Opinion ID: 167812
Heading Depth: 2
Heading Rank: 2

Heading: Dismissal of claims against MPI for ripeness

Text: 61 Next, we turn to the district court's dismissal of Tribune Publishing's claims against MPI. We conclude that Tribune Publishing's claims for breach of contract and breach of fiduciary duty against MPI are ripe, even though its claim for damages from the allegedly inflated purchase price is not ripe. 62 We review the district court's resolution of the ripeness issue de novo.  Skull Valley Band of Goshute Indians v. Nielson, 376 F.3d 1223, 1238 (10th Cir. 2004), cert. denied, ___ U.S. ___, 126 S.Ct. 790, 163 L.Ed.2d 626 (2005). The ripeness doctrine stems from the `cases and controversies' requirement in Article III, ... [and it] also reflects important prudential limitations on a court's exercise of jurisdiction. Morgan v. McCotter, 365 F.3d 882, 890 (10th Cir.2004) (citing Coal. for Sustainable Res., Inc. v. U.S. Forest Serv., 259 F.3d 1244, 1249 (10th Cir.2001)). Determining whether the issues presented by this case are ripe for review requires us to evaluate both the fitness of the issues for judicial decision and the hardship to the parties of withholding court consideration. Morgan, 365 F.3d at 890 (internal quotation marks omitted). We have described the fitness inquiry as whether the case involves uncertain or contingent future events that may not occur as anticipated, or indeed may not occur at all. Id. at 890-91 (internal quotation marks omitted). We have described the hardship inquiry as whether the challenged action creates a direct and immediate dilemma for the parties. Id. (internal quotation marks omitted). 63 The district court concluded that Tribune Publishing's claims of breach of contract and breach of fiduciary duty against MPI are not ripe because Tribune Publishing has not paid the allegedly inflated purchase price, and it is not clear whether Tribune Publishing will have a second closing date after failing to close by the previously agreed date. 4 The district court focused on Tribune Publishing's claim for two kinds of losses: (1) attorney fees and expert fees, and (2) inflated purchase price for the newspaper assets if MPI's defective appraisal is not set aside. Aplt. Br. at 53-54. The district court held that Tribune Publishing's damage claim for the inflated purchase price is not ripe, and it did not determine whether Tribune Publishing may recover attorney fees and expert fees under New Jersey law. While the district court was correct in concluding that the damage claim arising out of payment of the allegedly inflated purchase price was not ripe, it nonetheless erred in dismissing Tribune Publishing's claims for breach of contract and breach of fiduciary duty because these claims are ripe. Since the district court has not decided whether expert and attorney fees are recoverable, we decline to consider this issue. 64
65 The district court correctly concluded that Tribune Publishing's claim for damages from the allegedly inflated purchase price is not ripe. Tribune Publishing's claim for damages from the allegedly inflated exercise price depends upon two contingent events: (1) whether the Final Report will be set aside, and (2) whether Tribune Publishing will or could purchase the newspaper at the allegedly inflated price. Such uncertain and contingent events render Tribune Publishing's claim unripe under the fitness inquiry. See Morgan, 365 F.3d at 890-91. 66 MPI argues that, because Tribune Publishing failed to pay the allegedly inflated purchase price, it cannot recover any other damages under New Jersey law that were incurred as a result of an inaccurate appraisal. In support of its argument, MPI cites the New Jersey Supreme Court's decision in Levine. MPI Br. at 11-12 (citing 478 A.2d at 399). In Levine, the plaintiff sought damages as a result of a negligent appraisal, and the plaintiff paid the increased amounts before suing the appraiser. 478 A.2d at 399. While the plaintiff paid the amount before suing the appraiser, the court did not specifically rely upon this fact in its decision. MPI has not shown that New Jersey law requires Tribune Publishing to have paid the inflated purchase as a condition precedent to recovering damages from the appraiser that arose out of the allegedly inaccurate appraisal. 67
68 Although Tribune Publishing's claim for the inflated price is not ripe, its claims for breach of fiduciary duty and breach of contract against MPI are ripe. 69 The district court concluded that Tribune Publishing's claims for breach of contract and breach of fiduciary duty are not ripe because the court could not review MPI's appraisal. This ruling was based upon the district court's erroneous conclusion that it could not review MPI's appraisal. 70 Applying de novo review, we conclude that Tribune Publishing's claims for breach of contract and breach of fiduciary duty are ripe. Proof of actual damages is not an element of Tribune Publishing's breach of contract claim. See, e.g., Nappe v. Anschelewitz, Barr, Ansell & Bonello, 97 N.J. 37, 477 A.2d 1224, 1228 (1984). [W]henever there is a breach of contract, ... the law ordinarily infers that damage ensued, and, in the absence of actual damages, the law vindicates the right by awarding nominal damages. Id. A breach of a contract is per se a legal injury from which some damage will be inferred, and, in the absence of proof of actual damage arising from such breach, the plaintiff is entitled to nominal damages. Car & Gen. Ins. Corp. v. Davimos, 12 N.J. Misc. 569, 173 A. 150, 151 (1934), aff'd, 114 N.J.L. 192, 176 A. 320 (1935); see also Culver v. Dziki, 123 N.J.L. 66, 8 A.2d 51, 52 (1939) (holding that the plaintiff was entitled to nominal damages in a breach of contract regarding a fire appraisal). Thus, Tribune Publishing need not allege actual damages to pursue its breach of contract claims against MPI. 71 As to Tribune Publishing's claim for breach of fiduciary duty, we need not decide whether New Jersey requires an allegation of damages when asserting a claim of breach of fiduciary duty. Even if an assertion of damages is required for a breach of fiduciary duty claim in New Jersey, Tribune Publishing has alleged sufficient damages to satisfy a ripeness inquiry. The district court construed Tribune Publishing's claim for damages too narrowly. Tribune Publishing alleged that it lost the right to participate in the appraisal process as defined in the Option Agreement and Appraisal Agreement. First Am. Compl. ¶¶ 85, 91. Additionally, Tribune Publishing alleges that MPI's report delayed purchase of the newspaper, depriving it of income. Id. ¶ 84. 72 Thus, Tribune Publishing's breach of contract and breach of fiduciary duty claims against MPI are ripe. 73
74 Tribune Publishing argues that the district court erred in dismissing its claims for damages for expert and attorneys' fees already incurred. Although the parties fully briefed the issue below and on appeal, the district court did not consider whether attorneys' fees and expert fees are recoverable. We decline to consider the issue because it was not ruled on below, and the district court should address this issue on remand. See, e.g., R. Eric Peterson Constr. Co. v. Quintek, Inc. (In re R. Eric Peterson Constr. Co.), 951 F.2d 1175, 1182 (10th Cir.1991); Singleton v. Wulff, 428 U.S. 106, 120, 96 S.Ct. 2868, 49 L.Ed.2d 826 (1976) (It is the general rule... that a federal appellate court does not consider an issue not passed upon below.). Where an issue has been raised, but not ruled on, proper judicial administration generally favors remand for the district court to examine the issue initially. Pac. Frontier v. Pleasant Grove City, 414 F.3d 1221, 1238 (10th Cir.2005). Thus, we remand this issue to the district court for consideration in the first instance. 75