Northwest Engineering Co. v. Gjellefald-Chapman Construction Co.

222 N.W. 621, 57 N.D. 500, 1928 N.D. LEXIS 155
CourtNorth Dakota Supreme Court
DecidedDecember 21, 1928
StatusPublished
Cited by5 cases

This text of 222 N.W. 621 (Northwest Engineering Co. v. Gjellefald-Chapman Construction 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
Northwest Engineering Co. v. Gjellefald-Chapman Construction Co., 222 N.W. 621, 57 N.D. 500, 1928 N.D. LEXIS 155 (N.D. 1928).

Opinion

*502 Burice, J.

This is an action in claim and delivery in which there was a verdict for the defendant and on a motion for a new trial the trial court made its order that a new trial should be granted unless the defendant shall within fifteen days after the service of a copy of the order upon it allow judgment to be taken against it for the immediate possession of the property described in plaintiff’s complaint, or if possession cannot be had, judgment for the sum of $858.35 and interest thereon at the rate of 6 per cent per annum, and costs.

In compliance with this order the defendant within the time allowed filed notice of election to accept the modification of the verdict and judgment which was duly served upon plaintiff, and judgment was duly entered 'thereon, and the defendant deposited at the same timé with the clerk of said court the sum of $1,089.67 for the plaintiff, the amount of judgment, interest and costs. Thereafter, the plaintiff duly appealed from said order and from the said judgment.

On the first day of July, 1926, the defendant was under contract with the city of Harvey, North Dakota, to dig certain deep sewers and ditches, a great portion of which were from eighteen to twenty-eight feet in depth, and through soil and clay difficult to dig, which information was communicated to the plaintiff by the defendant, and the plaintiff recommended to the defendant the machine which the defendant purchased from the plaintiff on that day, as a machine constructed so as to dig in a good and workmanlike, continuous and efficient manner to a depth of twenty-two feet, and suitable to such work. The contract *503 expressly guaranteed that the machine would dig1 to the depth of twenty-two feet and the defendant claimed that he knew nothing abo\it the machine; was not familiar with its operation, and relying on the representations and warranty made to him by the plaintiff, he purchased the machine for $14,300, under a contract of sale reserving the title to the machine in plaintiff until paid. The machine was delivered at Harvey, North Dakota, and was tried out on the work which defendant had at that place, and also on a job in Illinois. The plaintiff furnished an expert to operate the machine who was paid by the defendant. Payments were made at different times by the defendant to the plaintiff until the sum of $8,341.65 was paid, leaving a balance of $5,958.35, payment of which was later refused by the defendant, \rpon the ground that the property was never worth to exceed the sum of $5,000, though, if said warranties had been complied with, it would have been worth the sum of $14,300. .

The defendant also alleges in its answer that it was agreed between the plaintiff and the defendant that the plaintiff should put the machine in shape to comply with said warranties and that a test should be made thereof and if the machine did not thereupon comply with said warranties the plaintiff should cancel its claim for the unpaid purchase price and the machine should become the absolute property of the defendant ; that the plaintiff did attempt to cause the machine to comply with the said warranties but that the same failed to do so, and accordingly the plaintiff’s claim for the purchase price became extinguished and the defendant became and thereafter remained entitled to the absolute ownership and possession thereof.

After the defendant had refused to pay any more of the purchase price and when there was still $5,958.35 unpaid the plaintiff and the defendant had a conference in Chicago, at which conference Mr. Grjellefald testified in substance: We met in Chicago with the Northwest people; I told them that this machine wouldn’t dig twenty-two feet deep; they stated it would dig twenty-two feet deep; and they said: “Well, we will come out to Harvey, North Dakota, and we will send our field man out there, and if that machine digs twenty-two feet, all right, and if it doesn’t, all right,’’.and then I gave them another trial and renewed the notes on the same day. They came out to Harvey, *504 in 1927, to see if the machine would dig twenty-two feet deep and it wouldn’t.

In the trial of the case, the trial court said: “Under this answer the defendants claim a contract effecting a settlement, whereby the machine should become the property of the defendants without any further payment, and that the purchase price unpaid should become extinguished, and that the defendant' should be found to be the absolute owner. I am inclined to think if the defendants wish to accept that as their defense in this case, that I will allow it to stand, but not both.”

That is, the trial court confined defendant to the settlement, the questions of a breaeh of the contract guaranteeing the machine to dig twenty-two feet and to the implied warranty that the machine was constructed, intended and adapted to the kind of work for which the defendants purchased it. The case was submitted to the jury on this theory and all other elements of damages were specifically excluded in the instructions.

At the trial, O. N. Gjellefald, president of the corporation, testified that the machine as delivered was worth the sum of $9,200, and that if it had been as warranted it would have been worth the sum of $14,300.

Motion for a new trial was made upon the minutes of the court, the pleadings, exhibits and testimony of the witness for the defendant, one O. N. Gjellefald, and upon the instructions of the court to the jury, as follows:.

First: “Excessive damages appearing to have been given under the influence of passion and prejudice.”

Second: “Error in the assessment of the amount of recovery.

Third:' “That the verdict is not sustained by the evidence, it appearing by the uncontradicted evidence of the plaintiff and defendant that defendant promised and agreed to pay for the machine the sum of $14,300. That defendant did pay thereon the sum of $8,341.65 leaving a balance due on the purchase price of the sum of $5,958.35. . The defendant’s witness, O. N. Gjellefald, admitted that the machine was worth $9,200 in the condition that it was in,” and that under the testimony there was still due the plaintiff “the sum of *505 $858.35,” which was the least verdict the jury could find for the plaintiff.

Fourth: That “said verdict is contrary to the evidence in this that the only evidence that was offered was on the theory, if at all, of proving the difference between the value of the goods at the time of the delivery to the defendant and the value they would have had if they had answered to the warranty.”

Fifth: That the court erred in instructing the jury as follows: “You are instructed that the defendant has a right to retain and use the machine without impairing its right to damages from breaches of warranties; that its continued use of the machine is no defense to its claim for such damage. And you are instructed that if such warranties or one or more of them have been breached and damage has been sustained by defendant therefrom as explained in other of these instructions, which is equal to the amount of the unpaid purchase price; then the price has been extinguished thereby and the defendant is entitled to the machine and your verdict must so find.”

Sixth: “. . .

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Bluebook (online)
222 N.W. 621, 57 N.D. 500, 1928 N.D. LEXIS 155, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northwest-engineering-co-v-gjellefald-chapman-construction-co-nd-1928.