Anderson v. Sinagege R.M. Utu Enterprises

8 Am. Samoa 2d 139
CourtHigh Court of American Samoa
DecidedOctober 12, 1988
DocketCA No. 7-88
StatusPublished

This text of 8 Am. Samoa 2d 139 (Anderson v. Sinagege R.M. Utu Enterprises) is published on Counsel Stack Legal Research, covering High Court of American Samoa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anderson v. Sinagege R.M. Utu Enterprises, 8 Am. Samoa 2d 139 (amsamoa 1988).

Opinion

We find the facts to be as follows:

1) On June 19, 1987, plaintiff entered into an agreement with defendants for the lease of a crane belonging to plaintiff. The crane was to be used by defendants on a construction project on the island of Ta'u.

2) The lease provided that defendants would pay plaintiff $65 per hour for a minimum of 50 hours per week for 8 weeks, or a total of $26,000, "payable at time Lessee is paid on A.S.G. Contract No. 554120."

3) The lease also provided that plaintiff would supply an operator for the crane.

4) The lease further provided, inter alia, that defendants were to provide fuel for the crane; marine insurance during its transportation to Ta'u; a mechanic "to perform daily routine and minor mechanical repairs" (emphasis in the original); and accommodation for a mechanic to be provided by plaintiff in the event of a major breakdown. Defendants were also to pay for return transportation of the crane to Tutuila.

[141]*1415) Defendants chartered the Talimana'o to take the crane to Ta'u. It did not arrive until June 30, eleven days after the beginning of the lease period. (Defendant Reid testified that the delay was in order for plaintiffs to repair the crane. Defendants presented no evidence, however, that they had arranged for earlier transportation to Ta'u or that such arrangements were frustrated by plaintiff’s repairs. The parties seem to have contemplated a brief delay in the arrival of the crane, since the lease term is specified as June 19 to August 19 "or a minimum of 50 hours per week for 8 weeks." Eight weeks is 56 days; the lease term is 62 days. We assume that the parties expected the period during which the crane would actually be operated to begin on or about June 25 and to end on or about August 19.)

6) From the beginning the crane had some mechanical problems, principally having to do with a hydraulic fluid leak. This resulted in some "down time" and in plaintiff having to send a mechanic on several occasions.

7) Plaintiff supplied an operator for the crane as required by the lease, but he was unable or unwilling to work for the fifty hours per week contemplated by the contract. Some weeks he worked thirty or forty hours, some weeks hardly at all. By mutual agreement, defendants eventually began using one of their own employees as an operator.

8) On or about August 5 the crane became inoperative and remained so for about five days (Thursday through Monday). Defendants say this was because it completely broke down due to the hydraulic fluid problem; plaintiff says it was because defendants were unable to obtain fuel during this period. We find that the evidence on this point preponderates in favor of plaintiff’s version. It does appear, however, that one day of this inactivity was due to necessary repairs on a faulty switch.

9)As a combined result of the crane’s late arrival, the mechanical problems, the unavailability of the operator, and the fuel shortage, the crane was used for only 255.5 hours between June 30 and August 18.

10)On August 18, 1987, plaintiff’s manager James McGuire met with the defendants and agreed [142]*142that the lease would be continued "on a month to month basis beginning August 19th, 1987."

11) Between August 19 and September 17 defendants used the crane for 191.5 hours. (Defendants’ recapitulation of the hours contains an apparent error, listing the period "8/24-8-29" twice. We have used the larger of the two figures listed for this period.)

12) At the August 18 meeting defendants also verbally agreed to rent a backhoe from plaintiff for $3800 per month, retroactive to August 1, 1987.

13) On August 31, 1987, defendants made a partial payment of $9000. It was the only payment they ever made.

14) On September 10, 1987, plaintiff’s manager McGuire wrote a letter to the defendants memorializing the August 18 agreements, thanking defendants for the August 31 payment, and adding that plaintiff "look[ed] forward to assisting [defendants] on your present and future joint ventures in the Manu'a Islands."

15) On September 17, 1987, McGuire went to defendants’ work site in Ta'u and seized the equipment. McGuire later wrote a letter saying that the repossession was for non-payment of rent.

16) The crane was then used by plaintiff on some other construction projects in Ta'u.

17) On or about October 18, 1987, plaintiff’s mechanic traveled to Ta'u to do $650 worth of work on the crane. Much of this work involved rust damage.

18) On or about December 11, 1987, plaintiff’s mechanic again traveled to Ta'u and estimated that it would cost $5000 to put the crane back in working condition. He assessed the cause of the damage as rust due to neglect in the care and storage of the crane.

19) As of the date of trial defendants had been paid $74,254.95 of the total contract amount of $164,160 on Contract No. 554120. $56,907.55 of this amount was paid prior to December 22, 1987. We have no evidence of how much, if any, had been [143]*143paid prior to the seizure of the crane on September 18, 1988.

From these facts we draw the following conclusions:

1) The evidence preponderates against the conclusion that the defendants were in default on September 17 when plaintiff seized the crane.

The rent was "payable at time Lessee is paid on A.S.G. Contract No. 554120." The most obvious reading of this provision is that the rent was due when defendants were paid in full. This had clearly not happened by September 17. Even if we read the provision as requiring periodic payments corresponding to the payments received by defendants from the government, the partial payment of $9000 on August 31 would satisfy this requirement. We have no evidence of how much defendants had been paid by the government at this time, but we estimate (from the evidence concerning delays in completion of the work, and from the fact that only $56,907 had been paid by December) that if any payments had been received they must not have amounted to more than about $30,000. In the absence of any explicit understanding between the parties, and in light of the other expenses defendants would have been expected to meet as they received payments on the contract, we cannot conclude that the payment of $9000 toward equipment rental was unreasonably low.

It appears, moreover, that plaintiff’s manager was perfectly happy with defendants’ performance as of September 10. He thanked them for their August 31 payment. He reiterated plaintiff’s intention to keep the arrangement going on a month to month basis. He added that plaintiff was looking forward to doing even more business with defendants. This is hardly the sort of letter one writes seven days before repossession.

On the contrary, it seems quite clear that something happened between September 10 and September 17 to change plaintiff’s mind about the attractiveness of doing business with the defendants. The evidence yields no clue to what this might have been, except possibly the fact that plaintiff soon put the equipment to use on another project in Ta'u. Whatever plaintiff’s motives in terminating the contract, however, it did not [144]*144sustain its burden of proving default by-defendants .

2) With regard to most of the items in controversy, however, it does not matter whether defendant was in default on September 17.

Free access — add to your briefcase to read the full text and ask questions with AI

Cite This Page — Counsel Stack

Bluebook (online)
8 Am. Samoa 2d 139, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anderson-v-sinagege-rm-utu-enterprises-amsamoa-1988.