Bora Machine & Die Works, Inc. v. Clark Lift of New York, Inc.

108 Misc. 2d 591, 437 N.Y.S.2d 1011, 1981 N.Y. Misc. LEXIS 2247
CourtCivil Court of the City of New York
DecidedMarch 31, 1981
StatusPublished
Cited by1 cases

This text of 108 Misc. 2d 591 (Bora Machine & Die Works, Inc. v. Clark Lift of New York, Inc.) is published on Counsel Stack Legal Research, covering Civil Court of the City of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bora Machine & Die Works, Inc. v. Clark Lift of New York, Inc., 108 Misc. 2d 591, 437 N.Y.S.2d 1011, 1981 N.Y. Misc. LEXIS 2247 (N.Y. Super. Ct. 1981).

Opinion

OPINION OF THE COURT

Arthur J. Cooperman, J.

Plaintiff seeks recovery from defendants of the sum of $6,300 representing the price of two used forklift trucks that plaintiff contends it traded in to defendant Clark Lift upon plaintiff’s acquisition of a new forklift unit, pursuant to a lease-sale arrangement entered into by the parties.

Plaintiff had discontinued its cause of action against defendant Montgomery Leasing Corp. prior to trial.

Defendant counterclaims for the sum of $2,500 representing repairs it made upon the used machines and storage charges therefor.

This case involves the application of the Uniform Commercial Code to a trade-in transaction that appears to lack decisional antecedents.

Upon the trial of this matter, without a jury, the facts not subject to dispute were as follows: On May 7, 1979, defendant, a forklift dealer, conducted a special sales drive [592]*592of its equipment as a result of which its sales representative presented himself at plaintiff’s business office. Due to the sales representative’s efforts, plaintiff, a metal-stamping company, agreed to acquire through a lease-purchase arrangement a new 4,000 pound forklift truck.

At that time, plaintiff’s vice-president expressed a desire to trade in two used Clark units that were on the plaintiff’s premises. Following an inspection of the used machines by the sales representative a trade-in allowance of $6,300 was assigned to them.

A written “Quotation” was signed by plaintiff’s vice-president and defendant’s salesman. The quotation referred to a new Clark 4,000 pound unit; a price of $16,800; a trade-in allowance on “2 Clarks” (with the serial numbers indicated) of $6,300, and a notation that a five-year lease with option to buy was applicable to the new unit. The quotation also bore the following printed statement: “This Quotation shall become a contract upon signature by an Officer of Seller at its business offices.” The defendant never presented to plaintiff a copy of the quotation signed by an officer authorized to accept the sale.

On June 12, 1979, plaintiff leased from Montgomery Leasing Corp. a new 4,000 pound Clark forklift truck. The machine had been purchased from defendant and leased to plaintiff by Montgomery, which, in effect, financed the acquisition.

Thereafter, on June 14, 1979, defendant delivered the new machine.

In mid August, 1979, defendant picked up from plaintiff the two machines that are the subject of this lawsuit.

The pick-up order form provided by the defendant to its truck driver contained the name of the plaintiff, its place of business and the serial numbers of the two used machines listed on the quotation. The space provided for indicating whether the equipment was being traded in was marked with an “X”.

Plaintiff’s vice-president then wrote to defendant requesting payment of $6,300 for the two used machines pursuant to the quotation signed by him and the defen[593]*593dant’s sales representative. Defendant responded by letter dated September 13,1979 offering to purchase the units for $1,800 each, “based on the present condition.”

In its complaint, plaintiff alleged that having performed all the conditions contained in the instrument dated May 7,1979, it was entitled to the $6,300 trade-in allowance on the two used machines.

Defendant’s answer denied the substantive allegations of the complaint and set forth three affirmative defenses, to wit: (1) that the instrument that is the subject of this lawsuit concerned the sale of goods for a price in excess of $500 and, therefore, was required to be signed by defendant or its lawful agent; (2) that the two used units were falsely represented to weigh 8,000 pounds, when, in fact, they weighed 7,000 pounds; and (3) that when plaintiff purchased the new forklift truck on June 14, 1979, it did not offer its two used machines to defendant for a trade-in allowance, and did not do so until August 22,1979 at which time they were in a different mechanical condition, were not operating and required extensive repairs.

The answer also set forth a counterclaim for repairs defendant made on the units between August 22,1979 and November 27, 1979.

Upon the trial, plaintiff’s vice-president Andrew Albanese testified that when he signed the quotation he was told that the new forklift would be delivered within six weeks, at which time the used machines would be picked up. He testified that when the new unit was delivered on June 14, 1979 he instructed the driver to take the two exchange trucks. The driver refused on the ground that he had no room in his truck. However, he assured Mr. Albanese that he would return.

On cross-examination Mr. Albanese acknowledged that, although defendant had offered $6,300 for his used machines, the defendant’s sales representative had no objection to his seeking a better price from another buyer. The witness testified that he placed an advertisement in a newspaper and received several offers for the machines, but none was as good as defendant’s. Accordingly, on June 14, 1979, when the new forklift was delivered, he wanted defendant to pick up the used units.

[594]*594The defendant’s secretary-treasurer testified that on the special sale day of May 7,1979 he received a telephone call from the sales representative who told him that the trade-in machines were in excellent running condition. The witness testified that he evaluated the machines at $3,150 apiece and so advised the sales representative. He further testified that when the two used units were eventually picked up to be inspected and estimated by defendant during the following August, the engines were seized. At that time the machines were re-evaluated at $1,800 each and plaintiff was so advised of the new offer.

The sales representative’s testimony essentially confirmed the plaintiff’s chief witness as to the events of the special sale day. He further testified that he examined both trade-in machines, found them to be in running order (one of which he saw being operated) and telephoned his evaluation to his superior. Additionally, he testified that Mr. Albanese was told that, while he was free to seek a better deal on the used machines, a final decision had to be made prior to the signing of any lease papers for the new Clark lift unit.

Defendant’s first affirmative defense invokes the Statute of Frauds contained in section 2-201 of the Uniform Commercial Code, which, in pertinent part, states: “(1) Except as otherwise provided in this section a contract for the sale of goods for the price of $500 or more is not enforceable by way of action or defense unless there is some writing sufficient to indicate that a contract for sale has been made between the parties and signed by the party against whom enforcement is sought or by his authorized agent or broker.”

In view of the printed notice on the quotation that the paper was not a contract, absent a subsequent signature by an officer of the seller, the foregoing statutory prohibition pertains herein, unless one of its exceptions can be applied.

Section 2-201 further provides, as follows:

“(3) A contract which does not satisfy the requirements of subsection (1) but which is valid in other respects is enforceable * * *

[595]

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

Related

Ranta Construction, Inc. v. Anderson
190 P.3d 835 (Colorado Court of Appeals, 2008)

Cite This Page — Counsel Stack

Bluebook (online)
108 Misc. 2d 591, 437 N.Y.S.2d 1011, 1981 N.Y. Misc. LEXIS 2247, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bora-machine-die-works-inc-v-clark-lift-of-new-york-inc-nycivct-1981.