D. A. Osguthorpe v. Anschutz Land and Livestock Company, Inc., a Corporation

456 F.2d 996, 10 U.C.C. Rep. Serv. (West) 620, 1972 U.S. App. LEXIS 10653
CourtCourt of Appeals for the Tenth Circuit
DecidedMarch 20, 1972
Docket71-1296
StatusPublished
Cited by6 cases

This text of 456 F.2d 996 (D. A. Osguthorpe v. Anschutz Land and Livestock Company, Inc., a Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
D. A. Osguthorpe v. Anschutz Land and Livestock Company, Inc., a Corporation, 456 F.2d 996, 10 U.C.C. Rep. Serv. (West) 620, 1972 U.S. App. LEXIS 10653 (10th Cir. 1972).

Opinions

WILLIAM E. DOYLE, Circuit Judge.

This case involves distinct but not unrelated claims filed and prosecuted by appellee. The first of these involved an alleged balance due for sheep sold to appellant ; a verdict in the amount of $9,797.06 was awarded by the jury. The second claim was for professional services allegedly rendered by appellee in connection with the nerve gas poisoning of appellant’s sheep by the Army at Skull Valley, Utah in March 1967. The recovery on this second claim was in the amount of $28,090.00, which sum included interest. The alleged errors relied on by appellant for reversal involve certain of the court’s instructions and, at the same time, the failure of the court to instruct in accordance with Anschutz’s theories. It is necessary to summarize the facts somewhat extensively in order to fairly consider the parties’ contentions.

I.

Dr. Osguthorpe was shown to have been a veterinarian who also had a sheep ranch. In 1967 he obtained an interest in a flock of 2,300 sheep of J. R. Broadbent by providing a summer range. In the middle of the summer he, with the authorization of Broadbent, contacted Alvin Hatch, manager for An-schutz, as to possible purchase of the sheep. The testimony as to what occurred in connection with this sale is diametrically opposed and raises questions as to the terms of the sale.

Osguthorpe testified that when he met with Hatch in the summer of 1967 at Kimball Junction, Utah, he and Hatch orally agreed on a flat price of $25.00 per head. Hatch, on the other hand, insisted that the price agreed upon was based on the age of the sheep — $28.00 for two-year-olds, $23.00 for three-year-olds, $18.00 for four-year-olds and $14.00 for five-year-olds and above. Hatch further said that he made a memorandum of these prices,1 and that Osgu-thorpe agreed to draw up a written contract to such effect at a later time. Os-guthorpe’s testimony was that the first mention of any price per age was made in a written contract which the livestock company submitted to him in the fall of 1967. According to his further testimony, neither he nor Broadbent signed this.

The livestock company’s office manager at Wasatch, Utah, one Miles Williams, testified to a meeting on September 12, 1967 at Wasatch. Both Osguthorpe and Hatch were present, and this was for [999]*999the purpose of signing a contract. It was not, however, signed since it was determined that the signature of J. R. Broadbent was necessary. Instead, a contract was prepared and given to Os-guthorpe for Broadbent’s signature. On that occasion, according to Williams, a bill of sale listing the number and price of the sheep per age was given to Osgu-thorpe who made no protest about price.2 Hatch, on the other hand, testified that before payment was made by issuing a second cheek to Osguthorpe, there was a telephone conversation in which Osguthorpe said that Broadbent had signed the written contract.

An initial payment in the form of a check for $2,000.00 in which J. R. Broadbent was the payee was given on behalf of the livestock company on September 12, 1967. Inspection of the sheep took place in October, and 1,674 head of the 2,300 flock were delivered and accepted. On November 15 a check in the amount of $31,641.00, also payable to J. R. Broadbent, was issued by An-schutz and delivered to Osguthorpe. Approximately seven months later Osgu-thorpe demanded an additional $8,029.00 from the livestock company, claiming that this was the unpaid balance due. Anschutz refused to pay this, and whether this amount was due and owing was the first dispute tried. The sheep were in fact mouthed and the ages of the sheep determined by Anschutz before payment was made. Osguthorpe, however, plays down the significance of this circumstance because he maintains this was necessary for eliminating the old sheep which could not make it through the winter.

At the trial Osguthorpe presented two alternative theories. First, that there was an oral agreement at Kimball Junction and, secondly, that if there was no meeting of the minds he was nevertheless entitled to recover in the amount demanded on a quantum meruit basis. Anschutz’s contentions were somewhat less clear. It relied on the execution of a written agreement based on the testimony outlined above, including the alleged admission by Osguthorpe that Broadbent had signed a contract. When all of the evidence was in, the attorneys for An-schutz advised the trial court that they wished also to rely on an oral agreement entered into at Kimball Junction keying the price to the age of the sheep, but the trial court stated in response that the company’s only evidence was in support of a written contract, a writing which had not been produced and which, according to the further ruling of the court, could not be considered since there had not been a delivery.

In outlining the issues as a part of its jury charge, the trial court described the Osguthorpe contention as being that Hatch orally agreed to pay the sum of $25.00 per head regardless of age and also told the jury that if the jury found that there was no oral agreement as to price or no written agreement as to price, that the plaintiff was entitled to recover the fair and reasonable value of the sheep at the time of their delivery in the fall of 1967. In setting forth the contentions of the defendant, the court merely said that the defendant denied that its agents or employees or that its Utah superintendent, Hatch, orally agreed to pay $25.00 per head. The court continued:

* * * The defendant instead says that the agreement discussed was not for $25 a head, but it was a different price for different age groups of ewes. And the defendant further claims in this lawsuit that the parties did not intend to enter into an agreement up there in Summit County as to price nor until it was written down on a piece of paper, signed by the plaintiff. The defendant claims there was [1000]*1000such a written agreement, but the defendant did not produce a written agreement at the trial.

Thus, the sole contention of the defendant submitted to the jury was the contention that a written agreement was intended. The jury was not even told that it was at liberty to decide for the defendant if the jurors found that the plaintiff had failed to prove any agreement, or if the jury found that there was in fact an agreement based on the age of the sheep or if it determined that the parties entered into a parol agreement evidenced by the bill of sale and the submitted writing.

Moreover, the court’s view as expressed in its definitive ruling that the contract to be valid and enforceable had to have been delivered back to Anschutz was a mistaken view of the law on the subject since delivery is not necessary in the absence of an express intention. The important factor is whether the parties arrived at a meeting of the minds.3 The view expressed by Cor-bin (see note 3, supra) is carried out by the Utah Commercial Code — derived from the Uniform Commercial Code— which recognizes that a contract can come into being as a result of either a writing or words or conduct. 70A-2-204(l) Utah Code Ann.1953. Moreover, according to § 70A-2-203, sealed instruments are not approved. The official commentary to § 203 recognizes that the parties may condition their assent on formalities, but must do so expressly.4

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456 F.2d 996, 10 U.C.C. Rep. Serv. (West) 620, 1972 U.S. App. LEXIS 10653, Counsel Stack Legal Research, https://law.counselstack.com/opinion/d-a-osguthorpe-v-anschutz-land-and-livestock-company-inc-a-ca10-1972.