Opinion ID: 887889
Heading Depth: 2
Heading Rank: 1

Heading: Compensation for Damage to the 40-ton Truck

Text: ¶28 First, Performance claims that it is entitled to the agreed value of the 40-ton truck and that Yellowstone, therefore, is liable for the difference between the agreed value$250,000and the amount Performance has received thus far$132,000, which is the sum of the amount paid by St. Paul on behalf of Yellowstone ($114,500), the deductible paid by Yellowstone to Performance ($2,500), and the salvage value ($15,000). Given our holding under Issue One, this contention is without merit. ¶29 Second, Performance claims that it is entitled to the repair or replacement value of the 40-ton truck. In support of this claim, Performance relies on Paragraphs 1 and 3 of the Rental Agreement's standard terms and conditions. Paragraph 1 states: Lessee acknowledges receipt of said personal property in good order and condition and agrees that upon expiration of the term of this lease or upon the earlier termination of this lease, Lessor, without the necessity of giving further notice shall be entitled to the immediate possession of said property and Lessee agrees to deliver said property to Lessor at Bozeman, Montana in good order and condition, ordinary use, wear and tear thereon excepted. [Emphasis added.] Paragraph 3 states: Lessee shall have the right to make any reasonable and lawful use of said property and shall take reasonable and proper care thereof, and at its own cost and expense make all necessary repairs and replacements. ¶30 These provisions required Yellowstone either to return the 40-ton truck in good order and condition (which it clearly did not do, given the extent of the damage) or to make any necessary repairs and replacements. Performance offers arguments on both repair and replacement costs, which we will address individually.
¶31 Performance initially estimated the cost to repair the 40-ton truck at $129,446.52. [3] Performance's Rental Damage Estimate states: The unit is severely damaged at the front end and as the unit was unobserved during it's [sic] travel, without opening and inspecting all driveline components it is not possible to truly determine all possible costs. Estimate includes cost to repair and replace known damaged items and inspection of internal components for unknown damage. This estimate does not include cost to repair unknown components revealed during inspection because this is totally unforeseeable. This estimate is a superficial examination made by the service manager, parts manager and 2 field mechanics. It is neither final nor binding. Performance never produced a final estimate of repair costs. Rather, Performance ultimately sold the 40-ton truck on July 31, 2002, because, as it explains on appeal, Performance did not receive [$129,446.52] and thus was unable to effect the necessary repairs. For this reason, the parties' arguments regarding repair costs are moot.
¶32 St. Paul determined that the 40-ton truck had a replacement value of $126,000, and the District Court accepted this figure as the total amount to which Performance was entitled under the Rental Agreement. [4] Furthermore, because Yellowstone had paid Performance this amount (through St. Paul's insurance payment, plus the deductible payment, plus the truck's salvage value), the District Court concluded Performance had received the replacement value of the 40-ton truck. ¶33 In order to recover additional compensation, therefore, Performance must demonstrate that the District Court's finding that $126,000 is the total amount to which Performance was entitled is clearly erroneous. However, Performance has failed to produce any evidence on what the actual replacement value for the 40-ton truck is contra that reached by St. Paul and accepted by the District Court. Indeed, Magee admitted at trial that Performance never provided Yellowstone or St. Paul with any actual quotes of replacement vehicles. Performance reiterates its argument that the 40-ton truck was worth $250,000 and that Performance is entitled to that amount in total. For the reasons set out earlier, we reject this argument. Performance also relies on the testimony of the owner of the company, Lawrence Van Dyke, who stated that he did not believe the $114,500 could replace the truck in the condition it was in when first leased to Yellowstone. Yet, Van Dyke's statement is not evidence of what the truck's actual replacement value is. ¶34 Alternatively, Performance takes the position that because the Rental Agreement required Yellowstone to pay for the cost of replacement, Yellowstone had the burden of proving the cost of replacement at trial. We reject this inference. While it is true that Paragraph 3 obligated Yellowstone to pay any replacement costs due to damage to the 40-ton truck, we cannot read this as a corresponding requirement that Yellowstone is obligated to prove the cost of replacement at trial. Furthermore, Performance offers no legal support for this argument, which ignores the general rule that plaintiffs have the burden of proving, by competent evidence, the amount of damages to which they are entitled. See Smith v. Zepp, 173 Mont. 358, 370, 567 P.2d 923, 930 (1977); see also § 26-1-401, MCA (The initial burden of producing evidence as to a particular fact is on the party who would be defeated if no evidence were given on either side.). ¶35 Lastly, Performance suggests that Yellowstone procured insufficient insurance to cover the risk of loss on the 40-ton truck. Performance's position appears to be as follows: We did not receive $250,000 in damages; thus, the insurance must have been insufficient. However, Performance has failed to prove the existence of a term within the parties' Rental Agreement requiring Yellowstone to obtain insurance that would result in a $250,000 payment to Performance in the event that the 40-ton truck is destroyed. ¶36 As Performance has failed to make any showing of what the actual replacement cost for the 40-ton truck is, Performance has likewise failed to establish that the District Court's finding is clearly erroneous. As such, we cannot say that the District Court erred when it determined that Performance was not entitled to additional compensation for replacement of the 40-ton truck.