Complete Trucklease, Inc. v. Auto Rental & Leasing, Inc.

288 S.E.2d 75, 160 Ga. App. 568, 1981 Ga. App. LEXIS 3102
CourtCourt of Appeals of Georgia
DecidedDecember 2, 1981
Docket62398
StatusPublished
Cited by5 cases

This text of 288 S.E.2d 75 (Complete Trucklease, Inc. v. Auto Rental & Leasing, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Complete Trucklease, Inc. v. Auto Rental & Leasing, Inc., 288 S.E.2d 75, 160 Ga. App. 568, 1981 Ga. App. LEXIS 3102 (Ga. Ct. App. 1981).

Opinion

Carley, Judge.

On May 16,1979, appellant-Complete Trucklease (Complete), as lessee, entered into a written agreement with appellee-Auto Rental & Leasing, as lessor. This contract, denominated a “vehicle lease and service agreement,” provided that appellant would lease trucks from appellee and that appellee would in turn “furnish all mechanical maintenance, parts and labor, including reasonable preventive maintenance and repairs, lubricants and grease, cold weather protection and road service necessary to keep the vehicle in good operating condition . . .” Appellant-Samples, the president of the corporate appellant, executed this agreement and, in his individual capacity, guaranteed appellant’s performance thereunder.

Subsequently a dispute arose between the parties. Appellee contended that it was not receiving proper payment under the agreement and appellant-Complete contested liability under the agreement for some charges and asserted that proper credit for payment had not been given as to others. Apparently, appellant-Complete also began to experience mechanical problems with the trucks which were not resolved to their satisfaction. On September 25, 1979, appellee informed appellant-Complete by certified mail that it was in default of payments under the agreement *569 in the amount of “$52,279.13 as of September 15,1979.” Appellee’s letter warned that it would “be forced to take the action necessary to recover the equipment you have leased from us as well as the monies involved” unless the default were cured in five days. Despite this warning, appellant-Complete continued to operate the trucks and it was not until early December 1979 that the first truck was returned to appellee’s possession and it was not until the middle of December that all the leased vehicles were returned. On December 18, 1979, appellee informed appellant-Complete that it was exercising its election under the agreement to treat the lease as cancelled. Also, appellant-Complete was informed by the letter of December 18,1979, that unless payment were made within fifteen days according to the contract terms relevant to cancellation suit would be instituted.

When the parties were unable to resolve the dispute appellee instituted the instant action against appellants for $75,366.31, the amount alleged to be owing under the provisions of the lease. Appellants answered, denying the material allegations of the complaint and raising by way of defense failure of consideration and appellee’s breach of its duty under the contract.

The case was tried before a jury. A verdict in the amounts of $45,000 was returned for appellee against both appellants. Appellants appeal from the entry of a joint and several judgment against them in that amount.

1. Appellants first assert that the trial court erroneously excluded the testimony of one of their expert witnesses concerning the “customs” of the vehicle leasing businesses. Suffice it to say that our review of the witness’ proffered testimony demonstrates that it had nothing whatsoever to do with “business customs” or the general course of conduct of the business of truck leasing. At most the testimony dealt with the general economic realities underlying a lease-service contract and how the terms of such an agreement could be manipulated by the lessor to increase his short-term profit. Testimony that if the lessor breached his contractual obligation to service his own rented vehicles his short-term profit would be thereby increased is not evidence of a “custom” of the trade.

Moreover, even assuming that the proffered testimony was evidence of a business “custom, ” it was not reversible error to exclude it in this case. In the first instance, the contract between the parties was clear and unambiguous and no issue was presented concerning the proper interpretation of the language of the agreement. The sole issue was whether appellee and/or appellants were in breach of the contract’s unambiguous terms. See generally Brunswig v. East Point Milling Co., 11 Ga. App. 9 (2) (74 SE 448) (1912). And, assuming that the testimony was intended to demonstrate a possible, business *570 “motive” for appellee to breach its service obligation under the contract, in view of the following statement by the witness the only party prejudiced by its exclusion was probably appellee: “By not providing the maintenance [the lessor uses in calculating the rental] rate [the lessor] will obviously bring more money into the bottom line. That’s a short-term profit because eventually the maintenance [the lessor is] not performing — the preventive maintenance category will catch up and cost [the lessor] twice as much two years down the road in breakdown maintenance away from [the lessor’s] base of operation.” (Emphasis supplied.) Moreover, the transcript demonstrates that the substantial substance of the witness’ excluded testimony insofar as it was relevant, was merely cumulative of evidence already before the jury. See generally Paulk v. Thomas, 115 Ga. App. 436 (1) (154 SE2d 872) (1967). The trial court did not err in excluding the proffered testimony.

2. Appellants urge that the trial court erred in “failing to instruct the jury pursuant to appellant’s affirmative defenses that appellee’s material breach of dependent covenants in the parties’ motor Vehicle lease and service agreement excused appellants’ performance of the agreement.” While appellants do not specify which of their requests to charge they contend were erroneously refused by the trial court, apparently this enumeration addresses refused instructions on Code Ann. §§ 20-109,20-110,20-904,20-1104.

Appellants essentially assert that their requests to charge on their “affirmative defense” were authorized by the evidence that appellee had not entirely fulfilled its obligation under the agreement to make the necessary repair and maintenance work on the lease vehicles. According to appellants, this evidence of appellee’s breach of the agreement authorized a charge that appellee would not be entitled to enforce the contract under the legal principle that “the breach of one [dependent covenant] is a release of the binding force of all dependent covenants.” Code Ann. § 20-109. While this is a correct principle of law, the evidence in the instant case did not authorize such a charge. “The general rule is that ‘mutual covenants must go to the whole consideration on both sides, where the one is precedent to the other; but when they go to a part only and a breach may be paid for in damages, the covenants are independent.’ [Cits.]” Jordan Realty Co. v. Chambers Lumber Co., 176 Ga. 624, 629-630 (168 SE 601) (1932). “ ‘The distinction is very clear; When mutual covenants go to the whole of the consideration on both sides, they are mutual conditions, the one precedent to the other; but when they go only to a part, when a breach may be paid for in damages, then the defendant has a remedy on his covenant, and shall not plead it as a condition precedent . . .’ ” Water Lot Co. v. *571 Leonard, 30 Ga. 560, 574 (1860). It is readily seen that the whole consideration in the instant case was appellee’s covenant to lease vehicles to appellants and to maintain and repair those vehicles. It is undisputed that appellants received and used the trucks for the period of time underlying the instant suit.

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Bluebook (online)
288 S.E.2d 75, 160 Ga. App. 568, 1981 Ga. App. LEXIS 3102, Counsel Stack Legal Research, https://law.counselstack.com/opinion/complete-trucklease-inc-v-auto-rental-leasing-inc-gactapp-1981.