Oil-Well Supply Co. v. Watson

80 N.E. 157, 168 Ind. 603, 1907 Ind. LEXIS 144
CourtIndiana Supreme Court
DecidedFebruary 19, 1907
DocketNo. 20,861
StatusPublished
Cited by14 cases

This text of 80 N.E. 157 (Oil-Well Supply Co. v. Watson) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Oil-Well Supply Co. v. Watson, 80 N.E. 157, 168 Ind. 603, 1907 Ind. LEXIS 144 (Ind. 1907).

Opinion

Hadley, J.

Appellant is a corporation and a dealer in supplies for drilling oil-and gas-wells, located at Marion. Appellees are partners engaged in drilling oil-and gas-wells in the vicinity. On June 3, 1904, appellees purchased from appellant a two-inch Fitler cable, 1,400 feet long, and weighing 2,010 pounds. Appellees were acquainted with the Fitler cable and inquired for that make. They had been engaged in the vicinity, as drillers, for several years, which was known to appellant’s superintendent, who made the sale. Two-inch cables were used in that vicinity for no purposes but drilling and for pulling casings. The cable when purchased was wrapped, both the rope and the coiled package, in burlap, just as it was when it left the factory in Philadelphia, a few days before, and neither appellant nor appellees had any opportunity to examine or inspect the quality of the cable before the purchase. There was no practicable way of inspection, or of testing its strength and quality, but by attaching the drill to it. After four days’ use, the cable broke, and in twelve days’ use, within a period of about two months, it broke three times, and [606]*606proved, worthless as a cable. One of the three strands of which the cable was composed was made of inferior and rotten material, and each break of the cable was in this strand. Upon the first break notice and complaint was made to the appellant, and in about two months, and soon after the last break, appellees returned it to appellant.

•The form of action upon the foregoing facts is an ordinary complaint for goods sold and delivered. There were two affirmative answers, in effect the same, the second of which is in substance as follows: The defendants were at the time in the complaint mentioned, and still are, engaged in the business of drilling oil-and gas-wells, in which business they were required to use large and strong ropes or cables. The plaintiff was engaged in the business of furnishing supplies to persons engaged in drilling gas-and oil-wells, among which supplies were such ropes and cables. Defendants admit that at the time mentioned in the complaint they purchased from the plaintiff one such cable to be used by the defendants in the drilling of such wells, and that said cable was and is the goods and merchandise named and described in the complaint. The plaintiff at the time knew that the defendants were engaged in the business of drilling such gas-and oil-wells, and well knew that the defendants were purchasing and did purchase said cable for the purpose of using the same in drilling such wells. Defendants aver that before and at the time of so purchasing said cable they had no means of knowing or testing the qualities or strength of said cable, until they put the same into actual use; that, relying upon the presumed knowledge of the plaintiff of the required qualities of said cable, from its exposing to sale and selling the same, they purchased the same as herein stated; that said cable was not a good cable and fit for the uses and purposes for which it was intended, and for which defendants purchased it, but it was wholly worthless and unfit for such purposes; that it was rotten, weak, and would not sustain the strain and [607]*607weight necessarily put on it in drilling such wells, and broke and went to pieces when used in drilling less than fifty feet in depth, and therefore there was great danger of losing defendant’s tools in use of said cable in drilling wells, and was therefore of no value whatever for the purposes for which defendants purchased the same of said plaintiff; that as soon as they discovered the worthlessness of said cable they returned the same to the plaintiff at its place of business, and notified the plaintiff of the condition and worthlessness of the same. A demurrer to each of the affirmative answers was overruled.

1. These answers were drawn and the case was tried, and is presented here, upon the theory that the cable was sold by the appellant to appellees upon an implied warranty that it was reasonably fit for the purpose for which it was to be applied. The challenged insufficiency of the evidence to sustain the finding of the court also presents the same question, and it will not be useful for us to give the demurrers and the evidence separate consideration.

2. Was there an implied warranty of fitness accompanying the sale? There are but few subjects of the law that appear, upon a cursory examination of the authorities, to be in such a hopeless state of confusion as that which relates to what constitutes proper exceptions to the rule of caveat emptor. A closer study, however, will reveal that the apparent disagreement is largely the result of unguarded language employed by judges and writers, not in sympathy with the harshness and apparent incongruities of the old rule, and, while there has been much breaking away from the ancient maxim, and considerable difference in the paths chosen, yet the ostensible conflict is due quite as much to the difference in the facts of particular cases, as to the doctrine applied. “The maxim of caveat emptor ” says Mr. Story, “seems gradually to be restricted in its operation, and limited in its domain, and beset with the circumvallations of the modern doctrine of [608]*608implied warranty, until it can no longer claim the empire over the law of sales, and is but a shadow of itself.” Story, Sales (4th ed.), §359. It may be said, however, that when chattels are sold generally for all purposes to which they are adapted, and the seller is not the manufacturer nor producer, and the property is in existence, and may be inspected by the buyer, and there is no fraud on the part of the seller, the maxim caveat emptor applies) even though defects exist in the goods which are not discoverable on examination. The doctrine of caveat emptor rests upon the principle that the purchaser sees, or may see, and know what he buys; and not demanding an express warranty, it will he conclusively held that he was content to rely upon his own judgment, and if the goods prove inferior in quality, the purchaser has no remedy, but must bear the loss himself. Brantley v. Thomas (1859), 22 Tex. 270, 73 Am. Dec. 264; 2 Kent’s Comm. (14th ed.), *479.

3. But where the purchaser has no opportunity to inspect the goods, and no knowledge of the quality, and no means of forming an opinion of his own with respect to the quality, the reason of the rule fails; and upon such facts an important exception has been engrafted upon the rule, namely, where the contract is for a certain kind of chattel, for a particular purpose known to the seller, and it is impracticable or no opportunity is afforded the buyer to inspect the property before delivery, and where the article is kept for sale by the vendor as suitable for the particular purpose, and sold by him to the vendee for a sound price, and as adapted and good for the purpose, there arises an implied warranty that the thing is reasonably fit for the special purpose intended by the vendee; and this is true without reference to whether the transaction relates to an executory or completed contract, or whether to a manufacturer or dealer. This exception is controlling in this case, and we therefore deem it proper to indicate the current of authorities upon the point.

[609]*609Among the English cases, and one in which many of the English decisions are reviewed and classified, is Jones v. Just (1868), L R. 3 Q. B. 197.

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Bluebook (online)
80 N.E. 157, 168 Ind. 603, 1907 Ind. LEXIS 144, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oil-well-supply-co-v-watson-ind-1907.