Jenkins v. Valley Oil Co.

226 Cal. App. 2d 41, 37 Cal. Rptr. 714, 1964 Cal. App. LEXIS 1250
California Court of Appeal·Decided March 25, 1964·No. Civ. No. 7222·Published·Cited by 2 cases

Opinion

FINLEY, J. pro tem.*

Plaintiff-appellant is the operator of a service station which he subleased from W. R. and Mrs. L. Rundell. Defendant-respondent is a distributor of gasoline. In June of 1958, respondent entered into a contract with the Rundells for the delivery of gasoline to them or their lessee (appellant) at ‘' our net buying price for gasoline purchased from the Hancock Oil Company ... plus one and one-half (1%) cents per gallon....”

The controversy centers about a temperature adjustment given to respondent by Hancock. Gasoline expands as its temperature rises. An adjustment for this increase in volume was made by Hancock in its sale of gasoline to the respondent, but not by respondent in its delivery to appellant. For instance, on one occasion respondent received in its truck 9,150 gallons of gasoline from Hancock. In its billing Hancock computed from a conversion table the number of gallons which would be in the truck if the temperature of the fuel were reduced to 60 degrees Fahrenheit. As a result respondent was billed not for 9,150 gallons but instead for 9,046 gallons. Respondent delivered the truck load to appellant and billed him for 9,150 gallons, no temperature adjustment being made. At the trial the parties stipulated that if appellant had paid for the number of gallons for which respondent was billed by Hancock from 1958 to 1961 rather than for the number of gallons delivered by respondent to appellant, that [43] is, without the temperature adjustment, that appellant would have paid respondent $4,012.47 less.

Appellant contends that the contract is not ambiguous and that consequently it should be construed according to the plain meaning of the terms used. It is urged that “the words ‘net buying price’ can only mean what the buyer paid for what he purchased less any discounts, rebates or other direct expenses directly related to and connected with the purchase”; that in the present case there was no ambiguity which would permit the court to give these words any other meaning; that, in effect, the temperature adjustment resulted in a rebate which reduced respondent’s “net buying price” and that this reduction should have been passed along to appellant.

Appellant also complains that the court erred in admitting and considering evidence regarding a custom in the industry of negotiating temperature adjustments if they are desired by customers. It is urged that evidence was uncontradicted that he had no knowledge of such a custom and that respondent’s representatives knew of appellant’s ignorance in the matter and that even if such evidence could have been properly admitted it could not vary the plain meaning of the contract or alter its terms. Appellant also insists that since respondent drafted the contract it should be most strongly construed against respondent.

Respondent answers appellant’s contentions saying that the term “net buying price” does not, as a matter of law, include a temperature adjustment, and that an expert called by appellant testified that in the industry only a dealer who bargains for temperature adjustment receives it. The contention is also made that if there is any error in the court’s consideration of parol evidence as to custom and usages in the trade it was invited by appellant’s eliciting evidence as to whether temperature adjustment was a matter to be negotiated. Further that appellant did not object to the evidence at the time of trial; that a party cannot be heard to complain of invited error and where there are conflicts in the evidence the trial court's finding will not be disturbed.

Finally, respondent notes it is well settled that a court will not write a contract different from that the parties entered into; that here the evidence was that the parties did not enter into a contract calling for a temperature adjustment; that there was evidence to support the trial court’s finding and that the court did not err in construing the contract.

[44] Respondent states in its brief that “Appellant’s only real point on appeal is the construction of the contract, yet he points to no error of the trial court.” In appellant’s brief, however, under the heading “Contentions,” appears this specification: “1. That the contract is plain and unambiguous in its meaning. That ‘net buying price’ could only mean the amount the distributor actually paid for the gasoline delivered and that, as a matter of law, the Court erred in giving any other construction to the contract. ’ ’

It is apparent therefore that appellant does point to and claim as error the court’s “construction of the contract,” which respondent admits is appellant’s “only real point on appeal.”

This court agrees with respondent that the “construction of the contract” is actually the “only real point on appeal.” Appellant offered parol and opinion evidence at the invitation of the trial court and without objection thereto being made by respondent. Therefore, appellant cannot in justice be charged with inviting error in producing this testimony.

An appellate court in the field of interpretation of ■written agreements or documents is not bound by the trial court’s interpretation based solely on the language appearing in the document.

In Meyer v. State Board of Equalization, 42 Cal.2d 376, 381 [267 P.2d 257], the rule is stated as follows: “The sole evidence being the written documents without qualifying testimony, their legal effect is a question of law, and the interpretation given to them by the trial court is not binding upon appeal. In the absence of extrinsic evidence, ‘there is no issue of fact, and it is the duty of an appellate court to make the final determination in accordance with the applicable principles of law.’ (Estate of Platt, 21 Cal.2d 343, 352 [131 P.2d 825] ; Moore v. Wood, 26 Cal.2d 621, 629-630 [160 P.2d 772] ; Western Coal & Min. Co. v. Jones, 27 Cal.2d 819, 826-827 [167 P.2d 719, 164 A.L.R. 685]; Estate of Fleming, 31 Cal.2d 514, 523 [190 P.2d 611].)” See also Livingston Bock & Gravel Co. v. De Salvo, 136 Cal.App.2d 156, 159 [288 P.2d 317]; Estate of Moody, 118 Cal.App.2d 300, 305 [257 P.2d 709] ; Estate of O’Brien, 74 Cal.App.2d 405, 407 [168 P.2d 432].)

The relevant provision in the written agreement between respondent and the Rundells under which gasoline was delivered by respondent to appellant reads as follows:

“As distributors for Hancock gasoline in San Diego County, [45] we agree to sell to you or to your sublessee or operator, Hancock gasolines, delivered to your station located at Tageside Road and Palm Avenue, La Mesa, subject to the following conditions:
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Jenkins v. Valley Oil Co., 226 Cal. App. 2d 41, 37 Cal. Rptr. 714, 1964 Cal. App. LEXIS 1250 (Cal. Ct. App. 1964).

226 Cal. App. 2d 41 (Jenkins v. Valley Oil Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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