Unicover World Trade Corp. v. Tri-State Mint, Inc.

24 F.3d 1219, 1994 WL 187798
CourtCourt of Appeals for the Tenth Circuit
DecidedMay 17, 1994
DocketNos. 93-8019, 93-8021
StatusPublished
Cited by8 cases

This text of 24 F.3d 1219 (Unicover World Trade Corp. v. Tri-State Mint, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Unicover World Trade Corp. v. Tri-State Mint, Inc., 24 F.3d 1219, 1994 WL 187798 (10th Cir. 1994).

Opinion

LOGAN, Circuit Judge.

I

This appeal and cross-appeal follow entry of judgment in a contract dispute tried to the court.1 The judgment substantially favored Unieover World Trade Corporation (Unicover). On appeal Tri-State Mint, Inc. (TriState) argues that Unieover committed a material breach of contract that barred its recovery against Tri-State. Unieover argues that the district court erred when it refused to award Unieover attorney’s fees.

Unieover is a direct mail marketer of numismatic and philatelic items. Tri-State custom mints legal tender and commemorative coins. Unieover contracted with the Republic of the Marshall Islands to provide legal tender coins, and then contracted with several mints in the United States to mint these coins. Among the mints with which Unicover contracted was Medallic Art Company (Medallic).

In late 1990 Medallic began experiencing financial difficulties, and shortly thereafter [1221]*1221Tri-State acquired many of Medallic’s assets. Then, in February 1991, Tri-State and Uni-cover entered a contract (the master agreement) under which Tri-State assumed all of Medallie’s obligations under four contracts. Two of those contracts are at issue here: a contract for production of four coins, including a five dollar commemorative of the space shuttle Columbia (the $5 Columbias contract); and a contract for production of two series of coins — miscellaneous fifty dollar silver coins and a series of brass coins commemorating certain World War II aircraft (the WWII brass coins contract).

Tri-State and Unieover never developed a viable business relationship, and in an August 12, 1991, letter to Tri-State, Unieover declared material breach and terminated the master agreement. Counsel for Tri-State responded with an August 21, 1991 letter which indicated, among other things, that Tri-State wished to terminate the master agreement. Appellee’s Supp.App. 84-85. Before declaring Tri-State’s breach, Unicover had contracted with Sunshine Bullion Company (Sunshine) on July 31, 1991, to mint the $5 Columbias and WWII brass coins which Tri-State was to have provided in the event Tri-State did not produce them.2 Id. at 200. Through that contract Unieover sought to avoid the expense of mailing its customers a revised delivery schedule.3 Id. at 193.

Unieover initiated arbitration as provided in the $5 Columbias and the WWII brass coin contracts. Tri-State responded by filing suit in state court in South Dakota to enjoin the arbitration. Tri-State there asserted that because the master agreement was no longer in force the obligation to arbitrate was discharged. Unieover countered by filing suit in Wyoming federal district court seeking damages for Tri-State’s alleged breach of contract, replevin of certain coining devices, and an injunction to prevent Tri-State from manufacturing unauthorized legal tender coins. Tri-State counterclaimed for a price adjustment of the two contracts. The district court made detailed findings of fact and conclusions of law, and entered judgment awarding damages to Unieover, ordering Tri-State to ship certain blank coins and coining devices to Unieover, and enjoining Tri-State from unauthorized minting.

II

Tri-State argues that Unieover committed a material breach of contract, thus barring any recovery against Tri-State. It alleges that Unieover materially breached the master agreement when it negotiated and signed a contract with Sunshine to cover for the coins Tri-State was to have minted under the master agreement, and when it refused to allow Tri-State an opportunity to cure its nonperformance.

The record contains no indication that Tri-State presented to the district court the issue whether the negotiation and execution of a contract with Sunshine constituted a breach of the master agreement. This was not mentioned as an issue in the pretrial order or in Tri-State’s proposed findings of fact and conclusions of law submitted to the district court after the close of trial. We will consider an issue that was not preserved for appeal only on a showing of manifest error. Roberts v. Madigan, 921 F.2d 1047, 1052-53 (10th Cir.1990) (quoting Gundy v. United States, 728 F.2d 484, 488 (10th Cir.1984)), cert. denied, - U.S.-, 112 S.Ct. 3025, 120 L.Ed.2d 896 (1992). We are not persuaded that this is such a case. See Rade-macher v. Colorado Ass’n of Soil Conservation Dists. Medical Benefit Plan, 11 F.3d 1567, 1572 (10th Cir.1993).

Tri-State did argue to the district court that Unieover materially breached its agreement with Tri-State when it terminated the master agreement without giving TriState thirty days to cure its defaults. The contracts at issue are governed by Wyoming law, under which it is a question of fact whether substantial performance of a contract has occurred. Ferguson v. Reed, 822 P.2d 1287, 1290 (Wyo.1991). We review findings of fact for clear error. Fed.R.Civ.P. [1222]*122252(a); Production Credit Ass’n v. Alamo Ranch Co., 989 F.2d 413, 419 (10th Cir.1993).

Wyoming has adopted the doctrine of substantial performance: one party’s failure to perform a nonmaterial contract obligation will not excuse the other party’s nonperformance of its material contract obligations. See Miles v. CEC Homes, Inc., 753 P.2d 1021, 1026 (Wyo.1988) (citing Restatement (Second) of Contracts § 229 (1981)). The district court concluded as a matter of law that Unicover’s breach was not material because Unicover had substantially performed its obligations under the agreement. We review de novo the district court’s application of state law. Salve Regina College v. Russell, 499 U.S. 225, 231, 111 S.Ct. 1217, 1221, 113 L.Ed.2d 190 (1991).

The record supports the district court’s findings that Tri-State committed numerous contract breaches before Unicover terminated the agreement. Tri-State failed to make timely deliveries of the $5 Columbias, did not deliver the WWTI brass coins, had not made required reports, and had not returned certain coining paraphernalia to Unicover. In addition, the record contains evidence that before Unicover’s breach, Tri-State already wanted to be excused from its contractual obligations. It had even encouraged Unicover to procure another vendor to mint the coins Tri-State was to have produced. Ap-pellee’s Supp.App. 219.

Tri-State’s complaint filed in South Dakota state court seeking to block arbitration contains an admission that Tri-State terminated the contract with Unicover, Appellant’s App. 193-94, a concession that negates Tri-State’s contention that it was wrongfully deprived of an opportunity to cure. See id. at 160 (Tri-State expressing willingness to repudiate the contract) and Appellee’s SuppApp. 219. Under these circumstances, the district court properly viewed Unicover’s failure to make a written demand that Tri-State cure its nonperformance as a nonmaterial breach of contract.

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24 F.3d 1219, 1994 WL 187798, Counsel Stack Legal Research, https://law.counselstack.com/opinion/unicover-world-trade-corp-v-tri-state-mint-inc-ca10-1994.