Opinion ID: 2507160
Heading Depth: 4
Heading Rank: 2

Heading: The Possibility of Specific Performance Depends on the Meaning of the Contractual Term Surplus Property

Text: ¶ 23 Although the district court noted that specific performance might be impossible, it did not resolve the issue at trial. As to this issue, resolving the meaning of the term surplus property becomes relevant. Specific performance may or may not be possible depending, in part, on whether the contract requires that Armory convey only federal surplus property or that it convey either state or federal surplus property. ¶ 24 If the parties intended the term surplus property to mean only federal property, specific performance is impossible. Both parties have conceded this to be the case. Therefore, if on remand the district court determines that surplus property was intended by the parties to mean only federal surplus property, specific performance is impossible and Deep Creek may seek legal damages. ¶ 25 If, on the other hand, surplus property was intended by the parties to mean both state and federal property, the possibility of specific performance remains an open factual question. While it has been established that it would be impossible for Armory to satisfy its contractual obligation through the provision of federal surplus property, it may be able to do so through the provision of state surplus property. But it has not been determined whether Armory has the authority to transfer state surplus property. Armory argues that state surplus property put up for sale at auction and the proceeds from such sales remain the property of the state agency from which they came. If the district court determines that surplus property was intended by the parties to mean state and federal property, it must determine whether it is possible for Armory to deliver state surplus property to perform the contract. ¶ 26 In short, once the district court has determined, by resolving what the parties intended by the term surplus property, what performance is required of Armory under the contract, it must determine whether such performance is possible. If and only if such specific performance is impossible may Deep Creek seek general legal damages.