Three Way, Inc. v. Burton Enterprises, Inc.

2008 WY 18, 177 P.3d 219, 2008 Wyo. LEXIS 19, 2008 WL 451834
CourtWyoming Supreme Court
DecidedFebruary 21, 2008
DocketS-07-0139, S-07-0140
StatusPublished
Cited by29 cases

This text of 2008 WY 18 (Three Way, Inc. v. Burton Enterprises, Inc.) 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
Three Way, Inc. v. Burton Enterprises, Inc., 2008 WY 18, 177 P.3d 219, 2008 Wyo. LEXIS 19, 2008 WL 451834 (Wyo. 2008).

Opinion

VOIGT, Chief Justice.

[¶ 1] This is a dispute in which, after a jury trial on some issues, and a bench trial *222 on other issues, the district court ordered specific performance of a contract for the construction of certain water and sewer mains. The plaintiff contractor (Three Way) sued for the value of its services or for specific performance of the contract. The defendant owner (Burton) counterclaimed for breach of contract and breach of the warranty of workmanship. After the jury found that Burton breached the contract, the district court found the contract to be unambiguous and ordered specific performance, rather than money damages. Three Way appealed that decision. Burton then cross-appealed, alleging that the jury had been improperly instructed and that the district court had erred in an evidentiary ruling. We affirm.

ISSUES

[¶ 2] 1. Whether the district court’s judgment and order should be summarily affirmed because of Three Way’s non-compliance with W.R.A.P. 7.01(e)(2)?

2. Whether the district court abused its discretion in denying Three Way’s motion for leave to amend its complaint?

3. Whether the district court abused its discretion when it granted, in part, Burton’s motion in limine?

4. Whether the district court erred as a matter of law when it denied Three Way’s motion to affirm the jury’s verdict?

5. Whether the district court abused its discretion in instructing the jury as to Three Way’s duty of workmanship?

6. Whether the district court abused its discretion by admitting evidence of Three Way’s claimed money damages?

FACTS

[¶ 3] Burton planned to develop property it owned in Buffalo, Wyoming. On April 8, 2003, Three Way submitted to Burton a bid for $353,604.30 for the construction and installation of certain water and sewer mains related to that development. Burton did not accept that bid. Instead, the parties entered into a written agreement whereby Three Way was to perform the work in exchange for the following consideration:

10. Upon completion of the above described work by Contractor and when such work is approved by Owner and Engineer, Owner will convey the following described property to Contractor:
(a) Lot 20 and Lot 19 of the Village West Estates Subdivision as described on Exhibit A;
(b) Certain property in the City of Buffalo, Wyoming consisting of approximately 7.81 acres more particularly described as
See Exhibit B
(e) A 20 foot easement along the East/ West boundary of the South End of the Village West Estates Subdivision and Village West Mobile Home Park for future construction of a Sewer lift line in the Mobile Home Park Extension for the purpose of a future hook up to City sewer. Easement will follow lot line to the South East manhole.
At such time and place as mutually agreed to by the parties in accordance with the terms of this agreement, Owner shall deliver to Contractor a good and sufficient deed, subject to all real estate taxes for 2003, exceptions, reservations, covenants, conditions, restrictions, easements, rights of way, reservations and rights of record and subject to any state of facts which would be disclosed by an accurate survey or physical inspection of the premises and subject to building, zoning, subdivision or other regulations of any private or governmental entity.[ 1 ]
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12. The above described property will be conveyed “as is,” in its present condition. There are no representations, covenants or agreements by Owner or between the parties with reference to the quality, condition, or status of the property except as *223 specifically set forth in this Agreement, and any such warranties are hereby disclaimed. Contractor is not relying upon any representations by Owner or Owner’s agents as to any condition which Contractor deems to be material to Contractor’s decision to enter into this Agreement.

[¶ 4] In addition to the disclaimers contained in paragraph 12 as set forth above, the Agreement also provided as follows:

17. This agreement contains the entire agreement between the parties. All prior representations made in the negotiations of this sale have been incorporated herein, and there are no oral agreements or representations between the Owner, Contractor, or their agents to modify the terms and conditions of this agreement. Contractor acknowledges and agrees that Contractor is not relying upon any representations of Owner or Owner’s agents as to any condition of the property which Contractor deems to be material to Contractor’s decision to enter into this Agreement. This Agreement may not be modified except by a written instrument signed by each of the parties.

[¶ 5] At the time the parties executed the agreement, Exhibit B was not attached. Two weeks later, however, Burton provided Exhibit B, in the form of an Affidavit of Lot Division, splitting off the 7.81 acre parcel mentioned in the agreement from a smaller commercial lot retained by Burton. Much of the present controversy was engendered by the fact that Exhibit B shows the 7.81 acres as a single undeveloped parcel, but Three Way contends that Burton had agreed to subdivide the parcel into seven developed lots, with a completed street access.

[¶ 6] After work under the agreement had commenced, Burton proposed additional work for Three Way to perform. Three Way agreed, and paragraph 10 of the agreement was amended, in pertinent part, to convey Lots 22 and 24, rather than Lots 19 and 20, to Three Way as additional compensation. 2 The language concerning the 7.81 acre tract was not amended.

[¶7] As the project neared completion, high groundwater in the area caused excessive water to appear in valve boxes, requiring “trench plugs” or other remedial measures. Each party considered those remedial measures to be the responsibility of the other. A stalemate ensued, with Three Way refusing to fix the problem, and Burton refusing to convey the 7.81 acres. This lawsuit followed.

[¶ 8] Three Way fired the first volley in the litigation with the filing of a complaint on April 12, 2005, alleging breach of contract and unjust enrichment. Three Way sought monetary damages “in excess of $400,000.00,” or alternatively, specific performance of the contract in the form of conveyance of the 7.81 acres. Burton’s counterclaim alleged breach of contract and breach of warranty, both based upon the valve box water problem. On April 26, 2006, the district court set the matter for trial on July 17, 2006.

[¶ 9] On May 26, 2006, Three Way filed a motion to amend its complaint, seeking now to allege reformation of contract, breach of the written contract, breach of an oral contract, unjust enrichment, fraud in the inducement, and promissory estoppel. Generally, Three Way justified the motion on the ground that “[following limited discovery in this matter, additional facts and evidence have surfaced, and Plaintiff needs to amend its

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Cite This Page — Counsel Stack

Bluebook (online)
2008 WY 18, 177 P.3d 219, 2008 Wyo. LEXIS 19, 2008 WL 451834, Counsel Stack Legal Research, https://law.counselstack.com/opinion/three-way-inc-v-burton-enterprises-inc-wyo-2008.