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24 N.W.3d 850
Neb.
2025
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Background

  • 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)
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Case Details

Case Name: D&M Roofing & Siding v. Distribution, Inc.
Court Name: Nebraska Supreme Court
Date Published: Aug 22, 2025
Citations: 24 N.W.3d 850; 319 Neb. 707; S-24-607
Docket Number: S-24-607
Court Abbreviation: Neb.
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    D&M Roofing & Siding v. Distribution, Inc., 24 N.W.3d 850