Kopald Electric Co. v. Mandan Creamery & Produce Co.

37 N.W.2d 253, 76 N.D. 503, 1949 N.D. LEXIS 72
CourtNorth Dakota Supreme Court
DecidedApril 8, 1949
DocketFile 7134
StatusPublished
Cited by5 cases

This text of 37 N.W.2d 253 (Kopald Electric Co. v. Mandan Creamery & Produce Co.) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kopald Electric Co. v. Mandan Creamery & Produce Co., 37 N.W.2d 253, 76 N.D. 503, 1949 N.D. LEXIS 72 (N.D. 1949).

Opinion

Grimson, District J.

The plaintiff brought suit against the defendant on two causes of action. The first cause of action is upon a claim that plaintiff on or about March 19, 1947, sold and delivered to the defendant electrical materials and supplies at the agreed and reasonable value of $590.88, for which payment had not been made though demanded. The second cause of action is for labor in the installation of electrical equipment for the defendant of the agreed and reasonable value of $52.50, which has not been paid, making a total of $643.38 for which plaintiff demanded judgment.

The defendant in effect denies both causes of action except that it admits purchasing some electrical materials of the value of $24.79 and further admits liability for labor in the in *505 stallation of said materials in the snm of $52.50 making a total of $77.29 for which it had attempted to make payment and offered to deposit the same with the clerk. Outside of that it denies all liability.

The case was tried to a jury. At the close of the plaintiff’s case and again at the close of the entire case, defendant moved for a directed verdict on the grounds, among others, that other than the liability defendant had admitted no sale of materials had been shown in that the evidence showed that no title to the other materials claimed to have been sold had passed. The motion was denied and the jury returned a verdict for the plaintiff in the sum of $643.38. Thereupon defendant moved for judgment notwithstanding the verdict on the ground, among others, that the Court had erred in denying defendant’s motion for a directed verdict. That motion was denied. Whereupon an appeal from the judgment and order denying the motion was taken.

The evidence shows that the plaintiff conducted a “contracting and electrical wiring” business at Minot, North Dakota; that the defendant Mandan Creamery and Produce Company operated a branch at Minot, of which, one, Paul Hess, was manager; that in December, 1946, the defendant asked the plaintiff to do some re-wiring for the incubators in its place of business, which was done by the plaintiff in January 1947. The items for materials and labor on that job constitute that part of this matter which is admitted by the defendant and for which payment has been offered.

In addition to that, however, and in the same conversation in December, the plaintiff claims an oral agreement was reached between it and the defendant for the plaintiff to furnish the materials and labor to connect up a larger power equipment which the defendant intended to install; that the agreed cost was list price for the material and $3.00 per hour for labor; that in accordance therewith he purchased special material, consisting of heavy wire, large conduits, etc. As the materials arrived the plaintiff recorded them on his job sheet but made no billing thereof to the defendant. They were, however, immediately taken to the defendant’s place of business by plaintiff’s employees. Nothing had been done to fit this material for serv *506 ice and the heavy equipment had not arrived when, on July 21, 1947, the defendant’s place of business, together with this material; was destroyed in the disastrous oil fire occurring in Minot that day and not originating on the defendant’s premises. About a week after the fire the plaintiff for the first time billed the defendant for this material including therein the minor job that had been completed. For that completed job the defendant immediately drew its check and offered payment in the sum of $77.29 denying liability for the materials for the separate and larger job that had been merely stored on the premises. The-check was returned. Thereafter this suit was commenced.

The main issue to be determined is whether there- was any evidence at the time the motion for a directed verdict was made to the effect that the title to those materials had passed to the defendant before their destruction, so that plaintiff could charge for and be entitled to payment separately for them. If there was any evidence thereof the motion was properly denied and the matter was for the jury to decide.

Section 47-1104 ND Rev Code 1943, provides that:

“Title is transferred by an executory agreement for the sale or exchange of personal property only when the buyer has accepted the thing, or when the seller has completed it, prepared it for delivery, and offered it to the buyer with intent to transfer-the title thereto in the manner provided by sections 9VL208 to 9-1227, inclusive.”

The passing of title in the purchase and sale of personal property depends upon the intention of the parties. That is the test as to whether title has passed or not. St. Anthony & Dakota Elevator Co. v. County of Cass, 14 ND 601, 106 NW 41.

Williston in Volume 2 of his Revised Edition on Sales, page 9, says:

“But now the rule has become clearly recognized that in case of an agreement for consideration, whether the consideration consists in some actual performance as payment of the price, or in a promise, express or implied, the time of the transfer of the property (wherever such transfer is possible) depends upon the intention of the parties, however indicated.”

Sub-section 2 of § 51-0120 ND Rev Code 1943, provides as one *507 of the rules for ascertaining the intention of the parties as to time when title passes to the buyer: “Where there is a contract to sell specific goods and the seller is bound to do something to the goods, for the purpose of putting them into a deliverable state, the property does not pass until such a thing is done.” The basis of this presumption Williston says, on page 15: “is the natural inference that the parties do not intend an immediate transfer of the property in the goods if the seller has yet to expend labor upon them before they are in the state contemplated by the bargain.”

The case of Lumry v. Kryzmarzick, 48 ND 234, 184 NW 254, involved the purchase of a second-hand gasoline tractor “in good working order.” The plaintiff sued for the purchase price; His employee had made delivery upon the premises of the defendant but at the time the ignition system was lacking, a cylinder was cracked and it failed to work. This Court said: “Where, after delivery to the purchaser in the circumstances disclosed in the evidence, work of a substantial character remained to be done by the seller to .put the property in a condition in which it would be of some use to the purchaser, it is a fair inference'that the parties did not intend that title should pass until this work was done.” The court says, further: “It is true that delivery is one of the strongest circumstances indicative of intention to transfer title immediately. Williston on Sales, section 265. But where delivery of physical possession is made only as a step in the. performance of the contract and for the purpose of better enabling the seller to perform his remaining obligations, the delivery is conditional only and does not control the passing of title. And this is particularly true where the thing delivered is not capable of being used by the buyer without a more complete fulfillment of the seller’s obligations. See Kitson Machine Company v. Holden, 74 Vt. 104, 52 Atl. 271.” In 9 C J.

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Cite This Page — Counsel Stack

Bluebook (online)
37 N.W.2d 253, 76 N.D. 503, 1949 N.D. LEXIS 72, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kopald-electric-co-v-mandan-creamery-produce-co-nd-1949.