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Kaufman Bros. v. Home Value Stores, Inc.
279 P.3d 157
Mont.
2012
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Background

  • Kaufman Brothers owned a commercial building in Billings and entered into a contract for deed with Home Value Stores, Inc.
  • Home Value defaulted by failing to pay installments and property taxes for about two years after down payment and initial payments.
  • Kaufmans issued a default notice, acceleration, and then obtained Home Value’s quit claim deed, retook possession, and resold the building.
  • Kaufmans filed a breach-of-contract lawsuit seeking damages for tax payments, repairs, fixtures, fees, interest, and related losses.
  • Home Value moved for summary judgment, contending Kaufmans’ election to terminate and retain liquidated damages precluded a later breach action.
  • The district court granted summary judgment for Home Value; the Montana Supreme Court affirmed, applying the election of remedies doctrine.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Did election of remedies bar the breach claim? Kaufmans contend the contract’s ‘or’ and the cumulative remedies clause allow pursuing both remedies. Home Value argues 12(b) permits only one course: enforce or terminate with liquidated damages, not both. Yes; election of remedies precludes the breach claim.

Key Cases Cited

  • Glacier Campground v. Wild Rivers, Inc., 182 Mont. 389, 597 P.2d 689 (Mont. 1978) (land contracts; remedies are inconsistent; election precludes other actions)
  • Glacier Campground v. Wild Rivers, Inc., 182 Mont. 389, 597 P.2d 689 (Mont. 1978) (cited for general rule on exclusive remedies under contract for deed)
  • Edwards v. Muri, 73 Mont. 339, 237 P.2d 209 (Mont. 1925) (vendor cancellation vs. continued liability; inconsistent remedies principle)
  • Adamczik v. McCauley, 89 Mont. 27, 297 P.2d 486 (Mont. 1931) (remedies under land contracts deemed inconsistent when one is chosen)
  • Midfirst Bank v. Ranieri, 257 Mont. 312, 848 P.2d 1046 (Mont. 1993) (election of remedies requires a final conclusion of the chosen remedy)
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Case Details

Case Name: Kaufman Bros. v. Home Value Stores, Inc.
Court Name: Montana Supreme Court
Date Published: Jun 5, 2012
Citation: 279 P.3d 157
Docket Number: DA 11-0595
Court Abbreviation: Mont.