Background

• Vernon and Laura Caldwell leased scoria-bearing land to Clifford Cody Sabo / Sabo Brothers by a written lease (May 1, 2011–May 1, 2014) granting exclusive right to excavate and sell scoria for $3.00/yard royalty; the lease is silent on payment timing.
• The Sabos made irregular royalty payments over time; the Caldwells received over $300,000 total but alleged unpaid royalties of about $118,306 for scoria sold through June 2012.
• Caldwells sued (Sept. 17, 2012) for breach of contract, unjust enrichment, and conversion, and sought monetary damages plus an injunction preventing further removal/sale of scoria.
• The District Court granted a temporary restraining order and later a preliminary injunction enjoining the Sabos from hauling or selling scoria and waived the undertaking requirement.
• At the preliminary hearing, testimony established the dispute was primarily about unpaid money, the Sabos argued seasonal/opportunistic sales and that royalties are paid from proceeds, and Sabos claimed they were not in breach.
• The Supreme Court reversed, holding the injunction was improper because monetary damages were adequate and no irreparable harm was shown; it declined to address the waiver-of-undertaking issue.

Issues

Key Cases Cited

• Farley v. Booth Bros. Land & Livestock Co., 270 Mont. 1, 890 P.2d 377 (1995) (describing scoria and its commercial value)
• Van Loan v. Van Loan, 271 Mont. 176, 895 P.2d 614 (1995) (four-part test for injunction where money judgment may be rendered ineffectual)
• American Music Co. v. Higbee, 289 Mont. 278, 961 P.2d 109 (1998) (money damages generally adequate; contract breaches normally remedy at law)
• Sandrock v. DeTienne, 358 Mont. 175, 243 P.3d 1123 (2010) (standard of review for preliminary injunctions and abuse of discretion)