24 N.W.3d 850
Neb.2025Background
- Distribution, Inc. owned a warehouse damaged in a storm, and D&M Roofing and Siding, Inc. performed a free inspection and damage assessment.
- The parties signed an agreement: D&M would conduct inspections, present findings to Distribution's insurer, and perform any insurer-approved repairs; the price would match the insurance claim amount.
- The contract contained a "cancellation fee" clause: if Distribution did not hire D&M after insurance approval, D&M would receive a fee equal to 20% of the proceeds "for the work done by D&M."
- Distribution hired another contractor; D&M sued for breach of contract (claiming at least $174,151.46 under the cancellation fee clause) and unjust enrichment.
- The district court found the contract enforceable and that Distribution breached, but concluded D&M was entitled to no damages under the cancellation fee clause because no repair work was done by D&M; summary judgment was granted to Distribution on all claims.
- D&M appealed, seeking other damages and contesting the contract interpretation.
Issues
| Issue | D&M's Argument | Distribution's Argument | Held |
|---|---|---|---|
| Entitlement to Damages under Cancellation Fee | D&M should be paid 20% of insurance proceeds received by Distribution if not hired, regardless of actual work performed | Damages limited to 20% of insurance proceeds for work actually done by D&M; no work, no fee | Not entitled to damages; 20% of $0 is $0 because D&M did no repair work |
| Ability to Seek Other Contract Damages | D&M could pursue alternative damages beyond the cancellation fee, e.g., lost profits | D&M limited itself to cancellation fee damages by concession in summary judgment | D&M invited the error by conceding; cannot now pursue other damages |
| Ambiguity/Clerical Error in Contract | Cancellation fee clause had a typographical error that should be corrected to include "work to be done" | Contract is unambiguous; extrinsic evidence not admissible to alter clear terms | Contract is unambiguous as written; no rewriting or extrinsic evidence allowed |
| Recoverability of Any Damages | Denial of damages for breach of contract allows breach without consequence; sets bad precedent | No damages owed based on D&M’s own procedural and legal positions | No error; D&M did not request nominal damages or preserve broader claims |
Key Cases Cited
- Ray Anderson, Inc. v. Buck's, Inc., 300 Neb. 434 (extrinsic evidence inadmissible to interpret unambiguous contract)
- Seemann v. Seemann, 318 Neb. 643 (courts avoid interpretations rendering contract language meaningless)
- City of Omaha Human Relations Dept. v. City Wide Rock & Exc. Co., 201 Neb. 405 (party cannot complain of error invited or stipulated to, even on legal issues)
- Oltman v. Parde, 32 Neb. App. 725 (breach of contract entitles non-breaching party to at least nominal damages)
