Houdashelt v. Lutes

Appellant David B. Lutes (Lutes) contracted to buy and Respondents James and Linda Houdashelt (the Houdashelts) contracted to sell the Houdashelts’ engine rebuilding business (Jim’s Diesel). The Houdashelts later filed suit in the Eighteenth Judicial District Court, Gallatin County, claiming that Lutes had defaulted in his payments and alleging fraud, negligent misrepresentation, breach of contract, unlawful detainer, and conversion. Lutes filed a counterclaim, alleging rescission of the contract. After a bench trial, the District Court found that Lutes had materially breached and defaulted…