Kenemer v. Arkansas Fuel Oil Co.

151 F.2d 567, 1945 U.S. App. LEXIS 2994
CourtCourt of Appeals for the Fifth Circuit
DecidedOctober 23, 1945
DocketNo. 11166
StatusPublished
Cited by7 cases

This text of 151 F.2d 567 (Kenemer v. Arkansas Fuel Oil Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kenemer v. Arkansas Fuel Oil Co., 151 F.2d 567, 1945 U.S. App. LEXIS 2994 (5th Cir. 1945).

Opinion

LEE, Circuit Judge.

After prosecuting unsuccessfully, but without prejudice, a suit on the identical causes of action in the state court, and more than six months after his respective causes of action accrued, appellant filed a complaint in the court below demanding damages of appellee on three counts: (1) For damages in the sum of $2161.49 for breach of a distributor’s sales agreement and a hauling contract in which appellee agreed to sell and deliver to appellant, as its distributor, petroleum products in several counties located in Northwest Georgia, (2) [568]*568for breach of contract by the appellee, as landlord, to make certain repairs to prop( erty which it had rented to appellant, and (3) for damages in the sum of $471.84 for breach of an implied warranty of appellee in selling to appellant gasoline that was watered and hence not reasonably suited to the use intended. By amendment to his complaint filed on the day of trial, appel-’ lant added to Count Three a paragraph in which he alleged that in purchasing the watered gasoline from the appellee, he purchased under written contracts, copies of which were attached, one being the distributor’s sales agreement referred to in Count One and the other a distributor’s sales agreement which was in force immediately preceding, the two containing in the main similar conditions and provisions.

At the trial appellee orally moved to dismiss and to strike Counts One and Three of the complaint upon the ground that the causes of action set forth therein were barred by the limitation provision of the contracts. This motion was sustained, and che court below entered a judgment dismissing and striking Counts One and Three of the complaint for the reasons set forth in the motion. On the appeal to this court the sole matter presented for consideration is the correctness of this ruling.

In urging that the court below erred appellant has assigned many reasons, but is relying chiefly upon the following:

(1) The statute of limitations is a special defense under the Federal Rules of Civil Procedure, and where the same has been raised by answer, the proper method for obtaining a ruling thereon is by written motion for judgment on the pleadings, not by oral motion to dismiss.

(2) The suit in the federal court, brought within six months of the dismissal of the causes of action in the state court, tolled the statute of limitations and related back to the filing of the suit in the state court.

(3) The six-months limitation clause of the contracts sued on was a separate and distinct undertaking from the other provisions of the contract with reference to the sale of petroleum products, and was void for lack of consideration.

The limitation upon which appellee relies was not a statutory limitation but a contractual limitation. Paragraph 14 of the contracts expressly provided that “except as to claims and suits for the purchase price of goods, wares and merchandise sold under the terms hereof, all claims, demands jand causes of action arising from the .breach of this agreement * * * and asserted by one of the parties against the other shall not be maintained in any court unless suit shall be brought on such cause of action within six (6) months of the date of the act, or omission, giving rise to such claim, demand or cause of action.” It is to be observed that this defense was first raised by appellee by written motion, which, when overruled, was renewed by specific pleading in its answer, and was renewed again by verbal motion after the appellant had made an opening statement of his case to the jury on the day of the trial. The record does not indicate that the oral motion to dismiss was objected to by appellant as being contrary to the Federal Rules of Civil Procedure, 28 U.S.C.A. following section 723c, or that appellant urged at the time that the proper procedure was by written motion for judgment on the pleadings.

Appellant’s argument that this defense had been presented by written motion and overruled by the court several months prior to the trial, and that considerable expense had been incurred in preparation for the trial, in no wise affects the right of the court to reconsider the defense thus pleaded and presented, for at most the overruling of the written motion was but an interlocutory decree which could be reconsidered and reviewed, as the court might see fit, at any time prior to final judgment.

‘Rule 12(c) of the Rules of Civil Procedure provides that a motion for judgment on the pleadings should be made before trial on application of any party, and the record indicates that the court below heard and determined appellee’s oral motion to dismiss before proceeding with the trial on the merits, thus treating the motion, to dismiss as in effect a motion for a judgment on the pleadings. We find no fault with this proceeding especially since no-objection thereto- was made by appellant. Any defect in procedure was waived by appellant’s failure to object when the court was considering the motion.

Appellant’s claim that the renewal in the federal court within six months of dismissal of the same causes of action in the state court tolled the statute of limitations and related back to the filing of the suit in the state court is not pertinent to-[569]*569any issue before us. Granting that such a procedure would toll the local statute of limitations, under the authority of Code Section 3-808 of the State of Georgia of 1933, it does not follow that such procedure would have that effect on the rights of the parties to this litigation, for the local statute of limitations is not involved. The question at issue is whether or not such renewal within six months tolled the limitation provision of the written contracts. This question is now settled in Georgia.

In Melson v. Phœnix Ins. Co. of Brooklyn, 97 Ga. 722, 25 S.E. 189, the Supreme Court of Georgia said:

“This court has decided that a contract limitation upon the right to sue, fixing a shorter period than that allowed by statute, is lawful, ‘provided the period fixed be not so unreasonable as to raise a presumption of imposition of undue advantage, in some way.’ Brown v. Savannah Mut. Ins. Co., 24 Ga. 97, in which a 6-months limitation was sustained; Underwriters Agency v. Sutherlin, 55 Ga. 266, where the limitation was 12 months. See, also [Virginia &c.] Ins. Co. v. Wells, 83 Va. 736, 3 S.E. 349. Section 2932 of the Code, which gives a plaintiff who is nonsuited the right to renew his action within six months, has no application. It is only a part of the law of limitations, and where the parties, by agreement, make a fixed and unqualified limitation for themselves, they abandon all the legal regulations on the subject, and consequently must stand upon their contract as written. Where a party binds himself absolutely to sue within 12 months, or not at all, it would be a radical and material departure from the contract to allow such a variance from its plain terms as would have resulted from a proviso declaring that a suit brought within that time might be renewed within 6 months, in case of nonsuit. To subject the rule of the contract — which has taken the place of the rule of the law — to an exception like this would, in our judgment, be totally unwarranted. When the plaintiffs in these cases waived the right to rely upon the law of limitations, they waived everything which any part of the law on the subject provided for their benefit.”

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Cite This Page — Counsel Stack

Bluebook (online)
151 F.2d 567, 1945 U.S. App. LEXIS 2994, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kenemer-v-arkansas-fuel-oil-co-ca5-1945.