Universal Drilling Co. v. R & R Rig Service, LLC, 271 P.3d 987

R&R moved Universal's rig in May 2007 under a time-and-materials contract; two subcontractors assisted, with daily tickets and time sheets; Universal paid nothing on the original invoice of $208,616.50 after seeking a cheaper move by Bar S for $97,499; Universal tendered $97,500 as “fair value,” which R&R refused; bench trial in 2010 resulted in an award of $188,801.50, characterized as the reasonable value of services, with fraud and implied covenant defenses resolved against Universal; prejudgment interest was denied, then on appeal awarded only for the $97,500 conceded amount; the case was affirmed in part and remanded in part for adjustments at the district court.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Damages calculation method	R&R argues damages were calculated from actual time-and-materials costs, not a separate ‘reasonable value’ figure	Universal argues the court impermissibly used a reasonableness standard and miscalculated several line items	No error; method appropriate; minor arithmetic corrections required
Fraud proving standards	R&R contends fraud not proven by clear and convincing evidence	Universal asserts multiple badges of fraud and misrepresentations	Not clearly erroneous; fraud not proven
Implied covenant of good faith and fair dealing	R&R contends no bad-faith overcharging or failure to reconcile records	Universal asserts overbilling and lack of reconciliation violated duty	No breach; evidence did not establish bad faith or breach of fair dealing
Prejudgment interest on conceded amount	R&R seeks prejudgment interest on the $97,500 conceded amount	Universal argues the amount was not liquidated or readily ascertainable	Award prejudgment interest on $97,500; remand for further proceedings consistent with opinion

Frost Constr. Co. v. Lobo, Inc., 951 P.2d 390 (Wyo.1998) (cost-plus contract damages presumed reasonable; costs substantiated by records and testimony)
Garrison v. CC Builders, Inc., 179 P.3d 867 (Wyo.2008) (affirmative damages calculations supported by documents; no clear error in ‘reasonable’ costs)
Butcher v. Butcher (Matter of Estate of Reed), 566 P.2d 587 (Wyo.1977) (badges of fraud guide circumstantial evidence when direct proof of intent is unavailable)
Sundown, Inc. v. Pearson Real Estate Co., 8 P.3d 324 (Wyo.2000) (fraud inducement; statements of opinion not inherently fraudulent when not facts)
Roussalis v. Wyo. Med. Ctr., Inc., 4 P.3d 209 (Wyo.2000) (litigation conduct not examined for bad faith under Restatement §205, comment e)