Schlinger v. McGhee
2012 WY 7A
| Wyo. | 2012Background
- James Schlinger leased WW Construction assets to McGhee and Robinson, who formed CW Construction to operate the business.
- The lease was oral, began March 1, 2004, and ended October 31, 2004 after concerns about CW’s management.
- CW/WW intercompany accounts were tangled; bookkeeping was handled by WW’s bookkeeper, then CW’s, with no clear separation.
- Barbara Fields produced a “Tie Out Ending Balance” claiming CW owed WW $206,875.70 as of December 31, 2004, which the district court adopted.
- The district court’s damages award rested on Fields’ ending balance, despite acknowledged uncertainties in the accounting.
- On appeal, the Wyoming Supreme Court reversed the damages award for breach of contract due to lack of reasonable certainty, and affirmed unjust enrichment outcomes.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did the district court err in awarding damages based on an uncertain ending balance? | Schlinger argues the tie-out figure is unreliable. | McGhee/Robinson contend the balance fairly reflects due amounts. | Yes; damages lacked reasonable certainty and reversed. |
| Should prejudgment interest have been awarded where the debt was unliquidated? | plaintiffs | defendants | Moot after reversal of damages. |
| Did the district court abuse its discretion in denying unjust enrichment claims? | recovery for services and bonding were implied. | contract governs the relationship; unjust enrichment cannot bypass it. | No; some unjust enrichment claims dismissed, others affirmed. |
| Should the judgment be reversed and defendants awarded the amount due to them? | error in court’s calculation supports reversal. | no clear entitlement to that amount. | Not applicable as broader damages were reversed. |
Key Cases Cited
- Vision 2007, LLC v. Lexstar Dev. & Const. Co., 2011 WY 84 (Wy.2011) (clear error standard; not all evidence reweighable)
- Orthopaedics of Jackson Hole, P.C. v. Ford, 250 P.3d 1100 (Wy.2010) (review of bench trial findings)
- Hofstad v. Christie, 240 P.3d 816 (Wy.2010) (evidentiary sufficiency standards)
- Mullinniz LLC v. HKB Royalty Trust, 126 P.3d 909 (Wy.2006) (damages must be proven with reasonable certainty)
- Capshaw v. Schieck, 44 P.3d 47 (Wy.2002) (damages must be proven with reasonable certainty)
- Knight v. TCB Const. and Design, LLC, 248 P.3d 178 (Wy.2011) (damages and accounting standards reviewed)