Choice Feed Inc. v. Montierth
Annotate this CaseChoice Feed, Inc. sued Ray and Susan Montierth, alleging that Ray breached an oral agreement to sell his feedlot property to Choice Feed once he arranged a 1031 tax deferred agreement. Although Ray collected money from Choice Feed that was to go toward the purchase of the feedlot property, he never arranged the 1031 exchange. Instead, without notice to Choice Feed, Ray sold the feedlot property to someone else while continuing to accept monthly payments from Choice Feed. At the conclusion of the trial, the jury found in favor of Choice Feed on one count of fraud against Ray, awarded compensatory damages, and assessed $250,000 in punitive damages. Ray moved for judgment notwithstanding the verdict, which the district court granted in part, thereby reducing the jury’s awards of both the compensatory and punitive damages. Ray appealed the jury’s verdict, including the compensatory and punitive damages that were reduced by the district court. Choice Feed cross-appealed the district court’s decision granting Ray’s motion for judgment notwithstanding the verdict and the resulting reduction in damages. After its review, the Idaho Supreme Court affirmed the district court on all issues raised in Ray’s direct appeal: (1) to deny Ray’s motion to dismiss for Choice Feed’s failure to plead fraud with particularity; (2) to give jury instructions that conformed with the evidence presented at trial; (3) to allow Choice Feed to seek improvement expenses as damages at trial; (4) to allow the jury to consider punitive damages; and, (5) to consider punitive damages in its prevailing party analysis and its conclusion that Choice Feed was the prevailing party. The Supreme Court also rejected Ray’s argument that Choice Feed did not have standing to bring suit or that it was not the real party in interest and the Court declined to add a tenth element of a transfer or sale of property to common law fraud. On Choice Feed’s cross-appeal, the Supreme Court reversed the district court’s decision to grant Ray’s JNOV motion and reduce the compensatory damage and punitive damage awards as raised in Choice Feed’s cross-appeal. However, the Court affirmed the district court on Choice Feed’s remaining issue raised in its cross-appeal concerning the award of prejudgment interest to Ray on his open account hay claim. Costs and attorney fees are awarded to Choice Feed as the overall prevailing party on appeal.
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