Holman Transfer Co. v. Pacific Northwest Bell Telephone Co.

599 P.2d 1115, 287 Or. 387, 1979 Ore. LEXIS 1179
CourtOregon Supreme Court
DecidedSeptember 18, 1979
DocketTC A7601 01148, SC 25398
StatusPublished
Cited by21 cases

This text of 599 P.2d 1115 (Holman Transfer Co. v. Pacific Northwest Bell Telephone Co.) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Holman Transfer Co. v. Pacific Northwest Bell Telephone Co., 599 P.2d 1115, 287 Or. 387, 1979 Ore. LEXIS 1179 (Or. 1979).

Opinion

*389 LENT, J.

This is an action arising out of alleged overcharges which defendant Pacific Northwest Bell Telephone Company ("Bell”) collected from plaintiff, a commercial telephone service customer, over a period of more than six years. During that time plaintiff used a PBX switchboard system furnished by Bell. The disputed charges came to light in 1974 when plaintiff hired John Ball, a former Bell employee who had established his own consulting firm, to study its telephone system and the company’s needs in order to help determine whether plaintiff should change to some other type of system.

During his study Mr. Ball discovered that plaintiff had been charged for various items of equipment which had not been installed. He also came to the conclusion that Bell had knowingly provided plaintiff with more trunk lines than were required to serve plaintiff’s needs. He further concluded that Bell had installed one trunk line in such a way that it was of no use to plaintiff unless plaintiff’s personnel knew it was there and had failed to inform plaintiff of its presence. Plaintiff filed this action to recover damages for what it claimed were overcharges for each of these items, and the jury found in its favor. 1 The trial court entered judgment for treble damages and attorney fees pursuant to ORS 756.185. Bell appeals.

Bell does not dispute its liability for charges which were mistakenly billed for equipment which it had not provided. It does, however, contend that it is not liable for the charges it collected for what plaintiff contends were unnecessary trunk lines (the "overtrunking” claim) or for the trunk line of which plaintiff was unaware ("lost trunk” claim). As to all three categories of overcharge claims, Bell contends that in any event *390 the trial court erred in awarding treble damages and attorney fees. It further argues that some of plaintiff’s claims are barred by the statute of limitations and that the jury should not have been permitted to find that Bell was estopped to rely on the statute. Finally, Bell challenges the trial court’s award of prejudgment interest on the amounts of the overcharges.

We will examine first those assignments of error which are of general application to the entire case, and then proceed to contentions involving only specific items.

Estoppel to rely on the statute of limitations

Bell alleged in its answer that portions of plaintiff’s claim are barred by the three-year period of limitations provided in ORS 12.100(2) 2 or, alternatively, by the six-year period provided in ORS 12.080(1). 3 In reply, plaintiff alleged that Bell was estopped to rely on the statute of limitations because Bell had falsely represented to plaintiff both that Bell had provided plaintiff with all of the services for which it was charged and that plaintiff required more service than was actually needed. Plaintiff further alleged that Bell made those representations with knowledge that they were false, that plaintiff was ignorant of their falsity, that Bell intended that they be acted upon, and that plaintiff was induced to act upon them. Bell demurred to the reply upon the ground that these allegations did not constitute an avoidance of the *391 statute of limitations defense but were instead an attempt to allege estoppel as an additional theory of recovery. As such, Bell argued, the estoppel should have been pleaded in the complaint. The trial court overruled the demurrer.

On appeal Bell has shifted its ground. In support of its demurrer Bell now argues only that the allegations in the reply were insufficient to raise an estoppel because the elements of estoppel were pleaded in conclusory terms and without sufficient particularity. Bell did not file a motion to make more definite and certain or otherwise raise this issue in the trial court. We do not, therefore, consider it here.

Bell also assigns as error what it calls the trial court’s ruling that Bell was, in fact, estopped to rely on the statute of limitations. Although the jury found estoppel in answer to special interrogatories, Bell contends, citing ORS 16.460(2), 4 that because estoppel is an equitable defense the issue should have been decided by the court, that the jury’s finding was therefore advisory only, and that we should review the evidence on this issue de novo as we are required to do in equity cases. ORS 19.125(3). 5

Bell’s position is not correct. Although the concept of estoppel is equitable in origin, it may be relied upon in an action at law without the interposition of a court *392 of equity. In Sink v. Raptor, 220 Or 601, 349 P2d 1104 (1960), the defendant relied upon an estoppel pleaded in the answer. Over defendant’s objection that he was entitled to a jury trial on this issue, the trial court required him to proceed to trial before the court alone, sitting in equity. We reversed and remanded, saying:

"It cannot be seriously contended that the defendant’s answer did allege facts that 'required’ the interposition of a court of equity as required by ORS 16.460. 'The estoppel claimed is an estoppel in pais, sometimes called an estoppel by conduct, or an equitable estoppel, which, of course, is as fully available in law as in equity. Bigelow on Estoppel (6 Ed.) p. 604.’ State v. Claypool, (1934) 145 Or 615, 620, 28 P2d 882. Comer v. World Insurance Co., (1957) 212 Or 105, 121, 318 P2d 916.” 220 Or at 603.

It was, therefore, proper for the trial court to submit the issue to the jury if there was any evidence to support a finding of estoppel. In the trial court Bell did not object to submission of the issue on that ground, so there is no ruling on the sufficiency of the evidence before us for review. Because the jury found, with respect to each alleged overcharge, that Bell was es-topped to rely on the statute of limitations, we need not consider the question of which statute would be applicable.

Applicability of statutory provision for treble damages ORS 756.185 provides:

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Cite This Page — Counsel Stack

Bluebook (online)
599 P.2d 1115, 287 Or. 387, 1979 Ore. LEXIS 1179, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holman-transfer-co-v-pacific-northwest-bell-telephone-co-or-1979.