C. Hutchinson & Co. v. E. W. Lancaster, Inc.

456 N.E.2d 983, 119 Ill. App. 3d 610, 75 Ill. Dec. 162, 1983 Ill. App. LEXIS 2512
Appellate Court of Illinois·Decided November 21, 1983·No. No. 82—1795·Published·Cited by 3 cases

Opinion

JUSTICE McGLOON

delivered the opinion of the court:

Plaintiff, C. Hutchinson & Company (Hutchinson), brought a breach of contract action against defendant E. W. Lancaster, Inc. (Lancaster). Defendant filed a counterclaim alleging nonpayment of contract. Following a bench trial, judgment was entered in favor of defendant on the complaint. Judgment was also entered in favor of defendant on its counterclaim in the amount of $16,787.50.

On appeal, plaintiff contends that (1) the trial court’s finding that the design of a pretying machine was the joint responsibility of the parties was against the manifest weight of the evidence; (2) the trial court’s finding that defendant performed all conditions required under the contract was against the manifest weight of the evidence; and (3) the trial court’s award of damages to defendant was erroneous as a matter of law.

We affirm, as modified.

In 1976, plaintiff was in the business of pretying sausage casings for meatpackers. Plaintiff’s customers would send sausage casings to plaintiff. Plaintiff would, in turn, tie the end of the casings and return them to the meatpackers for filling. In an attempt to obtain a machine that would tie casings at a greater speed with lower labor costs, plaintiff contacted defendant, a custom-equipment builder.

In early 1977, representatives of the parties met to discuss the feasibility of designing and building a prototype of a machine that would meet plaintiff’s needs. Those present at the meetings were Jack Lancaster (president of E. W. Lancaster, Inc.), Bogdan Wezio (superintendent of E. W. Lancaster), and Jack Hutchinson (president of C. Hutchinson & Company). Wezio presented sketches to Hutchinson which demonstrated how a machine could be built that would complete the following functions: (1) picking up a casing; (2) pleating or gathering the casing’s end; and (3) tying or clipping the casing. Wezio testified that it was his understanding that defendant agreed to build a machine that would be capable of performing these functions. He further testified that Mr. Hutchinson had subsequently decided to purchase a premade clipping device which could be adapted to the machine instead of having defendant design the clipping aspect of the machine. In April 1977, Hutchinson recommended a Practo clipping machine to accomplish the clipping function. The Practo clipper was subsequently purchased by Hutchinson at his expense.

Later, in June 1977, a proposal drafted by defendant’s attorney was submitted to plaintiff. The proposal, as set forth below, outlined the agreement of the parties and was attached to plaintiff’s verified complaint:

“We, E. W. Lancaster, Inc. agree to develop an automated machine that will take casings from a hopper, transfer to a pleating device, then to a crimping operation. The machine will be built to provide above functions at a rate of 1,500/Hr. to 5,000/Hr. under normal operating conditions.
The machine will be developed with the approval and consent of Hutchinson prior to any manufacturing of parts. Lancaster will keep Hutchinson fully informed of any new ideas or changes and Hutchinson will be available for approval or disapproval.
The design of this machine shall be the joint responsibility of Hutchinson and Lancaster. Hutchinson shall signify acceptance of the design and development of this machine on a monthly basis.
The machine will be built for $18.00 per hour plus 115% of material cost. All patent rights will be property of Hutchinson. Expected cost of this machine to be $35,000 to $50,000, to be invoiced bi-monthly, based on time and material expended.
Lancaster guarantees material and workmanship for the period of one year.
Expected delivery to be September 30, 1977 or sooner.”

The proposal was never executed by plaintiff.

After defendant commenced work on the machine, Hutchinson made routine visits to defendant’s plant to check on defendant’s progress. In July 1978, Hutchinson informed Wezio and Lancaster that he did not consider the machine completed. Shortly thereafter, test runs on the machine were performed at one of plaintiff’s customer’s plants. Hutchinson testified that approximately 35 to 50% of the casings run during the test were found to be defective. However, on cross-examination, he stated that he had told Wezio that the test runs had been successful and that only three of the 500 casings which were retested experienced clip failure.

Additional tests on the pretying machine were run in May 1978 and August 1978. Wezio testified that after the tests performed in May, it was discovered that the clipping device was not functioning properly. He also testified that by August the machine ran satisfactorily. The quality of clip was equal to those originally produced by plaintiff, and all other functions worked properly. At that time, the machine could run at a rate of 1,500 to 5,000 casings per hour. Finally, Wezio testified that Hutchinson decided that heavier-gauge wire should be used. Problems with the clips arose after the heavier wire was used.

Eventually, defendant hired a consultant, Mr. Firth, to help Wezio and Lancaster better understand the nature of plaintiff’s product and the industry in general. Firth observed and tested the machine in 1979 and early 1980. His observations revealed problems with feeding the clips into the clipper, uniformity of clips, and problems in the “pick-up” unit immediately ahead of the clipper. The last test was run in January 1980. Firth testified that the machine did not operate satisfactorily. Although Firth could not identify the problem specifically, he stated that the problems with the clipper had masked other problems with the machine.

Plaintiff continued to pay defendant for his work on the machine through February 16, 1979. Plaintiff filed the instant action in the circuit court of Cook County on April 23,1980.

Initially, plaintiff contends that the trial court’s finding that the design of the pretying machine was the joint responsibility of the parties was erroneous. It argues further that defendant’s obligation under the parties’ agreement included sole responsibility for the design and production of the entire pretying machine. We disagree.

A reviewing court will not substitute its judgment for that of the trial court unless it is against the manifest weight of the evidence. (Uptown Federal Savings & Loan Association v. Kotsiopoulos (1982), 105 Ill. App. 3d 444, 434 N.E.2d 476.) A finding or judgment is not against the manifest weight of the evidence unless an opposite conclusion is clearly evidenced. Dutton v. Roo-Mac, Inc. (1981), 100 Ill. App. 3d 116, 426 N.E.2d 604.

Review of the evidence presented in the instant case reveals that the trial court’s finding on the parties’ design responsibilities under the contract was not against the manifest weight of the evidence. In reaching our conclusion, we cite our recent decision in American National Bank & Trust Co. v.

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C. Hutchinson & Co. v. E. W. Lancaster, Inc., 456 N.E.2d 983, 119 Ill. App. 3d 610, 75 Ill. Dec. 162, 1983 Ill. App. LEXIS 2512 (Ill. Ct. App. 1983).

456 N.E.2d 983 (C. Hutchinson & Co. v. E. W. Lancaster, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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