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Daugherty Cattle Co. v. General Construction Co.

Montana Supreme Court
839 P.2d 562 (1992)


Facts

Daugherty Cattle Company (plaintiff) contracted to sell land to the company that would become General Construction Company (defendant). The purchase was for $1,195,000, pursuant to a land installment contract that stated that if the buyer defaulted, Daugherty could retain installment payments made up to the point of default “as reasonable rental for the use of the property and as liquidated damages.” General defaulted on the contract with a remaining principle balance of $338,000. General had paid $1,242,447.50 to that point in principle and interest. General offered to reconvey 47 percent of the land to Daugherty. Daugherty refused the offer and brought suit to quiet title. The district court declined to permit evidence on the property’s reasonable rental value, and granted Daugherty summary judgment. General appealed.

Rule of Law

Issue

Holding and Reasoning (Weber, J.)

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