Recreatives, Inc. v. Myers

226 N.W.2d 474, 67 Wis. 2d 255, 16 U.C.C. Rep. Serv. (West) 1258, 1975 Wisc. LEXIS 1456
CourtWisconsin Supreme Court
DecidedMarch 6, 1975
Docket345
StatusPublished
Cited by6 cases

This text of 226 N.W.2d 474 (Recreatives, Inc. v. Myers) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Recreatives, Inc. v. Myers, 226 N.W.2d 474, 67 Wis. 2d 255, 16 U.C.C. Rep. Serv. (West) 1258, 1975 Wisc. LEXIS 1456 (Wis. 1975).

Opinion

Hanley, J.

The following issues are presented:

1. Did the trial court err in not allowing the adverse examination of the plaintiff’s president and vice-president of marketing ?

2. Were the findings of fact and conclusions against the great weight and clear preponderance of the evidence ?

3. Did the trial court err by predetermining the issues or by not allowing the defendant to fully develop the testimony with regard to the quality of the merchandise ?

4. Did the trial court err by involving itself in the trial in regard to a customer warranty which was not put in issue, and in expressing its own opinions on the material?

*261 Adverse examination.

The first contention by the defendant is that the trial court erred in its “order” of November 15, 1972, in which the court stated that the two nonresident officers of the plaintiff were not subject to subpoena for adverse examination in Wisconsin. In the order, the court stated that the plaintiff was only a sales agency when in fact it did manufacture the ATY’s and that the only issue before the court was whether the account was due and owing although the defendant’s answer and the plaintiff’s reply do raise other issues. The court concluded that the officers were not parties to the action and, unless the defendant made them or their corporation a party, they were not subject to subpoena. This statement in the court’s order was in error because the corporation was a party to the action and there were additional issues presented by the pleadings. However, at trial the court did recognize the additional issues.

This court has recognized that an officer of a corporation is, in effect, a party to an action involving that corporation. However, the cases on this point involve the admissibility of the admissions or examination of an officer at the trial to which the corporation is a party. Fisher v. Gibb (1964), 25 Wis. 2d 600, 609, 131 N. W. 2d 382; J. H. Clark Co. v. Rice (1906), 127 Wis. 451, 106 N. W. 231.

In Midwest Broadcasting Co. v. Dolero Hotel Co. (1956), 273 Wis. 508, 78 N. W. 2d 898, the defendant sought an adverse examination in Wisconsin of certain nonresident officers of the corporate plaintiff, a Wisconsin corporation. The statute involved, sec. 326.12, Stats. 1955, was substantially the same as the present statute, sec. 887.12 (4). This court said:

“The ingenious argument is made that the plaintiff corporation is a party to the action and a ‘person’ within the definition of sec. 990.01 (26), Stats.; that, being a Wisconsin corporation, it is a ‘resident’ of Wisconsin and *262 thus its officers, though nonresidents, may be examined within this state. Whatever merit there may be in this logic, the statute is specific — if the officers to be examined are nonresidents, such examination must be held in the county of their residence. Defendant seeks to examine . . . [the president and secretary] of the plaintiff corporation. They are nonresidents. Any order directing them to attend adverse examinations in Wisconsin would be void and unenforceable. State ex rel. McKee v. Breidenbach (1945), 246 Wis. 513, 17 N. W. (2d) 554; State ex rel. Walling v. Sullivan (1944), 245 Wis. 180, 13 N. W. (2d) 550.” 273 Wis. at 514.

The only difference between the statute as it was then and as it is today is the addition of the final sentence referring to service of notice and subpoena if “such party is an out-of-state resident.” Laws of 1969, ch. 304.

The reasoning of Dolero controls here. The statute provides that the examination is to be held in the county in which the person to be examined resides unless he is personally served in a county in this state, in which case he can be examined in that county. The additional provision for service upon a party’s attorney does not allow for what the defendant attempted here because the statute distinguishes between a “nonresident party” and an “officer, director or managing agent of a corporation that is a party.” Therefore, the trial court did not err in quashing the subpoenas, its order being to that effect.

Findings and conclusions.

The defendant takes the position that the trial court erred in finding the ATV’s to be of merchantable quality and that no misrepresentations had been made that induced the defendant to purchase the merchandise. He states that while the credibility of witnesses is for the trier of fact, the findings of fact are silent with regard to the credibility of any of the witnesses. He also argues that defendant established a prima facie defense and was uncontradicted and, therefore, it was error for the *263 trial court not to grant the relief prayed for in defendant’s answer.

“This court has often held that the findings of a trial court without a jury will not be upset on appeal unless they are contrary to the great weight and clear preponderance of the evidence;' . . . Navine v. Peltier (1970), 48 Wis. 2d 588, 596, 180 N. W. 2d 613. . . .” Milbauer v. Transport Employes’ Mut. Benefit Society (1973), 56 Wis. 2d 860, 862, 203 N. W. 2d 135.

Under the great weight and clear preponderance test the findings of the trial court are not erroneous. The evidence is not uncontradicted as to the quality of the “Max” ATV’s as is suggested by the defendant here. The vehicles did have problems. However, they were correctable and were corrected. The plaintiff furnished rubber gaskets which .solved the problem with the leak at the seam. The exhaust system was modified so it did not melt the body of the vehicle. Repair kits were made available to patch cracks.

Mr. Kuhn, the only purchaser of a machine from the defendant, stated that he gave his vehicle rough usage, but enjoyed it. He corrected the leaks and the cracks himself. It looked pretty good to him in comparison to others at the time he purchased it. He probably would not have traded it had the piston rings not worn out from usage and taken a long time to repair.

Mr. Farr testified that he had problems with the demonstrator that defendant loaned him for a hunting trip in the state of Wyoming. However, he also stated the wire problem could have been caused by the wires being pinched against the frame by the seat and that the transmission problem could have been caused by someone pulling on it too hard. The trial court could conclude these problems were the result of improper use of the vehicle. Mr. Farr was using the demonstrator some fifteen months after delivery by plaintiff to the defendant.

*264 Evidence as to whether the vehicles were merchantable was received subject to the filing of a trial brief by the defendant to show that this type of testimony is admissible. No brief was filed, but the court considered the evidence because the trial judge made specific findings in this matter. The trial court’s finding that the ATV’s were merchantable was not against the great weight and clear preponderance of the evidence.

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226 N.W.2d 474, 67 Wis. 2d 255, 16 U.C.C. Rep. Serv. (West) 1258, 1975 Wisc. LEXIS 1456, Counsel Stack Legal Research, https://law.counselstack.com/opinion/recreatives-inc-v-myers-wis-1975.