Hallowell v. Bird

238 P.2d 217, 193 Or. 254, 1951 Ore. LEXIS 299
Oregon Supreme Court·Decided November 28, 1951·Published

Opinion

LUSK, J.

The defendants have appealed from a judgment against them, based on the verdict of a jury, in an action to recover damages for deceit inducing the purchase of a tractor by the plaintiffs from the defendants.

[256] There are two assignments of error, the first based on the denial of defendants’ motion for a directed verdict on the ground, as stated in the motion, that “there is no showing of damage.” For an understanding of the point relied on it is necessary to refer to the following allegations of the complaint:

“II.
“That on or about the 23d day of December, 1947, defendants sold to plaintiffs at Salem, Oregon, a D-4 caterpillar tractor for the sum of $6,827.
“III.
“That prior to and on or about the date of said sale, and in order to induce the plaintiffs to purchase said D-4 caterpillar tractor, defendants falsely, fraudulently, wilfully and maliciously represented to the plaintiffs that said D-4 caterpillar tractor was a 1945 model, was in first class working order and, when delivered to the plaintiffs, would be fully armored and equipped with a Hyster drum.
“IV.
“That said representations and all of them were false, in that said D-4 caterpillar tractor was a 1937 model, was almost completely worn out as to condition, and ran for only a short time after the plaintiffs accepted delivery of the same, and said tractor was neither fully armored nor equipped with a Hyster drum.
# * # #
“VI.
“That defendants knew that such representations were false and made no attempt to comply with said representations as far as the equipment of said tractor was concerned, and had no intention of so equipping said tractor at the time the representations above set forth and alleged, with reference to the equipment of said tractor, were made.
“VTI.
“That plaintiffs paid to defendants for said caterpillar tractor the sum of $6,827. That the [257] reasonable market value of a 1937 model D-4 caterpillar tractor of tbe kind and description actually delivered to plaintiffs at the time and place of said sale was and is the sum of $3,500.
“VIII.
“That by reason thereof and on account of the false representations of the defendants as above set forth and alleged, with reference to the model and condition of said caterpillar tractor, plaintiffs have been and are damaged in the sum of $3,000. That on account of the false representations above set forth and alleged, with reference to the armoring and equipping of said tractor with a Hyster drum, plaintiffs have been and are damaged in the sum of $327.”

It will have been observed that the plaintiffs, instead of alleging that their entire damage was caused by the misrepresentations alleged, as is customarily done, have split up their claim into two parts and charged that $3,000 of their damage was caused by the misrepresentations respecting the model and condition of the tractor, and the remainder, $327, by the misrepresentations respecting the armor and the Hyster drum. It is this novel method of pleading, together with the ruling of the court now to be stated, that creates the problem presented by the first assignment of error.

In its instructions, the court, on motion of the defendants, withdrew from the jury the allegations that the defendants fraudulently represented that the tractor, when delivered, would be fully armored and equipped with a Hyster drum. The court further charged the jury that “the measure of damages in this case is the difference between the price paid for the D4 Caterpillar and its actual market value according to the evidence in this case, keeping in mind that [258] you are not to consider as damages, if any, anything growing out of the representations relating to the drum or of the representations relating to armoring of the tractor.” And the court further charged the jury with respect to damages that the plaintiffs were not entitled to recover anything “exceeding the sum of $3,000.00, that being the amount of damage which is claimed in the pleadings.”

The verdict was in the sum of $3,000.

The defendants now say that there is no evidence which would warrant a verdict in that or any other amount. They argue that the measure of damages in a case óf this kind is the difference between the represented value of the property purchased and its actual market value at the time and place of delivery; that the claimed damages in the sum of $327, attributed by the plaintiffs in their complaint to the false representations concerning the drum and armor, were eliminated from the case by the court; that the only evidence of actual value of the property delivered related to the entire machine, including the armor and the drum with which it was equipped, and there was no evidence of the value of the tractor apart from the armor and drum.

From all this it is concluded that one of the factors —the actual value of the property delivered — needed for determining damages, is missing.

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Hallowell v. Bird, 238 P.2d 217, 193 Or. 254, 1951 Ore. LEXIS 299 (Or. 1951).

238 P.2d 217 (Hallowell v. Bird) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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