Millheiser v. Wallace

Summary

The Wyoming Supreme Court reviewed whether buyers who obtained rescission of a real estate contract based on mutual mistake were entitled to prejudgment interest on restitutionary payments. The court held that prejudgment interest may be considered as part of equitable restitution, but affirmed the district court's discretionary decision to deny it because neither party was found at fault and the remedy adequately restored the parties to the status quo.

Holdings

1. Prejudgment interest may be considered as an element of equitable restitution when a contract is rescinded, but it is not automatically required even when the restitution amount is liquidated.
2. The district court did not abuse its discretion by denying prejudgment interest because both parties entered the transaction under the same mistaken assumption, neither was found at fault, and the court sought to restore the parties to their precontract positions without imposing a penalty or consequential damages.

Questions Presented

1. Whether the buyers were entitled as a matter of law to prejudgment interest on the restitution judgment entered after rescission of the contract for deed.
2. Whether the district court abused its discretion by determining that prejudgment interest was unwarranted under the circumstances of the rescission.

Disposition

affirmed