McCarthy v. James E. Simon Co.

923 P.2d 747, 1996 Wyo. LEXIS 129, 1996 WL 520308
CourtWyoming Supreme Court
DecidedSeptember 16, 1996
Docket95-228
StatusPublished
Cited by5 cases

This text of 923 P.2d 747 (McCarthy v. James E. Simon Co.) 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
McCarthy v. James E. Simon Co., 923 P.2d 747, 1996 Wyo. LEXIS 129, 1996 WL 520308 (Wyo. 1996).

Opinion

LEHMAN, Justice.

Nancy McCarthy d/b/a The Emerald Ranch (McCarthy) appeals from a judgment of the district court which held that an oral agreement terminated a written contract providing for the removal of gravel from a pit on her property for use on a highway construction project by James E. Simon Company (Simon).

We affirm.

McCarthy offers six issues for consideration:

1. Whether a writing executed only by the purchaser is sufficient to convey stockpiled gravel or to otherwise evidence an oral contract to convey stockpiled gravel for the purpose of asserting a conversion claim.
2. Whether a writing which is relied upon to establish an oral agreement must be enforced in accordance with its terms.
3. Whether there was clear and convincing evidence establishing that the parties orally agreed to terminate the written agreement between them in its entirety.
4. Whether an agreement to terminate a written contract entered into without knowledge of a prior breach thereof operates to extinguish any remedy for the prior breach.
5. Whether full and fair disclosure of a contractual breach is required when a party seeks to “buyout” a contract and, thereby, extinguish any remedies for the prior breach.
6. Whether a party seeking waiver of a breach of its contractual obligations to another party is obligated to disclose that breach to the party from whom the waiver is sought.

Simon attempts to the simplify the matter:

Was there sufficient evidence to support the Trial Court’s finding that the stockpiled gravel had been purchased by Plaintiff James E. Simon Co. and that Defendant Nancy McCarthy was therefore guilty of wrongful conversion of that stockpile?

*749 FACTS

MeCarthy is the owner of the McCarthy Pit, a gravel pit. Simon is a construction company that was involved in work on a road project called the Battle Lake Road Project. The parties entered into a written contract whereby Simon agreed to exclusively utilize gravel from the McCarthy Pit for its work on the Battle Lake Project. Simon agreed to pay McCarthy $0.40 per ton for the gravel and, when the project was finished, to reclaim the area around the pit in compliance with the requirements established by the Wyoming Department of Environmental Quality.

Simon alleged, and the trial court agreed, that almost a year later the parties entered into an oral agreement to terminate the written contract for a $15,000 settlement plus the last 8,000 tons of rock still stockpiled at the pit. A check and letter were sent to McCarthy confirming this agreement. McCarthy cashed the check for $15,000. Finding that the parties had intended to terminate the written agreement, the trial court concluded that Simon was entitled to the remaining stockpiled rock at the pit and that McCarthy’s refusal to allow Simon to remove it constituted a conversion.

DISCUSSION

McCarthy raises several claims of error in the trial court’s disposition. 1 She contends that Simon failed to prove the elements of its claim for conversion. Specifically, McCarthy argues that Simon failed to prove the amount of the rock it claimed or that it was entitled to legal possession. McCarthy also asserts that there was insufficient evidence demonstrating that the parties intended to terminate the written contract through the oral agreement. Finally, McCarthy claims that Simon breached the written agreement prior to the execution of the oral one and that breach vitiates the oral agreement as there was no waiver of the breach.

A trial court’s findings and judgment on questions of evidence are sustained unless they are clearly erroneous or contrary to the great weight of the evidence. Morris v. Staab, 896 P.2d 773, 775 (Wyo.1995) (quoting Hillard v. Marshall, 888 P.2d 1255, 1260 (Wyo.1995)). We look at the evidence in the light most favorable to the prevailing party, without considering appellant’s evidence in conflict therewith. Id.; Samuel v. Zwerin, 868 P.2d 265, 267 (Wyo.1994).

A review of the record demonstrates there is sufficient evidence to support the determination that the parties intended to terminate the written agreement by execution of the oral one. At trial, the vice president of Simon testified it was agreed that the $15,000 payment was to buy out the previous contract and compensate McCarthy for rock removed and for the remaining stockpile. Also, McCarthy’s son, who negotiated both agreements with Simon, testified in accordance with the testimony offered by Simon:

Q. And that $15,000, your understanding was to go for the royalties for material already taken from the pit, number one, true?
A. Yes.
Q. Number two, the $15,000 in part was to pay for the material that had been mined from the pit but was still stockpiled there, true?
A. In preparation of being hauled, yes.
Q. And, number three, the $15,000 was to go in part for the buyout of the November, 1991 agreement, true?
A. Yeah. It was in payment for the remainder of — in lieu of their obligation under the contract to haul the remainder of the gravel from our pit and pass the per ton royalties.
Q. That was a buyout of the previous agreement, true?
A. That was — Yeah, for what was used for, you know, the road project.

*750 The trial court ruled that McCarthy’s son acted as her agent during the negotiations, a finding McCarthy has chosen not to contest on appeal. Additionally, after negotiations, Simon sent McCarthy a letter:

As per our verbal agreement today, please find enclosed a check for $15,000.00 for complete payment on the Battle Lake Project, plus the 8,000 ton of rock that is currently stockpiled at the pit.

The foregoing evidence is more than sufficient to support the trial court’s determination.

McCarthy’s next argument centers around her contention that Simon had breached the written contract prior to the execution of the oral one. The written contract contained an exclusivity provision by which Simon was required to use only gravel from McCarthy’s pit in the road project. Apparently, Simon began mining and crushing rock from another pit prior to the time the parties agreed to the oral contract. This, McCarthy insists, was a breach, and it was not waived since she had no knowledge of this at the time of the breach. Consequently, McCarthy contends that the oral agreement was not valid and she should be awarded damages for the breach.

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Bluebook (online)
923 P.2d 747, 1996 Wyo. LEXIS 129, 1996 WL 520308, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccarthy-v-james-e-simon-co-wyo-1996.