Peevyhouse v. Garland Coal & Mining Co.

382 P.2d 109 (Ok. 1962)

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Nature of the Case

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Facts

Peevyhouse (P) leased their farm to Garland (D) for five years to strip mine coal. The contract contemplated strip mining wherein a specific clause was agreed in that D would take on restoration and remedial work at the end of the lease period. D breached the agreement to restore the land. P sued for $25,000. At trial, an expert testified that the cost of the work would be $29,000. D then entered testimony about the diminution in value of the land. D offered evidence that the total value of the property involved before the mining operation would be $60.00 per acre, and $11.00 per acre after the mining operation (60 acres at $49.00 per acre is $2940.00). Other evidence was that the property was worth $5.00 to $15.00 per acre after the mining, but before the repairs; and would be worth an increase of $2.00 to $5.00 per acre after the repairs had been made (60 acres at $5.00 per acre is $300.00). The jury, from the instructions given, was at liberty to consider the diminution in value of P’s farm as well as the cost of repair work in determining the amount of damages. The jury awarded P $5000; only a fraction of the cost of performance but more than the total value of the farm even after the remedial work was done. P appealed; the true measure of damages is what it will cost Ps to obtain performance of the work that was not done because of D’s default. D argued that the measure of damages is the cost of performance limited to the total difference in the market value before and after the work was performed.