Ellsworth v. Tuttle

148 F. App'x 653
CourtCourt of Appeals for the Tenth Circuit
DecidedJune 20, 2005
Docket03-4253
StatusUnpublished
Cited by7 cases

This text of 148 F. App'x 653 (Ellsworth v. Tuttle) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ellsworth v. Tuttle, 148 F. App'x 653 (10th Cir. 2005).

Opinion

ORDER AND JUDGMENT **

FRIOT, District Judge.

In this diversity action, Arizona citizens Grant and Fern Ellsworth sued Utah citizens 1 William and Charlene Tuttle, and Kenton and Lori Tuttle, alleging fraudulent misrepresentation, breach of warranty, breach of contract, and conversion. Prior to trial, the breach of contract and conversion claims against Kenton and Lori *656 Tuttle were dismissed. The matter was tried to a jury which returned verdicts against William and Charlene Tuttle on all four causes of action, and against Kenton and Lori Tuttle on the fraudulent misrepresentation claim. The jury awarded the Ellsworths $71,680 in compensatory and $10,000 in punitive damages against Kenton and Lori Tuttle for fraudulent misrepresentation. The jury awarded the Ellsworths $805,840 in compensatory damages and $150,000 in punitive damages against William and Charlene Tuttle on the fraud claims, as well as $125,000 for breach of warranty, separate awards of $14,500 and $7,500 for breach of contract, and $11,000 for conversion. The district court awarded the Ellsworths $212,578.75 in attorney fees. The Tuttles collectively appeal the fraud awards, arguing that (1) the fraud claims were not ripe; and that the district court erred when it (2) concluded that issues of fact concerning the Ellsworths’ reasonable reliance precluded summary judgment, (3) permitted the Ellsworths’ expert witnesses to testify regarding information contained in the water rights certificates, (4) permitted the Ellsworths’ expert witness to testify regarding the value of “sole supply” and “supplemental supply” acreage, (5) prohibited the Tuttles from offering evidence of the Ellsworths’ farming practices and failure to mitigate, and (6) failed to remit the punitive damage awards. William and Charlene Tuttle separately appeal the breach of warranty, breach of contract, and conversion awards on the grounds that the district court erroneously (1) denied their motion for summary judgment with respect to the contract and conversion claims; (2) entered judgment awarding the Ellsworths a double recovery; and (3) awarded the Ellsworths attorneys’ fees relating to non-compensable claims. We affirm.

I. Factual Background.

Because the jury found in their favor, we review the evidence in the light most favorable to the Ellsworths. Woodworker’s Supply, Inc., v. Principal Mut. Life Ins. Co., 170 F.3d 985, 988 (10th Cir.1999). “[W]e accept the jury’s factual determinations as long as they are reasonably based on some evidence or the inferences that may reasonably be drawn from such evidence.” Webb v. ABF Freight Sys. Inc., 155 F.3d 1230, 1234 n. 1 (10th Cir.1998). Under this standard of review, the record establishes the following facts.

In 1998, Appellants William and Charlene Tuttle, and their son and daughter-in-law, Appellants Kenton and Lori Tuttle, decided to sell their farms in Millard County, Utah. William and Charlene Tuttle’s farm consisted of twenty separate tracts of land totaling approximately 1,100 acres. Kenton and Lori Tuttle’s farm comprised approximately 640 acres. In preparing to sell the properties, William Tuttle represented to his real estate listing agents that his farm included 1,057 acres of legally irrigated land. Its purchase price was set on that basis. Kenton Tuttle signed a listing agreement representing that his farm included 502 acres of legally irrigated ground, and its purchase price was set accordingly.

Appellees, Arizona farmers Grant and Fern Ellsworth, learned of William and Charlene Tuttle’s farm through Mr. Ells-worth’s brother-in-law, Blaine Hunter, who happened to be one of the Tuttles’ listing agents. The Ellsworths were interested in exchanging their Arizona property for other farmland as part of a tax-free, like-kind exchange, and arranged to view Wilham and Charlene Tuttle’s farm.

In August of 1998, Mr. Ellsworth traveled to Utah with his son David, and met for the first time with William Tuttle. In response to Mr. Ellsworth’s questions as *657 to the amount of water to which the farm was entitled and how water rights were determined, William Tuttle stated that the farm was entitled to four acre feet of water and had the capacity to produce that amount. He also stated that in the twenty-three years he had watered the farm, Utah’s State Engineer had neither raised concerns with respect to the farm’s irrigation, nor issued any notice that the farm was not in compliance with the watering restrictions.

Mr. Ellsworth was given a tour of the farm which at that time had approximately 1,057 acres under irrigation. To Mr. Ells-worth, the farm appeared to be well watered. He was also shown a large diesel-powered irrigation well on one of the parcels making up the farm. Just days prior to Mr. Ellsworth’s visit, William and Charlene Tuttle had received a letter from the Utah State Engineer questioning the development and use of the diesel well; the Tuttles never disclosed to the Ellsworths that there might be problems with the well. In fact, in the real estate purchase contract pertaining to their farm, William and Charlene Tuttle warranted that each well serving the property had the applicable permits, was in working order, and was fit for its intended purpose.

In October of 1998, Grant Ellsworth viewed Kenton and Lori Tuttle’s farm. Irrigation pivots covered 502 acres of the farm and all 502 acres appeared to be watered. The Ellsworths offered to purchase the farms and shortly thereafter William Tuttle provided the Ellsworths with a computer printout of three, of what turned out to be a total of ten, state-issued certificates of appropriation pertaining to the irrigation of the two Tuttle farms. When Grant Ellsworth could not reconcile the certificates with the irrigated acreage, he asked William Tuttle for additional information. William Tuttle produced additional printouts and assured him that the farm had “plenty of water.” William Tuttle also furnished a copy of a letter he had received in March of 1996 from the State Engineer. He explained that the letter, addressed “Dear Water User,” provided verification of the farms’ water rights.

On November 30, 1998, the parties entered into real estate purchase contracts pursuant to which the Ellsworths would pay $2,014,250 for William and Charlene Tuttle’s farm and $850,000 for Kenton and Lori Tuttle’s farm. The Ellsworths understood that they would receive the right to water the 1,057 irrigated acres of William and Charlene Tuttle’s farm and the 502.4 irrigated acres of Kenton and Lori Tuttle’s farm. Shortly before the purchase of the farms was closed, the Tuttles demanded that the Ellsworths pay them seven percent interest on the difference between the farms’ total purchase price and the approximately $750,000 in non-refundable payments the Ellsworths had already made. Although the real estate purchase contracts made no provision for such interest payments, on June 29, 1999, Grant Ellsworth and William and Kenton Tuttle signed a document providing that the Ellsworths would pay the Tuttles seven percent interest on the outstanding balance of the purchase price for the period of April 1,1999 through June 29,1999.

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