Sykes v. Melba Creek Mining, Inc.

952 P.2d 1164, 1998 Alas. LEXIS 12, 1998 WL 31366
CourtAlaska Supreme Court
DecidedJanuary 30, 1998
DocketS-6759
StatusPublished
Cited by52 cases

This text of 952 P.2d 1164 (Sykes v. Melba Creek Mining, Inc.) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sykes v. Melba Creek Mining, Inc., 952 P.2d 1164, 1998 Alas. LEXIS 12, 1998 WL 31366 (Ala. 1998).

Opinion

OPINION

BRYNER, Justice.

Melba Creek Mining, Inc., and Fairbanks Gold Mining, Inc., (collectively MCM) filed a superior court action against Dwane Sykes (Sykes), claiming that Sykes had failed to perform on a contract to convey to MCM his mineral rights to a parcel of land near Fairbanks. Following a non-jury trial, Superior Court Judge Niesje J. Steinkruger entered judgment for MCM in the amount of $159,-259.16. On appeal, Sykes challenges the trial court’s grant of partial summary judgment to MCM, claims that the court erred in entering an order precluding him from calling witnesses at trial, and contests the award of damages. We affirm the partial summary judgment order, reverse the order precluding Sykes from calling witnesses at trial, and remand for further proceedings; we also conclude that if the superior court enters a verdict in MCM’s favor on remand, the court must reconsider its original award of compensatory damages and prevailing party attorney’s fees.

I. FACTS AND PROCEEDINGS

In 1992, MCM planned to excavate and develop a parcel of land near Fairbanks; Sykes, a Utah resident, owned mineral rights to the land. On June 3,1992, Robert Tsigon-is, an environmental engineer/land coordinator for MCM in Fairbanks, telephoned Sykes in Utah to negotiate MCM’s purchase of Sykes’s mineral rights. A series of calls ensued, culminating on June 30 in Sykes’s verbal agreement to deed the mineral estate to MCM for $10,000.

Two days later, Tsigonis faxed a written agreement to Sykes. That same day, Tsi-gonis offered to fly to Utah to deliver a $10,000 check in exchange for Sykes’s deed. In response to. this offer, Sykes confirmed his willingness to accept $10,000 for the deed but suggested having MCM fly him to Fairbanks, so that he could conduct other business there. Tsigonis agreed to this arrangement. Sykes signed and returned to Tsigonis the faxed agreement. Tsigonis purchased an airline ticket for Sykes, and, on July 13, Sykes flew to Fairbanks. Following his arrival, however, Sykes avoided Tsigonis, failed to claim his $10,000 check, and never delivered the promised deed.

On July 16, Sykes wrote Tsigonis a letter disclaiming any intent to sell MCM the min *1166 eral rights. In the letter, Sykes claimed that he had “no recollection of signing or sending anything, or if so, no idea what I may have been signing or doing on July 3, 1992, or thereabout.” Sykes wrote that he “thought it was simply a preliminary document” and that the parties would “negotiate further at a later date.” Sykes further explained:

As you undoubtedly recall from our phone conversations, my emotional state was and remains quite delicate. At the time we were discussing these matters, as I then told you, I was heavily medicated with prozac, anafranil, lithium, and other drugs, under orders of my psychiatrist and physician. Hence I did not know what I was doing.

The following day, July 17, Sykes' quit-claimed his mineral rights to Max Ferre, a Utah resident, purportedly in exchange for Ferre’s payment to Sykes of $51,000. Several days later, on July 21, Tsigonis received Sykes’s July 16 letter disclaiming the agreement to sell the mineral rights to MCM.

On July 24, MCM filed suit against Sykes for specific performance and to enjoin him from transferring his mineral rights to the disputed land. In early September, MCM’s amended complaint named Max Ferre as a codefendant and adding various claims, including misrepresentation and intentional failure to perform on Sykes’s part. The amended complaint demanded an award of punitive damages and requested full compensation for all expenses MCM might incur in recovering the disputed mineral rights.

Sykes’s answer generally denied the complaint’s allegations and advanced several defenses, including an allegation that MCM had engaged in misrepresentation 1 and a claim that Sykes had been mentally incapable of entering into the alleged contract.

MCM eventually negotiated a settlement with Ferre, acquiring the disputed mineral rights from him in exchange for $10,000 and his dismissal from the lawsuit. Ferre was dismissed as a defendant in October 1993.

MCM thereafter moved for summary judgment against Sykes, contending that there was no genuine issue of material fact as to the formation of the alleged contract or Sykes’s subsequent breach of it by the sale to Ferre. Sykes opposed the motion and cross-moved for summary judgment.

The superior court denied Sykes’s cross-motion and granted partial summary judgment to MCM, ruling from- the bench that Sykes had entered into a valid contract to sell MCM the mineral rights and that he had subsequently breached this contract. Confusion subsequently arose as to the scope of the superior court’s oral summary judgment order. As a result, on April 18, 1994, the court issued a written order clarifying that Sykes’s defenses of misrepresentation and mental incapacity had not been foreclosed by the summary judgment order and that Sykes remained free to litigate these issues at trial.

Prior to trial, Sykes missed the deadlines for filing expert and non-expert witness lists, as set in the superior court’s pretrial order. Sykes eventually, submitted late witness lists and moved for leave to allow their untimely filing. He claimed that he had recently gone through a period of depression that had precluded him from meeting the original deadlines. The superior court denied Sykes’s motion, ruling that he had failed to establish manifest injustice warranting departure from the pretrial order. The court concluded that Sykes “shall not be allowed to call any lay or expert witnesses in this trial” apart from witnesses already named on MCM’s witness lists.

After a five-day bench trial, the superior court issued a decision in MCM’s favor, resolving “all material facts ... ■ against [Sykes].” Specifically, the court found that Sykes’s testimony had been consistently untruthful. It rejected Sykes’s defenses of misrepresentation and mental incapacity and found that he had intentionally breached his contract with MCM. The court further found that Sykes’s breach forced MCM to incur substantial legal expenses before it managed *1167 to acquire the disputed mineral rights from Max Ferre. Based on these findings, the court declared Sykes liable to MCM for punitive damages and for all attorney’s fees and costs paid by MCM through mid-October of 1993 — the date of its settlement with Ferre. The court entered judgment against Sykes in the total amount of $159,259.16. 2

Sykes appeals.

II. DISCUSSION

A. Summary Judgment

Sykes initially claims that the superior court erred in granting partial summary judgment to MCM. 3 In granting summary judgment, the court- found no genuine issue of fact as to the formation of a valid contract or as to Sykes’s later breach of that contract. Sykes contends that there was ample evidence to preclude summary judgment as to formation of a contract and breach.

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Cite This Page — Counsel Stack

Bluebook (online)
952 P.2d 1164, 1998 Alas. LEXIS 12, 1998 WL 31366, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sykes-v-melba-creek-mining-inc-alaska-1998.