Court Opinion

ID: 9631672
Source: CourtListenerOpinion
Date Created: 2023-08-22 10:46:06.937662+00
Date Added: 2024-06-11T18:07:58.430843
License: Public Domain

CARDINE, Justice,
concurring in part and dissenting in part.
I agree that the trial court should not have granted partial recision in this case, since Mrs. Okie’s proper remedy was damages. Unlike the majority, however, I would remand to the trial court for a determination of the damages to be awarded her.
I. Procedural Concerns
I part company with the majority in its implication that Mrs. Okie’s “waiver” of *885damages below leaves her without a remedy. The majority takes the position that Mrs. Okie waived damages and is stuck with that waiver. However, the record shows that Mrs. Okie’s waiver was an election of a remedy as distinguished from a real “waiver” for which consideration is given or which causes detrimental reliance by the other party. Since we determine only that her elected remedy, partial recision, was ineffective, and make no determination against her on any other theory, our decision should not preclude subsequent proceedings for damages.
Where there is really but one remedy and not a choice, recourse to one remedy which proves futile does not preclude thereafter successfully invoking a second more appropriate remedy.
Coronado Oil Co. v. Grieves, 603 P.2d 406, 413 (Wyo.1979), citing Roberts v. Roberts, 62 Wyo. 77, 94, 162 P.2d 117, 122 (1945). See also 5A A. Corbin, Corbin on Contracts § 1218 (1964) (election of unavailable remedy does not bar subsequent suit, even if first suit carried to judgment, provided that court only determines unavailability of remedy).
To require Mrs. Okie to file another suit would be a waste of judicial resources. Everything but the proper relief has already been determined by the trial court and is not disturbed here. The trial court had before it evidence sufficient to convince a majority of this court that damages were the appropriate relief in this case. The proper remedy is to remand for determination of damages.
Review of the trial record shows that although damages were waived, extensive proof of damages was presented by both sides. George Parks testified, over BHP’s objection, to the additional value of Mrs. Okie’s royalty interest based on the consent agreement. Both George Parks and Roy Guess testified that an “Exhibit 64” reflected the expenses Mrs. Okie incurred as the result of their participation in the BLM appeal. (Exhibit 64 was apparently never entered into evidence.) Donald Leo Stinson estimated that the consent agreement enhanced the Okie interests by five to ten percent, and that Mr. Daniel and Mrs. Okie would lose $750,000.00 to $1,500,-000.00 if they lost the unique value of the consent agreement. BHP elicited testimony from Mr. Daniel about the increase in value he would receive from his royalty interest if his proceeds from the 2-3 well were treated on a lease basis. BHP also asked Mr. Daniel to detail the harm he had suffered, as noted in the majority opinion. BHP further presented the testimony of Patrick Martin, who compared the plaintiffs’ projected annual royalty receipts from 2-3. based on a 4,000 acre circle, a 2,560 acre circle, and a lease basis. Finally, BHP mentioned in closing a damage figure of $25,000, based on the BHP appeals, to show why partial recision was improper.
Wyoming Rule of Civil Procedure 54(c) allows the trial court to fashion appropriate relief where, as here, a party has shown entitlement to it:
Except as to a party against whom a judgment is entered by default, every final judgment shall grant the relief to which the party in whose favor it is rendered is entitled, even if the party has not demanded such relief in his pleadings, [emphasis added]
This rule has had broad application. It is not confined to situations where a party later asserts a theory he omitted in the pleadings; rather, it allows the trial court to award relief never contemplated by either party. See Walton v. Atlantic Richfield Co., 501 P.2d 802, 805 (Wyo.1972) (trial court not bound by legal theories asserted by parties; may grant relief to which prevailing party is entitled, whether or not pled); and cf. Illinois Physicians Union v. Miller, 675 F.2d 151, 158 (7th Cir.1982) (court could award unrequested damages in declaratory judgment proceeding (but compare the federal Declaratory Judgment Act with W.S. 1-37-101 et seq.)); Nab v. Hills, 92 Idaho 877, 452 P.2d 981, 987-88 (1969) (reformation of contract granted although not requested by defendants); Fireside Marshmallow Co. v. Frank Quinlan Const. Co., 199 F.2d 511 (8th Cir.1952) (fact that both parties treated action as one for enforcement of con*886tract did not prevent court from granting recision based on proof at trial).
Now that the trial court is no longer under the erroneous perception that equitable relief is available and appropriate, it can grant relief in damages on remand. Our rules give us the power to remand for correction of such errors.
A judgment rendered or final order made by a district court may be reversed in whole or in part, vacated or modified by the Supreme Court for errors appearing on the record.
W.R.A.P. 1.04.
When a judgment or final order is reversed, either in whole or in part, in the district court, or the Supreme Court, the court reversing the same shall proceed to render such judgment as the court below should have rendered, or remand the cause to the court below for such judgment or such proceedings as the reviewing court may direct, [emphasis added]
W.R.A.P. 7.03.
Cf. also Allen v. Allen, 550 P.2d 1137, 1144 (Wyo.1976) (supreme court could modify decree of restitution to provide for recon-veyance in order to avoid need for another action for specific performance after remand).
On remand, I would instruct the trial court to hold a hearing at which both parties could present further evidence on the damage issue. The hearing is needed not only to allow Mrs. Okie to present further testimony, but also because BHP objected to testimony on damages presented below; thus BHP would suffer undue prejudice if a judgment for damages were entered under W.R.C.P. 54(c) without a further hearing. In short, I would remand to allow Mrs. Okie to pursue her damage remedy, subject to BHP’s right to present rebuttal evidence.
II. Calculation of Damages
The majority does not decide what the proper measure of damages should be. It mentions the costs of Mrs. Okie’s appeals to the BLM but also “damages for the loss of such a unique agreement.” Maj. op. at 877. Obviously, the amount of damages would differ significantly depending on which of these measures were adopted.
The damage remedy requested in Mrs. Okie’s complaint is similar to the partial recision rejected by this court, only with retrospective application. Mrs. Okie requested “damages [which] are the difference between the amount of proceeds Margaret Okie and Bill Daniel would receive under the First Revision Permitting Enlargement and that which they would have received solely on the basis of the Lease.”
Damages for breach of contract are designed to put the injured party in the position she would have been if the other party had performed, less proper deductions. Robert W. Anderson Housewrecking and Excavating, Inc. v. Board of Trustees, School Dist. No. 25, 681 P.2d 1326, 1333 (Wyo.1984). The injured party should receive compensation commensurate with her loss and no more. Andersen v. Corbitt, 777 P.2d 48, 52 (Wyo.1989); Hunt v. Thompson, 19 Wyo. 523, 120 P. 181, 184, reh’g denied 20 Wyo. 523, 122 P. 624 (1912).
The following case discusses the amount of damages to be awarded for breach of a unitization agreement. Massey v. Gulf Oil Corp., 508 F.2d 92 (5th Cir.1975), cert. denied 423 U.S. 838, 96 S.Ct. 67, 46 L.Ed.2d 57 (1975), reh’g denied 510 F.2d 1407 (1975). In Massey, the operator’s breach involved “high grading” the unit (extracting only the oil most easily and least expensively available). Damages were calculated based on loss of royalties due to the improper management. Massey, at 96, n. 4.
In this case, there has been no loss of royalties. However, Mrs. Okie claims to have lost the special value of her royalty interest. She argues that the special terms of the consent agreement are worthless if they can be disregarded at will by the operator. As the majority points out, to the extent that Mrs. Okie’s analysis is based on the possibility of future harm rather than past breach, it may safely be disregarded because BHP no longer oper*887ates the unit and the new operator will hopefully be cautioned not to repeat the harm. Thus, we must treat the consent agreement as if it retained its full value; only injury arising from past breach is at issue.
It seems clear that the damages Mrs. Okie suffered here from BHP’s breach of contract were the costs of her appeals through the BLM. Had the breach not occurred, she would have been able to present her objections before the larger unit plans were approved. She might not have needed to take appeal. Therefore, I would hold that she is entitled to recover from BHP these costs which are related to her appeals, and the costs of this appeal as well.