Lone Moose Meadows, LLC v. Boyne USA, Inc.

2017 MT 142, 396 P.3d 128, 387 Mont. 507, 2017 Mont. LEXIS 373, 2017 WL 2555203
CourtMontana Supreme Court
DecidedJune 13, 2017
DocketDA 16-0636
StatusPublished
Cited by5 cases

This text of 2017 MT 142 (Lone Moose Meadows, LLC v. Boyne USA, Inc.) 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
Lone Moose Meadows, LLC v. Boyne USA, Inc., 2017 MT 142, 396 P.3d 128, 387 Mont. 507, 2017 Mont. LEXIS 373, 2017 WL 2555203 (Mo. 2017).

Opinions

CHIEF JUSTICE McGRATH

delivered the Opinion of the Court.

¶1 Lone Moose Meadows, LLC appeals from a summary judgment ruling in favor of Boyne USA, Inc. We affirm.

¶2 We restate the issue on appeal as follows:

Did the District Court properly allow Boyne to pursue successive claims for breach of contract?

FACTUAL AND PROCEDURAL BACKGROUND

¶3 Lone Moose Meadows, LLC (LMM) and Boyne USA, Inc. (Boyne) are corporations operating in Big Sky, Montana. Boyne is the owner and operator of Big Sky Resort. LMM is a housing development at the base of Big Sky Resort. In 2002, the parties entered into an operations agreement where LMM would construct a ski lift and pay Boyne to operate it. LMM agreed to pay annual maintenance and operating expenses, as well as a $50,000 yearly depreciation expense. The agreement stated “[LMM] shall not be required to pay any depreciation dollar component of the operating expenses until the 2002-2003 ski season” and “replacement lifts will be constructed and owned by Boyne.” In December 2002, Boyne sent LMM a notice of lift operation expenses for the 2002-2003 ski season, which included $50,000 for depreciation expenses. LMM refused to pay, stating it was not required to pay depreciation expenses until Boyne owned the ski lift. Despite non-payment, Boyne continued operating the ski lift, electing to treat the contract as continuing.

¶4 In February 2008, Boyne filed suit for breach of contract. Boyne asserted LMM failed to make depreciation payments and demanded [509]*509payment under the contract for the seven years of past due payments: 2002-03, 2003-04, 2004-05, 2005-06, 2006-07, 2007-08,2008-09. LMM contended it was not obligated to make depreciation payments until Boyne owned the lift. The District Court granted summary judgment in favor of Boyne, concluding LMM was obligated to pay $50,000 annually beginning with the 2002-03 ski season. LMM appealed. This Court upheld the District Court’s ruling (Boyne I).1 In October 2012, the District Court entered a restated judgment against LMM for seven years of depreciation expenses plus costs, fees, and interest. LMM paid $634,328.19 to Boyne, satisfying the judgment.

¶5 In December 2009, while the above appeal was pending, LMM filed an action against Boyne alleging it had engaged in wrongful collection efforts with respect to the first judgment.2 Boyne counterclaimed for breach of contract asserting LMM now owed depreciation expenses for the 2009-10, 2010-11, 2011-12 ski seasons. Boyne’s counterclaim also included claims for abuse of process, malicious prosecution, and punitive damages, as well as a third-party claim against LMM’s owner James Dolan, Sr. The parties settled these claims. LMM voluntarily moved to dismiss the wrongful collection claim and the District Court dismissed it. The only remaining issue was Boyne’s breach of contract counterclaim. Boyne moved for summary judgment.

¶6 In October 2015, the District Court held a hearing on Boyne’s summary judgment motion. LMM agreed it had not made any payments, but argued that this breach of contract claim was barred under the doctrine of claim preclusion, thus eliminating Boyne’s entitlement to a new judgment. The District Court granted Boyne’s summary judgment motion. The District Court found that the second suit arose from facts not in existence at the time of the first suit and that Boyne had the right to maintain successive actions for each new breach of the contract as they arose. Boyne was not required to sue for future payments even though LMM’s breach was material, and the District Court held LMM’s refusal to pay depreciation costs did not amount to anticipatory repudiation of the terms of the agreement. On October 7,2015, the District Court entered judgment in favor of Boyne [510]*510for $150,000, plus fees and interest. LMM appeals.

STANDARD OF REVIEW

¶7 We review de novo a district court's grant or denial of summary judgment, applying the same criteria of M. R. Civ. P. 56 as a district court. Pilgeram v. GreenPoint Mortg. Funding, Inc., 2013 MT 354, ¶ 9, 373 Mont. 1, 313 P.3d 839. We review a district court’s conclusions of law to determine whether they are correct and its findings of fact to determine whether they are clearly erroneous. Pilgeram, ¶ 9.

¶8 Under M. R. Civ. P. 56(c), judgment “shall be rendered forthwith if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law. Roe v. City of Missoula, 2009 MT 417, ¶ 14, 354 Mont. 1, 221 P.3d 1200.

DISCUSSION

¶9 Did the District Court properly allow Boyne to pursue successive claims for breach of contract?

¶10 LMM asserts claim preclusion barred Boyne’s attempt to collect for three years of depreciation expense payments and that the District Court erred in determining that claim preclusion did not bar Boyne’s claims in this matter. LMM contends their initial breach of the contract was so severe that Boyne was required to sue for all depreciation payments under the contract under a theory of anticipatory repudiation.

¶11 Claim preclusion (“res judicata”) bars the relitigation of a claim that the party had an opportunity to litigate in a previous proceeding. Brilz v. Metro Gen. Ins. Co., 2012 MT 184, ¶ 18, 366 Mont. 78, 285 P.3d 494. An issue cannot be relitigated under res judicata so long as the parties or their privies are the same, the subject matter of the present and past actions is the same, the issues are the same and relate to the same subject matter, the capacities of the parties are the same to the subject matter and issues between them, and a final judgment on the merits has been entered. Denturist Ass’n of Mont. v. State, 2016 MT 119, ¶ 11, 383 Mont. 391, 372 P.3d 466.

¶12 The parties only dispute whether the issues are the same. LMM argues that claim preclusion applies because the issue raised by Boyne is one that could have been raised in the first action and Boyne was required to do so under Montana law in order to preserve that claim. Gibbs v. Altenhofen, 2014 MT 200, ¶ 10, 376 Mont. 61, 330 P.3d 458. [511]*511We are not convinced. “It is an elementary rule of law that where several claims, payable at different times, arise out of the same contract, suit may be brought as each liability accrues.” Cohen v. Clark, 44 Mont. 151, 155, 119 P. 775, 777 (1911). The issues are not the same. Each law suit addresses different years in the contract.

¶13 Significantly, Montana law expressly grants contracting parties the right to maintain successive actions on the same contract. State ex rel. Towne v. Second Judicial Dist. Court, 114 Mont. 1, 132 P.2d 161 (1942); Green v. Wolff, 140 Mont. 413, 372 P.2d 427 (1962); § 28-2-1501, MCA (“successive actions may be maintained upon the same contract or transaction whenever after the former action a new cause of action arises therefrom”).

¶14 In Towne, a couple intended to divorce and created a contract for division of their property as well as care and custody of their minor child. Towne,

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Lone Moose Meadows, LLC v. Boyne USA, Inc.
2017 MT 142 (Montana Supreme Court, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
2017 MT 142, 396 P.3d 128, 387 Mont. 507, 2017 Mont. LEXIS 373, 2017 WL 2555203, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lone-moose-meadows-llc-v-boyne-usa-inc-mont-2017.