A & F PROPERTIES, LLC v. Lake Caroline, Inc.

775 So. 2d 1276, 2000 Miss. App. LEXIS 473, 2000 WL 1578483
CourtCourt of Appeals of Mississippi
DecidedOctober 24, 2000
Docket1998-CA-01755-COA
StatusPublished
Cited by28 cases

This text of 775 So. 2d 1276 (A & F PROPERTIES, LLC v. Lake Caroline, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
A & F PROPERTIES, LLC v. Lake Caroline, Inc., 775 So. 2d 1276, 2000 Miss. App. LEXIS 473, 2000 WL 1578483 (Mich. Ct. App. 2000).

Opinion

775 So.2d 1276 (2000)

A & F PROPERTIES, LLC, Appellant,
v.
LAKE CAROLINE, INC., Appellee.

No. 1998-CA-01755-COA.

Court of Appeals of Mississippi.

October 24, 2000.

*1278 William Larry Latham, Jackson, Attorney for Appellant.

Steven H. Smith, Jackson, Attorney for Appellee.

BEFORE SOUTHWICK, P.J., IRVING, AND PAYNE, JJ.

SOUTHWICK, P.J., for the Court:

¶ 1. This appeal concerns a contract dispute between the developer of a residential subdivision and the party who was to construct and operate a golf course on part of the property. Judgment was entered after a jury verdict that found a breach of contract by the subdivision developer but awarded no damages. A different contract provision was found to have been breached by the golf course owner. Attorneys fees in identical amounts were awarded to the parties. Neither party was satisfied and both appeal. We hold that compensatory damages should have been awarded for the breach by the subdivision developer. We find the only credible evidence of damages was the cost to widen the road to the proper width, and we enter judgment for that amount. However, the evidence to support the award of attorneys fees was lacking. We reverse and render both awards of attorneys fees.

STATEMENT OF THE FACTS

¶ 2. The relevant contract concerns the construction of a golf course as part of the Lake Caroline residential subdivision in Madison County. Lake Caroline, Inc. is the developer of the lake and subdivision. The golf course developers are Norman Rush Agent and Craig W. Foshee, who formed A & F Properties, LLC. A & F contracted to design, build and maintain a golf course upon 154 acres that Lake Caroline would convey from the development to A & F. As additional consideration, A & F would later be conveyed ten subdivision lots according to a selection formula set out in the contract. In return, A & F agreed not only to design, construct and maintain the golf course, but also to execute a "Maintenance Deed of Trust" in favor of Lake Caroline that would serve as a permanent second lien on the golf course property.

¶ 3. Subsequently, A & F filed suit in the Circuit Court of Madison County alleging that Lake Caroline failed in timely fashion to construct a road leading off the principal interior subdivision road and into the golf course. A & F later discovered that the width of the road was not constructed in a manner consistent with its interpretation of the contract. Disputes about the lot selection and the "Maintenance Deed of Trust" also were joined in the suit.

¶ 4. At the end of a jury trial, the court granted a directed verdict in favor of Lake Caroline on the issues of liability and punitive damages regarding the lot selection process. As to the contract claim regarding the golf course road, the jury found Lake Caroline liable for breach of contract, awarded attorneys fees to A & F but did not award compensatory damages. A directed verdict was also granted in favor of Lake Caroline as to the "Maintenance Deed of Trust." On this deed of trust claim, the jury awarded an identical amount of attorneys fees to Lake Caroline. Both parties appeal.

DISCUSSION

1. Breach of provision regarding road and award of damages.

¶ 5. On the breach of contract claim concerning the construction of the road, the jury found Lake Caroline liable for the breach of contract but did not award any compensatory damages. The contract provision *1279 in question deals specifically with the construction of a 50 foot wide road that serves as an entrance to the golf course:

Seller shall construct a fifty (50) foot wide road for a public and private access road to the golf clubhouse as said road is designated on the plats prepared by the design companies and the engineers, according to the standards acceptable to Madison County, Mississippi and shall either dedicate said clubhouse road to public use or provide Buyer and its golf club members, employees, invitees, stockholders and other parties necessary for the successful operation of a golf club a non-exclusive perpetual easement over said roadway. Seller agrees to construct and complete the clubhouse road in conjunction with and in any event no later than the completion of construction of the golf course clubhouse.

¶ 6. There was essentially unrebutted evidence that applicable county ordinances require that a road's right-of-way be wider than the paved surface. The issue is whether the contract required 50 feet of pavement, which would have required a still wider right-of-way, or a 50 foot wide right-of-way and a lesser amount of pavement. It is initially for the trial judge to determine as a matter of law whether the contract provision is ambiguous; if it is, then the jury determines the proper meaning. Ellis v. Powe, 645 So.2d 947, 952-53 (Miss.1994). The court ruled that the contract did not require more than a 50 foot right-of-way. What the court found to be ambiguous was the intended width of the pavement. We understand the trial court as concluding as a matter of law that the contract only required 50 feet of property to be set aside for road purposes but that the parties may not have understood that more than 50 feet of right-of-way was needed for 50 feet of pavement.

¶ 7. We conclude that the ambiguity was broader than this. When the contract provided that Lake Caroline "shall construct a fifty (50) foot wide road," it managed to avoid using either substitute word that would have clearly answered the question that we now face—was there to be 50 feet of "pavement" or fifty feet of "right-of-way." The trial court's conclusion that no more than 50 feet were to be dedicated to road use is logical enough but not compelled by this language. It is equally plausible that the parties meant that the visible "road" would be 50 feet wide, i.e., the pavement itself, regardless of how much more property would have to be dedicated for road purposes. The choices for the jury in interpreting the phrase were these: 1) a 50 foot right-of-way with the width of the paved road to be determined by Madison County standards, or 2) a 50 foot wide paved road with the width of the right-of-way to be determined by Madison County standards.

¶ 8. Despite the trial court's statements, no error occurred if the jurors were properly instructed on these matters. If the instructions read as a whole required the jury to make the determination as to the entire ambiguity, then this question was in fact resolved by the jury. A plaintiff has the burden to prove by a preponderance of the evidence the existence of a binding contract, that the defendant breached it, and that damages proximately resulted from the breach. Warwick v. Matheney, 603 So.2d 330, 336 (Miss.1992). Part of the jury's determination here is just what the contract required. Two instructions are relevant:

[Instruction D-8] The Court instructs the Jury, that if you find from a preponderance of the evidence that paragraph 13(a) of the Contract entered into by and between Plaintiff and Defendant, did not require the Defendant to construct an access road containing fifty (50') feet of pavement, then you shall find for the Defendant, Lake Caroline, Inc., and assess no damages.
[Instruction # 7] If you find from a preponderance of the evidence that the defendant breached the contract by failing *1280

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Bluebook (online)
775 So. 2d 1276, 2000 Miss. App. LEXIS 473, 2000 WL 1578483, Counsel Stack Legal Research, https://law.counselstack.com/opinion/a-f-properties-llc-v-lake-caroline-inc-missctapp-2000.