Sergeant Co. v. Pickett

401 A.2d 651, 285 Md. 186
CourtCourt of Appeals of Maryland
DecidedJune 4, 1979
Docket[No. 122, September Term, 1978.]
StatusPublished
Cited by87 cases

This text of 401 A.2d 651 (Sergeant Co. v. Pickett) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sergeant Co. v. Pickett, 401 A.2d 651, 285 Md. 186 (Md. 1979).

Opinion

Orth, J.,

delivered the opinion of the Court.

This appeal stems from an action for breach of contract brought in the Circuit Court for Charles County by Ronald W. Pickett against The Sergeant Company and Fidelity *188 Federal Savings & Loan Association, formerly Waitlorf Federal Savings & Loan Association (Sergeant). sjPhe background of the case was set out in Sergeant Co. v. Pickett, 283 Md. 284, 388 A. 2d 543 (1978).

In his declaration, Pickett, a builder of residential dwellings, alleged that on payment of a valid - consideration, Sergeant, acting on its own behalf and as agent for Fidelity, had procured for him a commitment for a permanent mortgage loan which he had accepted. Pickett further alleged that despite this binding obligation, Fidelity and Sergeant had breached the agreement by utilizing the funds earmarked for the Pickett account to make a loan to another borrower. As a consequence, Pickett allegedly incurred various items of damage, consisting primarily of profits lost from expected house sales.
Sergeant responded with a counterclaim, seeking payment for the unpaid portion of the monies which it claimed to be owed for obtaining the loan commitment. The counterclaim alleged that Sergeant had fully performed its bargain by obtaining the commitment, thus entitling it to fees and commissions upon Pickett’s acceptance of the loan. Ultimately a jury awarded Pickett a judgment of $53,450 against appellees and also found in his favor on the counterclaim.
At the conclusion of the trial, appellants submitted an assortment of jury prayers to the court, among them their requested instruction No. 10:
“Where one party to a contract commits a breach of contract, the other party is required by the ‘avoidable consequences’ rule of damages to make all reasonable efforts to minimize the loss he sustains as a result of the breach, and he can charge the party in default with such damages only as, with reasonable endeavors and expense and *189 without risk of additional substantial loss or injury, he could not prevent. M & R Contractors & Builders, Inc. v. Michael, 1958 138 A. 2d 350, 215 Md. 340.”
This was not read by the trial court during the course of its ensuing charge to the jury, nor was the principle of law adverted to in the prayer otherwise included in its instructions.
Without reaching the contention that the trial court had erred in failing to grant the disputed prayer, the Court of Special Appeals held that the point had not been properly preserved for appellate review under sections d and e of Rule 554, “because appellants [had] not distinctly statefd] the grounds of their objection, designating the particular portion of the instructions given, or omitted, or objected to before the jury retired.” [Id at 285-287.]

The Court of Special Appeals affirmed the judgment of the trial court. Sergeant Co. v. Pickett, No. 452, September Term, 1977, decided 27 December 1977, unreported. We granted Sergeant’s petition for the issuance of a writ of certiorari. We did not agree with the intermediate appellate court and reversed its judgment. We believed, for the reasons stated in the opinion, that there had been “[a]t a minimum ... substantial compliance with Rule 554 d and e,” which “was therefore sufficient to preserve the issue for appellate review.” Sergeant Co. v. Pickett, 283 Md. at 290. We concluded our opinion by stating:

Because our grant of certiorari in this case was limited to the question whether failure to give the requested instruction was properly preserved for appellate review, and since the substantive issue arising from the trial court’s refusal was fully presented to the Court of Special Appeals, we shall remand the case to that court for appropriate resolution. Id.

*190 On remand, in an unreported opinion filed 8 November 1978, the Court of Special Appeals once more affirmed the judgment of the trial court. It still declined to resolve the substantive issue, observing that “[although our inclination not to address the merits of the complaint has not changed, our reason therefor has.” It thought that an “ ‘appropriate resolution’ of the revitalized issue” was properly to be attained under Maryland Rule 1031 c 5 which requires that the brief of the appellant contain “[ajrgument in support of the position of the appellant.” It believed that Sergeant’s brief did not contain the argument called for by the Rule and, accordingly, it held that the issue had been waived. Sergeant sought review of this judgment by way of certiorari, and we granted its petition. We again reverse.

The Court of Special Appeals set the case down for reargument on remand. When counsel for the parties were informed by the clerk of the court of the date the appeal was to be reheard, they were told:

Counsel will be permitted to use briefs hereinbefore filed in the original cause for this presentation. The issue in this matter will be relegated to questions 2 and 3 in the appellants’ brief.

Pickett’s counsel sought clarification from the court; he did not believe that the matter was “presently in a proper posture in the Court of Special Appeals”:

As the Court of Appeals pointed out in its Opinion, the only question raised on certiorari was the adequacy of an exception to the trial judge’s refusal to grant a requested instruction concerning mitigation of damages.
Then, as I read the concluding paragraph of the Court of Appeals’ Opinion, the matter has been sent back to the Court of Special Appeals to decide, even though the instruction was not given, whether the failure to give the instruction caused any damage to the appellant which would justify a remand to the trial court.

*191 He expressed his fears:

This case has gone on for quite some time now and I’m concerned that if the Court of Special Appeals doesn’t do exactly what the Court of Appeals says it should do, we’re going to wind up back in the Court of Appeals.

The Court of Special Appeals confessed that the problem as to what the Court of Appeals expected it to decide on remand had been caused by the Court of Special Appeals “having advised the Clerk’s Office to limit reargument to ‘questions 2 and 3 as they appear in the brief of appellant.’ ” It informed all counsel that “[t]he correct instruction should have been to limit argument to question 3 as it appears in the brief of the appellants.... The other issues have all been decided by our adoption of the trial court’s opinion.”

The second question presented by Sergeant in its brief was: “Is there legally sufficient evidence to sustain the award of damages?” The third question was: “Did the court err in its instructions to the jury with respect to the law of damages?” Sergeant dealt with these two questions together.

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Bluebook (online)
401 A.2d 651, 285 Md. 186, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sergeant-co-v-pickett-md-1979.