Weter v. Archambault

• Decision Date: 20 December 2002
• Docket Number: No. 02-004.,02-004.
• Parties: Evaline WETER a/k/a Evaleen Weter, Plaintiff, Respondent and Cross-Appellant, v. Charles E. ARCHAMBAULT, Vita A. Archambault, and any and all other persons, unknown, claiming or who might claim any right, title, estate, or interest in or lien or encumbrance upon the real property described in the complaint or any thereof, adverse to the plaintiff's ownership and title thereto, or any cloud upon the plaintiff's title thereto, whether such claim or possible claim be present or contingent, including any claim or possible claim of dower, inchoate or accrued, and any person in possession, Defendants and Appellants.
• Court: Montana Supreme Court

61 P.3d 771

2002 MT 336

313 Mont. 284

Evaline WETER a/k/a Evaleen Weter, Plaintiff, Respondent and Cross-Appellant, v. Charles E. ARCHAMBAULT, Vita A. Archambault, and any and all other persons, unknown, claiming or who might claim any right, title, estate, or interest in or lien or encumbrance upon the real property described in the complaint or any thereof, adverse to the plaintiff's ownership and title thereto, or any cloud upon the plaintiff's title thereto, whether such claim or possible claim be present or contingent, including any claim or possible claim of dower, inchoate or accrued, and any person in possession, Defendants and Appellants.

No. 02-004.

Supreme Court of Montana.

Submitted on Briefs July 11, 2002.

Decided December 20, 2002.

For Appellants: Todd A. Stubbs, Graybill, Ostrem & Crotty, PLLP, Great Falls, Montana.

For Respondent: K. Dale Schwanke, Jardine, Stephenson, Blewett & Weaver, P.C., Great Falls, Montana.

Justice TERRY N. TRIEWEILER delivered the Opinion of the Court.

¶ 1 The Plaintiff, Evaline Weter, brought this action in the District Court for the Ninth Judicial District in Glacier County to quiet title to certain property and to recover damages from the Defendants, Charles and Vita Archambault, for breach of contract. Archambaults counterclaimed for breach of contract, equitable relief and damages based on various tortious claims. Following a non-jury trial, the District Court entered judgment which quieted title to the property in favor of Weter, and awarded her attorney fees. Archambaults appeal the District Court's Findings of Fact, Conclusions of Law, Order and Judgment. Weter cross-appeals the District Court's findings that she is not entitled to compensatory damages for wrongful occupation and to punitive damages. We affirm the judgment of the District Court.

¶ 2 There are four issues on appeal:

¶ 3 1. Did the District Court err when it concluded that Archambaults' breach of contract entitled Weter to cancel the contract and reclaim ownership and possession of the properties subject to the contract?

¶ 4 2. Did the District Court err when it awarded reasonable attorney fees to Weter?

¶ 5 3. Did the District Court err when it found that Weter was not entitled to damages for wrongful occupation?

¶ 6 4. Did the District Court err when it found that Weter was not entitled to an award of punitive damages?

FACTUAL AND PROCEDURAL BACKGROUND

¶ 7 Charles and Vita Archambault executed a Contract for Deed with Evaline and the late Julian Weter on March 21, 1979, for the purchase of personal property and approximately 3,218 acres of real property including one ranch home tract and six individual farm tracts, including tracts: "C" (320 acres), "D" (465 acres), "E" (5 acres), "F" (280 acres), "G" (320 acres) and "H" (unspecified acreage). The original contract price was $680,000, which included $100,000 for a ranch home and the land on which it was located. Archambaults purchased the ranch home property separately and it was no longer subject to the contract. The remaining tracts were subject to a contract to purchase for $580,000 over 15 years. Weters signed six separate warranty deeds which were held in escrow pending payment pursuant to the contract and Archambaults signed and delivered six separate quit claim deeds to escrow.

¶ 8 Archambaults fell behind in payments on several occasions, and the Weters agreed to reform the agreements at least twice. The last modification to the contract was signed by the Archambaults and Evaline Weter on June 3, 1993, and included an integration clause excluding all prior terms, negotiations, and/or signed contracts. The 1993 Contract stated that the Archambaults owed a principal balance of $532,904, and required that they pay (1) $50,000 immediately; (2) $15,000 on October 1, 1993; (3) annual installments of $40,000 and $20,000 on October 15 and March 1 of each year, respectively, for 5 years; and (4) a final "balloon payment" on March 1, 1999. The 1993 Contract also required that Archambaults pay taxes on the property and assign payments from two Conservation Reserve Program (CRP) contracts to Weter. The CRP contracts provide payments to land holders who set land aside for conservation purposes and requires that the land holders not grow crops or permit grazing on those lands.

¶ 9 Pursuant to the contract, Archambaults made the initial $50,000 payment, and in addition, sold tract "C" to Oscar Crawford for $48,000 in June 1993. This sale was presumably authorized by paragraph 3(b) of the 1993 Contract, which provides:

In the event that BUYERS desire certain portions of the realty, the SELLER agrees to allow such sales and to accept certain payments on the contract. The property as described in each of the exhibits numbered C, D, E, F and G may be sold as individual units as long as the minimum total price as set forth on each of said exhibits is applied to the contract balance. Thus, the SELLER will release a Warranty Deed from the escrow for the property described on each exhibit (C, D, E, F & G) so long as the amount specified on each exhibit is paid as an extra pre-payment on the contract.... [Emphasis added.]

The exhibit which accompanied the warranty deed for tract "C" provided that it "may be deeded separately to the PURCHASERS upon the payment of $48,000.00 to the principal of the Contract...."

¶ 10 After the sale of tract "C," financial records show that Archambaults failed to make any more payments on the 1993 Contract except for two CRP payments for $41,931 each on October 28, 1993, and October 7, 1994, and a $1814 "right of way payment" on August 25, 1994. By the time Weter served notice of default on the Archambaults in June 1995, the total amount of past due payments was approximately $50,000.

¶ 11 In March 1994, Archambaults decided that they would try to sell tract "G" to pay off part of the 1993 Contract balance. The exhibit which accompanied the warranty deed for tract "G" provided that it "may be deeded separately to the PURCHASERS upon the payment of $128,000.00 to the principal of the Contract...." Archambaults found a willing buyer, Rocky Mountain Specialists (RMS), and agreed on a purchase price of $128,000 with a November 24, 1994, closing date. Weter, however, told Archambaults that they owed $35,000 to bring the 1993 Contract current and that that amount would have to be paid before Archambaults could transfer tract "G." RMS later testified that they were willing to loan Archambaults up to $35,000 to accomplish the sale, but that Archambaults refused the offer. The sale did not occur.

¶ 12 On June 26, 1995, Weter provided the Archambaults with notice of default. The 1993 Contract, in paragraph 10, provided three alternate remedies for Weter to choose from in the case of default: "Alternative I" (a remedy pursuant to breach of contract); "Alternative II" (cancellation of the contract and forfeiture of the contract property); or "Alternative III" (foreclosure on the contract properties). Paragraph 10 further provided that Alternative II, which Weter ultimately chose, would not be available in the event that the principal balance owed on the 1993 Contract was $290,000 or less. At the time of default, the outstanding principal balance was $408,070.82. Had the sale of tract "G" occurred, Archambaults contend that the balance could have been below $290,000.

¶ 13 Pursuant to Alternative II, Weter requested that the escrow agent release the quit claim deeds previously signed by Archambaults for tracts C, D, E, F, and G, and Weter recorded them on September 13, 1995. Weter's attorney sent notice of the filed quit claim deeds to the Archambaults that same day and stated "we need to focus now on having you peacefully vacate the premises as required pursuant to the terms of the contract." Weter also had the CRP contracts transferred to her name.

¶ 14 In April 1996, Weter attempted to sell the remaining properties to the Blackfeet Tribe, which was interested in the purchase, but had concerns regarding Archambaults' presence on the property and claim to the title for the properties. The Tribe requested assurances that Archambaults would leave the property and sign new quit claim deeds. Charles Archambault sent a letter to the Tribe, dated April 16, 1996, stating:

In a phone conversation with Jim Kennedy [Director of the Natural Resources Department of the Blackfeet Tribe] yesterday, I discussed with him our plans to clear the property. We are currently trying to sell the mobile homes, as well as livestock, vehicles and equipment. I indicated to Jim that we would be totally off the property no later than late summer or fall. Jim assured me that this would be acceptable, and that the Tribe would work with us.

Archambaults, however, refused to sign any new quit claim deeds. Without the deeds, the Tribe refused to purchase the properties and the sale did not occur. ¶ 15 On June 25, 1996, Weter filed a complaint in the District Court to quiet title to the properties. However, on July 8, 1996, the Archambaults, who were enrolled members of Indian Tribes but not the Blackfeet Tribe, brought suit against Weter in Blackfeet Tribal Court for breach of contract. The Tribe held that it had jurisdiction, and Archambaults moved to dismiss Weter's District Court claim without prejudice, while the Tribal Court had jurisdiction. The District Court granted Archambaults' motion.

¶ 16 After the District Court dismissed Weter's cause of action, Weter brought an action in federal court to challenge the Tribe's jurisdiction. The U.S. District Court agreed that the Tribe did not have jurisdiction, and the Ninth Circuit Court of Appeals affirmed the District Court on July 18, 2000. While the federal case was pending appeal, Weter re-filed this quiet title action in District Court on July 21, 1999. Weter raised additional claims for attorney fees, wrongful occupation damages, and punitive damages for Archambaults' alleged malicious prosec...