National Advertising Co. v. Wilson Auto Parts, Inc.

569 N.E.2d 997, 1991 Ind. App. LEXIS 665, 1991 WL 64920
CourtIndiana Court of Appeals
DecidedApril 25, 1991
Docket49A02-9006-CV-319
StatusPublished
Cited by20 cases

This text of 569 N.E.2d 997 (National Advertising Co. v. Wilson Auto Parts, Inc.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Advertising Co. v. Wilson Auto Parts, Inc., 569 N.E.2d 997, 1991 Ind. App. LEXIS 665, 1991 WL 64920 (Ind. Ct. App. 1991).

Opinion

RUCKER, Judge.

This litigation arises out of a contract for the lease of billboard advertising space. The lessee sued for breach of contract and sought punitive damages as a consequence of lessor removing the billboard on which the advertising appeared. The trial court, sitting without a jury, found in favor of lessee but denied punitive damages. Lessor prosecutes this appeal challenging the award of compensatory damages and lessee cross appeals complaining of the denial of punitive damages. We are called upon to determine whether the trial court erred in its computation of compensatory damages and erred in its denial of punitive damages. Finding no error, we affirm.

L.

In April 1985, Wilson Auto Parts, Inc., (Wilson) executed a written agreement with National Advertising Company (National) for advertising space on one of its outdoor billboards. The agreement set forth: the size of the billboard (12 feet by 6 feet), the unit charge ($375.00 per month), and the length of the lease (8 years).

Eighteen months before the lease expired, National removed the billboard on which Wilson's advertisement appeared and replaced the billboard with a larger one. Wilson was not notified in advance that its advertisement would be removed or that the billboard would be replaced. Shortly *999 thereafter, National leased the larger billboard space to another advertiser (Cellular One) at a unit price of $1,590.00 per month for a period of one year.

After removing Wilson's advertisement, but before contracting with Cellular One, National advised Wilson the larger billboard was available, but at a unit price higher than that for which Wilson had contracted. Wilson rejected the offer insisting that National honor the terms of the original agreement. National offered Wilson another location for the placement of the advertisement but Wilson rejected the offer insisting the location of its advertising was unique and another location would be unsatisfactory. National also offered to place Wilson's advertisement on the larger billboard for the original contract price of $375.00 per month, but after the expiration of Cellular One's contract.

The case began as a jury trial, but due to the illness of Wilson's counsel the court declared a mistrial and by agreement of the parties the cause was tried to the court without a jury. The court issued findings of fact and conclusions of law as follows:

1. This Court has jurisdiction over the parties and of the subject matter.
2. Plaintiff is a corporation dealing in automobile parts and National Advertising Company is a corporation which sells advertising by way of outdoor billboards.
3. April 80, 1985, National and Wilson executed a contract providing that National would furnish, for the sum of $375.00 per month, a 12' x 86' billboard displaying Wilson's advertisement of its retail outlets in consideration of the payment by Wilson to National of $375.00 per month for a term of 86 months, beginning May 1, 1985, and terminating April 80, 1988.
4. On or about November 1, 1986, National removed and tore down the 12' x 86' billboard displaying Wilson's advertisement. Over the next two months, National replaced the 12' x 86' billboard with a 14' x 48' billboard at the same location of the original 12% x 36° billboard.
5. Replacement of said billboard was done without the permission of or communicating with Wilson. On learning of the removal of his 12' x 86' billboard, John Wilson, President of Wilson Auto Parts, Inc., complained early in November, 1986, to National Advertising about the removal of the Wilson sign and advertisement.
6. The court finds that Wilson contracted for, and was entitled to use for the term of the contract, the space provided in Defendant's sign.
7. The court finds National rented the new sign at Plaintiff's location for one year beginning about February 9, 1987, for $1,590.00 being a loss of bargain to the Plaintiff in the amount of $1,215.00 per month.
8. National has presented no facts to excuse its willful breach of contract.
9. On and after January 12, 1987, the Defendant rented said sign space to another advertiser with full knowledge that it had breached its contract with Plaintiff and that it continued to breach its contract by negotiating a rental of said space over the objections and complaints of Plaintiff.
10. Plaintiff had a property right in National's billboard for the period of its lease with the Defendant, which property right was taken and converted by the Defendant.
11. The Plaintiff suffered a loss of bargain for 18 months remaining on its contract from November, 1986, through April, 1988, inclusive, in the total sum of $21,870.00.
CONCLUSIONS OF LAW
The Court, having specially found the facts heretofore set forth, now concludes as follows:
1. The Court has jurisdiction of both the parties and the subject matter.
2. The law is with the Plaintiff and against the Defendant.
8. The Court concludes that the Plaintiff's compensatory damage resulting from the Defendant's breach is the sum of $1,215.00 per month for the 18 months *1000 remaining on Plaintiff's contract from November 1, 1986, until April 80, 1988.
4. The Court concludes that Plaintiff is entitled to an award of compensatory damages for the loss of its bargain for the 18 months remaining on its contract.
IT IS THEREFORE ORDERED, ADJUDGED AND DECREED by this Court that the Plaintiff have, and it is hereby awarded, judgment for compensatory damages in the amount of $21,870.00. Cost are assessed against the Defendant.

Since the trial court has entered findings of fact and conclusions of law pursuant to Trial Rule 52, we will apply a two-tier standard of review: first, we will determine whether the evidence supports the findings; second, we will determine whether the findings support the judgment. The trial court's findings and conclusions will be set aside only if they are clearly erroneous, that is, that the record contains no facts or inferences supporting them. Keystone Square v. Marsh Supermarkets, Inc. (1984), Ind.App., 459 N.E.2d 420, 422. We will not reverse unless the finding of the trial court was clearly against the logic and effect of the facts, or reasonable, probable deductions to be drawn therefrom. Eyler v. Eyler (1986), Ind., 492 N.E.2d 1071.

IL.

National argues that Wilson was not entitled to an award of compensatory damages because it suffered no actual loss. National takes the position that in a breach of contract action there are essentially two methods of establishing damages: (1) lost profits, and (2) benefit of the bargain.

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Bluebook (online)
569 N.E.2d 997, 1991 Ind. App. LEXIS 665, 1991 WL 64920, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-advertising-co-v-wilson-auto-parts-inc-indctapp-1991.