Cram v. Wes Durston, Inc.

237 P.2d 209, 68 Nev. 503, 1951 Nev. LEXIS 109
CourtNevada Supreme Court
DecidedNovember 9, 1951
Docket3677
StatusPublished
Cited by9 cases

This text of 237 P.2d 209 (Cram v. Wes Durston, Inc.) is published on Counsel Stack Legal Research, covering Nevada Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cram v. Wes Durston, Inc., 237 P.2d 209, 68 Nev. 503, 1951 Nev. LEXIS 109 (Neb. 1951).

Opinions

[504]*504OPINION

By the Court,

Merrill, J.:

At the time of the transactions which are the subject of this action, appellant, a contractor operating out of Las Vegas, Nevada, possessed several items of heavy equipment located in Lincoln County, Nevada. .These included two Caterpillar tractors and three Terra Cobra scrapers. One of the tractors had been purchased from one Cashman of Las Vegas on conditional sale and a balance of over $6,000 was due on the purchase price. The remaining items were mortgaged to the Nevada Bank of Commerce in Elko, Nevada, for the sum of $38,000.

Kespondent operated as a dealer in used heavy equipment in Los Angeles, California.

This action was brought by respondent as plaintiff [505]*505for breach of warranty of title and fraud. It alleged purchase of the Cashman tractor from appellant for $14,000 upon the assumption that appellant’s title was free and clear; that it had been compelled to pay off the Cashman balance with consequent damage.

Appellant in defense and as counterclaim contended that his contract of sale with respondent was not for the single tractor alone, but was for all five items of equipment for the sum of $58,000 ($14,000 each for the tractors and $10,000 each for the scrapers) ; that respondent knew of the purchase balance to Cashman and of the mortgage to the bank; that the payment of $14,000 had been on account of the entire purchase price; that the equipment had all been delivered to respondent in Los Angeles; that respondent had defaulted on the payment of the balance and that appellant had accordingly been required to repossess the mortgaged equipment which had then been sold by appellant tó a third party at a substantial loss with consequent damage.

The case was tried before a jury which brought in a verdict for respondent in the sum of $6,442.03. After judgment upon the verdict, motion for new trial was made by appellant and denied by the trial court. This appeal is from the judgment and the order denying new trial.

Appellant’s first and principal assignment of error is that the verdict and judgment are contrary to the evidence and the law. The general proposition of law upon which appellant relies in this connection is that stated in Consolazio v. Summerfield, 54 Nev. 176, 179; 10 P.2d 629, 630: “The general rule of this court is that when the evidence is conflicting and there is substantial evidence to sustain the judgment it will not be disturbed. But there is an exception to the general rule to the effect that where, upon all the evidence, it is clear that a wrong conclusion has been reached, the judgment will be reversed.”

In our view the quoted “exception” cannot apply to [506]*506the record before us. The testimony of respondent’s president, Wes Durston, in support of the complaint and in opposition to appellant’s contentions was clear and positive and the jury cannot be criticized for choosing to regard it with belief.

Upon appellant’s cross-complaint, the essential question is whether a contract existed for sale of the equipment mortgaged to the Nevada Bank of Commerce, which contract was broken by respondent. Appellant contends that the evidence conclusively establishes this to be the fact. Heavy reliance is placed upon the following letter:

“Nevada Bank of Commerce
“Elko, Nevada
“Gentlemen:
“We are purchasing the following equipment from Mr. Boy Crams, Las Vegas, Nevada, on the following basis:
“3 — Woolridge Terra Cobras @ $10,000 each; total $30,000.00
“1 — 2U Caterpillar Tractor with Power unit and Dozer @ $14,000.00
“Upon the sale of these units or any one of them we guarantee to pay the above amounts to the Nevada Bank of Commerce.
“We will guarantee that the monies from the 2U Caterpillar and $15,000.00 on the Terra Cobras will be paid within 90 days from above date. The remaining $15,000.00 will be paid with [sic.] 180 days from the above date.
“With the payment of $14,000.00 for the 2U Cater-piller and $10,000.00 for each of the Terra Cobras we want a clear title to the said equipment.
“Yours very truly,
“WES DURSTON INC.
“/S/Wes R. Durston
“Wes Durston, Pres.
“WD :ts
“Acceptance: Nevada Bank of Commerce
“By.,.”

[507]*507Notwithstanding the statements contained in the letter, the verdict of the jury may be sustained upon either one of two theories: (1) that notwithstanding the implications of the letter, no contract of sale ever was reached; or (2) that if such a contract was reached, failure of performance by appellant excused performance by respondent. In our view the record contains evidence which would serve to support either theory.

(1) Durston testified in effect that on first discussing purchase of the property he had stated to appellant that construction of an airfield near Los Angeles was commencing; that the contractors needed equipment and that if delivery could be made promptly this would be a good time to move the equipment; that before any agreement as to price could be reached it would be necessary to secure bank consent to delivery and that delivery be made to Los Angeles and the equipment checked. He further testified that the price stated in the letter of May 2 was fixed in order to assist appellant in securing a bank release.

(2) Appellant clearly understood that respondent’s interest in the equipment was for purposes of resale; that delivery of the equipment to Los Angeles was therefore essential; that bank consent to such delivery in writing was required by the terms of his mortgage. In a letter to respondent dated March 25, 1949, the bank advised relative to the mortgaged equipment and the balances due: “We want to be understood that all of these should be paid for direct to the Nevada Bank of Commerce before they are moved from the State of Nevada.”

(3) Respondent contends that its letter of May 2 constituted a mere offer. The letter was never delivered to the bank by respondent. By including in that letter space for bank acceptance of the proposition as stated, it apparently attached some importance to such acceptance. The proposition was never accepted by the bank.

(4) The letter of May 2 was drawn and signed by [508]*508respondent in Los Angeles in the presence of appellant. Appellant was given a signed copy. At the same time appellant executed a written authorization to respondent to apply on appellant’s mortgage any money due him. Within a day or so, a representative of respondent called at the bank, discussed the transaction, showed the bank the letter of May 2 but did not deliver it to the bank. A few days later, learning that respondent had not yet delivered the original, appellant delivered his copy to the bank.

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Cram v. Wes Durston, Inc.
237 P.2d 209 (Nevada Supreme Court, 1951)

Cite This Page — Counsel Stack

Bluebook (online)
237 P.2d 209, 68 Nev. 503, 1951 Nev. LEXIS 109, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cram-v-wes-durston-inc-nev-1951.