Groves v. John Wunder Co.
Minnesota Supreme Court
286 N.W. 235 (1939)
Groves (plaintiff) leased its gravel-processing land to John Wunder Co. (defendant) for seven years so Wunder could excavate sand and gravel; Wunder paid $105,000 and agreed to regrade the land level with the roadway afterward, and also benefited by eliminating Groves as a competitor. Wunder removed the gravel but never regraded the land as promised, leaving it uneven; completing that work would cost over $60,000, though the property's value if properly graded would only have been $12,160. The trial court awarded Groves only the $12,160 difference in property value, and Groves appealed the damages measure.
Whether damages for a willful breach of a construction contract, despite substantial performance, should be measured by the cost of completing the promised work rather than the resulting difference in property value.