Rock Island Improvement Company v. Helmerich & Payne, Inc.
United States Court of Appeals for the Tenth Circuit
698 F.2d 1075 (10th Cir. 1983)
Relevant factsFree
Helmerich (defendant) leased land from Rock Island (plaintiff) to mine coal, and the lease's reclamation clause required Helmerich to restore the land afterward. Helmerich never reclaimed the land, and Rock Island sued for breach, seeking the $375,000 cost of reclamation. Helmerich argued damages should instead be measured by the land's diminution in market value, stipulated at only $6,797. The jury awarded Rock Island the full $375,000, and Helmerich appealed.
IssueFree
Whether, where a party genuinely contemplated enforcement of a reclamation clause, the proper measure of damages for its breach is the cost of performance.