Great Plains Supply Co. v. Mobil Oil Company

172 N.W.2d 241, 1969 N.D. LEXIS 73
CourtNorth Dakota Supreme Court
DecidedNovember 3, 1969
DocketCiv. 8542
StatusPublished
Cited by9 cases

This text of 172 N.W.2d 241 (Great Plains Supply Co. v. Mobil Oil Company) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Great Plains Supply Co. v. Mobil Oil Company, 172 N.W.2d 241, 1969 N.D. LEXIS 73 (N.D. 1969).

Opinion

PAULSON, Judge.

This is an appeal by the Great Plains Supply Company from a judgment awarded to Mobil Oil Company and entered in the District Court of Mountrail County, Eugene A. Burdick, J., presiding. Great Plains demands a trial de novo, pursuant to § 28-27-32 of the North Dakota Century Code.

The factual situation giving rise to the controversy is as follows: Mobil planned to erect a new warehouse at Parshall, North Dakota, to provide storage facilities for Mobil’s products which were required by its consignee, Gary R. Olson. Mobil solicited bids for the demolition of its old storage building and for the erection of the *244 new warehouse. Mobil had stored in the old warehouse various quantities of oil and grease which had to be removed and stored elsewhere while the old warehouse was being demolished and the new facility was being constructed. The oil and grease so stored during the construction period were then to be placed in the new warehouse facility for storage. Mobil simultaneously solicited separate proposals for the removal, storage, and redelivery of the oil and grease.

The record indicates that Great Plains was the successful bidder for both projects; and the necessary contracts in the form of work orders were executed, by Vernon D. Johnson on behalf of Great Plains, and by Walter G. Junchen for Mobil. The terms of Work Order No. 121 provided for the furnishing of labor and materials to demolish Mobil’s old warehouse and to construct a 24- by 40-foot new warehouse for the contract price of $4,705.00. The terms of Work Order No. 122 provided for incidental work involving the furnishing of labor to remove merchandise and of storage facilities until the new facility was completed, and then for the delivery of the merchandise to the new facility, for the contract price of $290.00. Each work order had the following contract provision set forth on its reverse side:

“7. If the work relates to any article entrusted to Contractor, Contractor assumes all risk of loss of or damage to the article while it is in Contractor’s possession or under Contractor’s control. In the event of loss or irreparable damage, Contractor shall promptly reimburse Mobil for the value of the article specified on the face of this order. Any other damage shall be promptly repaired by Contractor at Contractor’s expense.”

The project for the removal, temporary storage, and delivery of merchandise, pursuant to the terms of Work Order No. 122, was subcontracted by Great Plains to Delton Snyder of Parshall for the contract price of $290.00. Snyder leased a warehouse in Parshall and removed the merchandise from Mobil’s old warehouse to his leased warehouse. During the time the Mobil merchandise was stored in Snyder’s warehouse, there was considerable rainfall in Parshall, including at least one rainfall of very unusual proportions, and the stored merchandise purportedly became saturated, and it deteriorated. Mobil, shortly thereafter, destroyed all of its stored merchandise and refused to pay Great Plains for constructing the new warehouse, Mobil having determined that Great Plains was liable for the alleged damage to Mobil’s merchandise.

Counsel for Great Plains, on January 11, 1967, caused a summons and complaint to be served on an agent for Mobil. The complaint alleged that Mobil was liable to Great Plains in the amount of $5,307.00, which amount included $4,705.00 for the new warehouse, $312.00 for extra gravel fill, and $290.00 for the moving, storage, and return of the merchandise.

Mobil answered the complaint, denying the allegations in the complaint and included in its counterclaim the figure of $6,069.20, which was the alleged amount of damage to Mobil’s merchandise during storage, and the amounts expended for labor and vehicles necessary to dispose of the merchandise. Mobil prayed for judgment in the sum of $762.20, or the difference between Great Plains’ claim and Mobil’s counterclaim, together with its costs and disbursements.

Great Plains, on February 10, 1967, interposed a reply to Mobil’s counterclaim, and served a first amended reply to counterclaim on July 18, 1967, wherein Great Plains denied Mobil’s allegation of negligence and asserted the defense that the negligence of Mobil and its agents contributed to and caused the damage complained of, and that Mobil had knowledge of the location and condition of the temporary warehouse and had full access there *245 to and control thereof and therefore Mobil assumed the risk of loss oi damage.

The case was tried to the court without a jury and the court found that Mobil’s merchandise was damaged in the amount of $5,139.25, as the result of Great Plains’ negligence; and that Mobil owed Great Plains $5,017.00 for construction of the warehouse. The court made no finding with regard to the contract price of $290.00 under Work Order No. 122. 'The court further found that there was a bailment for hire; that the bailed property was damaged while in the care and custody of Great Plains; and that Great Plains did not go forward with the evidence to prove that it exercised the degree of care required in a bailment relationship. The court therefore determined that there was a breach of the bailment contract and that Mobil was entitled to be compensated for the reasonable value of its damaged merchandise. The court then awarded judgment to Mobil in the amount of $122.25, plus costs and disbursements in the amount of $147.60, for a total judgment of $269.85.

Great Plains appeals from this judgment, and the issues involved are as follows:

1. Is Great Plains liable for water damage to Mobil’s merchandise, which Great Plains moved to temporary, substitute storage?
2. Are Mobil’s answers to interrogatories by Great Plains, during pretrial discovery, admissible on behalf of Mobil at the trial as evidence of its damages?

In determining whether Great Plains is liable for the alleged damage to Mobil’s merchandise, it is necessary to examine carefully the relationship of the parties. The trial court found the relationship to be one of bailment for hire and not one of landlord and tenant. The court further found that the merchandise was damaged while it was in the care, custody, and control of the bailee, Great Plains, and that Great Plains failed to refute the presumption of negligence arising therefrom.

It is difficult to ascertain whether the facts which culminate in a particular transaction constitute a bailment or create some other contractual relationship. In determining whether a relationship is one of bailor and bailee, or landlord and tenant—

“ * * * the test is whether the person leaving the property has made such a delivery to the owner of the premises as to amount to a relinquishment, for a time, of his exclusive possession, control, and dominion over the property, so that the latter can exclude, within the limits of the agreement, the possession of all others. If he has, the general rule is that the transaction is a bailment.

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Bluebook (online)
172 N.W.2d 241, 1969 N.D. LEXIS 73, Counsel Stack Legal Research, https://law.counselstack.com/opinion/great-plains-supply-co-v-mobil-oil-company-nd-1969.