Bader v. Cerri

609 P.2d 314, 96 Nev. 352, 1980 Nev. LEXIS 592
CourtNevada Supreme Court
DecidedApril 9, 1980
Docket11479
StatusPublished
Cited by41 cases

This text of 609 P.2d 314 (Bader v. Cerri) is published on Counsel Stack Legal Research, covering Nevada Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bader v. Cerri, 609 P.2d 314, 96 Nev. 352, 1980 Nev. LEXIS 592 (Neb. 1980).

Opinion

*354 OPINION

By the Court, Thompson, J.:

On February 28, 1975, Loui and Elaine Cerri, hereinafter Cerri, by written document, agreed to sell, and Rodney K. Bader, Linda Bader, Albert E. Dianda, Harriet Sue Dianda, Gary D. Bader and Leta Bader, hereinafter Bader, agreed to purchase the Cerri Ranch in Paradise Valley, Humboldt County, Nevada. The purchase price therefor was $1,125,000 which contemplated the transfer of the real estate, grazing permits, cattle, and ranch machinery and equipment. The sale was never consummated. This action for breach of contract and damages was commenced by Cerri. Later, their complaint was amended to add a claim for damages for conversion of the cattle on the ranch. Bader denied liability and counterclaimed for damages.

Following the presentation of evidence and argument of counsel, the jury returned a special verdict upon which judgment subsequently was entered. That special verdict found that Cerri had tendered performance of their obligations under the agreement, but that performance by Cerri was excused by Bader’s repudiation of the agreement. The special verdict *355 found that the contract price for the ranch, $1,125,000, exceeded the fair market value thereof by $138,425 and that Cerri should recover the latter sum as their “benefit of the bargain.” Additionally, the jury, by special verdict, found that Bader had converted Cerri’s cattle to Cerri’s further damage in the sum of $18,270. Finally, and with regard to the counterclaim, the jury found that Cerri had been unjustly enriched at the expense of Bader by $6,977. This appeal by Bader followed. Cerri, by cross-appeal, contends that the district court erred when it refused to instruct the jury regarding punitive damages.

The agreement for the sale and purchase of the Cerri ranch required Bader to deposit $100,000 in escrow by March 5, 1975, and an additional $100,000 before the close of escrow scheduled for May 27, 1975. Thereafter, Bader was to pay $185,000 by January 1, 1976. The balance of the purchase price ($740,000) was to be paid by Bader assuming liability for an existing Federal Land Bank loan on the Cerri ranch in the amount of $150,000, by conveying their equity in a Sparks residence valued at $90,000, and by transferring timber in Idaho to Cerri, such timber having the estimated value of $500,000.

The initial $100,000 payment was made. Cerri was allowed to withdraw that sum prior to closing, and Cerri allowed Bader to move onto the ranch and place the Bader brand on the cattle prior to closing. Escrow did not close on May 27. The parties, however, continued to treat the agreement as in effect.

Problems arose following Cerri’s visit to Idaho to inspect the timber. The agreement provided that if the timber was not worth its asserted value, $500,000, at the time of harvest, Bader would pay Cerri the difference in cash. Cerri was told while in Idaho that the timber was not worth $500,000 and became concerned about this aspect of the agreement. Their concern was voiced to Bader who, in turn, expressed their doubts as to the cattle carrying capacity of the Cerri Ranch. Subsequent discussions and negotiations accomplished nothing.

Cerri commenced this action for breach of contract and moved back onto the ranch, and attempted to move their cattle. Bader, however, refused to abandon their brand until Cerri returned the $100,000 initially placed in escrow. Since Cerri could not sell or pledge the cattle without such a brand release, Cerri posted a $100,000 bond in Bader’s favor to secure the release of the cattle, following which Cerri amended their complaint to include a cause of action for conversion.

1. The first assigned error concerns the damage award of $18,270 for the conversion of cattle. In the trial court Cerri *356 contended that Bader’s refusal to release their brand for the period July 1975 to about April 1976 was a conversion of the cattle, and that all damage sustained as a consequence thereof was recoverable. Bader argued below and now before this court that the refusal to release their brand for the stated period of time was at most a trespass to chattels and not a conversion. He therefore asserts that the jury should not have been instructed regarding conversion and that the instruction given was incorrect.

Bader’s argument is based primarily upon the definition of conversion found in the Restatement (Second) of Torts § 222A. Conversion is there defined as “an intentional exercise of dominion or control over a chattel which so seriously interferes with the right of another to control it that the actor may justly be required to pay the other the full value of the chattel.”

Using that definition as a premise, Bader argues that since the measure of damages is a part of the definition of conversion, and since Cerri did not seek to recover the full value of the cattle, there was no conversion and the jury should not have been instructed on that theory.

We reject that argument. Nevada case law does not suggest that the measure of damages is a part of the definition of conversion. Neither does Nevada case law declare the full value of the property converted to be the sole measure of damages. Of course, the full value of the property at the time of conversion may be one measure of the damage sustained. Dixon v. Southern Pacific Co., 42 Nev. 73, 172 P. 368, 177 P. 14 (1918). This measure is appropriate when the defendant keeps possession of the property he has converted. This measure of damage, however, is not appropriate when the property is returned by the converter to the injured party. That is what happened in the case at hand.

A conversion occurs whenever there is a serious interference to a party’s rights in his property. Wantz v. Redfield, 74 Nev. 196, 326 P.2d 413 (1958). When this happens the injured party should receive full compensation for his actual losses. Boylan v. Huguet, 8 Nev. 345 (1873). The return of the property converted does not nullify the conversion. Such return does serve to mitigate damages. Winkler v. Hartford Acc. and Indem. Co., 168 A.2d 418 (N.J. 1961).

We conclude that it was permissible for the jury to find that a conversion occurred when Bader refused to release their brand *357 and that the jury instruction quoted in the footnote below was correct. 1

2. Next, it is asserted that the award of $18,270 for conversion of the cattle must be annulled since it represents a loss of profits on the sale of cattle which would have occurred but for the conversion, and is speculative and uncertain.

At trial, Cerri urged that Bader’s refusal to release the brand on the cattle precluded Cerri from selling or pledging them for almost one year. Thus, they were required to bear additional expense in feeding cattle they would have otherwise sold, and were precluded from pledging those cattle as security for a loan to purchase additional cattle to continue their cow-calf operation.

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Cite This Page — Counsel Stack

Bluebook (online)
609 P.2d 314, 96 Nev. 352, 1980 Nev. LEXIS 592, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bader-v-cerri-nev-1980.