Anderson Machinery Co. v. Harber

584 S.W.2d 480, 1979 Tex. App. LEXIS 3987
CourtCourt of Appeals of Texas
DecidedAugust 1, 1979
DocketNo. 12850
StatusPublished
Cited by4 cases

This text of 584 S.W.2d 480 (Anderson Machinery Co. v. Harber) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anderson Machinery Co. v. Harber, 584 S.W.2d 480, 1979 Tex. App. LEXIS 3987 (Tex. Ct. App. 1979).

Opinion

O’QUINN, Justice.

The controlling issue in this appeal involves the doctrine of failure of consideration under a conditional sales contract and security agreement pertaining to sale of a heavy duty machine to be used by the purchaser in construction of rural roads and earthen tanks.

Appellee Robert Lee Harber entered into agreement to purchase from Anderson Machinery Company in April of 1974 the machine described as Hancock Model 192 Elevating Motor Scraper.' Shortly thereafter Anderson Machinery assigned the contract and security agreement to Allis-Chalmers Credit Corporation. Harber made down payment of $8,637.00 on the purchase price of $51,999.00 and agreed to pay the balance in thirty-six monthly installments of $1,204.50 each.

The record shows that the Hancock Motor Scraper developed repeated malfunctions within two days following delivery to Har-ber, which continued until after two monthly payments, when Harber ceased to make payments and the machine was repossessed in September of 1974. Allis-Chalmers sold the machine to Anderson Machinery for $25,000 in October of 1975 and brought suit against Harber for a deficiency of $9,755.34. Harber made Anderson Machinery a third party defendant alleging total failure of consideration.

Upon findings of a jury that there had been a failure of consideration, that the market value of the machine when repossessed was $20,000.00, and that reasonable attorney’s fees for Allis-Chalmers were $1,463.30, the trial court entered judgment for Allis-Chalmers against Harber for $9,755.34, with attorney’s fees of $1,463.30, and further that Harber recover from Anderson Machinery the sum of $11,218.64.

Anderson Machinery appealed and brings three points of error. Appellant contends (1) that there was no evidence to support a finding of total failure of consideration, (2) no evidence to support a finding of partial failure of consideration, and (3) that the trial court erred in overruling motion for new trial because there was “factually insufficient evidence” to support the jury finding of a failure of consideration.

Appellee Harber counters, in addition to his counterpoints, with cross points contending (1) that Anderson Machinery has not [482]*482preserved,for appellate review the inquiry under special'issue one as to total failure of consideration and (2) that appellant failed to bring to this Court the question of partial failure of consideration.

Although we agree with appellee that appellant failed to preserve the question of total failure of consideration by adequate objection to the court’s charge, nevertheless the point was preserved by appellant in the third party defendant’s motion for “judgment non obstante veredicto and mistrial because of conflicting findings.” Motion for judgment notwithstanding the verdict is one of four procedural bases for preserving “no evidence” points of error. State Reserve Life Insurance Company v. Ives, 535 S.W.2d 400, 404 (Tex.Civ.App. Fort Worth 1976, no writ), citing authorities and quoting the rule stated in Calvert: “No Evidence” and “Insufficient Evidence” Points of Error, 38 Texas L.Review 361, 362 (1960).

Insofar as special issue one is construed to inquire as to total failure of consideration, we must sustain appellant’s point of error on the basis that Harber failed to present any evidence that the Hancock Scraper was worthless and totally without value at the time of delivery by Anderson Machinery. Harber admitted that he had used the scraper for about 500 work hours, and that although he made a living using the machine, it was in spite of the machine and not because of it. Troublesome as the machine proved to be, with excess oil pressure, faulty brakes, malfunctions in transmission gears, hoses, steering apparatus, and the hood latch, resulting in fifteen work orders for repairs, Harber conceded that some use was obtained from the scraper.

To prove total failure of consideration, there must be evidence that the machine was worthless at the time of purchase. Chilton v. Jennings, 178 S.W. 563 (Tex.Civ.App. Fort Worth 1915, no writ). This Court dealt with the question in Allison Ranch Co. v. Angelo Auto Electric, Inc., 145 S.W.2d 645, 648 (Tex.Civ.App. Austin 1940, writ dism’d), in which it was stated, “The rule is settled that if machinery is sold for a particular purpose, and it will not perform any of its functions, the buyer may set up total failure of consideration as defense . . to a suit for purchase price of the machinery, “but if it only performs them badly the remedy is to recover for a partial failure of consideration, showing clearly the extent of same. * * * When a buyer relies upon the defense of failure of consideration he must make out his defense in accordance with the usual rules. That is, if the buyer has made any use of the machinery, he may not contend that there is a total failure of consideration.” See also Advance-Rumely Thresher Co. v. Higgins, 279 S.W. 531 (Tex.Civ.App. Amarillo 1926 writ dism’d); Super-Cold Southwest Co. v. Elkins, 140 Tex. 48, 166 S.W.2d 97 (1942); Reed v. Buck, 370 S.W.2d 867, 874 (Tex.Sup.1963).

Appellee Harber argues that total failure of consideration exists, even though the scraper had some value, because the harm and detriment the machine caused Harber outweighed its value. We find no support for this contention in decisions on the question, and hold that finding of total failure of consideration under the facts of this case would have no support in the evidence.

Under its second point of error Anderson Machinery contends that “there was no evidence to support a finding of partial failure of consideration” under special issue one inquiring, “Do you find . . . that there was a failure of consideration . .” for the sales contract? As pointed out earlier Harber pleaded total failure of consideration. Anderson Machinery concedes it is settled that a plea of total failure of consideration includes and permits proof of partial failure of consideration. Brantley v. Thomas, 22 Tex. 270, 275 (1858); Gutta Percha & Rubber Manufacturing Co. v. City of Cleburne, 102 Tex. 36, 112 S.W. 1047, 1048 (1908); Milner v. Boswell, 377 S.W.2d 763, 764 (Tex.Civ.App. Fort Worth 1964, no writ).

[483]*483We conclude that there is some evidence to support a finding of partial failure of consideration. It is without contradiction that when delivered the Hancock Scraper had eight work hours on its register and that when the scraper was repossessed about five months later the machine had only 502 to 504 work hours on it. Work hours on equipment of this type are automatically recorded when the machine is in actual operation, in a manner similar to the register of miles travelled on the odometer of a motor vehicle used on public highways.

By comparison, it was shown at trial that other scrapers used by Harber would add nine to ten hours daily, for seven days a week, during favorable work seasons, as from April through August, about the period Harber had possession of the Hancock Scraper.

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584 S.W.2d 480, 1979 Tex. App. LEXIS 3987, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anderson-machinery-co-v-harber-texapp-1979.