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358 P.3d 885
Mont.
2015
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Background

  • A&C Soaring Eagle, Inc. (A&C), a Montana corporation run by Clint Mullin Jr., purchased fertilizer and chemicals from Fitterer Sales Montana, Inc. on an account originally opened in the name of Clint’s son, Zach (Account No. 1577).
  • Purchases occurred in May–June 2007; deliveries were often left without a customer signature (industry practice). Clint signed two delivery tickets in May 2007 and later asked the account name be changed to A&C.
  • A&C accepted and used the goods and received monthly statements in May–July 2007 without disputing charges. The account became past due in June–July 2007.
  • Fitterer sued A&C and Clint in 2009 for unpaid balances; after a bench trial the district court awarded Fitterer $114,398.06 (principal plus interest) and monthly prejudgment interest.
  • On appeal the Supreme Court of Montana affirmed that a binding contract existed between A&C and Fitterer, upheld the award of prejudgment interest, but agreed Clint should be dismissed as an individual defendant and remanded to amend the judgment.

Issues

Issue Fitterer’s Argument A&C/Clint’s Argument Held
Existence of a binding contract for sale of goods Conduct (orders, acceptance, use) created a UCC contract for goods No valid contract: only Clint could bind A&C and he did not consent; Zach lacked authority Held: UCC governs; acceptance/use and account statements created a binding contract; ostensible agency and ratification by A&C applied
Entitlement to prejudgment interest Prejudgment interest allowed under §27-1-211 because debt was liquidated and vested when due No interest: dispute over contract existence and delay in prosecution mean right did not vest Held: Prejudgment interest proper—debt was a definite monetary obligation capable of calculation and vested when accounts became due; delay by plaintiff did not bar interest
Personal liability of Clint Fitterer initially sought recovery from Clint and A&C Clint argued no personal liability; corporate separation maintained Held: Trial court’s finding of personal liability not sustained on appeal; Supreme Court remanded to dismiss Clint individually

Key Cases Cited

  • Conagra, Inc. v. Nierenberg, 7 P.3d 369 (Mont. 2000) (standard for reviewing findings of fact and permissive UCC contract-formation principles)
  • DiMarzio v. Crazy Mountain Constr., Inc., 243 P.3d 718 (Mont. 2010) (three-part test for prejudgment interest: underlying obligation, amount determinable, right vested on a date)
  • Price Bldg. Serv. v. Holms, 693 P.2d 553 (Mont. 1985) (delay in prosecution does not alone bar prejudgment interest)
  • Sunset Point P’ship v. Stuc-O-Flex Int’l, Inc., 954 P.2d 1156 (Mont. 1998) (definition and requirements for ostensible agency)
  • Serrania v. LPH, Inc., 347 P.3d 1237 (Mont. 2015) (authority for interest on money after it becomes due on an account stated)
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Case Details

Case Name: Fitterer Sales Montana, Inc. v. Mullin
Court Name: Montana Supreme Court
Date Published: Sep 15, 2015
Citations: 358 P.3d 885; 2015 Mont. LEXIS 464; 381 Mont. 107; 2015 MT 272; DA 15-0158
Docket Number: DA 15-0158
Court Abbreviation: Mont.
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    Fitterer Sales Montana, Inc. v. Mullin, 358 P.3d 885