International Harvester Co. v. Snider

1939 OK 162, 88 P.2d 606, 184 Okla. 537, 1939 Okla. LEXIS 114
CourtSupreme Court of Oklahoma
DecidedMarch 21, 1939
DocketNo. 28049.
StatusPublished
Cited by9 cases

This text of 1939 OK 162 (International Harvester Co. v. Snider) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
International Harvester Co. v. Snider, 1939 OK 162, 88 P.2d 606, 184 Okla. 537, 1939 Okla. LEXIS 114 (Okla. 1939).

Opinion

DANNER, J.

The plaintiffs bought a tractor and certain equipment from the defendants Dave Reimer and Cornelius Reimer, a partnership doing- business under the trade name of Corn Hardware Company, hereinafter called the hardware company. The tractor did not function properly, and the plaintiffs thereafter filed suit and obtained a verdict and judgment for damages allegedly sustained from breach of a warranty made in connection with the sale. The judgment was against the hardware company and also against International Harvester Company of America, hereinafter called the harvester company, manufacturer of the tractor and equipment. Said judgment also denied the cross-petition of the harvester company seeking recovery on the promissory notes given by plaintiffs and indorsed by the hardware company to the harvester company. The defendants appeal.

We first consider the contention of the harvester company that the evidence was insufficient to prove that the hardware company was its agent in making the sale and warranty. The case against the harvester company was predicated entirely upon existence of that relationship.

We state the facts as favorably to the verdict as the record will permit. The contract between the harvester company and the hardware company was introduced in evidence. It and the testimony show that there was an out and out sale of the tractor from the harvester company to the hardware company. The hardware company gave its promissory note in payment, but the business arrangement between the two companies was that when and if the hardware company should find a buyer, the harvester company would deliver back the hardware company’s note in exchange for an indorsement of the buyer’s note and mortgage if the harvester company, upon investigation, should become satisfied with the buyer’s credit worthiness. This was the custom between the two companies as to sales in general, and was adhered to in the present instance. During the negotiations leading up to the sale, the harvester company investigated the financial standing of the plaintiffs, and when the sale was consummated, accepted indorsement and assignment of the notes and mortgage which had been executed in favor of the hardware company by the plaintiffs.' No employee of the harvester company made any representations or talked with any ol1 the plaintiffs prior to the sale and delivery of the tractor, so far as tlu- record shows. The tractor had for some while prior to the sale been in possession of the hardware company, on display in its stock.

The tractor, from (he beginning, would *538 not operate properly. The plaintiffs com-XDlained to the hardware company, which sent employees to the plaintiffs’ farm, on this and several later occasions. When those employees were unsuccessful in their efforts to make the tractor function, the hardware company notified the harvester company’s branch office in Oklahoma City, and from that office several representatives and employees were sent to the plaintiffs’ farm, and they too were unable to make it work. Conversations were had between those representatives and plaintiffs relative to an adjustment of some sort, the plaintiffs asking them to substitute another tractor, which they refused to do. Their belief and contention at the trial was that at first the tractor worked properly and that then X>laintiffs or others had intentionally damaged the machine.

We fail to find a sufficiency of evidence to sustain the finding of agency. The plaintiffs bought the tractor, admittedly, from the hardware company. The hardware company owned it. If that ownership was fictitious, the evidence failed to reveal it. The sole reasons advanced by plaintiffs as supporting their contention that an agency existed are these: (1) That the harvester company’s investigation of their credit standing, and willingness to accept their notes, apxxeared necessary before the hardware company would agree to sell; (2) that a representative of the harvester company ■ negotiated with them concerning an adjustment of their difficulties and would not agree with the demands of plaintiffs; (3) the contract of sale entered into between plaintiffs and the hardware company, which contract, so far as is shown by that part which is copied into the record, does not even mention the harvester company.

The hardware company’s above-mentioned requirement that the harvester company accept the plaintiffs’ notes did not make the former company the agent of the latter. Clearly enough the requirement was for the benefit of the hardware company, so that it could, -by discounting the notes and receiving cash at the time or later, regain its own note and what profit there was in the deal. There was nothing in the contract of sale, entered into between the two companies, requiring this method of payment, or which in any manner could indicate that the hardware company was acting as the agent of the harvester company. Plaintiffs cite International Harvester Company of America v. Watkins, 127 Kan. 50, 272 P. 139, wherein the same contracts were involved as were used in the present ' case. But in that case the court assumed that the dealer was not an agent; the contract was considered solely for the purpose of determining whether the harvester company was a holder in due course of the notes sued upon, a purpose for which it may or may not be of benefit in • the present case as affecting the cross-petition which the defendant harvester company filed against the plaintiffs on their notes, when that issue is tried again. But the case is of no help on the question of agency.

Nor do we think the fact that the harvester company’s employees were sent out by that company to repair the tractor should be construed as reaching back and transforming the hardware company into an agent of the harvester company at the time of the sale. Naturally the harvester company was desirous, as are most manufacturers of large machinery, that their products function properly and that users thereof be satisfied with performance thereof. That does not indicate that the harvester company at the time of sale had any control over the representations made by the hardware company, or ratified those rex>resentations. It is not shown that the harvester company’s representatives were told or had knowledge of any such representations. The sole purxxose of their visits to plaintiffs’ farm was to make the machine function, although on one or two of those visits the plaintiffs did attempt to obtain an exchange of machines, to which the harvester company’s employees would not consent.

A fair and impartial appraisal of this record does not permit the statement that it contains evidence reasonably tending to sustain the finding that the hardware company was the agent of the harvester company. Since liability of the harvester company is predicated entirely on that theory, the judgment against that company should be reversed. And since that part of the judgment denying recovery to the harvester, company on its cross-petition against the plaintiffs on their notes was based solely upon assumption of that relationship, it too must be reversed and the issue be determined upon retrial.

We now consider the separate appeal of the hardware company. That company contends that the trial judge erred in his instruction to the jury on the measure of damages. That instruction was:

“You are instructed that in case you find for the plaintiffs and against the defendants *539

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Cite This Page — Counsel Stack

Bluebook (online)
1939 OK 162, 88 P.2d 606, 184 Okla. 537, 1939 Okla. LEXIS 114, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-harvester-co-v-snider-okla-1939.