Klein v. Asgrow Seed Co.

246 Cal. App. 2d 87, 54 Cal. Rptr. 609, 3 U.C.C. Rep. Serv. (West) 934, 1966 Cal. App. LEXIS 1844
CourtCalifornia Court of Appeal
DecidedNovember 2, 1966
DocketCiv. 11248
StatusPublished
Cited by41 cases

This text of 246 Cal. App. 2d 87 (Klein v. Asgrow Seed Co.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Klein v. Asgrow Seed Co., 246 Cal. App. 2d 87, 54 Cal. Rptr. 609, 3 U.C.C. Rep. Serv. (West) 934, 1966 Cal. App. LEXIS 1844 (Cal. Ct. App. 1966).

Opinion

PIERCE, P. J.

Plaintiffs and respondents, Bud Klein, Louis Mersaroli and Reginald Mersaroli, joint venturers engaged in tomato growing, recovered damages in the sum of $14,439.32 against Associated Farm Supplies, a corporation, for breach of warranty in the sale of tomato seed in 1962. Associated, the immediate supplier, on its cross-complaint recovered judgment against its supplier of the seed, Ranch *90 Supply, Inc., which in turn recovered judgment against its seller, Reed Lockhart, a seed broker. The latter recovered from the Asgrow Seed Company, manufacturer of the seed. All judgments were for the same amount; all judgments (in the chain of succession of sales and purchases) were on the theory of breach of both express and implied warranty by each seller to each buyer. Plaintiffs’ complaint had been against all parties, and all intermediate sellers cross-complained against Asgrow (except Associated—whose rights and liabilities with respect to Asgrow, and therefore its right to recover from and against Asgrow, were however covered in, and became an issue through, the trial court’s pretrial order). Because of nonprivity the trial court denied recovery to plaintiffs and to all cross-complainants (except Lockhart) directly against Asgrow. Asgrow has appealed from the judgment in favor of Lockhart; all defendant-cross-complainants have also appealed (urging principally the judgment against Asgrow should be direct and primary—with their liability secondary); plaintiffs have not appealed.

To synopsize our conclusions: We hold that the trial court correctly awarded successive judgments under the facts found because of the breach by each seed supplier (including Asgrow) of successive warranties, both express and implied, but we conclude that the trial court incorrectly held that nonprivity relieved Asgrow of direct liability. We hold its liability, regardless of absence of privity, was direct and primary. The reason: Misrepresentation of the seed sold was deliberate; there was an express warranty; there was no agreement or custom negating that warranty by disclaimer or limitation of liability at the time of the sale; had there been one it would have been against public policy; each buyer relied upon the warranty in each of the sales.

The tomato seed was sold by description. It was described as being VF-36. That variety is an early maturing, heavy producing cannery tomato. Those facts, at the time of all sales, were known by all the parties and generally throughout the trade (seed producer-growers, brokers, merchants and tomato growers). By “early maturity,” in the case of VF-36 tomatoes grown in 1962 at the location and under the conditions obtaining on plaintiffs’ lands, is meant that seed if planted late in March would produce tomatoes which could be expected to be ready for harvest around the last two weeks in August.

The variety VF-36 had been originally “released” by the University of California in 1959 and Asgrow procured some. *91 That same year from the seed so acquired it produced a stock seed crop at its Milpitas ranch for use by its production department, and a certain seed crop known as lot No. 87115 was grown (from the Milpitas seed) in Asgrow’s OxnardVentura “production area” in 1960 for sale in 1961. The seed ultimately sold to and sown by plaintiffs was from this lot. In 1961 Asgrow had learned from its plant breeder, Daniel Nadel, that an unknown percentage of the supposedly VF-36 seed in lot No. 87115 was “off-type.” 1 Nadel was a witness at the trial. He explained that they were trying to produce a “pedigreed strain” by which he meant one “true to type.” He declared that “practically all the stocks that we sell are formed from pedigreed stocks.” Notwithstanding its knowledge that lot No. 87115 was not true to type but contained an unknown percentage of “rogues,” Asgrow marketed the seed. Asked why, Nadel stated: “ [I]t was our feeling that this was the best that we had at the time. We had nothing else—we had no improved stock to offer.” He also testified: “This was the only seed available. We had no choice.” He also said that Asgrow was under pressure to get into the VF-36 market. He added that it was common for Asgrow and other seed companies to make tests after they had put a tomato seed on the market. He then stated that if they did not they “would have a tremendous inventory of seed. We couldn’t afford it.” He added: “We have to take our risk in selling the seed, without having it tested.” Asked by the cross-examining attorney: “ You mean you let the growers take the risk®” he answered: “No. We assume the risk.” (Italics supplied.) The colloquy ended with counsel’s rhetorical observation: “Oh, well I’m glad to hear that. Mr. Goforth [Asgrow’s attorney] has been trying to convince me otherwise. ’ ’ It should also be noted that Nadel later testified: “Well, just the fact that they are off types is enough to recommend that we shouldn’t grow it.” (And see footnote 2, infra.)

There is no dispute in the testimony that the seed which is the subject of this litigation was grown, placed in sealed cans, labeled as VF-36, placed in cartons and put in the channels of trade by Asgrow without any warning whatever to anyone involved in this litigation of the known presence (but unknown percentage) of ‘ rogues. ’’

*92 Of lot No. 87115 two hundred pounds were sold to Lockhart on January 29, 1962. On the cans sold there was, in addition to the description “VP-36,” the following in small print-. “Asgrow warrants that the seed, bulbs and plants it sells will be, at the time of delivery, as described on the container within recognized tolerances. Asgrow gives no other or further warranty, expressed or implied, Asgrow limits its liability on the foregoing warranty and its liability by reason of any other cause whatsoever to the amount of the purchase price of such seeds, bulbs, and plants.” The same statement was on the invoice thereafter sent to Lockhart. The cans and cartons were never delivered to Lockhart. The invoice was delivered to Lockhart subsequent to the sale. Lockhart had no discussion with anyone connected with Asgrow as to any disclaimer or limitation of liability with reference to this sale but knew of the limitation and its terms in past transactions he had had with Asgrow. Before purchasing the seed, Lockhart had discussed its qualities with representatives of Asgrow who told him “it was an early variety, that it looked to them like it was a real tomato, and that growers could expect heavy tonnage and ripe fruit. ’ ’ 2

Lockhart sold the seed (200 pounds) to Ranch Supply. Wilfred Carpenter, president of that corporation, caused it to be picked up at Asgrow’s Tracy warehouse and delivered to Associated which had already purchased the seed from Ranch Supply. Both these transactions also took place on January 29, 1962. (Thus all the sales here involved except the last were consummated the same day.) The invoice to Ranch Supply and its invoice to Associated were not made out until some weeks *93 thereafter. Ranch Supply’s invoice contained a statement disclaiming any warranty of “results from . . .

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Bluebook (online)
246 Cal. App. 2d 87, 54 Cal. Rptr. 609, 3 U.C.C. Rep. Serv. (West) 934, 1966 Cal. App. LEXIS 1844, Counsel Stack Legal Research, https://law.counselstack.com/opinion/klein-v-asgrow-seed-co-calctapp-1966.