Harold Austin v. Euclid-Memphis Sales, Division of Trippeer Organizations, Inc.

434 F.2d 285, 1970 U.S. App. LEXIS 6358
CourtCourt of Appeals for the Eighth Circuit
DecidedNovember 18, 1970
Docket20213_1
StatusPublished
Cited by3 cases

This text of 434 F.2d 285 (Harold Austin v. Euclid-Memphis Sales, Division of Trippeer Organizations, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harold Austin v. Euclid-Memphis Sales, Division of Trippeer Organizations, Inc., 434 F.2d 285, 1970 U.S. App. LEXIS 6358 (8th Cir. 1970).

Opinion

VOGEL, Circuit Judge.

This appeal is from a judgment based on a jury verdict of $12,000 in compensatory damages and $8,000 in punitive damages for alleged misrepresentation and willful deceit by the seller of a bulldozer-tractor. Federal jurisdiction is based on 28 U.S.C.A. § 1332.

Plaintiff-appellee, Harold Austin, is an experienced general construction contrac *286 tor. During the course of his career he has purchased and owned twenty or more pieces of heavy-duty machinery which were used in his land-clearing work. This case arises out of his purchase of a bulldozer-tractor from defendant-appellant, Euclid-Memphis Sales.

In 1966 General Motors, the manufacturer of Euclid equipment, ordered that the tractor series previously designated C-6 would thereafter be referred to as series 82-30. These numbers usually appear on decals on the body of the tractor. Besides this designation each tractor has a serial number on a metal plate which is attached to the body. Generally, the older machines have lower serial numbers.

Plaintiff had purchased one used Allis-Chalmers tractor from the defendant prior to the contested transaction involved here and he also had owned one Euclid tractor. The latter was purchased from a private party in early 1968 and had a C-6 decal on its side and a relatively low serial number, 30898.

Originally, plaintiff had been looking at defendant’s stock for a crawler-tractor. Several weeks after his initial visits he returned to Euclid-Memphis with the intention of buying a certain tractor which had a high serial number. That item had been sold but plaintiff further surveyed defendant’s inventory. He examined but was displeased with one tractor which had a serial number of 30505 and marked with a C-6 decal. Defendant’s salesman then said, “Look at this 82-30,” calling attention to the tractor involved herein. It had been freshly painted and had on each of its sides 82-30 decals which were approximately 6 x 12 inches long. This tractor with a serial number 32791 was purchased by plaintiff. The salesman told the plaintiff that “ * * * the 82-30 tractor was a newer model tractor than the C-6,” which “they quit making in 1966.” Defendant did not tell plaintiff the age of the tractor even after plaintiff’s explicit request therefor. The sales invoice referred to a “[u]sed 82-30 Tractor S/N 32791.” Plaintiff’s wife drew the payment check on which she noted “[b]al in full for 82-30 tractor S/N 32791.” Subsequently a third party expressed an interest in buying this piece of equipment from plaintiff and then for the first time plaintiff discovered that the tractor was originally a C-6 model and had been manufactured in 1962.

Apparently the defendant in refurbishing used tractors would replace the old C-6 decal with the newer 82-30 decal. The C-6 decals were no longer available after 1966.

Plaintiff paid $15,000 in cash for the tractor and also gave in exchange two used tractors and blades valued at approximately $19,000. In the transaction he received a 480-hour warranty on the purchased tractor as well as a new bulldozer blade which had a retail value of $4,000 to $5,000. Expert testimony indicated that the tractor purchased by the plaintiff was worth approximately $10,-500 at the time of purchase and that if the tractor had actually been an 82-30 model made in 1966 instead of a C-6 made in 1962, it would have been worth “around $27,000.00.”

Plaintiff alleged in his complaint that defendant “willfully, falsely and fraudulently represented to plaintiff that said tractor was a late 1966 or early 1967 used Euclid 82-30 Crawler Tractor of the value of $34,000.00” when in fact it was a Euclid C-6 tractor manufactured in 1962, having a value of $10,000. This allegedly was done with an intent to deceive and defraud plaintiff.

The case was presented to the jury on accurate instructions to which no exceptions were taken. The jury returned a verdict for the plaintiff. No question of the sufficiency of the evidence to justify a finding by the jury of fraudulent misrepresentation has been raised here.

On appeal defendant argues (a) that in denying its motion for a new trial the trial court misconceived the extent of its power and responsibility to insure that the amount of the judgment was not excessive and (b) that the verdict was so excessive that it constituted plain injus *287 tice and either the judgment should have been modified or a new trial should have been granted. We consider these points separately.

As its first point, defendant contends that the issue on this appeal is not whether the trial court abused its discretion but whether or not it failed to exercise its discretion. Defendant argues that when the trial court denied the motion for a new trial it admitted that it was unaware of its power to order a remittitur of the award for punitive damages. Defendant thus concludes that in ruling on defendant’s motion the trial court did not consider all aspects of the verdict as is required before this court may fairly rely on the exercise of the District Court’s discretion. Among other things, the trial court stated:

“I think it was properly presented to the jury. * * * The jury obviously made its decision on the basis of the facts and the law as the Court gave by instructions. I do not think there could be any possible question raised about the responsibility of the jury, or the reasonableness of the jury’s decision with reference to compensation under the facts presented in this case.
“As Mr. Chowning [attorney for plaintiff] said, it could have given under these facts compensatory judgment of $15,-000.00, but they didn’t. They gave a judgment in that regard of $12,000.00. I do not feel that it would be proper for this Court to interfere with the judgment of the jury in that regard at all, either in the way of — I suppose you would say— threats for a new trial, or a suggestion for a remittitur. So there is a question in my mind of what authority has in that regard anyway now.
“So insofar as the judgment is concerned on compensatory findings, I don’t think that I would even undertake to interfere with the jury.
“Now, with reference to the punitive damages given by the jury. I am simply not sure what, if anything, the Court can do with reference to that. I would be willing to receive any legal comments regarding the authority of the Court with reference to setting aside punitive damages. I doubt if this Court has any authority, frankly. I don’t see that I would have any authority at all in that regard to require a remittitur.
“The jury, under the instructions of the Court, decided punitive damages, and I think that each of you are presuming when you say that a jury was trying to make the plaintiff whole, if we understand properly that term. I think we’ve got to assume that the jury was acting under the proper instructions; and the jury felt, apparently that under these instructions that the defendant was guilty of such action that caused them to have a clear conscience in that it should not be done — and that they are going to say to all other people, including the defendant, that it is not going to be done in the future.

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Bluebook (online)
434 F.2d 285, 1970 U.S. App. LEXIS 6358, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harold-austin-v-euclid-memphis-sales-division-of-trippeer-organizations-ca8-1970.