VanDyke v. Mountain Coin Mach. Distributors, Inc.

• Decision Date: 03 August 1988
• Docket Number: No. 880129-CA,880129-CA
• Citation: 758 P.2d 962
• Parties: Richard H. VanDYKE, Plaintiff and Respondent, v. MOUNTAIN COIN MACHINE DISTRIBUTORS, INC., Defendant and Appellant.
• Court: Utah Court of Appeals

Page 962

758 P.2d 962

Richard H. VanDYKE, Plaintiff and Respondent, v. MOUNTAIN COIN MACHINE DISTRIBUTORS, INC., Defendant and Appellant.

No. 880129-CA.

Court of Appeals of Utah.

Aug. 3, 1988.

Dennis K. Poole, Marilynn P. Fineshriber, Duane R. Smith (argued), Poole, Cannon & Smith, Salt Lake City, for defendant and appellant.

Michael L. Miller (argued), Brigham City, for plaintiff and respondent.

Before GREENWOOD, GARFF and BENCH, JJ.

OPINION

GREENWOOD, Judge:

Defendant, Mountain Coin Distributors, Inc., appeals from a jury verdict awarding plaintiff, Richard VanDyke, $250 in actual damages and $37,000 in punitive damages on a claim for breach of contract and abuse of process. Mountain Coin appeals, claiming the trial court erred in: 1) ruling that Mountain Coin breached the parties' contract; 2) giving certain instructions to the jury; and 3) failing to remit the punitive damage award.

In October 1983, VanDyke purchased a video game from Mountain Coin for about $5,000. In November 1983, VanDyke informed Mountain Coin's division manager, Merlin Symes, that he wanted to return the game. Symes refused to accept return of the game. VanDyke refused to make payment, and in late February 1984, Mountain Coin filed suit against VanDyke to recover the purchase price. Upon receiving the complaint, VanDyke contacted Symes who told VanDyke the lawsuit would be resolved if VanDyke would sign an installment contract and make a $500 downpayment. VanDyke received the contract several days after the telephone conversation. On March 4, Mountain Coin's attorney, Carl Kingston, contacted Mountain Coin and asked if VanDyke had settled the account or if a default judgment should be entered. Symes advised Kingston that the contract had been sent to VanDyke, that VanDyke had not returned the contract or made payments, and that Kingston should prepare a default judgment. Kingston sent a default judgment to the court on March 14, 1984. By March 15, 1984, Mountain Coin had received the signed contract, dated February 27, 1984, and a $500 check from VanDyke. On March 20, 1984, the court entered a default judgment against VanDyke.

The judgment was subsequently filed in Box Elder County on April 16, 1984. On May 1, VanDyke was served with a motion and order in supplemental proceedings. VanDyke contacted Symes who confirmed that the check and contract had been received and informed VanDyke that he would not have to appear for the supplemental proceedings. VanDyke also spoke with Kingston who stated that the collection action would be suspended and that VanDyke need not appear. The evidence was disputed as to whether Kingston was aware at that time that VanDyke had signed a contract. VanDyke did not appear at the supplemental proceedings.

In December 1984, VanDyke applied for a loan and learned that Mountain Coin's judgment constituted a lien on his property. VanDyke contacted Kingston and requested release of the judgment. Kingston wrote to VanDyke and told him that he could not release the judgment because VanDyke was not current on the payment schedule of the installment contract and owed Mountain Coin on an open account.

On February 27, 1985, Kingston again initiated supplemental proceedings. VanDyke hired a lawyer who charged $250 to contact Kingston and request that the judgment be set aside based on the parties' prior settlement. On June 19, the parties filed a stipulation setting aside the judgment. VanDyke ultimately obtained his loan but was required to roll over short term notes several times and provide additional information to the bank.

VanDyke brought this action for abuse of process and breach of contract. Mountain Coin counterclaimed for the amount due on the open account. VanDyke stipulated that he was indebted to Mountain Coin for $1,493.98 on the video equipment agreement and $777 on the open account. The trial court ruled that Mountain Coin breached the parties' agreement and instructed the jury that VanDyke was entitled to damages reasonably incurred in removing the judgment and punitive damages if the breach of contract was intentional and accompanied by malice. The jury awarded VanDyke $250 in actual damages and $37,000 in punitive damages.

Mountain Coin filed a motion for remittitur or, in the alternative, a new trial claiming that the punitive damage award was excessive and was given under the influence of passion and prejudice. The court issued a memorandum decision denying the motion and this appeal followed.

I

First, we examine whether the trial court erred in ruling as a matter of law that Mountain Coin breached the settlement agreement. In reviewing a directed verdict, we examine the evidence in the light most favorable to the losing party. Mel Hardman Prod., Inc. v. Robinson, 604 P.2d 913, 917 (Utah 1979); Gregory v. Fourthwest Inv. Ltd., 754 P.2d 89, 90 (Utah Ct.App.1988). If the evidence could lead reasonable persons to opposing conclusions, the directed verdict should not be affirmed. Gregory, 754 P.2d at 90.

In this case, the trial court directed a verdict advising the jury that Mountain Coin breached the contract by proceeding with the lawsuit despite VanDyke's execution of the installment contract and payment of $500. Mountain Coin claims that an issue of fact exists concerning whether and by whom the settlement agreement was breached. Mountain Coin asserts that VanDyke breached the contract by failing to timely comply with the terms of the settlement agreement. We disagree. The record contains no indication that VanDyke was required to execute and return the installment contract within any specified period of time. In the absence of such a requirement, under general contract law principles, VanDyke's power to accept the offer continued for a reasonable amount of time. 1 Corbin on Contracts 2d Ed. § 36 (1963). At most, VanDyke waited two weeks before mailing the installment contract and downpayment check. Two weeks is a reasonable amount of time to respond under the circumstances in this case.

Furthermore, Mountain Coin's breach of contract is clear from the undisputed facts. Several days after the conversation between Symes and VanDyke, which was supposed to resolve the lawsuit, Symes advised Kingston to prepare a default judgment. Kingston sent the default judgment to the court on March 14, and by March 15, Mountain Coin received the signed installment contract and downpayment. Mountain Coin did not repudiate the settlement contract by rejecting VanDyke's performance. The court entered the default judgment on March 20, 1984. Thus, Mountain Coin proceeded with the lawsuit despite consummation of the parties' agreement resolving the lawsuit. Moreover, Mountain Coin continued to pursue the lawsuit after receiving additional payments under the installment contract. Under these circumstances, we find that reasonable persons could not differ as to whether Mountain Coin breached the contract. Therefore, we hold that the trial court did not err in directing a verdict that Mountain Coin had breached the settlement agreement.

II

We next address whether the trial court erred in instructing the jury. Preliminarily, we must determine whether Mountain Coin preserved its objections to the instructions. If a party fails to object to a jury instruction, the objection is deemed waived on appeal. Hill v. Cloward, 14 Utah 2d 55, 377 P.2d 186, 187-88 (1962); State v. Parkin, 742 P.2d 715, 716 (Utah Ct.App.1987). One of the purposes in requiring objections is to bring all claimed errors to the trial court's attention to give the court an opportunity to correct the errors if appropriate. Employers' Mut. Liability Ins. Co. v. Allen Oil Co., 123 Utah 253, 258 P.2d 445, 450 (1953). The objection must be specific enough to put the trial court on notice of every error which is complained of on appeal. Id.

In this case, Mountain Coin's attorney raised an objection to the following interrogatory and explanation.

What sum do you find proven by a preponderance of the evidence should be awarded to the plaintiff as compensation damages for the defendant's wrongful entry of a default judgment in Salt Lake County and/or in filing of a judgment in Box Elder County that lienned [sic] the plaintiff's real property?

Explanation: ... The court finds that the parties agree the plaintiff still owes certain sums on that contract. The court will enter a judgment on that portion of the claim in the defendant's favor together with the sum still owed on the open account. The court also finds that the contract and the $500.00 payment was made before the default judgment and/or filed the judgment [sic] in Box Elder County.

Mountain Coin objected to the instruction, stating:

Your Honor, I believe that I have two exceptions. One is with respect to the explanation to instruction three on page two. The sentence reads, "The court also finds that the contract and $500 payment was made before the default judgment and/or filed the judgment in Box Elder County." I think obviously the testimony was such that Mr. Kingston prepared the application of that or the preparation of that default judgment prior to the time of that payment. So that is of concern to me.

On appeal, Mountain Coin claims two errors in the instructions. First, Mountain Coin contends that instruction number three was erroneous because it...