Peevyhouse v. Garland Coal & Mining Co.
382 P.2d 109 (Okl.1962),
cert. denied, 375 U.S. 906 (1963).
Facts: The plaintiff leased half their farm to the defendant
for strip mining. Part of the agreement
was that the mining company would fill in the pits and smooth out the
land. The defendant breached. It would have cost $29,000 to fill in the
pits, but doing so would have only increased the value of the land by
$300. At trial, the plaintiff was
awarded $5,000.
Issue: To what damages is the plaintiff entitled?
Rule: Expectation damages cap the amount a plaintiff can
recover for breach.
Analysis: The Oklahoma Supreme Court said that the “remedial”
work agreed upon in the contract was merely “incidental”. They relied on the fact that $5,000 puts the plaintiff
in a better position than performance would have done.
The dissenting opinion,
citing
Conclusion: The Oklahoma Supreme Court reduced the damages to
$300.
Question
This question seems to really
be asking if the decision in
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Goals of Contract Damages