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Dewey v. Stringer
325 P.3d 1236
Mont.
2014
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Background

  • Dewey sold her Helena home to Stringer under a Montana Realtors form buy-sell agreement for $265,000, with $2,000 earnest money and a rent-back arrangement for Stringer at $1,300 per month.
  • The addendum required Stringer, at his expense, to maintain the home’s essential systems and equipment in normal working condition during occupancy prior to closing.
  • Stringer moved in April 2012 and initially paid rent but later vacated in June 2012, acknowledging he would not purchase the home; he paid July rent but not August or September, and Dewey retained the final rent and the earnest money.
  • Dewey filed suit October 14, 2012 alleging constructive fraud, deceit, and negligence based on Stringer’s representations and property maintenance during occupancy; Stringer counterclaimed for return of the earnest money.
  • The district court granted summary judgment for Stringer on all tort claims and granted partial summary judgment for Dewey on breach-based remedies under the contract; Dewey appeals.
  • This Court affirms in part, reverses in part, and remands, holding that tort claims may coexist with contract claims and that the negligence claim can proceed independently of the contract, but the record supports summary judgment on the constructive-fraud and deceit claims.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the district court erred by dismissing tort claims as arising solely from contract Dewey argues independent duties exist; tort claims not precluded by contract. Stringer contends no independent duty; damages arise only from contract. Partially reversed; independent-duty theory supports negligence; constructive-fraud/deceit still dismissed

Key Cases Cited

  • Garden City Floral Co. v. Hunt, 126 Mont. 537 (Mont. 1953) (special circumstances may create independent duties in contract contexts)
  • Corp. Air v. Edwards Jet Ctr. Mont. Inc., 345 Mont. 336 (Mont. 2010) (tort claims may coexist with contract claims; no per se bar)
  • Boise Cascade Corp. v. First Sec. Bank, 183 Mont. 378 (Mont. 1979) (independent tort duties may arise apart from contract)
  • H-D Irrigating, Inc. v. Kimble Props., Inc., 301 Mont. 34 (Mont. 2000) (special circumstances establish independent duties in fiduciary/commercial contexts)
  • Quitmeyer v. Theroux, 144 Mont. 302 (Mont. 1964) (negligence theory applicable where damages occur absent contract)
  • Bos v. Dolajak, 167 Mont. 1 (Mont. 1975) (negligence claims can accompany contract remedies for property damages)
  • Abraham v. T. Henry Constr., Inc., 249 P.3d 534 (Or. 2011) (duty independent of contract; statutory prohibitions on deceit)
  • Story v. City of Bozeman, 242 Mont. 436 (Mont. 1990) (special-relationship requirement for good-faith/faithful-dealing claims)
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Case Details

Case Name: Dewey v. Stringer
Court Name: Montana Supreme Court
Date Published: May 27, 2014
Citation: 325 P.3d 1236
Docket Number: DA 13-0347
Court Abbreviation: Mont.