Biteler's Tower Service, Inc. v. Guderian

466 N.W.2d 141, 1991 N.D. LEXIS 16, 1991 WL 21564
CourtNorth Dakota Supreme Court
DecidedFebruary 22, 1991
DocketCiv. 900244
StatusPublished
Cited by12 cases

This text of 466 N.W.2d 141 (Biteler's Tower Service, Inc. v. Guderian) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Biteler's Tower Service, Inc. v. Guderian, 466 N.W.2d 141, 1991 N.D. LEXIS 16, 1991 WL 21564 (N.D. 1991).

Opinion

VANDE WALLE, Justice.

Biteler’s Tower Service appealed from a judgment awarding Les Guderian $8,717.50 plus costs and disbursements on a counterclaim for damages arising from a breach of contract. We affirm the judgment.

Les Guderian is the sole owner of Gude-rian Broadcasting. In 1988, Guderian obtained approval from the Federal Communications Commission to operate an FM radio station in Wahpeton. Guderian sought price quotes for the construction of facilities which would meet FCC standards. On March 25, 1989, Guderian accepted a proposal prepared by Biteler’s Tower Service (BTS) for the construction of a transmitting tower.

Under the terms of the contract, BTS agreed to furnish a 325-foot tower and all labor and equipment necessary to install the tower. Any additional work or hardware furnished by BTS which was not stated in the proposal required an additional fee and was to be agreed upon in writing. Guderian Broadcasting agreed to pay for a structural analysis and to pay Biteler $16,-570.00. Guderian Broadcasting was to pay one-half of the amount upon acceptance of the proposal with the balance to be paid upon completion of the tower.

On April 4, 1989, Guderian executed a check for $8,285.00 paid to the order of BTS for one-half of the total amount due. Construction on the tower began April 17, 1989 and was completed May 12, 1989. During the construction phase, BTS requested that Guderian pay $1,725.00 for a structural analysis, $1,700.00 for guy wire and hardware, and an additional $1,000.00. On April 26, Guderian executed a check payable to BTS in the amount of $1,000.00 for “tower parts as per contract.” On May 1, Guderian executed a check payable to BTS in the amount of $2,425.00 for “structural analysis — guy wire as per tower contract.” On May 16, after construction had *143 been completed, Guderian executed a cheek payable to BTS in the amount of $4,142.50 “as per contract.” On May 23, BTS billed Guderian an additional $1,103.56 for extra hardware and freight.

On May 30, 1989, BTS initiated a lawsuit against “Les Guderian, doing business under the firm and style name of Guderian Broadcasting” for breach of contract. BTS sought damages in the amount of $5,246.06 including $4,142.50 representing the unpaid balance under the contract and $1,103.56 for extra hardware and freight. Guderian filed a counterclaim alleging that BTS breached the contract and sought damages in excess of $10,000. The trial court determined that BTS had breached the contract by installing a 310-foot tower rather than a 325-foot tower, as provided for in the contract. BTS received nothing on its complaint and Guderian was awarded $8,717.50 in damages on his counterclaim. Additional facts will be presented and discussed more thoroughly below.

On appeal, BTS raises several issues and subissues. Many of these issues are either repetitive or inadequately developed and will be disposed of accordingly. The remaining relevant issues may be assembled into four discernible assignments of error. BTS asserts that the trial court erred in concluding that it had breached the contract; that the trial court erred in awarding Guderian damages on his counterclaim; that the trial court erred in not awarding BTS any damages on the original complaint; and finally, that the trial court erred in allowing the testimony of several of Guderian’s witnesses.

In raising these issues, BTS has challenged several of the trial court’s findings of fact and conclusions of law which we will discuss throughout this opinion. We note that on appeal conclusions of law are fully reviewable while findings of fact are not set aside unless they are clearly erroneous. Norden Laboratories, Inc. v. Rotenberger, 358 N.W.2d 518 (N.D.1984). A finding is clearly erroneous if it has no support in the evidence or if we are left with a firm conviction that a mistake has been made. Miller Enterprises, Inc. v. Dog N’ Cat Pet Centers of America, Inc., 447 N.W.2d 639 (N.D.1989).

BREACH OF CONTRACT

The tower installed by BTS was a “used” 310-foot tower which had been dismantled from its location near Fort Dodge, Iowa. BTS was required under the contract to install a 325-foot tower. The trial court found that the parties contemplated using the Fort Dodge tower. BTS contends that both parties mistakenly believed that the Fort Dodge tower was 325 feet and due to their mutual mistake “[t]he contractual obligation must be altered and reformed to be consistent with the mutual understanding of the parties.”

Alteration of a contract and reformation of a contract are distinct legal principles. Alteration is a process wherein the parties make “[a] change in the provisions of a contract.” Black’s Law Dictionary 71 (5th ed. 1979). Reformation is an “[equitable remedy used to reframe written contracts to reflect accurately real agreement between contracting parties....” Black’s Law Dictionary 1152 (5th ed. 1979).

Section 9-09-06, NDCC, governs the alteration of a contract and provides:

“A contract in writing may be altered by a contract in writing or by an executed oral agreement and not otherwise. An oral agreement is executed within the meaning of this section whenever the party performing has incurred a detriment which he was not obligated by the original contract to incur.”

In the case at bar, the oral discussion of the Fort Dodge tower took place before the parties executed the written contract. The execution of a written contract supercedes all preceding oral negotiations. NDCC § 9-06-07. See, Jorgensen v. Crow, 466 N.W.2d 120 (N.D.1991). The written contract became the culmination of all prior agreements. Rettig v. Taylor Public School District No. 3, 211 N.W.2d 743 (N.D.1973). There existed no written contract which could have been altered by the parties at the time they contemplated the Fort Dodge tower. See Rettig, supra. *144 Further, as a general rule, a court cannot alter the provisions of an existing contract, but can only interpret a contract created by the parties. 17A C.J.S. Contracts § 296(3) (1963).

BTS argues that the contract should be reformed because a fair interpretation of its provisions may be accomplished only through a consideration of the real intention of the parties. In support of this proposition, BTS argues the application of section 9-07-05, NDCC, which provides:

“When through fraud, mistake, or accident a written contract fails to express the real intention of the parties, such intention is to be regarded and the erroneous parts of the writing disregarded.”

Before we examine the parties’ intentions under section 9-07-05, we must determine whether this case involves a relevant mistake of fact. Section 9-03-13, NDCC, provides the following definition for mistake of fact:

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Bluebook (online)
466 N.W.2d 141, 1991 N.D. LEXIS 16, 1991 WL 21564, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bitelers-tower-service-inc-v-guderian-nd-1991.