Opinion ID: 2224660
Heading Depth: 1
Heading Rank: 4

Heading: Damages for breach of the lease.

Text: The sales agreement provided that the monthly rent of $200 would remain the same as provided in the prior lease agreement. There is no mention, however, that the lease term of one year should remain the same. Instead, the agreement states that the monthly rental payments should be included in each monthly purchase payment over ten years. While the agreement lacks clarity, it was not error for the court to conclude that it provided for a ten-year lease term. The trial court awarded damages of $13,400 for breach of the lease. The trial court calculated these damages by awarding Tri-State $200 per month from September 16, 1981, the date the court found Tri-State to have been ousted, until the time of trial. This was a period of five and one-half years. There is no legal basis to support the trial court's calculation of the lease damages. SDCL ch. 21-2 deals with damages for breach of contract. SDCL 21-2-1 provides: For the breach of an obligation arising from contract, the measure of damages, except where otherwise expressly provided by this code, is the amount which will compensate the party aggrieved for all the detriment proximately caused thereby, or which, in the ordinary course of things, would be likely to result therefrom. No damages can be recovered for a breach of contract which are not clearly ascertainable in both their nature and their origin. The trial court failed to make any findings that Tri-State suffered a detriment amounting to $200 per month for five and one-half years and there is nothing in the record to support a damage award in this amount. Monthly rental payments are not the proper measure of damages to the lessee under SDCL 21-2-1. There is evidence in the record indicating that Tri-State may have suffered a detriment, as it claims it was forced to abandon the Apaloosa property and build replacement facilities at the Sioux Falls location. On remand, the trial court should reconsider the damages from the evidence in the record and determine whether Tri-State suffered any harm proximately resulting from the breach of the lease. If the evidence is sufficient, the trial court should determine the amount of such damages.