Court Opinion

ID: 9626290
Source: CourtListenerOpinion
Date Created: 2023-08-22 08:07:18.78107+00
Date Added: 2024-06-11T15:02:26.140680
License: Public Domain

THOMAS, Chief Justice,
concurring and
dissenting.
I find that I cannot agree in toto with the views of either the majority opinion or the dissenting opinion in this case. I am in accord that the case must be reversed for errors of law committed by the trial court. I agree with the view taken in the dissenting opinion, however, that the Contract of Purchase and Sale entered into by the appellants and the predecessor of the appel-lees is not simply a lease subject to recision for a breach of the covenants. In my view the remedy of the appellants is limited to damages.
On this latter point I will content myself with saying that the transaction between federal partners and the TVA encompasses many of the characteristics of the common-law profit a prendre recognized by this court in Denver Joint Stock Land Bank of Denver v. Dixon, 57 Wyo. 523, 122 P.2d 842, 140 A.L.R. 1270 (1942); and Boatman v. Andre, 44 Wyo. 352, 12 P.2d 370 (1932). This latter authority indicates that one may lose one’s rights under a profit a prendre by abandonment. It would seem to follow that a failure of any covenants in connection with the profit a prendre would be addressed by the remedy of damages rather than recision. While fraud in the inducement might void the transaction if the rights of bona fide purchasers for value have not intervened, that is not the claim that I understand is made here, and consequently I would not recognize a right, of recision in the appellants.
This may not be an important matter because it seems to me that damages are going to be the remedy in any event. That is essentially what the appellants seek. The real question then is whether the appellants have been paid that which is due them under their agreement.
The majority opinion holds that the appellants have not been paid that which is due them, and I agree. I find in Schedule “A,” which is attached to, referred to and made a part of the Contract of Purchase and Sale, the following language:
“Gross proceeds shall include any and all premium, incentive and other bonus payments received for or upon sale of the ores (to the extent permitted by law) and shall include development allowance. Any freight allowance in excess of freight costs incurred shall be included.”
The dissenting opinion accuses the majority of rewriting the contract for the parties. In fact, it was the district court which rewrote the contract. The advance royalty of seven million dollars which TVA agreed to pay to the appellees and the advance royalty of sixty-two and one-half cents per pound for “inferred ore” were payable to the appellees without regard to any future production. They were not payments for costs in advance, and the application of the third royalty clause in the agreement between TVA and the appellees does not have the effect of making them payments in advance for costs. That clause protects the right of the appellees to share in future profits, and provides for payment in addition to the advance royalties, but TVA prudently provided that the advance royalties should be counted as costs in the computation of the appellees’ right to share in future profits. The advance payments come within the definition of Gross Proceeds quoted from Schedule “A” and there*76fore must be included in the computation of net profits as provided in paragraph four of the Contract of Purchase and Sale between appellants and appellees. It follows that the appellants were entitled to have net profits computed in accordance with the formula described in the majority opinion. I am satisfied with the conclusion of the majority that the record does not justify the deduction from those advance royalties of any of the items included in Schedule “A” to the Contract of Purchase and Sale.
With respect to the computation of annual net profits, I also agree with the holding in the majority opinion. It is compatible with the ends of justice that when assumptions fail with respect to contract terms it is fair to look at the facts. The facts in this instance are that the price of the U3O8 is known. An acceptable figure for the milling expense can be determined. The ore developed from the property sold by the appellants is determinable, and net profits are therefore subject to computation. The appellees presumably can demonstrate the actual expense of any of the items found in Schedule “A” for which they were not reimbursed pursuant to their contract with TVA. It is then from this net profit figure that a pro rata portion of the advance royalties may be deducted by the appellees in accounting to the appellants.
As I indicated, I would reverse the trial court in part and affirm it in part, and I agree that the case should be remanded for further proceedings.