McCormick v. Ornstein

580 P.2d 1206, 119 Ariz. 352, 23 U.C.C. Rep. Serv. (West) 888, 1978 Ariz. App. LEXIS 517
CourtCourt of Appeals of Arizona
DecidedMarch 23, 1978
Docket2 CA-CIV 2688
StatusPublished
Cited by13 cases

This text of 580 P.2d 1206 (McCormick v. Ornstein) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCormick v. Ornstein, 580 P.2d 1206, 119 Ariz. 352, 23 U.C.C. Rep. Serv. (West) 888, 1978 Ariz. App. LEXIS 517 (Ark. Ct. App. 1978).

Opinion

OPINION

HOWARD, Judge.

The issue in this case is whether appellee had the right to rescind his contract for the *353 purchase of a custom-made trailer. The facts considered in the light most favorable to supporting the judgment are as follows.

Ornstein contracted with McCormick for the construction of a custom built trailer to be used in Ornstein’s wholesale nuts, bolts and fasteners business to bring merchandise to the door of the customer. McCormick knew the purpose of the trailer and also that Ornstein was going to equip the interi- or with bins and racks for carrying the merchandise.

On May 9,1975, Ornstein took delivery of the trailer with McCormick’s permission and without paying the balance that was due. When he road tested it he discovered that it was “fishtailing” and difficult to control. He brought it back the next day to McCormick who discovered there had been a mistake in the size of the coupler on the trailer. This was corrected by placing a new ball on the trailer hitch that was attached to Ornstein’s truck. Ornstein took the trailer to be painted. In the meantime he called the Department of Motor Vehicle and was informed that he needed a statement of origin to have the trailer registered. He asked McCormick to supply him with the necessary documentation.

The trailer was painted on May 15, 1975 and Ornstein took it back to his premises. He attempted to put in the custom-made racks and bins but found they did not fit because the inside of the trailer was not square. While he was attempting to install the racks and bins it rained and the trailer leaked “like a sieve”. He discovered that there were holes where the sides of the trailer met the roof. When he first picked up the trailer Ornstein noted that the roof did not have the A. J. Bayer coping and drip cap that McCormick had agreed to install, but McCormick told him that the company which made the coping was no longer in business and that he had taken care of it another way.

Ornstein again road-tested the trailer but it still swayed and there was a feeling that the truck was being lifted off its front wheels. He spoke to McCormick many times on the telephone explaining the difficulties he was having but received no offer from McCormick to make any corrections.

On May 27, 1975, Ornstein went to McCormick with a check for $750 in his pocket which he believed to be the balance due. He again complained about the deficiencies but McCormick refused to take any corrective action. Ornstein came to the conclusion that the best thing to do was to pay McCormick the balance, get the statement of origin and take the trailer elsewhere for repair. At that time he thought the trailer was capable of being repaired. McCormick wanted an additional $800 over and above, the contract price for lengthening the trailer. Ornstein refused to pay for the extra length because he did not authorize it or understand why it was necessary. He left and tore up the $750 check.

On June 18, 1975, Ornstein filed a complaint with the Department of Motor Vehicle in which he stated he would pay the balance of the original contract price upon receipt of the statement of origin. When he filed this complaint he was still under the impression that the trailer could be repaired. On the same day an inspector from the Motor Vehicle Division came out to look at the trailer, shook his head and walked away. At some unspecified time, Ornstein was informed by a person who did repairs that the trailer should be junked.

On June 18, 1975, Ornstein sent a written notice of rescission to McCormick. McCormick refused to refund the $3,200 that Ornstein had paid him and this suit followed.

At trial, Ornstein’s expert witness stated that there were many defects which made the trailer “unroadable”. In his opinion the trailer posed a safety hazard to anyone hauling it and to the general public using the roads and highways. In addition to the unacceptable workmanship he was of the opinion that the welding throughout was done in such a fashion that it was unpredictable and a failure in the welds could occur. He also found that the wiring was *354 improperly protected and the wheels were not on the same plane. According to him, even if the wheels were realigned, the wells redone, and the wiring repaired, there would be an overload on the truck hauling it when it was filled with merchandise. He felt that it would be necessary to start from the beginning, the design stage, in order to correct the defects and that consequently it was not merely a matter of making repairs.

The trial court granted Ornstein judgment in the sum of $3,200 and awarded McCormick $211.14 on a $2,084.99 counterclaim.

The trial court, in ruling in favor of Ornstein, found that McCormick had breached the implied warranty of merchantability under A.R.S. Sec. 44-2331(B)(l); that Ornstein was permitted to reject the trailer under the provisions of A.R.S. Sec. 44—2364; that the rejection was made within a reasonable time and that by reasonably notifying McCormick and by holding the trailer with reasonable care at McCormick’s disposition for a time sufficient to permit McCormick to remove the trailer, Ornstein made a rightful and effective rejection pursuant to A.R.S. Sec. 44-2365.

Appellants contend A.R.S. Sec. 44— 2331(B)(1) is not applicable; that Ornstein accepted the trailer and did not effectively revoke his acceptance within a reasonable time; that he waived any right of rescission because he did not return the trailer for repair; that he did not return the trailer and that he failed to prove damages were an inadequate remedy. They also contend the court erred in failing to award the entire amount of their counterclaim.

Appellants assert that A.R.S. Sec. 44r- 2331 applies only to goods for resale and that the applicable statute is A.R.S. Sec. 44-2332.

A.R.S. Sec. 44-2331 states in part:
“§ 44—2331. Implied warranty: merchantability; usage of trade
A. Unless excluded or modified (§ 44-2333), a warranty that the goods shall be merchantable is implied in a contract for their sale if the seller is a merchant with respect to goods of that kind. Under this section the service for value of food or drink to be consumed either on the premises or elsewhere is a sale.
B. Goods to be merchantable must be at least such as:
1. Pass without objection in the trade under the contract description; and
2. In the case of fungible goods, are of fair average quality within the description; and
3. Are fit for the ordinary purposes for which such goods are used; and
4. Run, within the variations permitted by the agreement, of even kind, quality and quantity within each unit and among all units involved; and
5. Are adequately contained, packaged, and labeled as the agreement may require; and
6. Conform to the promises or affirmations of fact made on the container or label if any.

A.R.S. Sec. 44-2332 states:

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Cite This Page — Counsel Stack

Bluebook (online)
580 P.2d 1206, 119 Ariz. 352, 23 U.C.C. Rep. Serv. (West) 888, 1978 Ariz. App. LEXIS 517, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccormick-v-ornstein-arizctapp-1978.