Carlson v. Rysavy

262 N.W.2d 27, 23 U.C.C. Rep. Serv. (West) 353, 1978 S.D. LEXIS 296
CourtSouth Dakota Supreme Court
DecidedJanuary 5, 1978
Docket11931
StatusPublished
Cited by12 cases

This text of 262 N.W.2d 27 (Carlson v. Rysavy) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carlson v. Rysavy, 262 N.W.2d 27, 23 U.C.C. Rep. Serv. (West) 353, 1978 S.D. LEXIS 296 (S.D. 1978).

Opinion

MORGAN, Justice.

This is an action for breach of warranty against a dealer and the manufacturer of a double-wide modular home. The plaintiffs, Dale Carlson and La Vona Carlson (Carl-sons), commenced the action against the dealer, Donald Rysavy, d/b/a Don’s Mobile Homes (Rysavy) of Winner, South Dakota, and the manufacturer, Town & Country Mobile Homes, Inc. (Town & Country). In addition to his answer, the dealer Rysavy counterclaimed against the plaintiffs for an unpaid furniture bill in the amount of $900, and cross-claimed against the defendant Town & Country, alleging that Town & Country pursuant to SDCL 34-34A-5 was statutorily liable for any costs, losses, and damages which might be recovered against defendant Rysavy, including legal expenses not to exceed $1,500. The jury returned three verdicts. The first, in favor of defendant Rysavy on the claim by the Carl-sons; the second, against the defendant *29 Town & Country, and in favor of the Carl-sons, in the amount of $9,000; and the third, against the defendant Town & Country, and in favor of defendant Rysavy on his cross-claim, in the amount of $1,100. Judgment was entered on the verdicts and defendant Town & Country’s motion for remittitur or new trial was denied, from which judgment and denial of motions the defendant Town & Country appeals. We affirm the judgment in favor of respondents Carlsons and reverse the judgment in favor of Rysavy on the cross-claim and remand for further proceedings.

We first examine the assignments of error raised by the defendant Town & Country with respect to the principal action as commenced by the Carlsons.

The first point argued by the appellant is that the court erred in admitting testimony as to alleged defects raised for the first time at the trial, which defects were not included in any notice given to the appellant, nor were not enumerated in the plaintiffs’ complaint, nor were they found in the answers to the appellant’s interrogatories. The record discloses that the purchase of the mobile home from Rysavy was made after the plaintiffs had viewed a model or pilot home constructed at the Town & Country plant at Canton, South Dakota. A similar home, with modifications not pertinent to any of the issues in this appeal, was to be delivered and set up at the plaintiffs’ site at Sturgis, South Dakota. Mr. Carlson testified that he had inspected the pilot or model home with specific interest in type of siding, insulation, paneling, etc., and that he was told that the home’s insulation consisted of 3¾⅛ inch fiberglass batting, and that the roof and floor of the mobile home had sufficient insulation to meet all state specifications required for an electric heating furnace.

Upon delivery of the modular home Mr. Carlson noticed some apparent defects, which he noted on the delivery receipt returned to Town & Country, the most important of which was the fact that there were no heating ducts or tubing in the floor of the home, no hot water heater delivered, wind and water damage from transportation, and the center I-beams were bent and misshaped. Throughout the ensuing few months the Carlsons were faced with many problems. The two halves could not be bolted together due to the crooked I-beams. In response to continuous telephone calls and inquiries Town & Country finally sent a serviceman, who hired a local welder to force the I-beams together by means of C-clamps and to weld them. The serviceman failed to bring the right size heat tubes, however, he assured the plaintiffs he would return with the right size, which he never did. Mr. Carlson finally had to drive to Winner, pick up the right size, and install them himself. As time progressed and the weather became colder other problems became evident. Pipes froze, temperature in the home with the furnace running at full capacity would only reach 50°, water leaked around the doors and the door frame, and paneling bulged. Upon the suggestion of Rysavy, the Carlsons, late in February of 1975, sent a list of twenty-one defects to Mr. Rysavy for forwarding to Town & Country. There is no dispute that this list was forwarded. In March of 1975, upon investigation, the Carlsons learned that the home was inadequately insulated under the standards for electric furnaces and accordingly hired a local contractor to insulate the home properly. During this process Mr. Carlson discovered that his modular home did not have ⅜⅛ plywood sheeting under the siding, as the modular home they viewed in Canton did, but rather had a cardboard-type substance called Foam core. During all this period, except for dispatching the serviceman in August of 1974, appellant ignored the plaintiffs’ complaints.

The requirement for notice is codified at SDCL 57-7-15 and requires that the buyer must, within a reasonable time after he discovers or should have discovered any breach, notify the seller of breach or be barred from any remedy.

The commentaries to the 1962 official text, comment 4 at page 167, points out that “the rule * * * is designed to defeat commercial bad faith, not to deprive a *30 good faith consumer of his remedy.” Further, “the content of the notification need merely be sufficient to let the seller know that the transaction is still troublesome and must be watched. There is no reason to require that the notification * * * must include a clear statement of all of the objections that will be relied on by the buyer.” Professors White & Summers, in their hornbook on Uniform Commercial Code at page 347, summarize by stating that “quite clearly the drafters intended a loose test; a scribbled note on a bit of toilet paper will do.” 1

The record discloses that the plaintiffs gave notice to Town & Country that the transaction was troublesome. We find no difficulty in holding that the notice given in this case was more than adequate, and Town & Country’s utter failure to respond beyond the initial dispatch of a repairman to pull the framework back together leaves them little room to complain. Furthermore, with respect to the two items of which they particularly complained, that is, as to the floor and the roof, the record clearly shows that the condition of the rafters was newly discovered shortly prior to the trial; that counsel for Town & Country and Town & Country's expert were both present at the time it was discovered, and that Town & Country’s expert was examined directly during the course of the trial regarding the matter. Town & Country made no motion indicating surprise or asking for any continuances. We find no error in the trial court’s ruling on admissibility of that evidence.

The next issue, and easily and the most troublesome one, is what is the proper measure of damages?

The provisions of the Uniform Commercial Code, with respect to the buyer’s remedies when he accepts the goods and does not reject or revoke his acceptance, but sues for damages because the accepted goods are not as warranted, are codified under the provisions of SDCL 57-8-36, 57-8-37, and, under appropriate circumstances, 57-8-38, 57-8-39 and 57-8-40.

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Cite This Page — Counsel Stack

Bluebook (online)
262 N.W.2d 27, 23 U.C.C. Rep. Serv. (West) 353, 1978 S.D. LEXIS 296, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carlson-v-rysavy-sd-1978.