Baysden v. Hitchcock

553 N.W.2d 901, 1996 Iowa App. LEXIS 71, 1996 WL 532338
CourtCourt of Appeals of Iowa
DecidedJune 27, 1996
Docket94-2010
StatusPublished
Cited by3 cases

This text of 553 N.W.2d 901 (Baysden v. Hitchcock) is published on Counsel Stack Legal Research, covering Court of Appeals of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baysden v. Hitchcock, 553 N.W.2d 901, 1996 Iowa App. LEXIS 71, 1996 WL 532338 (iowactapp 1996).

Opinion

McCartney, Senior Judge.

The jury in this breach of contract action awarded the plaintiff $315,250 in damages. The trial court granted the request of the defendants for judgment notwithstanding the verdict. On appeal, the plaintiff argues: 1) the trial court erred in granting judgment notwithstanding the verdict; 2) the trial court erred in granting summary judgment on his claim for tortious interference; 3) the trial court should have granted his motion to amend; 4) the trial court should have admitted the rule 404(b) testimony of Daniel Coffey; and 5) the trial court should not have limited his request for damages to three years. We affirm, with a limited remand.

I. Judgment Notwithstanding the Verdict.

The Plaintiff, Roger Baysden, was an employee of Davis Marketing Company, a food brokerage company. W.P. Hitchcock was the owner of the company. Hitchcock was contemplating retirement in 1991, and he and Baysden negotiated an agreement by which Hitchcock would sell Baysden his controlling interest in the business. The parties agree they entered into a contract on September 80,1991, for the sale of the company.

*903 To facilitate the transfer of control to Baysden, the Employee Stock Ownership Plan (ESOP) was to be liquidated. The employees were to be provided a deadline by which they were to elect how they wished to have their ESOP interests treated. The contract for the sale of the company provided in relevant part—

Closing. The Closing of the transactions contemplated under this Agreement shall take place as soon as reasonably practicable after the close of the employees’ election period as set forth in Section 3 of this Agreement.

The parties do not dispute the close of the employees’ election period was November 1, 1991, and they had agreed to have the closing on that day. While both parties were present for the scheduled closing, it did not occur because Baysden became upset over “bonuses” Hitchcock was to receive from the company. The closing abruptly ended when Baysden left the meeting. 1

Four days later, Baysden, through his legal counsel, submitted a new contract proposal to Hitchcock. This new proposal contained some substantially different terms than the original contract. Hitchcock reject ed these new terms.

Baysden testified that he attempted several times after November 1 to complete the closing, but he could not get Hitchcock to commit to do it. Baysden further testified that at a November 4 meeting he wanted changes and further concessions in the contract. Baysden testified he brought up the subject of closing the sale with Hitchcock in February, March, and April 1992.

Hitchcock contradicted Baysden’s version of the events and testified he and Baysden did not talk about the sale until two weeks after the aborted closing and that the discussion was about the new contract Baysden had proposed. He denied Baysden ever approached him after November 1 about closing the original sale as contracted.

Hitchcock sold his company in May 1992 to another food brokerage company, Eisenhart & Associates of Des Moines, Inc. and Bays-den was then terminated from his employment.

Baysden brought suit against Hitchcock and Davis Marketing Company on a number of different grounds, but the action was tried solely on the basis of breach of contract.

The jury found Hitchcock and Davis Marketing Company had materially breached the contract with Baysden, and it found Baysden had not materially breached the contract. The trial court granted judgment notwithstanding the verdict. It concluded Baysden had materially breached the contract when he refused, to close on November 1, 1991.

In reviewing a motion for judgment notwithstanding the verdict, we consider whether the evidence, taken in the light most favorable to the nonmoving party, shows the movant was entitled to a directed verdict at the close of all the evidence. McGough v. Gabus, 526 N.W.2d 328, 334 (Iowa 1995). When reviewing such a ruling, we look to see whether the evidence on an issue was sufficient to generate a jury question. Id.

A breach of contract occurs where a promisor, who had promised to do a certain act or make a specific payment, fails to do so when the time for doing such act or making such payment has occurred. See Becker v. Central States Health and Life Co. of Omaha, 431 N.W.2d 354, 357 (Iowa 1988), overruled on other grounds. A material condition which is agreed to by the parties must be fulfilled by the party bringing suit in order for such party to recover on the contract. Taylor Enterprise, Inc. v. Clarinda Production Credit Association, 447 N.W.2d 113, 116 (Iowa 1989).

The parties had agreed to a closing date and were contractually obligated at the time of the closing to transfer the consideration required by their contract. Baysden not only walked out on the closing failing to complete the transactions required by the contract but he then had his counsel present a new contract to Hitchcock, clearly in an effort to renegotiate what had already been agreed upon. Nonperformance of a duty *904 under a contract is a breach. Metropolitan Transfer Station, Inc., v. Design Structures, Inc., 328 N.W.2d 532, 537 (Iowa App.1982). Baysden faded to close as required by the contract and this breach was material in nature.

While we recognize that questions of performance and breach are generally for the jury, a directed verdict may be warranted however where a party seeking recovery for breach of contract has failed to prove his performance under the contract. See Barnett v. Burns, 235 Iowa 1, 4-5, 15 N.W.2d 869, 870 (1944) (directed verdict affirmed in action for breach of contract where neither plaintiff nor assignor had proved they had performed contract as to justify recovery). Given the material breach of contract by Baysden, the trial court was correct in granting judgment notwithstanding the verdict.

II. Tortious Interference

Baysden appeals the grant of summary judgment by the trial court with respect to his claim the defendants had tortiously interfered with his contract to purchase the company. He claims the defendants conspired with the various Eisenhart entities to improperly interfere with his contract. 2

Generally a party to a contract cannot be held hable for tortious interference with the contract. See Irons v. Community State Bank, 461 N.W.2d 849, 857 (Iowa App.1990).

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Bluebook (online)
553 N.W.2d 901, 1996 Iowa App. LEXIS 71, 1996 WL 532338, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baysden-v-hitchcock-iowactapp-1996.