Thomas A. King v. Randall L. Niederkorn

CourtCourt of Appeals of Wisconsin
DecidedOctober 11, 2022
Docket2021AP000281
StatusUnpublished

This text of Thomas A. King v. Randall L. Niederkorn (Thomas A. King v. Randall L. Niederkorn) is published on Counsel Stack Legal Research, covering Court of Appeals of Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thomas A. King v. Randall L. Niederkorn, (Wis. Ct. App. 2022).

Opinion

COURT OF APPEALS DECISION NOTICE DATED AND FILED This opinion is subject to further editing. If published, the official version will appear in the bound volume of the Official Reports. October 11, 2022 A party may file with the Supreme Court a Sheila T. Reiff petition to review an adverse decision by the Clerk of Court of Appeals Court of Appeals. See WIS. STAT. § 808.10 and RULE 809.62.

Appeal No. 2021AP281 Cir. Ct. No. 2018CV3

STATE OF WISCONSIN IN COURT OF APPEALS DISTRICT III

THOMAS A. KING AND KIRSTEN R. KING D/B/A KINGS LOGGING AND TREE SERVICE,

PLAINTIFFS-RESPONDENTS,

V.

RANDALL L. NIEDERKORN, REED NIEDERKORN, ROGER W. NIEDERKORN, ROBERT T. NIEDERKORN AND RICHARD H. NIEDERKORN,

DEFENDANTS-APPELLANTS.

APPEAL from a judgment of the circuit court for Trempealeau County: RIAN RADTKE, Judge. Affirmed.

Before Stark, P.J., Hruz and Gill, JJ.

¶1 HRUZ, J. As owners of several hundred acres of land, Randall, Reed, Roger, Robert and Richard Niederkorn entered into a logging contract with Thomas and Kirsten King to cut and sell timber from portions of the Niederkorns’ No. 2021AP281

property.1 Several months after the Kings began performing their contractual obligations, the Niederkorns terminated the contract. The Kings later commenced this action, alleging, among other things, that the Niederkorns’ termination of the contract was a breach of the contract and caused the Kings to suffer lost profits.

¶2 At the end of a bench trial, the circuit court concluded that the contract required a material breach before the Niederkorns could terminate it. Because the court found that none of the Kings’ seven breaches of the contract were material, it determined that the Niederkorns had improperly terminated the contract. After offsetting the Niederkorns’ damages, the court entered a judgment awarding monetary damages to the Kings. On appeal, the Niederkorns challenge both the court’s conclusion regarding the legal standard for terminating the contract and its findings regarding whether the Kings’ breaches of contract were material.

¶3 Consistent with Wisconsin common law, we conclude that the contract required a material breach before the Niederkorns could terminate it. Although Wisconsin law permits parties to specify the circumstances in which a contract can be terminated, the parties’ contract here did not expressly permit termination upon something less than a material breach. In addition, we conclude the circuit court did not apply an improper legal standard in determining whether the Kings’ breaches of contract were material, nor were the court’s related findings of fact clearly erroneous. Accordingly, we affirm.

1 We note that the parties’ respective businesses entered into the contract. Specifically, the Niederkorns entered into the contract pursuant to their partnership, “Niederkorn Farms.” Likewise, the Kings entered into the contract pursuant to their sole proprietorship, “Kings Logging.”

2 No. 2021AP281

BACKGROUND

¶4 In November 2015, the parties executed a “TIMBER SALE CONTRACT,” which provided that the Kings would harvest timber from the Niederkorns’ property and pay the Niederkorns a fixed amount for the timber. The contract language was primarily taken from a contract template drafted by the Wisconsin Woodland Owner’s Association, but William Reynolds, a consultant forester who worked with the Niederkorns, made some edits to the contract on their behalf.

¶5 The contract required, among other things, that all work be completed by April 15, 2018; that the Kings pay the timber prices set forth in a products table in the contract; that no operations occur on the property during the November and December months of each year “so as not to disturb deer hunting opportunities”; that the Kings comply with the relevant “Best Management Practices”; and that the Kings “reserve and stay out of the pine [trees].” The contract estimated that the Kings would pay a total amount of $141,325 to the Niederkorns for the timber. In addition, paragraph four of the contract provided that “[t]he [Niederkorns] may terminate this Contract by oral or written notice to the [Kings] upon its breach.”

¶6 When the Niederkorns entered into the contract, they were enrolled in a state program that imposed certain timber removal requirements on their property in exchange for a reduction in their property taxes. Specifically, the program required the Niederkorns to perform an “overstory removal” on 224 acres of their property, which essentially required that “almost all of the timber” be cut, with some exceptions.

3 No. 2021AP281

¶7 The Kings commenced work under the contract in July 2016. In December 2016, the Niederkorns sent the Kings a letter terminating the agreement and stating that “[t]here have been numerous breaches of the contract by [the Kings] including conducting logging operations during the closed period … (November 1-December 31), conducting logging operations in the closed pine area …, and selling wood outside of the products [sales] table.” The Niederkorns also requested a “face to face audit” with the Kings “to resolve the large discrepancy between the product sales table and the payments to the seller.”

¶8 The Kings later commenced this action alleging a breach of contract claim against the Niederkorns. The Niederkorns, in turn, counterclaimed with their own breach of contract claim, alleging numerous breaches by the Kings. The case proceeded to a bench trial, which was bifurcated into a breach phase and a damages phase.

¶9 At the conclusion of the breach phase, the circuit court found that the Kings had breached the logging contract in seven ways: (1) by failing to provide the Niederkorns with “mill slips” documenting information about the logs sent to a mill; (2) by improperly paying “pulpwood prices” for one load of “sawtimber”; (3) by hauling logs from the property between November 1 and November 4, 2016; (4) by making multiple late payments to the Niederkorns; (5) by causing and not fixing rutting2 on the property; (6) by using slash3 as a “top road” on the

2 The contract does not define the term “rutting.” Generally speaking, rutting means “an elongated depression caused by wheels or tracks of machinery, equipment or other vehicles and is 6 inches deep or more.” See, e.g., WIS. ADMIN. CODE § NR 345.03(12m) (Mar. 2014). 3 The term “slash” is defined under the contract as “any tree tops, limbs, bark, abandoned forest products, windfalls or other debris left on the land after timber or other forest products have been cut.” See WIS. STAT. § 26.12(6)(a) (2019-20).

4 No. 2021AP281

property without prior authorization from the Niederkorns; and (7) by damaging thirty-seven pine trees.

¶10 The circuit court recognized, however, that Wisconsin law requires a material or substantial breach before a contract may be terminated, and it concluded that the language in paragraph four of the contract “does not contract out of Wisconsin law.” Applying this material-breach requirement, the court found that none of the Kings’ breaches—either individually or collectively—were material or substantial, such that the Niederkorns would be justified in terminating the contract.

¶11 At the end of the damages phase, the circuit court found that the Kings suffered $81,804.59 in total damages, which was largely due to the Kings’ lost profits after the Niederkorns improperly terminated the contract. The court also found that the Niederkorns suffered $13,627.23 in total damages as a result of the Kings’ contract breaches. After offsetting the Niederkorns’ damages and awarding the Kings costs and disbursements, the court entered a judgment of $71,621.78 in favor of the Kings.

¶12 The Niederkorns now appeal. Additional facts will be provided as necessary below.

DISCUSSION

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Amjad T. Tufail v. Midwest Hospitality, LLC
2013 WI 62 (Wisconsin Supreme Court, 2013)
Volvo Trucks v. State, Dept. of Transp.
2010 WI 15 (Wisconsin Supreme Court, 2010)
Ranes v. American Family Mutual Insurance
580 N.W.2d 197 (Wisconsin Supreme Court, 1998)
Appleton State Bank v. Lee
148 N.W.2d 1 (Wisconsin Supreme Court, 1967)
Northern States Power Co. v. National Gas Co.
2000 WI App 30 (Court of Appeals of Wisconsin, 1999)
Management Computer Services, Inc. v. Hawkins, Ash, Baptie & Co.
557 N.W.2d 67 (Wisconsin Supreme Court, 1996)
Royster-Clark, Inc. v. Olsen's Mill, Inc.
2006 WI 46 (Wisconsin Supreme Court, 2006)
Ash Park, LLC v. Alexander & Bishop, Ltd.
2015 WI 65 (Wisconsin Supreme Court, 2015)
Daniel Marx v. Richard L. Morris
2019 WI 34 (Wisconsin Supreme Court, 2019)
Myrold v. Northern Wisconsin Co-operaTive Tobacco Pool
239 N.W. 422 (Wisconsin Supreme Court, 1931)
Maryland Arms Ltd. Partnership v. Connell
2010 WI 64 (Wisconsin Supreme Court, 2010)
Ralph Gentile, Inc. v. State Division of Hearings & Appeals
2011 WI App 98 (Court of Appeals of Wisconsin, 2011)
Ashker v. Aurora Medical Group, Inc.
2013 WI App 143 (Court of Appeals of Wisconsin, 2013)

Cite This Page — Counsel Stack

Bluebook (online)
Thomas A. King v. Randall L. Niederkorn, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomas-a-king-v-randall-l-niederkorn-wisctapp-2022.