Abraham v. Dalworth Machinery Co.

167 So. 2d 185, 1964 La. App. LEXIS 1907
CourtLouisiana Court of Appeal
DecidedJuly 1, 1964
DocketNo. 6198
StatusPublished
Cited by5 cases

This text of 167 So. 2d 185 (Abraham v. Dalworth Machinery Co.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Abraham v. Dalworth Machinery Co., 167 So. 2d 185, 1964 La. App. LEXIS 1907 (La. Ct. App. 1964).

Opinion

ELLIS, Judge.

On January 16, 1961, Wilson P. Abraham and L. L. Lindley d/b/a L & A Equipment Co., purchased from the defendant, Dalworth Machinery Company, several pieces of heavy equipment used in construction work described as follows:

1.Used American Model L75 dragline and backhoe, S/N 4246 “W/cat” D-315 Engine, price $7500.00

which was secured by chattel mortgage and note identified therewith providing for 6% from date to maturity and 8% interest after maturity together with reasonable attorney fees of 15% if placed in the hands of an attorney for collection after maturity.

2. Used Northwest Model 25 Motor Crane, S/N 19013 with Buda engine and crane carrier, for $25,000.00

secured by a chattel mortgage and note identified therewith in the sum of $25,000.00 with interest at 6% from date to maturity and “after maturity for highest lawful contract rate (in Louisiana 8%) together with reasonable attorney fees of 15% due on or before January 16, 1962.”

3. Used Insley Model L dragline s/a 7997 with “cat” D-315 Engine for the. price of $5000.00,

secured by chattel mortgage and note identified there with in the sum of $5000.00 with interest at 6% from date to maturity and after maturity at 8% per annum together with 15% attorney fees, due or before-January 16, 1962.

4. Used Northwest Model 25 dragline S/N 15329 W/Murphy Diesel Engine

together with

5. Used Caterpillar D-6 Tractor S/N 9U9567 W/25 cable control S/N 9023160> and 6 A Bulldozer S/N 16C5378

and

6. Used Allis Chalmers H.D. 9 Tractor S/N 2238 with tractor motive Loader and ripper
7. Used Caterpillar D-7 tractor S/N 7M3004 with cable control and bulldozers.

The consideration for the last above described four pieces of heavy equipment was $29,000.00 of which $3000.00 1 was paid cash in hand, and the balance of $26,000.00 was [187]*187•secured by a chattel mortgage and note identified therewith bearing interest at 6% from date to maturity and 8% after maturity, together with 1S% attorney fees if placed in the hands of an attorney for collection after maturity, said note payable in twenty-three successive monthly payments of $1083.33 each and one installment of $1083.41, commencing February 28, 1961 and then on a like date of each month thereafter until fully paid.

The Machinery Finance Corporation became the holder of the note for $25,000.00 secured by the equipment described in No. 2 and the note for $5000.00 secured by the property described in No. 3 above.

No payments were or have ever been made by Lindley and Abraham and it is evident they were called upon to comply with their contract of purchase. There is testimony by the sellers that some objection was made to the machinery during the conversations between the parties in April of 1961, and the defendant offered to accept the return of three pieces of equipment being described in Nos. 1, 2 and 3 to defendant’s yard in Baton Rouge, Louisiana. It is admitted that plaintiff Abraham sent the used American Model 175 Dragline and back hoe S/N 4246 W/“cat” D-315 Engine to the seller’s place of business in Baton Rouge, Louisiana, in accordance with the agreement but did not return any other equipment. Plaintiffs denied having ever received the note back, given for $7500.00 to secure the purchase price of this piece of equipment.

Subsequent to conversation about the machines, which we surmise also involved demands for payment, Lindley and Abraham employed their present attorneys, for on May 21, 1961 they wrote a letter to the president of Dalworth Machinery Company from whom the equipment had been purchased, stating that they represented the parties and?

“ * * * they advised that the equipment purchased has proved so latently defective as to make use of same most impractical and unprofitable. They have expended large sums for repairing these defects, and quite naturally, they look to your company to make these repairs good. Needless to say, there is an implied warranty of fitness which Louisiana law attaches to every sale in this state.
“It would perhaps be useless here to itemize every repair bill expended on these machines inasmuch as we are sure that Mr. Lindley or Mr. Abraham has no doubt advised you fully in this regard. We have been advised that in spite of extensive repairs, our clients have been able to get no use out of two of the machines, namely, (1) the Northwest Model 25 Crane SN 19013 with Buda Engine and Crane Carrier; and (2) American Model 175 Dragline and backhoe SN 4246 with “cat” D-315 Engine. They hereby tender these machines back to you and ask for rescission of the two respective sales.
‡ ❖ ^ ‡
“With regard to your letter to Mr. Lindley dated May 16, 1961, Mr. Lind-ley advises that Southern Equipment & Tractor Company is still billing them for the work on the HD-9 and that apparently some account other than the one indicated was actually credited. However, any error here can be easily corrected.
It is the purpose of this letter to make formal demand in the particulars outlined above and also to serve as formal notice of your default in having failed thus far to abide by your obligations as the seller of the equipment in spite of many requests to so do * * * ”.

No answer was given to the letter of May 21st, by the sellers and/or holders of the note connected with the sale of the equipment, other than the instructions to their attorneys to proceed in their behalf.

[188]*188On August 1, 1961 suit was filed by Abraham and Lindley doing business as the L & A Equipment Co. for the rescission of the sale as to the used Northwest Model 25 Motor Crane, S./N 19013 with Buda Engine and crane carrier, and for the used American Model 175 dragline and back hoe S/N 4246 “W/cat” D-315 Engine, that the purchase price be returned to them in the event the defendant has negotiated the notes representing the consideration of same, and that said notes be returned to petitioners in the event they have not been negotiated, and the plaintiffs additionally requested the damage which will hereinafter be set forth in connection with the repair of the machines, etc. Plaintiff also asks for a diminution of the purchase price on all the other items of equipment. Plaintiffs set forth that they had incurred bills on the equipment involved in the four acts of sale totalling 17,165.97 as of the date of filing of suit, and on infoi'mation and belief allege that the equipment needed additional repairs in the amount of $7600.00 and that additionally they had expanded the sum of $2684.92 for labor in repairing the items of equipment purchased from the defendant, and had had to rent new equipment during the period the D-6 tractor was being repaired which cost them $2100.00 and had employed attorneys and that the defendant should be held liable for the fee in the amount of $7500.00, and plaintiffs further alleged that they were entitled to collect the sum of $1000.00 representing freight and transportation on the two items of equipment as to which the rescission “is sought”.

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Bluebook (online)
167 So. 2d 185, 1964 La. App. LEXIS 1907, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abraham-v-dalworth-machinery-co-lactapp-1964.