Billings Leasing Co. v. Payne

577 P.2d 386, 176 Mont. 217
CourtMontana Supreme Court
DecidedApril 10, 1978
Docket13395
StatusPublished
Cited by23 cases

This text of 577 P.2d 386 (Billings Leasing Co. v. Payne) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Billings Leasing Co. v. Payne, 577 P.2d 386, 176 Mont. 217 (Mo. 1978).

Opinions

MR. JUSTICE SHEA

delivered the opinion of the Court.

Plaintiff Billings Leasing Co. appeals from a jury verdict and judgment in the Yellowstone County District Court denying its claim and awarding $9,194.25 to defendant Payne on his counterclaim.

As we attempt to unscramble the issues raised on appeal, we find that neither party had a coherent theory of recovery which was presented to the jury and covered by jury instructions. For this reason it is extremely difficult to analyze most of the issues raised on appeal. However, we do agree with Billings Leasing that there was a complete failure to instruct the jury on damages with relation to Payne’s counterclaims, and for this reason we must reverse. Because there were additional errors in the instructions, we will discuss a few of these matters which hopefully will give some guidance for the retrial of this cause.

This case arises from a lease agreement between Billings Leasing and Jerald Payne whereby Payne leased for five years a new Ken-worth truck at $750.00 per month for the first 30 months and $550.00 per month for the second 30 months. Payne fell several payments behind within a year of the time he leased the truck, and there were several contacts between him and Billings Leasing in an effort to bring the payments up-to-date. These contacts form part of the dispute in this case because Payne alleges that Billings Leasing extended or waived the time within which he was to make the payments in dispute, although Payne did not plead extension or waiver as an affirmative defense.

In any event, satisfactory arrangements were not made, and Billings Leasing sued Payne in a debt action for back rent on the truck. Later, in the same debt action, Billings Leasing obtained a writ of attachment and garnished Payne’s wages in the amount of $2,433.00. This money was deposited with the Yellowstone County clerk of court pending the outcome of litigation.

[219]*219Shortly after it filed the debt action, Billings Leasing, in a separate action, filed a claim and delivery action and obtained possession of the truck because Payne refused to voluntarily give up possession of the truck. Billings Leasing claimed it was entitled to possession under the terms of the leasing agreement. Without notifying Payne that it intended to sell the truck, Billings Leasing sold it at a private sale and realized $20,000.00 from the sale.

Payne filed two counterclaims in each of the actions. In the debt action he alleged that Billings Leasing had wrongfully obtained possession of the truck in the claim and delivery action. He claimed that the truck was repossessed without notice to him which violated his rights to due process of law. He also alleged in the same counterclaim that he was damaged in the amount of $6,000.00 because the private sale was not conducted in a commercially reasonable manner. He did not allege that he was also damaged because it was conducted without notice to him. The second counterclaim in the debt action alleged that the writ of attachment garnishing Payne’s wages was an unlawful abuse of process because it was issued without notice to him and therefore deprived him of due process of law. He sought damages in the amount' of $2,433.00, which was the amount of the wage garnishment, and interest on that amount from the date his wages were seized. Payne’s counterclaims in the claim and delivery action were essentially the same as those he filed in the debt action. The debt action and the counterclaim were consolidated for trial by jury.

It is not at all clear how Payne was proceeding during trial on his counterclaims for damages. The claims he now asserts were not clearly set out in his pleadings; there was no pretrial conference or order; and he offered no instructions on the damages that he now is claiming. In his brief, he argues that there were three separate claims of damages. The first damage claim is that Payne was damaged in the debt action by the wrongful attachment in the amount of $2,433.00. Payne did not ask for the return of $2,433.00 in his counterclaim; rather, he asked for damages in that amount in addition to interest from the date of attachment. The second claim of [220]*220damages is that he was deprived of a truck for four months before he could obtain another one and that he lost $4,000.00 net income as a result of the wrongful repossession. Payne testified to this without objection from Billings Leasing. The third claim of damage is that Payne was damaged in the amount of $3,500.00 by the failure of Billings Leasing to sell the truck in a commercially reasonable manner, in violation of section 87A-9-504(3), R.C.M.1947, which is part of the Uniform Commercial Code as adopted in this state.

Payne seeks to justify the jury verdict in the amount of $9,194.25 on the basis that the damages testified to at trial amounted to more than the jury awarded and therefore the jury was well within the evidence in returning its verdict. However, the claim of Billings Leasing is not that the award was excessive. It is that Payne offered no instructions on the elements of damages he was seeking, and the trial court refused to instruct the jury on the elements of damages. We discuss first the misleading and incomplete instructions covering the issues raised by Payne’s counterclaims, and then we discuss the failure to instruct the jury on damages.

We note at the outset that this was clearly a case calling for a pretrial conference under Rule 16, M.R.Civ.P., but none was held. As a result, this case went to trial with neither counsel for the parties nor the trial judge having a grasp of the legal issues.

At the close of the trial Billings Leasing moved for judgment as a matter of law on its claim for the back lease installments for the truck. It was denied. The trial court did rule, however, that Payne’s allegations of unconstitutional attachment and unconstitutional repossession of the truck could not go to the jury, and he specifically instructed the jury not to consider those claims.

As a result of this ruling, Billings Leasing argues that the only remaining counterclaim was Payne’s contention that he was damaged in the amount of $6,000.00 because of the failure of Billings Leasing to conduct the sale of the truck in a commercially reasonable manner. Payne, on the other hand, argues that other damages are still in the case because of waiver. Waiver applies, he contends, because Billings Leasing waived the payment dates on which the [221]*221installments were due and no new times were set for making the payments; therefore, the payments were not due at the time Billings Leasing attached Payne’s wages and repossessed his truck. Accordingly, Payne argues, it was unlawful for Billings Leasing to attach his wages and to repossess his truck.

Payne did not urge waiver as an affirmative defense to the action brought by Billings Leasing as required under Rule 8(c), M.R.Civ.P. Neither did he assert waiver in his counterclaim as a basis to claim that his wages were unlawfully repossessed. Rather, his claims for unlawful attachment and unlawful repossession were based solely on denials of dur process, and the District Court dismissed those counterclaims. Despite these limitations, waiver was considered throughout the trial, although we are not certain from the record of exactly how it was urged to apply. The jury was also instructed on the elements of waiver. Accordingly, we are reluctant to hold that Billings Leasing was not aware of the allegations of damages arising from Payne’s claims of waiver.

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Billings Leasing Co. v. Payne
577 P.2d 386 (Montana Supreme Court, 1978)

Cite This Page — Counsel Stack

Bluebook (online)
577 P.2d 386, 176 Mont. 217, Counsel Stack Legal Research, https://law.counselstack.com/opinion/billings-leasing-co-v-payne-mont-1978.