Berry v. RICHFIELD OIL CORP.

222 P.2d 224, 220 P.2d 106, 189 Or. 568, 1950 Ore. LEXIS 217
CourtOregon Supreme Court
DecidedSeptember 12, 1950
StatusPublished
Cited by5 cases

This text of 222 P.2d 224 (Berry v. RICHFIELD OIL CORP.) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Berry v. RICHFIELD OIL CORP., 222 P.2d 224, 220 P.2d 106, 189 Or. 568, 1950 Ore. LEXIS 217 (Or. 1950).

Opinion

*570 ROSSMAN, J.

This is an appeal by the plaintiff from a decree of the Circuit Court in favor of the defendants-respondents which dismissed the suit. The respondents are Eiehfield Oil Corporation, Shelby Bailey and Eldon Young. Yv7e may hereafter refer to the oil company as Eiehfield.

This suit arose out of a ten-year lease which was signed by the appellant, as lessor, December 30, 1940, and by Eiehfield, as lessee, January 8, 1941. The lease bound the appellant to erect a combination service station and grocery store upon a site owned by her in Lakeview. The structure was completed March 29, 1941. The lease describes the entire property, and Eiehfield has possession of both the store and the service station. Both parts are under the same roof. It is the contention of the appellant that the respondents, Bailey and Eiehfield, through false representations that Eiehfield would exercise dominion over the service station part only and permit her to have the store section, induced her to sign the lease. Since we shall have frequent occasion to mention the grocery store part, we explain that its size is modest; its greatest length is 28 feet and its widest part is 24 feet. The portion of the structure occupied by the service station, with its pumps, car hoist, service room and incidental appointments, is much larger than that given over to the store.

The lease bound Eiehfield to pay the appellant a rental of 1% cents for each gallon of gasoline delivered to the station. It provided that the monthly rental should never be less than $45.00.

We stated that the lease describes the entire prop *571 erty. That instrument, referring to the appellant as the lessor and to Biehfield as the lessee, says:

“Lessor, for and in consideration of * * * has demised and leased and by these presents does hereby demise and lease unto Lessee that certain real estate situated in the city of Lakeview, County of Lake, State of Oregon, particularly described as follows, to-wit:”

At that point occurs a description of the premises. Going on, the lease says:

“ * * * also with an easement for Lessee, its customers, employes, invitees and sub-lessees and their automotive and other motor vehicle equipment over and across the following parcel of land * * *. Such easement to be used for purposes of ingress and egress to and from the oil and gasoline service station situated upon the above-described property.”

The instrument does not use the word “grocery store”, but Article IV says:

“Lessor covenants and agrees with Lessee that as part of the consideration for the rental herein * * * it will cause forthwith at its expense to be constructed and installed upon the leased real estate, for the use and benefit of Lessee, an oil and gasoline service station complete with buildings, driveways * * * and facilities and such other improvements and equipment as may be required by the plans and specifications therefor to be furnished or approved by Lessee. * * * At the time of completion of the construction and installation of all buildings, improvements and equipment to be constructed and installed hereunder by Lessor, an inventory thereof marked Exhibit ‘A’ shall be hereto attached and become a part hereof.”

As we shall presently see, the plans and specifications which were prepared under the appellant’s direction, *572 and which were approved by Richfield, included the store space. The inventory required by the clause last quoted was prepared and signed by the parties when the building was completed. It contains this phrase, “service station and store building.” It concludes with this provision:

“It is understood and agreed that the foregoing constitutes all the buildings, improvements and equipment to be furnished by Lessor under the terms of the lease of which this exhibit is a part.”

After the complaint makes it charges of fraud, its prayer asks that the lease be cancelled, that Bailey and Richfield be required to account for the income they derived from the grocery store, that the plaintiff be awarded punitive damages in the amount of $25,000, and that the court quiet the title of plaintiff to the property.

Respondent Bailey held a position with Richfield which the witnesses entitled commission agent. He had charge of its bulk plant in Lakeview; a layman might recognize his position as that of a wholesaler of Richfield gasoline. He received a commission upon all gasoline which he sold to stations. His uncontradieted testimony shows that he had no authority to bind Richfield in any matter. His interest in the lease transaction was due to the fact that additional stations augmented his sales of gasoline. Concerning the negotiations for the lease, he termed himself “a bystander.” The respondent, Young, on March 1, 1946, became the sublessee of the service station. He is not accused of any wrongdoing.

The answer denied all averments of fraud. After the trial in the Circuit Court, which resulted in a transcript of evidence covering 403 pages and ae.com *573 panied with numerous exhibits, the aforementioned decree was entered. The entry of the decree was preceded by a memorandum opinion, from which we quote:

“It is apparent that at the time of the execution of the agreement, the parties thought the gallon-age due plaintiff under the agreement would be a substantial amount, and in my estimation, this, in part, accounts for the fact that plaintiff entered into an agreement whereby she permitted the store room to be included in the lease.”

That, of course, is a holding that the appellant, as lessor, intended that Richfield should have the store room as well as the service station. The memorandum opinion continues:

“The agreement was not readily entered into. The plaintiff was represented by competent counsel, and she was aware of all the terms of the lease, * * *. Perhaps due to the War, Bessie Barry made an unsatisfactory lease agreement with the Rich-field Oil Corporation, but I feel that she was at all stages of the transaction represented by competent counsel and was fully aware of what she was doing and should not be permitted at this late date to come into Court and ask to have the lease cancelled and seek * * *.”

It will be observed that the trial judge declared that the suit was filed at a late date. The suit was not filed until February 25, 1947, approximately six years after the lease became effective.

The appellant presents three assignments of error. They are:

“The Court erred in not viewing with distrust all of the evidence offered by the defendants because they elected to stand upon verbal statements and to withhold from the Court the complete written memo of witness Galloway covering the pro *574 posed lease between plaintiff and defendant Rich-field.”
‘ ‘ The Court erred in not finding that the plaintiff was induced, by means of fraudulent representations, to execute the contested lease with defendant Richfield.

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Cite This Page — Counsel Stack

Bluebook (online)
222 P.2d 224, 220 P.2d 106, 189 Or. 568, 1950 Ore. LEXIS 217, Counsel Stack Legal Research, https://law.counselstack.com/opinion/berry-v-richfield-oil-corp-or-1950.