Hickingbotham v. Duncan

898 P.2d 1215, 271 Mont. 525, 52 State Rptr. 574, 1995 Mont. LEXIS 129
CourtMontana Supreme Court
DecidedJuly 6, 1995
Docket94-413
StatusPublished
Cited by7 cases

This text of 898 P.2d 1215 (Hickingbotham v. Duncan) 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
Hickingbotham v. Duncan, 898 P.2d 1215, 271 Mont. 525, 52 State Rptr. 574, 1995 Mont. LEXIS 129 (Mo. 1995).

Opinion

CHIEF JUSTICE TURNAGE

delivered the Opinion of the Court.

Howard and Sandra Hickingbotham appeal the decision of the Fourth Judicial District Court, Missoula County, amending its original findings of fact and conclusions of law. Pat Duncan cross-appeals the decision of the District Court ordering him to pay the Hickingbothams’ attorney fees. We affirm in part and reverse in part.

We find the following issues dispositive:

1. Did the District Court err in amending its original findings of fact, conclusions of law and judgment?

2. Did the District Court err in failing to find that Duncan had committed either actual or constructive fraud?

3. Did the District Court err in awarding attorney fees to the Hickingbothams?

Duncan owned a tract of land in Missoula County, Montana (Tract 1-A). In December 1990, the Hickingbothams purchased a portion of Tract 1-A (Tract 1-A-l) on which they planned to build a home. In exchange for $23,000, Duncan executed a warranty deed transferring title to Tract 1-A-l to the Hickingbothams.

While the Hickingbothams were planning their home, they discovered that Tract 1-A-l was not large enough to accommodate their building plans. They therefore sought to purchase an additional portion of Tract 1-A (Portion A) to thus enlarge the total size of their lot. The Hickingbothams negotiated with Duncan the purchase of additional adjoining land for a purchase price of $10,000. The parties’ negotiations culminated in the execution of a Receipt and Agreement to Sell and Purchase dated May 17, 1991.

During this same period of time, Duncan was having a house constructed on his remaining portion of Tract 1-A. He contracted with Ash-Watkins to construct a home for $100,000. Adispute ensued over construction costs incurred in building Duncan’s home. Ash-Watkins sought additional money above and beyond the $100,000 negotiated construction price, but Duncan refused to pay the increased amount. On June 6,1991, Ash-Watkins filed a construction lien against Tract 1-A, including Tract 1-A-l which had been purchased by the Hickingbothams and Portion A which the Hickingbothams were negotiating to purchase. The Hickingbothams claim that Duncan knew or should *528 have known that Ash-Watkins would encumber Tract 1-A-l and Portion A when he did not settle his construction debt.

On June 19, 1991, the Hickingbothams tendered payment for Portion A. Duncan refused to accept because he could not convey clear title to the property due to the Ash-Watkins construction lien.

Pursuant to a court order, Ash-Watkins released the construction lien on Tract 1-A-l. The lien on the remainder of Tract 1-A, including Portion A, was not released. The Hickingbothams have since rescinded their offer to purchase Portion A. The Hickingbothams likewise sold Tract 1-A-l in August of 1992 for a $17,000 profit.

The Hickingbothams filed suit against Duncan, claiming that he breached the covenants contained in the warranty deed to Tract 1-A-l by allowing the construction liens to be placed on the property and that he breached the Receipt and Agreement to Sell and Purchase Portion A signed on May 17, 1991, by failing to convey Portion A to them.

Following a bench trial, the District Court issued its findings of fact, conclusions of law and judgment. The court found that Duncan had breached the express warranty against encumbrances as well as implied covenants contained in the Tract 1-A-l warranty deed. The court also found that Duncan breached the terms of the Receipt and Agreement to Sell and Purchase Portion A by failing to deliver title to the property to the Hickingbothams upon their tender of payment. The court found Duncan and Ash-Watkins j ointly and severally liable for over $29,000 in damages, plus interest.

Duncan moved the court to amend its findings of fact and conclusions of law. Following briefing, the court granted Duncan’s motion and amended its initial findings of fact and conclusions of law.

In its amended findings of fact and conclusions of law, the court determined that Duncan had not breached the express and implied covenants contained in the warranty deed to Tract 1-A-1. The court reasoned that, pursuant to the terms of the warranty deed, Duncan promised to defend the Hickingbothams from all lawful claims against the property. The court determined that the Ash-Watkins lien was unlawful and held in Duncan’s favor in their construction dispute. Therefore, Duncan had no obligation to defend the Hickingbothams from such an unlawful claim.

The court also amended its ruling as to the Receipt and Agreement to Sell and Purchase Portion A. In its amended findings of fact and conclusions of law, the court determined that the only damages available pursuant to the terms of the Receipt and Agreement to Sell *529 and Purchase was the return of the purchasers’ earnest money. Because no money had been exchanged, no other damages were available.

The Hickingbothams appeal the District Court’s amended findings of fact, conclusions of law and judgment. Duncan cross-appeals the District Court’s award of attorney fees to the Hickingbothams. We affirm in part and reverse in part.

Issue 1

Did the District Court err in amending its original findings of fact, conclusions of law and judgment?

We review trial court rulings such as a ruling on a motion to amend findings of fact, conclusions of law and judgment to determine whether the district court abused its discretion. Montana Rail Link v. Byard (1993), 260 Mont. 331, 337, 860 P.2d 121, 125. We will not overturn a district court’s findings of fact unless they are clearly erroneous. Columbia Grain International v. Cereck (1993), 258 Mont. 414, 417, 852 P.2d 676, 678. We review a district court’s conclusions of law to determine if its interpretation of the law is correct. Steer, Inc. v. Department of Revenue (1990), 245 Mont. 470, 803 P.2d 601.

A district court may amend or alter its findings of fact, conclusions of law and judgment pursuant to Rule 59(g), M.R.Civ.P. Rule 59(g) states:

A motion to alter or amend the judgment shall be served not later than 10 days after the service of the notice of the entry of the judgment, and may be combined with the motion for a new trial herein provided for. This motion shall be determined within the time provided hereinabove with respect to a motion for a new trial and if the court shall fail to rule on the motion within the 45 day period, the motion shall be deemed denied.

The Hickingbothams raise no procedural challenges to the District Court’s granting of Duncan’s motion to amend, and a review of the record reveals no procedural error. Likewise, the Hickingbothams fail to allege that the court’s amended findings are not supported by substantial credible evidence or that the amended conclusions are incorrect.

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Bluebook (online)
898 P.2d 1215, 271 Mont. 525, 52 State Rptr. 574, 1995 Mont. LEXIS 129, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hickingbotham-v-duncan-mont-1995.