JI Case Credit Corporation v. Andreason

408 P.2d 165, 90 Idaho 12
CourtIdaho Supreme Court
DecidedDecember 7, 1965
Docket9576
StatusPublished
Cited by5 cases

This text of 408 P.2d 165 (JI Case Credit Corporation v. Andreason) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
JI Case Credit Corporation v. Andreason, 408 P.2d 165, 90 Idaho 12 (Idaho 1965).

Opinion

*16 McQUADE, Chief Justice.

This was a case tried before the court without a jury.

In June 1960 Max Andreason, defendant-respondent, sometimes referred to herein as the buyer, discussed the purchase of a self-propelled combine designed to harvest grain on hilly terrain with a salesman of third-party defendant-appellant L. C. Titensor, doing business as Lewiston Implement Company, "sometimes referred to herein as the seller. The discussions were held both at the seller’s place of business and in some of the fields where the buyer did his custom cutting. Andreason explained the purpose for which he needed the machine, namely, the custom cutting of grain on the sides of hills, and was assured by Titensor that the machine, manufactured by J. I. Case Company, was capable of cutting and saving grain on sidehills, was trouble-free and would be suitable for the buyer’s needs. Relying upon these representations, Andrea-son purchased the machine shortly thereafter by trading in a Massey-Harris combine, paying some cash and executing a conditional sales agreement and note. A printed order form constituted the contract *17 between the parties. Plaintiff-appellant J. I. Case Credit Corporation is holder of Andreason’s conditional sales note.

Within one week of delivery of the machine, the buyer experienced the first of what proved to be a long series of major difficulties. On the first breakdown Titensor was notified immediately and he dispatched a repairman to correct the trouble. Other breakdowns occurred some 40 or SO times during the two harvesting seasons of 1960 and 1961. On some occasions three days were required to repair the machine. The buyer repeatedly expressed to Titensor his dissatisfaction with the combine. Because of the Case machine’s faulty operation, considerable grain was lost and some of Andreason’s customers refused to allow him to harvest their fields with it; others terminated their harvesting agreements with Andreason. Upon being advised by the seller’s mechanic that the combine could not be further repaired and that the defects could not be corrected, the buyer refused to make additional payments on the note held by Case Credit Corporation and the machine was returned to the seller during 1962.

In May 1962 the buyer wrote to J. I. Case Company and informed it of the difficulties he had been experiencing with the machine and that it was unsatisfactory. This was the first notice received by the manufacturer from the buyer.

J. I. Case Credit Corporation commenced the action against Andreason to recover the unpaid portion of the note. Andreason counterclaimed and cross-claimed against third-party defendants Titensor and J. I. Case Company for breach of warranty. The trial court found that there was a waiver of the warranty’s notice requirement by J. I. Case Company and entered judgment for Andreason against J. I. Case Company, J. I. Case Credit Corporation and Lowell Titensor in the sum of $4,466.34. It also found that Case Credit Corporation was not entitled to collect the unpaid portion of the note from Andreason. J. I. Case Company, J. I. Case Credit Corporation and Titensor appeal from that judgment.

On the reverse side of the “order-form” contract betwen the buyer and the seller is the warranty by J. I. Case Company. 1 The warranty required immediate *18 notice to Case if the dealer was unable to repair the machine within two days. Case was not expressly notified by the buyer of the machine’s defects until well over 18 months after its purchase. Case did not have a reasonable opportunity to inspect, repair or replace the machine as provided by the warranty. There is no evidence in the record to support the trial judge’s finding that Case waived the notice requirement. By terms of the warranty the buyer was obligated to notify the seller, and if the defect was not satisfactorily repaired, he was then required to notify the manufacturer, Case. By notifying the seller, the buyer cannot assert that Case had constructive notice of the defects because he had notified the seller. To support its conclusion that Case waived the notice requirement, the trial court found that “A representative of J. I. Case Co. called on defendant [Andreason] and work was done on the machine.” However, this visit did not take place until June 1962, two years after the *19 sale, and cannot be construed to imply a waiver of prompt notice.

The express warranty made by Titensor to Andreason was that the machine would be suitable for sidehill combining, would save grain and be trouble-free and became a part of the agreement between those parties. See I.C. § 64-112. Also, Andreason having advised Titensor before the sale as to the particular purpose for which the machine would be used and Andreason having relied upon Titensor’s knowledge as a dealer, an implied warranty by the seller is created that the goods shall be reasonably fit for such purpose. I.C. § 64-115(1).

Since the written warranty ran from Case rather than Titensor, the two-day notice provision does not apply insofar as the seller’s express and implied warranties are concerned; the buyer had a reasonable time to notify the seller that the machine was defective and unsuitable. The evidence is that the first major breakdown occurred approximately one week after delivery, at which time the machine was first used for sidehill cutting. The seller was notified immediately and a mechanic was sent to repair the machine. Thus, notice of the defect was given to the seller within a reasonable time. 77 C.J.S. Sales § 339 b.

Titensor asserts that the provision of the contract which reads:

“The undersigned hereby acknowledge receipt of a copy of this order, which together with the warranty provision on the back hereof is understood to be the entire contract between us.”

limits its liability to the contract itself. Titensor argues that under I.C. § 64 — 601, 2 the parties modified and negated statutory implied and express warranties, citing the rules established in Commercial Credit Equipment Corp. v. Knowlton, 86 Idaho 314, 386 P.2d 370 (1963), and United States ex rel. and for Benefit of Administrator of Federal Housing Administration v. Troy-Parisian, Inc., 115 F.2d 224 (9th Cir. 1940), cert, den., 312 U.S. 699, 61 S.Ct. 739, 85 L.Ed. 1133. Both cases are distinguishable from the instant case, for in each the question involved the validity of an explicit provision whereby the buyer agreed not to assert defenses against a named third-party assignee of the buyer’s promissory note. The buyers in each of those two cases contemplated that the financing would be arranged through the named third parties and, in order to facilitate such financing, *20 they agreed to forego any defenses they might have against the seller

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Bluebook (online)
408 P.2d 165, 90 Idaho 12, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ji-case-credit-corporation-v-andreason-idaho-1965.