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