Manning v. International Harvester Co.

381 N.W.2d 376, 42 U.C.C. Rep. Serv. (West) 1668, 1985 Iowa App. LEXIS 1551
CourtCourt of Appeals of Iowa
DecidedNovember 26, 1985
Docket84-1820
StatusPublished
Cited by15 cases

This text of 381 N.W.2d 376 (Manning v. International Harvester Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Manning v. International Harvester Co., 381 N.W.2d 376, 42 U.C.C. Rep. Serv. (West) 1668, 1985 Iowa App. LEXIS 1551 (iowactapp 1985).

Opinion

OXBERGER, Chief Judge.

The defendant International Harvester has appealed from the trial court’s award of damages to plaintiffs. Plaintiffs have cross-appealed from denial of recovery from defendant-seller Kunau, and claiming the theory of breach of implied warranty was proven. We affirm the trial court.

The plaintiffs, Laverne Manning and his son, Joseph, purchased an International Harvester 800 Series planter from defendant Kunau Implement Company in the summer of 1980. The planter was ordered to be equipped with a 36-hole seed drum. The planter was delivered in spring of 1981 and Kunau’s employees did the necessary set-up work and delivered.the planter. The drum was already placed on the machine when received by Kunau. Soon after he began planting, Joseph noticed the planting was not thick enough. He called Kunau and employees of the company came out to the farm and replaced the clutch on the machine. Manning continued to notice problems with the machine in the 1981 and 1982 season and the clutch was replaced several times. At the end of the 1982 planting season, when he had five acres left to plant, he again asked a Kunau employee to check the machine. The employee discovered for the first time there was a 24-hole drum on the machine instead of a 36-hole drum.

The Mannings brought this lawsuit alleging negligence on the part of International Harvester and Kunau. The court found at the end of trial that Kunau was not negligent, that the plaintiffs did not contribute to their damages, and that International Harvester was negligent. It awarded damages of $350 to Joseph Manning and $59,-092 to Laverne Manning.

On appeal International Harvester says: (1) it was not negligent and the proof was insufficient to support the court’s finding; (2) the plaintiffs contributed to their damages through their own negligence; (3) the damages cannot be awarded because they compensate purely economic loss rather than property loss; (4) there is insufficient proof of damages; and (5) damages are limited by the warranty accompanying sale of the machine. The plaintiffs assert: (1) they proved the theory of implied warranty and the court erred in not making a finding in their favor; (2) the court erred in not finding Kunau was negligent.

We review this appeal at law and will reverse only if there is no substantial evidence supporting the court’s fact findings or if there was an error in the application of law. Iowa R.App.P. 4. The evidence is viewed in the light most consistent with the judgment. RET Corporation v. Frank Paxton Co., Inc., 329 N.W.2d 416, 418-19 (Iowa 1983).

In the first question presented in its appeal, International Harvester claims the mere fact the wrong drum was found on the planter more than one year after delivery is insufficient proof of its negligence. *378 There was no showing the machine left the factory in that condition, the defendant continues, nor that any standard of care was breached. There was no defect which shows negligence.

The problem with the planter was not a defect, plaintiff points out, but that the wrong part was sent. The duty was to deliver what was ordered, and to inspect properly the machine to assure it was what he wanted, Manning says. Probable cause is proven by the fact the drum was installed at the factory, and although it was set up by Kunau, this did not include checking or changing the drum. The evidence further shows the machine was used by the plaintiffs as it was delivered.

We hold the finding of the court that International Harvester was negligent is supported by substantial evidence.

In determining whether a plaintiff contributes negligently to the damages they have suffered, we look at their conduct in light of the actions of the ordinarily prudent person. King v. Barrett, 185 N.W.2d 210, 213 (Iowa 1971). Manning communicated with Kunau nineteen times during the time he was having trouble with the planter, and each time the machine was serviced or the clutch replaced, he was assured he would have no further problems and the difficulty had been corrected. The court’s finding that Manning was not negligent in failing to discover the wrong seed drum had been placed on the planter is supported by the evidence.

Both plaintiffs and defendant agree that the holdings of the court indicate recovery cannot be allowed for purely economic losses in a tort action. This was stated in Nebraska Innkeepers v. Pittsburgh-Des Moines Corporation, 345 N.W.2d 124, 126 (Iowa 1984) and Van Wyk v. Norden Laboratories, Inc., 345 N.W.2d 81, 88 (Iowa 1984). The defendant says the losses here were purely economic, while the plaintiff says the court was correct in allowing the damages since they are direct damage to property.

In Nebraska Innkeepers businesses affected by the closing of a bridge brought suit against the contractor and seller of the steel used in the bridge. Nebraska Innkeepers, at 125. They had lost profits because the improperly made steel had cracked, causing closing of the bridge and fewer customers. Id. The court compared the situation to that in the Kinsman cases, where those remotely affected by the pileup of a ship into a bridge could not recover. Id. at 127. In the Kinsman case as well as Nebraska Innkeepers, the court found the economic, nonphysical losses of the business were too remote. Id. at 128-29. The court explained the reason for the distinction between economic and property losses:

Courts which have addressed this issue have repeatedly expressed concern that a contrary rule would open the door to virtually limitless suits, often of a highly speculative and remote nature. Such suits would expose the negligent defendant to a severe penalty, and would produce serious problems in litigation, particularly in the areas of proof and apportionment of damages.

Id. at 127. The court agreed with the finding by a court in another jurisdiction that the injured party must have at least some ownership or property interest, adding “allowance of a claim for purely economic damages arising from another’s negligent actions would ‘enter a field that has no just or sensible stopping point.’ ” Id. at 128.

In Van Wyk the court found the damages shown were not purely economic. Van Wyk, at 88. There, the cattle owner had suffered damage when his cattle died or became sick after being vaccinated. Id. at 83. The court distinguished the situation from Nebraska Innkeepers, pointing out the damage was “based on injury to their own property, the cattle.” Id. at 88.

We believe that when distinguishing between economic loss and property damage which will allow compensation the reason for the distinction must be kept in mind.

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381 N.W.2d 376, 42 U.C.C. Rep. Serv. (West) 1668, 1985 Iowa App. LEXIS 1551, Counsel Stack Legal Research, https://law.counselstack.com/opinion/manning-v-international-harvester-co-iowactapp-1985.