the case. [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. SDCL 15-6-54(c). The technical form of Jensen's pleadings did not limit the court's equitable discretion to award money compensation in addition to specific performance had the court determined it necessary to Jensen's full relief. However, the fact that Jensen himself pleaded the two remedies in the alternative, rather than cumulatively, was a factor the trial court could consider in its equitable determination of Jensen's full relief. Even under SDCL 15-6-54(c), the relief granted by a court of equity must be based upon the facts alleged in the pleadings and justified by the proof at trial. Baldwin v. First Nat. Bank of Black Hills, 362 N.W.2d 85, 90 (S.D.1985) (emphasis original) (citing Miller v. Scholten, 273 N.W.2d 757, 759 (S.D.1979); American Property Services v. Barringer, 256 N.W.2d 887, 892 (S.D.1977)). Here, the court concluded that Jensen would not be entitled to damages because he failed to meet his burden of proof as to the damages actually suffered and failed to mitigate damages. Under these facts, we find no abuse of discretion in the trial court's decision to award specific performance without money compensation. Affirmed. WUEST and HENDERSON, JJ., concur. SABERS and AMUNDSON, JJ., concur in part and dissent in part.