Deutz-Allis Credit Corp. v. Bakie Logging

824 P.2d 178, 121 Idaho 247, 17 U.C.C. Rep. Serv. 2d (West) 391, 1992 Ida. App. LEXIS 12
CourtIdaho Court of Appeals
DecidedJanuary 6, 1992
Docket18296
StatusPublished
Cited by4 cases

This text of 824 P.2d 178 (Deutz-Allis Credit Corp. v. Bakie Logging) is published on Counsel Stack Legal Research, covering Idaho Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Deutz-Allis Credit Corp. v. Bakie Logging, 824 P.2d 178, 121 Idaho 247, 17 U.C.C. Rep. Serv. 2d (West) 391, 1992 Ida. App. LEXIS 12 (Idaho Ct. App. 1992).

Opinion

SILAK, Judge.

This case involves the sale of a crawler tractor (dozer) by Empire Machinery Co. (Empire) to Bakie Logging Co. (Bakie). The purchase money security interest which Empire retained in the dozer was later assigned to Deutz-Allis Credit Corporation (Deutz-Allis). After Bakie’s payments became delinquent, Deutz-Allis sued Bakie to recover the dozer and the balance still owed on the contract. Bakie impleaded Empire alleging misrepresentation, breach of contract, and breach of warranty. Empire counterclaimed against Bakie, seeking to recover payment for repairs it had performed on the dozer. Deutz-Allis subsequently repossessed the dozer, and resold it at a public auction. After trial, the district court awarded Deutz-Allis a deficiency judgment against Bakie and dismissed the respective claims of Bakie and Empire. The trial court awarded Deutz-Allis its attorney fees and ordered Bakie and Empire to pay their own attorney fees. Bakie appealed and Empire cross-appealed, both challenging the district court’s factual findings. Because we conclude there was substantial evidence to support the district court’s judgment, we affirm.

I. Facts and Procedural Background

Because of the posture of this case on appeal—the parties contest only the factual findings of the trial court—we present here only a recitation of the facts as found by the trial court. The facts, as portrayed by the parties at trial, will be discussed more completely below in the sections where those facts are in issue.

In May of 1986, Arnold Bakie (Mr. Bakie), co-owner of Bakie, went to Empire to view a dozer that was for sale. Empire’s salesman, Ron Brooks, represented to Mr. Bakie that the dozer was “like new” and “logging ready,” having been equipped with a “logging package.” Mr. Bakie subsequently took the dozer and used it at one of Bakie’s job sites for a demonstration period of approximately one week. Prior to purchasing the dozer, Mr. Bakie insisted that the dozer come with a factory warranty. Empire contacted the manufacturer who agreed to give Bakie a power train warranty on the dozer which would expire on June 15, 1987. Empire never described the scope of this power train warranty to Bakie, and no other warranties were given.

On June 3, 1986, Bakie purchased the dozer from Empire for use in its logging business. The dozer was purchased on an installment-sale contract for $70,000. Bakie paid $5,000 down, leaving a balance of $65,000 to be paid in 45 monthly installments of $2,055.85. Pursuant to the contract, Empire retained a purchase money security interest in the dozer. Empire subsequently assigned its rights under the contract to Deutz-Allis. The contract also provided that Bakie would pay the costs, expenses, and legal fees incurred by Deutz-Allis in enforcing its rights under the contract.

After using the dozer for approximately sixteen months, Bakie’s lawyer gave Deutz-Allis written notice that Bakie intended to rescind the sales contract. At this time, Bakie was already in default on the contract for failing to make payments when due. Bakie continued to use the doz-er after giving notice of rescission.

In December,, 1987, Deutz-Allis sued Bakie on the sales contract, seeking possession of the collateral and payment of the balance due on the contract. Bakie subsequently impleaded Empire, alleging breach of contract, breach of warranty and misrepresentation. Bakie claimed that the dozer was defective and inadequate for performing its intended logging functions, contrary *250 to Empire’s representations and warranties. Empire counterclaimed against Bakie, seeking payment for repairs Empire performed on the dozer’s winch on July 29, 1986.

In February, 1988, Bakie voluntarily surrendered possession of the dozer to Deutz-Allis. Deutz-Allis placed the dozer on one of its dealer’s lots in Moscow, Idaho, and solicited bids for its sale. No private sale of the dozer was made, however. On April 11,1988, Deutz-Allis gave written notice to Bakie of its intention to sell the dozer at a public auction in Moscow, Idaho, on May 14, 1988. The auction was advertised in numerous newspapers published in various cities in Idaho, Washington, and Oregon. Notice of the sale was also given by fliers distributed to various individuals and groups. On May 14, 1988, the dozer was sold at the public auction for $24,000. The net proceeds of the sale, $22,783.21, were applied to the sales contract, leaving an unpaid balance of $47,965.70. Although Mr. Bakie received notice that the dozer would be sold at the auction, and personally attended the auction, he made no objection to the time, place or manner of sale.

A trial to the court was subsequently held, after which the district court found that the resale of the dozer had been performed in a commercially reasonable manner and awarded Deutz-Allis a deficiency judgment of $47,965.70, plus interest from May 14, 1988, as well as its reasonable costs and legal fees incurred by enforcing the contract. With respect to Bakie’s third-party claims of misrepresentation against Empire, the district court found that Bakie had failed to establish by clear and convincing evidence that Empire misrepresented either the logging readiness of the dozer or the warranties that would come with the dozer. With respect to Bakie’s breach of warranty claim against Empire, the trial court found that Empire’s refusal to apply the power train warranty to winch repairs performed on July 29, 1986, was a breach of the warranty. The court also found, however, that Bakie suffered no damage as a result of this breach, inasmuch as Bakie had properly refused to pay Empire for the repairs. The trial court found that, except for this winch repair, Empire had fully performed under the power train warranty, and no other warranties were given. Accordingly, the district court also ruled against Empire on its third-party counterclaim against Bakie in which it sought payment for the same winch repairs. Pursuant to these findings, the district court dismissed Bakie’s and Empire’s claims against each other and refused to award attorney fees to either party, finding that neither had prevailed for the purposes of I.R.C.P. 54. Bakie then appealed, and Empire cross-appealed, bo'th challenging the district court’s factual findings.

II.Standard of Review

Where, as here, the appellants challenge the trial court’s findings of fact, the appellants have the burden of showing error, and the evidence will be viewed in a light most favorable to the respondent. Salazar v. Tilley, 110 Idaho 584, 587, 716 P.2d 1356, 1359 (Ct.App.1986). In reviewing a trial court’s factual findings, we must keep in mind that it is within the province of the trial court, as the trier of fact, to weigh the conflicting evidence and to judge the credibility of the witnesses. I.R.C.P. 52(a); Alumet v. Bear Lake Grazing Co., 119 Idaho 946, 949, 812 P.2d 253, 256 (1991); Abbott v. Nampa School Dist. No. 131, 119 Idaho 544, 547-48, 808 P.2d 1289, 1292-93 (1991). The trial court is the arbiter of conflicting evidence, and we will not set aside its factual determinations unless they are clearly erroneous. Id.

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824 P.2d 178, 121 Idaho 247, 17 U.C.C. Rep. Serv. 2d (West) 391, 1992 Ida. App. LEXIS 12, Counsel Stack Legal Research, https://law.counselstack.com/opinion/deutz-allis-credit-corp-v-bakie-logging-idahoctapp-1992.