Knight v. TCB CONST. AND DESIGN, LLC

2011 WY 27, 248 P.3d 178, 2011 Wyo. LEXIS 28, 2011 WL 565625
CourtWyoming Supreme Court
DecidedFebruary 18, 2011
DocketS-10-0173
StatusPublished
Cited by5 cases

This text of 2011 WY 27 (Knight v. TCB CONST. AND DESIGN, LLC) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Knight v. TCB CONST. AND DESIGN, LLC, 2011 WY 27, 248 P.3d 178, 2011 Wyo. LEXIS 28, 2011 WL 565625 (Wyo. 2011).

Opinion

248 P.3d 178 (2011)
2011 WY 27

Scott R. KNIGHT, Appellant (Plaintiff),
v.
TCB CONSTRUCTION AND DESIGN, LLC and Catherine Petersen, Personal Representative for the Estate of Eric S. Turner, Appellees (Defendants).

No. S-10-0173.

Supreme Court of Wyoming.

February 18, 2011.

*179 Representing Appellant: Jason M. Tangeman of Nicholas & Tangeman, LLC, Laramie, Wyoming.

Representing Appellees: Megan L. Hayes and Allen Gardzelewski of Corthell and King, P.C., Laramie, Wyoming. Argument by Ms. Hayes.

Before KITE, C.J., and GOLDEN, HILL, VOIGT, and BURKE, JJ.

VOIGT, Justice.

[¶ 1] Scott R. Knight (Knight) appeals a district court's damages award and findings *180 relating to liability arising out of a construction contract between Knight and TCB Construction and Design, L.L.C. We affirm.

ISSUES

[¶ 2] 1. Did the district court err as a matter of law when it determined that a second contract superseded the first?

2. Did the district court err as a matter of law in the method it used to calculate damages?

FACTS

[¶ 3] On March 7, 2008, Knight contracted with Deerwood Log Homes, Inc. (Deerwood), in which Deerwood was to build a log home for Knight on property located outside of Laramie, Wyoming. A disagreement between Deerwood and Knight developed, leading to Deerwood's termination from the project and a subsequent settlement agreement.

[¶ 4] On August 28, 2008, Knight entered into a contract (Agreement) with Eric Turner (Turner) to finish the construction project.[1] Turner had recently moved to Wyoming from Colorado and was doing business as TCB Construction and Design.[2] The Agreement was a time and materials contract, which called for TCB Construction and Design to complete the log home project for Knight and in return receive compensation in the amount of time and materials, plus 33%. The Agreement aimed for a November 2008 completion date. The Agreement was signed by Knight as owner of the property and by Turner with the notation of TCB Construction & Design under his signature.[3] More will be said below in the discussion section about the specific terms of this Agreement.

[¶ 5] On September 5, 2008, Turner organized TCB Construction and Design as a Wyoming limited liability company. We will refer to TCB Construction and Design, L.L.C. as TCB Construction, LLC and its non-LLC counterpart as TCB Construction and Design. On September, 10, 2008, TCB Construction, LLC and Knight entered into a contract called "Addendum to Agreement," which provided in part that TCB Construction, LLC would assume and complete the log home for Knight. The Addendum set the price of completion at $400,000.00, less $80,000.00 already received. The Addendum also referenced two other separate projects: a Solar and Wind Array (Solar/Wind Array) contract for $109,000.00 and a Generator/Pump House/Electrical Building (Generator Building) contract for $60,000.00. The Addendum was signed by Knight, as owner of the property, and Turner, with the notation of TCB Construction & Design beneath Turner's signature, but the Addendum bore the subheading "TCB Construction and Design, LLC" in bold lettering.[4] More will be said in the discussion section about the Addendum and separate Solar/Wind Array and Generator Building contracts.

[¶ 6] In early December 2008, the relationship between Knight and TCB Construction, LLC had soured and Knight terminated TCB Construction, LLC from the project. Knight hired S & J Log Construction to complete the project. Shortly thereafter, Knight filed a lawsuit against TCB Construction, LLC and Turner, individually, alleging numerous causes of action, including fraud, breach of contract, breach of the implied covenant of good faith and fair dealing, breach of implied warranty, and unjust enrichment. Following a bench trial, the district court issued a decision letter and judgment, making the following general conclusions: (1) the Addendum superseded the Agreement, with the newly formed TCB Construction, LLC as the party responsible for completion of the construction project; (2) the Addendum converted the Agreement for constructing the log home from a time and materials, plus 33%, contract, to a flat *181 fee contract in the amount of $400,000.00, less the $80,000.00 already paid; (3) TCB Construction, LLC breached the contract by failing to complete the construction project by the November deadline; (4) TCB Construction, LLC owed Knight damages in the amount of $31,850.37 for its breach; and (5) Turner was not personally liable for the damages, because TCB Construction, LLC had organized as an LLC in Wyoming prior to entering into the Addendum. Knight filed a timely notice of appeal.

DISCUSSION

Did the district court err as a matter of law when it determined that a second contract superseded the first?

[¶ 7] The resolution of this issue requires this Court to interpret the Agreement and Addendum to determine what contract was in effect. We have repeatedly held that interpreting contracts is a question of law, which we review de novo. See, e.g., Terris v. Kimmel, 2010 WY 110, ¶ 7, 236 P.3d 1022, 1025 (Wyo.2010).

The primary focus is on determining the intent of the parties to the contract. The initial question is whether the language of the contract is clear and unambiguous. If it is, then the trial court determines the parties' intent from the contract language alone. It does not consider extrinsic evidence, although it may consider the context in which the contract was written, including the subject matter, the purpose of the contract, and the circumstances surrounding its making, all to help ascertain what the parties intended when they made the contract. The trial court then enforces the contract in accordance with the plain meaning its language would be given by a reasonable person. All of these issues— deciding whether a contract is unambiguous, determining the parties' intent from the unambiguous language, and enforcing the contract in accordance with its plain meaning—involve questions of law for the trial court. When we undertake de novo review of the trial court's conclusions of law, we follow the same familiar path. See Double Eagle Petroleum & Mining Corp. v. Questar Exploration & Production Co., 2003 WY 139, ¶¶ 7-8, 78 P.3d 679, 681-82 (Wyo.2003), and cases cited therein.

Id. (quoting Horse Creek Conservation Dist. v. State ex rel. Wyo. Attorney Gen., 2009 WY 143, ¶ 25, 221 P.3d 306, 315 (Wyo.2009)).

[¶ 8] Knight argues that the district court erred when it determined that the Addendum superseded the Agreement thereby relieving Turner of personal liability. We disagree with Knight and hold that the Addendum controlled and ultimately relieved Turner and his successor estate of liability.

[¶ 9] "Generally, contract — seven fully executed ones—can be cancelled or rescinded by the mutual consent of the parties." 29 Samuel Williston, Treatise on the Law of Contracts § 73:15, at 49 (Richard A. Lord ed., 4th ed.2003). "Rescission generally must be exercised in toto and is applied to the contract in its entirety with the result that what has been done is wholly undone and no contract provisions remain in force to bind either of the parties." Id. The intent to rescind a contract does not need to be express or in writing, but can be inferred from the conduct of the parties and the surrounding circumstances. See Roussalis v. Wyo. Med. Ctr.,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Dowell v. Dowell
2012 WY 154 (Wyoming Supreme Court, 2012)
Schlinger v. McGhee
2012 WY 7A (Wyoming Supreme Court, 2012)

Cite This Page — Counsel Stack

Bluebook (online)
2011 WY 27, 248 P.3d 178, 2011 Wyo. LEXIS 28, 2011 WL 565625, Counsel Stack Legal Research, https://law.counselstack.com/opinion/knight-v-tcb-const-and-design-llc-wyo-2011.