Heavican, C.J.
Tedd Bish Farm, Inc., owns a 120-acre tract of farmland in Hamilton County, Nebraska. We refer to Tedd Bish Farm and its owner, Tedd Bish, collectively as "Bish." One 6.5-acre corner of the land is irrigated by a gravity irrigation system, which is fed by a pipe that runs along the property fence line. Southwest Fencing Services, LLC (Southwest Fencing), damaged a section of the pipe while removing and replacing the fence along Bish's property. Bish discovered the damage to the pipe in July 2011. According to Bish, the pipe needed to be repaired by June 1, 2012, in order to avoid crop damage in the 6.5-acre corner for the 2012 crop year. Bish took the pipe in to be repaired on May 15, 2012, and was informed that repairs could be made by June 1. Bish, according to the county court, "chose not to authorize repairs" at that time, and the pipe was not repaired before June 1.
Bish filed a complaint in the county court for Hamilton County, seeking damages
We determine that summary judgment on an issue of fact, such as whether a party exercised reasonable efforts in mitigating damages, is appropriate when reasonable minds could draw but one conclusion from the facts. Further, we find that the district court did not err in affirming the county court's order, because the cost of the repair was reasonable in comparison to the damages avoided; Bish had the financial ability to pay for the repairs; and Southwest Fencing's own actions did not prevent Bish from authorizing the repairs itself.
As acknowledged by the county and district courts, the underlying facts of the case are largely not in dispute by the parties. Bish owns a 120-acre tract of farmland in Hamilton County, and one side of Bish's property, lined by a fence, is directly adjacent to Interstate 80. The majority of Bish's land is irrigated by a center pivot, but a 6.5-acre corner of Bish's land cannot be reached by the pivot and is instead irrigated by gravity irrigation.
Bish utilizes approximately 660 feet of irrigation pipe, which runs along the property fence line adjacent to Interstate 80, to supply water to the gravity irrigation system. Southwest Fencing contracted with Nebraska's Department of Roads to replace sections of fence separating private property from Interstate 80 in Hamilton County. During the course of replacing the fence on Bish's property in 2011, an employee from Southwest Fencing ran over portions of Bish's irrigation pipe with a skid loader and caused damage to the pipe.
On July 25, 2011, Bish discovered the damage to the pipe and contacted Southwest Fencing. A representative for Southwest Fencing denied that Southwest Fencing caused the damage and refused to pay for the repairs. On the same day, Bish contacted the Department of Roads. Bish testified in his deposition that the department informed him that Southwest Fencing's insurance company would pay for the damage to the pipe. Bish then contacted Southwest Fencing again that day, but its representative again denied any liability. Bish testified in his deposition that he did not remove the pipe or seek to get the pipe repaired at that time because Southwest Fencing had yet to admit to the damage.
Bish contacted Southwest Fencing again in 2012 regarding the damaged irrigation pipe, and its representative gave Bish the contact information for Southwest Fencing's insurer. On May 14, 2012, Bish met with an insurance claims investigator for Southwest Fencing's insurer. The claims investigator acknowledged that the damage to the pipe was caused by Southwest Fencing and told Bish to take the pipe to Northern Agri-Services, Inc., to get an estimate for the repair. Bish testified that he told the claims investigator the pipe needed to be repaired by June 1 in order to utilize the gravity irrigation system for the 2012 crop year. In its motion for partial summary judgment, Southwest
On May 15, 2012, Bish took the damaged pipe to Northern Agri-Services for an estimate. Bish also informed Northern Agri-Services that the pipe needed to be repaired by June 1. Northern Agri-Services estimated the cost to repair the pipe would be $1,772.40 and informed Bish that it could complete the repairs by June 1. Bish, however, did not authorize the repairs at that time. Bish testified in his deposition that he did not authorize the repairs because he believed Southwest Fencing's insurance company needed to approve the repairs before Northern Agri-Services could make the repairs. Bish testified that he had the financial ability to pay for the repairs himself at that time.
On June 5, 2012, Southwest Fencing requested its own estimate, and on July 13, it verbally offered Bish $1,772.40 to fix the pipe and later offered the same amount in writing on August 21. The pipe was not repaired in time for the 2012 crop year. Bish eventually had the pipe repaired before the 2013 crop season, and Northern Agri-Services sent Bish an invoice totaling $2,854.83 for the repairs. Southwest Fencing never paid Bish for the repairs.
Bish filed a complaint on May 22, 2013, in the county court for Hamilton County alleging that Southwest Fencing negligently damaged the irrigation pipe. In an amended complaint, Bish requested $13,578.62 in damages: $2,854.83 for the cost of the repair of the damaged irrigation pipe and $10,723.79 in lost profits for the 2012 crop year. In Southwest Fencing's answer to Bish's complaint, Southwest Fencing affirmatively pled that Bish failed to mitigate its damages with respect to the lost profits.
Southwest Fencing filed a motion for partial summary judgment on the issue of mitigation of damages. In support of its motion for partial summary judgment, Southwest Fencing submitted Bish's response to a request for admissions and a portion of Bish's deposition testimony. Bish submitted an affidavit from Bish and Southwest Fencing's answers to interrogatories. On January 31, 2014, the county court determined that Bish did not seek to repair the pipe within a reasonable amount of time and that therefore, Bish could not recover any lost profits associated with not having the pipe repaired by June 1, 2012.
A bench trial on the issues of negligence and the amount of damages for repair or replacement of the pipe was held on May 12, 2014. On May 23, the county court entered judgment in favor of Bish and awarded Bish $2,854.83. Bish then appealed to the Hamilton County District Court the county court's order granting Southwest Fencing's partial motion for summary judgment. On September 19, the district court affirmed the county court's order granting Southwest Fencing's motion for partial summary judgment on the issue of whether Bish made reasonable efforts to mitigate its damages. Bish now appeals to this court.
Bish assigns, consolidated and restated, that the district court erred in affirming the county court's order granting partial summary judgment on the issue of whether Bish failed to mitigate damages as to the 2012 crop year.
In reviewing a summary judgment, an appellate court views the evidence in the light most favorable to the party against whom the judgment is granted, and gives the party the benefit of all reasonable
Bish assigns that the district court erred in affirming the county court's order granting partial summary judgment on the issue of mitigation of damages. Bish argues that (1) summary judgment was not appropriate and (2) the evidence, viewed in a light most favorable to Bish, shows that Bish exercised reasonable efforts in attempting to mitigate the damages.
Bish contends that summary judgment was not appropriate, because the issue of whether Bish acted reasonably in mitigating the damages is a question of fact and should have been resolved by the jury. Southwest Fencing, on the other hand, contends that mitigation is a question of law. Summary judgment proceedings do not resolve factual issues, but instead determine whether there is a material issue of fact in dispute.
The decision over whether the issue of mitigation of damages should be presented to the jury lies with the court and is a question of law.
Keeping in mind that we view the evidence in a light most favorable to Bish, we next move to the question of whether Bish took reasonable steps to mitigate the damage as a matter of law.
"A plaintiff's failure to take reasonable steps to mitigate damages bars recovery, not in toto, but only for the damages which might have been avoided by reasonable efforts."
The avoidable consequences doctrine creates responsibility only for "those hypothetical ameliorative actions that could have been accomplished through ordinary and reasonable care."
A New Hampshire case similarly involving lost crops illustrates this principle.
Even if mitigation could be achieved through reasonable expense compared to the damages avoided, an injured party may be excused from the duty to mitigate if the injured party lacks the financial ability to do so.
The duty to mitigate is also often excused in cases where the defendant inhibits the plaintiff from taking actions to avoid additional damages.
Accordingly, we find the record indicates the cost to mitigate the damage was reasonable, Bish had the financial ability to mitigate the damages, and Southwest Fencing did not give any assurances that
The district court's order affirming the county court's order is affirmed.
AFFIRMED.
Stephan, J., not participating.