Wells Fargo Alarm Services v. Nox-Crete Chemicals, Inc.

424 N.W.2d 885, 229 Neb. 43, 1988 Neb. LEXIS 225
CourtNebraska Supreme Court
DecidedJune 24, 1988
Docket86-702
StatusPublished
Cited by9 cases

This text of 424 N.W.2d 885 (Wells Fargo Alarm Services v. Nox-Crete Chemicals, Inc.) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wells Fargo Alarm Services v. Nox-Crete Chemicals, Inc., 424 N.W.2d 885, 229 Neb. 43, 1988 Neb. LEXIS 225 (Neb. 1988).

Opinion

Norton, D.J.

This appeal arises out of an action to recover damages for breach of contract and conversion of property tried to the Douglas County District Court without a jury. The district court found in favor of the plaintiff and awarded judgment, together with prejudgment interest from and after September *44 30,1983. We affirm.

The facts disclose that the defendant, Nox-Crete Chemicals, Inc., hereinafter referred to as Nox-Crete, contracted with the plaintiff, Wells Fargo Alarm Services, a division of Baker Protective Services, Inc., hereinafter Wells Fargo, for fire and burglar alarm protection services under two separate written agreements dated January 7 and January 20, 1981. Each agreement was for a term of 5 years and required the payment of a prescribed sum annually, payable in advance, for the services to be provided by Wells Fargo. Each agreement also provided that Wells Fargo

shall have the right to increase or decrease the annual service charge provided above at any time . . . after the expiration of one year . . . upon giving Subscriber written notice 60 days in advance of the effective date of such increase or decrease. If Subscriber is unwilling to pay such increased charge, Subscriber may terminate the then unexpired term of this Agreement by notifying Wells Fargo in writing 30 days prior to the otherwise effective date of the increase____

On October 29, 1982, Wells Fargo forwarded notice to its customers of an impending rate increase for services to be performed in 1983, effective January 1, 1983. By letter dated April 7, 1983, Nox-Crete notified Wells Fargo that it was terminating the agreements because of the recent price increase. On April 12, 1983, Wells Fargo acknowledged receipt of the notice and stated that it would hold Nox-Crete liable for all sums due under the unexpired terms of the agreements.

The agreements between the parties also provided that upon termination, Wells Fargo was authorized to remove all components of the systems. On May 17, 1983, when Wells Fargo attempted to remove such equipment, Nox-Crete refused to allow it to do so. Thereafter, Wells Fargo filed suit, setting forth four causes of action, the first and third thereof being for damages for breach of the agreements, and the second and fourth for the return of or damages for the conversion of the personal property of Wells Fargo, together with prejudgment interest from and after May 17,1983. Nox-Crete answered and cross-claimed for a setoff of fees prepaid to Wells Fargo.

*45 Following trial the district court found that Wells Fargo was entitled to the benefit of each agreement; that Nox-Crete had terminated the agreements outside of the timeframe provided and had converted the personal property of Wells Fargo to its own use; and that Wells Fargo should recover damages for each breach and each conversion, together with prejudgment interest from and after September 30, 1983. Defendant’s counterclaim for setoff was dismissed. This appeal followed.

The defendant sets forth seven assignments of error by the trial court, which can be more concisely stated as follows: (1) The trial court erred in denying the defendant’s motion to dismiss made for the reason that the plaintiff had failed to bear its burden of proof of breach and certainty of damages; (2) the judgment of the trial court is contrary to the law and the evidence; (3) the damages awarded by the trial court for the breach of the agreements are excessive, are not supported by the evidence, and are not based upon reasonably certain proof of damages actually sustained; (4) the trial court erred in dismissing defendant’s counterclaim and setoff; (5) the trial court erred in awarding prejudgment interest on all of the plaintiff’s causes of action; and (6) the trial court erred in excluding defendant’s testimony that the service contracts would have been terminated upon the next price increase for services under the contract.

Plaintiff cross-appealed, assigning as error the following issues: (1) The trial court erred in finding the date of conversion to be September 30, 1983; (2) the trial court erred in failing to award interest on plaintiff’s conversion claims from and after May 17, 1983; and (3) the trial court’s failure to award interest from and after May 17, 1983, is contrary to the law and the evidence.

In reviewing an action at law tried without a jury, it is not the role of the Supreme Court to resolve conflicts in or reweigh the evidence. Rather, the court presumes that the trial judge resolved any controverted facts in favor of the successful party. This court will also consider the evidence and the permissible inferences therefrom most favorably to the successful party. Moreover, in such actions the findings and conclusions of the trial judge have the effect of a jury verdict and will not be set *46 aside unless clearly wrong. Osmond State Bank v. Uecker Grain, 227 Neb. 636, 419 N.W.2d 518 (1988). See, also, Kubista v. Jordan, 228 Neb. 244, 422 N.W.2d 78 (1988).

In a contract case the proper measure of damages is an amount which will compensate the injured person for loss which fulfillment of the contract would have prevented or breach of it has entailed. See, Stansbery v. Schroeder, 226 Neb. 492, 412 N.W.2d 447 (1987); May v. Marijo Corp., 207 Neb. 422, 299 N.W.2d 433 (1980); Restatement of Contracts § 329 (1932).

Damages need not be proved with mathematical certainty, but the evidence must be sufficient to enable the trier of fact to estimate with a reasonable degree of certainty and exactness the actual damages. Peterson v. North American Plant Breeders, 218 Neb. 258, 354 N.W.2d 625 (1984).

Where the amount of a loss, the subject of litigation, cannot be computed without opinion or discretion, the claim is unliquidated, and prejudgment interest is not recoverable. Peterson v. North American Plant Breeders, supra.

The trial court’s ruling considering the acceptance or rejection of evidence will not be reversed unless there is shown to be an abuse of discretion. Tank v. Peterson, 219 Neb. 438, 363 N.W.2d 530 (1985).

In reviewing the evidence of this case it becomes apparent that the agreements of January 1981 were preceded by two other agreements between the parties for the same services. The latter agreements commenced in September of 1976. All four agreements were received in evidence. Pursuant to all of the agreements, Nox-Crete had made payments to Wells Fargo for services to be provided, the last of which was made in full in October of 1982 for the period from October 1, 1982, through September 30,1983.

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Bluebook (online)
424 N.W.2d 885, 229 Neb. 43, 1988 Neb. LEXIS 225, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wells-fargo-alarm-services-v-nox-crete-chemicals-inc-neb-1988.