Crandall Engineering Co. v. Winslow Marine Railway & Shipbuilding Co.

61 P.2d 136, 188 Wash. 1, 106 A.L.R. 1457, 1936 Wash. LEXIS 734
CourtWashington Supreme Court
DecidedOctober 1, 1936
DocketNo. 26116. Department One.
StatusPublished
Cited by9 cases

This text of 61 P.2d 136 (Crandall Engineering Co. v. Winslow Marine Railway & Shipbuilding Co.) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crandall Engineering Co. v. Winslow Marine Railway & Shipbuilding Co., 61 P.2d 136, 188 Wash. 1, 106 A.L.R. 1457, 1936 Wash. LEXIS 734 (Wash. 1936).

Opinion

Steinert, J.

— Plaintiffbrought this action to recover the balance of the unpaid purchase price of certain machinery sold to defendant. In its answer, defendant set up a counterclaim for damages resulting from the collapse of a part of the machinery while in *3 operation. Issues were joined, and trial was had before the court, without a jury, upon a stipulated statement of facts. The court found that the damages to defendant equalled the amount of the unpaid balance of the original purchase price, and entered, judgment dismissing plaintiff’s action. Plaintiff has appealed.

The facts, as shown by the stipulation and by the court’s findings based thereon, are as follows:

■ Eespondent is a corporation organized under the laws of "Washington, with its principal place of business in the city of Seattle. Appellant is a foreign corporation not engaged in, or doing, business in this state.

In 1902, respondent purchased from appellant a cast-iron main gear for its railway dry dock hauling machine, used in the operation of its business. In 1931, two of the spokes in the main gear cracked, and respondent thereupon negotiated, in writing, with the appellant for the purchase of a new gear to be made of semisteel, which would be of greater strength than the old gear made of cast iron. Nothing, however, came of those negotiations at that time.

In August, 1933, respondent purchased from appellant twelve hundred feet of cast-steel railway chain and four alloy cast-steel chain wheels. The purchase was evidenced by the written offer of the appellant and a telegraphic acceptance by respondent. The offer contained a warranty, the same in form as that hereinafter set forth.

On October 4,1933, appellant, in reply to an inquiry, offered to sell and deliver to respondent one semisteel machine-moulded gear and one semisteel machinemoulded pinion for respondent’s dry dock hauling machine. The offer was accepted by respondent by letter of October 9, 1933.

*4 The total purchase price of the cast-steel chains and wheels and the semisteel gear and pinion, covered by the two contracts, amounted to $9,737.68.

In each of appellant’s two offers for the sale of this machinery and equipment was a warranty clause reading as follows:

“We warrant the goods above quoted to be free from defects in material and workmanship under normal use and service; our obligation under this warranty being limited to replacing at our works any part or parts thereof which shall, within 90 days after delivery thereof to the original purchaser, be demonstrated to its satisfaction to have been thus defective; this warranty being expressly in lieu of all other warranties, expressed or implied. We neither assume or authorize any other person to assume for .us, any other liability in connection with the said goods.”

•In this case, we are concerned only with the contract and warranty with reference to the gear and pinion.

Upon delivery of the gear and pinion in January, 1934, respondent, in reliance upon the contract and under the belief that the two appliances were of semi-steel, and having no knowledge to the contrary, installed the same as parts of its dry dock hauling- machine. On February 2, 1934, the gear, while in operation, broke, and, upon a chemical test being made, respondent for the first time discovered that the gear was made of cast iron instead of semisteel.

Respondent shortly thereafter wrote to the appellant notifying it of the occurrence and the subsequent tests made, advising it that it would be necessary to replace the wheel, also that serious loss had been entailed by reason of respondent’s inability to accept certain jobs, and asking appellant what it proposed to do in the matter. Appellant, in its written response, expressed amazement that the gear had been found to be of east iron and stated that for years its gear cast *5 ings had beeii made by the leading* and most reliable gear foundry in the country. Appellant further stated that it had “certainly agreed” to furnish a semisteel gear and that it intended to fulfill its agreement and replace the gear. It also requested that the test pieces be forwarded to it for analysis by the Massachusetts Institute of Technology. Pursuant to this correspondence, the test pieces were shipped to appellant, and thereafter a chemical test was made by the above institute, with the result that the gear was found to be of gray iron instead of semisteel.

Appellant thereupon shipped to the respondent a new semisteel gear in replacement of the broken gear. Upon receipt thereof, respondent installed the new gear in its dry dock hauling machine. The reasonable cost of labor and material expended by respondent in dismantling the broken gear, installing a temporary gear, and subsequently installing the new gear, amounted to- $1,632.34. Prom the total purchase price of the machinery and equipment covered by the two contracts, respondent deducted the amount of expense incurred and remitted the balance to the appellant. Up to this time, respondent had made no claim for damages. Appellant declined to accept the remittance as full settlement and thereupon brought this action to recover the amount of deductions made by respondent.

The question to be determined by us can best be presented by a statement of the respective contentions of the parties. Appellant presents the question thus:

“Does a contract of sale by description, wherein the seller gives a warranty that the goods quoted will be free from ‘defects in material and workmanship’ and limits its liability to replacing the goods, disclaiming all other warranties ‘expressed or implied’ and refusing* to assume ‘any other liability in connection with said goods,’ limit the remedy of the buyer to a replacement, where the seller in assumed compliance *6 with the contract of sale delivers a grey iron gear instead of a semisteel gear as called for in the contract.”

Appellant answers this question in the affirmative, its contention being that respondent’s relief is limited to a replacement of the gear.

Bespondent’s contention is:

“That appellant’s obligation to deliver the specific article agreed to be sold and delivered was a condition precedent to the obligation of respondent to accept and pay for the same, and that the delivery of a different article was a breach of a condition precedent for which it was entitled to recoup the damages resulting from such breach of contract, both under the general law relating to contracts and also under Sec. 11' of the Uniform Sales Act of the State of Washington, and that the limitation as to warranties in the contract and waiver of any other warranties, applied only to the identical article agreed to be furnished, and when and if delivered, and that it had no force or effect on account of the delivery of an entirely different article.”

Stated in somewhat general terms, the issue between the parties herein is whether the language in the so-called warranty is to be construed as a condition precedent or as a statutory warranty.

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Bluebook (online)
61 P.2d 136, 188 Wash. 1, 106 A.L.R. 1457, 1936 Wash. LEXIS 734, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crandall-engineering-co-v-winslow-marine-railway-shipbuilding-co-wash-1936.