McEwen v. MCR, LLC
2012 MT 319
Mont.2012Background
- MCR-T substituted for MCR in the condemnation claim over McEwens’ compressor-station site.
- District Court denied MCR-T’s condemnation motion and granted McEwens’ restoration-damages claim.
- Jury awarded restoration costs and punitive damages to McEwens.
- District Court allowed evidence that MCR jumped McEwens’ state-trust-land bid.
- This Court affirms in part, reverse in part, and remands for further proceedings.
- Contamination of McEwens’ property and related contractual and nuisance claims are central to the dispute.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the District Court properly denied condemnation | MCR-T showed public-use necessity under §70-30-111(2) | McEwens contested necessity and location viability | Remanded to decide necessity and related issues under §70-30-111(2) |
| Whether restoration costs are the proper damages measure | McEwens may recover restoration costs for temporary injury | Costs should reflect diminution in value unless personal reasons exist | Restoration costs are permissible; jury decides temporary nature and personal-reason factors where disproportionality arises |
| Whether evidence of MCR’s bid on state trust land was admissible | Evidence shows malice supporting punitive damages | Evidence is irrelevant to compensatory claims | Admissible to prove punitive damages; remand for related proceedings |
Key Cases Cited
- McCabe Petroleum Corp. v. Easement & Right of Way Across Township 12 N., 320 Mont. 384 (2004 MT) (eminent-domain scrutiny; public-use necessity under §70-30-111)
- Sunburst Sch. Dist. No. 2 v. Texaco, Inc., 338 Mont. 259 (2007 MT) (restoration damages framework; temporary injury and windfall concerns)
- Lampi v. Speed, 362 Mont. 122 (2011 MT) (distinction between restoration as measure and factual predicates; jury role clarified)
- Burk Ranches v. State, 242 Mont. 300 (1990 MT) (diminution in value vs. restoration; temporary injury concept)
- Bos v. Dolajak, 534 P.2d 1258 (1975 MT) (breach-of-contract damages exceeding replacement value; windfall prevention)
- Garden City Floral Co. v. Hunt, 255 P.2d 352 (1953 MT) (contract terms showing contemplated damages; restoration concept)
- Chandler v. Madsen, 642 P.2d 1028 (1982 MT) (recovery beyond replacement value when needed to make whole; equitable approach)
- Runkle v. Burlington N., 613 P.2d 991 (1980 MT) (punitive damages evidence; broad relevancy)
- Cooper v. Rosston, 756 P.2d 1125 (1988 MT) (evidentiary rulings permitting punitive-damages evidence)