Caldwell v. Sabo
Annotate this CaseClifford Sabo and Sabo Brothers Construction (the Sabos) entered into a written lease agreement with Vernon and Laura Caldwell for the excavation of scoria, a substance used in road construction, on the Caldwells' land. The Sabos agreed to pay the Caldwells a royalty rate for all scoria sold from the Caldwells' land, but the lease was silent as to when royalty payments were to be made. For several months, the Sabos made royalty payments to the Caldwells but for another period of several months, the Sabos did not make any royalty payments at all. The Caldwells subsequently filed a complaint against the Sabos, alleging breach of the lease for failure to pay royalties in a timely manner. The Caldwells also filed an application for a preliminary injunction. The district court enjoined the Sabos from hauling or selling any scoria from the Caldwells' land, concluding that the Caldwells had made a prima facie case that the Sabos had not paid them for all the scoria sold. The Supreme Court reversed, holding that the district court erred in granting the Caldwells a preliminary injunction in a breach of contract action when pecuniary compensation was contemplated and would afford adequate relief. Remanded.
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