Dailey v. Holiday Distributing Corporation

151 N.W.2d 477, 260 Iowa 859, 1967 Iowa Sup. LEXIS 807
CourtSupreme Court of Iowa
DecidedJune 6, 1967
Docket52534
StatusPublished
Cited by62 cases

This text of 151 N.W.2d 477 (Dailey v. Holiday Distributing Corporation) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dailey v. Holiday Distributing Corporation, 151 N.W.2d 477, 260 Iowa 859, 1967 Iowa Sup. LEXIS 807 (iowa 1967).

Opinion

Rawlings, J.

Action at law by- purchasers of dry cleaning machinery to recover damages for breach of warranties, express and implied, from manufacturer and dealer. From judgment for *864 plaintiffs on trial to the court both defendants appeal. We reverse.

January 15, 1962, plaintiffs Doyle Dailey and Gunvald Sande bought from defendant Holiday Distributing Corporation, for installation in Algona, a twin unit automatic dry cleaner with instruction sign and auxiliary exhaust fan, manufactured by defendant Speed Queen, a Division of McGraw-Edison Company. Total cost was $7506.46.

An unqualified purchase order appears on the face of a printed form, apparently prepared by defendant Holiday. It contains no reference to special conditions printed on the reverse side relating to warranties, defects, verbal understandings and other miscellaneous matters.

About April 7, 1962, installation of the machinery by defendant Holiday was completed.

Within two days mechanical problems arose. First a motor burned out. Then the doors periodically locked shut, making it impossible for customers to use the machine. The motor was replaced. However door troubles continued.

In an effort to correct this problem plaintiffs, at the suggestion of Holiday, installed an additional exhaust fan in the north wall behind the dry cleaner. This did not serve the desired purpose.

In June an employee of defendant Speed Queen visited plaintiffs’ plant, and after working on the equipment advised plaintiffs the installation of grills or louvers in the south wall was necessary to permit circulation of more air. This too Avas done but the doors still locked.

Other mechanical difficulties developed from time to time. For example the solvent pump leaked, springs broke, the solution would not drain, valves did not function, wiring had to be replaced and starting coils burned out.

' In accord with a suggestion by Holiday representatives these plaintiffs repeatedly called in a local refrigeration man for service work. Holiday’s repairmen also periodically but unsuccessfully attempted to effect necessary repairs.

According to plaintiffs’ testimony one unit or the other was out of operation three fourths of the time from installation to October 1963.

*865 Plaintiffs also determined cost of operation the first five or six months was at least $2.00 for each load.

Holiday was repeatedly advised the machines were not functioning properly.

Testimony by defendants is to the effect the equipment was neither operated correctly nor properly maintained.

In November 1962, plaintiffs wrote Speed Queen reporting trouble with the machinery.

December 1, 1962, plaintiff Sande communicated with Holiday stating in substance the dry cleaner had never worked properly, and as a result he and Dailey wanted to be reimbursed for their investment and expenses.

Then April 29, 1963, an attorney for plaintiffs, by letter, advised Holiday the implied and express warranties covering the machine had been breached, with a demand for return of the purchase price and reimbursement for expenses.

In October 1963, plaintiffs abandoned use of the machine.

I. Plaintiffs commenced their original action against Holiday June 17, 1963. They then alleged rescission foundationed upon breach of warranty.

Later an amended and substituted petition was filed based on breach of express and implied warranties with demand for damages. Speed Queen was then brought in as an additional defendant.

Subsequently plaintiffs amended, again claiming rescission. May 20,1965, this amendment was withdrawn. Trial commenced the same day on plaintiffs’ damage action against both defendants for breach of warranties.

Defendant Holiday asserts error in permitting the last amendment by plaintiffs.

A trial court has broad discretion in permitting or denying amendments and unless the discretion is abused we will not interfere.

And to allow is the rule, not the exception. See Claeys v. Moldenschardt, 260 Iowa 36, 148 N.W.2d 479, 483; Durant Elevator Co. v. S. J. Hoffman & Sons, 259 Iowa 500, 145 N.W.2d 25, 26, 27; and Webber v. E. K. Larimer Hardware Co., 234 Iowa 1381, 1389, 15 N.W.2d 286.

*866 However, an amendment should not be permitted under rule 88, R. C. P., if it materially changes the issues involved.

In Akkerman v. Gersema, 260 Iowa 432, 149 N.W.2d 856, 860, we found no abuse of discretion in permitting a party first seeking relief by declaratory judgment action to amend and ask reformation of contract. See also Cook, Iowa Buies of Civil Procedure, Volume 1, page 551.

Bescission is the unmaking of a contract.

Breach of warranty means the infraction of an express or implied agreement as to the title, quality, content or condition, of a thing sold or bailed. See Rasmus v. A. O. Smith Corporation, 158 F. Supp. 70, 78-80; Morris Plan Leasing Co. v. Bingham Feed and Grain Co., 259 Iowa 404, 143 N.W.2d 404, 414; United States Hoffman Machinery Corp. v. Carlson, 253 Iowa 304, 309, 111 N.W.2d 271; and Broer v. Dr. Fenton’s Vigortone Co., 231 Iowa 1276, 1278, 4 N.W.2d 416.

Breach of warranty may be the foundation upon which rescission is based but in itself does not constitute rescission. United States Hoffman Machinery Corp. v. Carlson, supra, loc. cit., 253 Iowa 307.

. While thus distinguishable, both still stand in the field of contracts. Rasmus v. A. O. Smith Corp., 158 F. Supp. 70, 78, 79, and Prosser on Torts, Hornbook Series, Third Ed., pages 644 and 651.

By the May 20’amendment plaintiffs in effect abandoned the rescission theory and reverted to their earlier action based on alleged breach of warranty.

Under these circumstances we find no basis upon which to hold abuse of discretion on the part of the trial court in permitting plaintiffs to fall back upon their May 20 amendment.

II. As stated in Morris Plan Leasing Co. v. Bingham Feed and Grain Co., 259 Iowa 404, 413, 143 N.W.2d 404, 410: “This case is not reviewable de novo here but only on errors assigned. The evidence will be viewed in the light most favorable to plaintiff — this is also the light most favorable to the trial court’s judgment. Its findings of fact have the efféct of a special verdict and are binding upon us if supported by substantial evidence. Citation of authority is unnecessary. Buie *867 344 (f)l, Rules of Civil Procedure.

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Bluebook (online)
151 N.W.2d 477, 260 Iowa 859, 1967 Iowa Sup. LEXIS 807, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dailey-v-holiday-distributing-corporation-iowa-1967.