Reininger v. Eldon Manufacturing Co.

250 P.2d 4, 114 Cal. App. 2d 240, 1952 Cal. App. LEXIS 1165
CourtCalifornia Court of Appeal
DecidedNovember 17, 1952
DocketCiv. 19017
StatusPublished
Cited by13 cases

This text of 250 P.2d 4 (Reininger v. Eldon Manufacturing Co.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reininger v. Eldon Manufacturing Co., 250 P.2d 4, 114 Cal. App. 2d 240, 1952 Cal. App. LEXIS 1165 (Cal. Ct. App. 1952).

Opinion

*241 SHINN, P. J.

This is an action brought by sellers for the balance due on a sales contract. Contending the products delivered were of such poor quality as to be useless the buyer-defendant counterclaimed and also filed a cross-complaint seeking damages. Judgment was entered for plaintiffs for the balance due and against defendant on the cross-complaint. Defendant appeals.

The sole question presented on this appeal, which is on the judgment roll alone, is whether a buyer who keeps the goods. delivered under a sales contract but promptly notifies the seller that goods delivered are defective may maintain an action for damages suffered because of the defective quality of the goods. The trial court found that the goods here in question were wholly defective and that the buyer so notified the seller, but concluded that the act of accepting the goods and exercising dominion over them by attempting to rework them precluded any claim of damage by the buyer. No question is here raised of the propriety of the judgment insofar as it awarded plaintiffs the amount of the balance of the contract price. The contention of appellant is that it should have been awarded damages. There is thus presented a clear question of the proper application of section 1769 of the Civil Code. 1

The court found the following facts: On April 5, 1950, by written contract, 2 plaintiffs agreed to make two dies to be *242 used in the manufacture of the base and cover of a Styrene box; at the time of the agreement plaintiffs were given drawings for the finished boxes; the next day defendant furnished a drawing of the proposed dies. The court found, however, that the contract was made on the basis of the box and cover drawings and not the die drawing and that the box and cover drawings were sufficient to enable a die maker to make dies from which the box could be made. Sales price for the dies was fixed at $5,250 with a proviso that if delivery were made on or before May 12, 1950, the price would be increased $100 per day of egrly delivery and if delivery was after May 12, 1950, the price would be decreased $150 for each day’s delay. Defendant deposited $2,500 with the order. The two dies were successively delivered on May 4th and May 6th, 1950. Sample boxes were run from the dies and the samples were not in accordance with the drawings furnished and were unusable. Defendant immediately notified plaintiffs of the defects and returned the dies for correction. On May 9, 1950, the dies were redelivered and samples again were made. These also were defective and unusable and the dies were found to have a salvage value of only $100. The dies not only would not make the box and cover according to drawing but were not in conformance with the die drawings furnished by defendant. The inability to produce acceptable samples was due to defects in the dies. Plaintiffs contend the dies were good and there were no defects but the court found against plaintiffs on these issues, and upon a judgment roll appeal these findings are conclusive.

The court found further that notice in writing was given by defendant to plaintiffs on May 10, 1950, specifying that both the dies and samples made therefrom were not in accordance with the contract, that defendant would send the dies elsewhere for necessary correction and would hold plain *243 tiffs responsible for any and all damages sustained. On receiving the no,tice plaintiffs informed defendant that they objected to the dies being sent elsewhere for correction. The dies were sent to a qualified die maker but all efforts at correction were unsuccessful. The court found that by reason of the defective dies defendant sustained various items of damage in the total sum of $9,203.09.

The only question presented is whether the findings support the judgment. There is nothing in the findings to indicate express or implied approval by defendant of the goods tendered by plaintiffs in satisfaction of their contract.

Appellant contends that the judgment is not supported by the findings since those above summarized required the court under Civil Code, section 1769,- to allow defendant damages as found. Respondents do not answer this contention. They contend that since they had until May 12, 1950, to deliver proper dies the act of defendant in taking possession of the dies on May 10, 1950, and sending them elsewhere prevented and excused further performance. However, since plaintiffs pleaded full performance on their part and so proceeded at trial, they may not raise for the first time on appeal an excuse for nonperformance or claim prevention of performance. (Daley v. Russ, 86 Cal. 114, 117 [24 P. 867]; Peek v. Steinberg, 163 Cal. 127, 133 [124 P. 834].)

Prior to the Uniform Sales Act it was a pure question of fact whether the receipt and retention by the buyer was made in such a way as to indicate he was assenting to the tender of nonconforming goods. It has never been the law in California that mere acceptance of defective goods with knowledge of their defects cuts off a buyer’s right of action for breach of an express warranty as a matter of law. (North Alaska Etc. Co. v. Hobbs, Wall & Co., 159 Cal. 380, 383 [113 P. 870, 120 P. 27, 35 L.R.A.N.S. 501].) There were no findings that defendant waived the defects; all findings were to the contrary.

There have been no cases since adoption of the Uniform Sales Act indicating any change in this rule; the cases rather indicate that when a buyer has complied with the statutory notice requirements he has a cause of action for breach of warranty, express or implied. The court found that plaintiff warranted and represented that the dies would be fit for defendant’s use in making the boxes according to the *244 drawings. This was an express warranty (Civ. Code, § 1732), and the articles to be manufactured were “goods” within the purview of the Uniform Sales Act (Civ. Code, § 1725).

A discussion of section 49 of the Uniform Sales Act, which is identical with section 1769 of the Civil Code, is found in 3 Williston on Contracts, section 714, where it is said:

“This section of the Statute [§ 49] amounts to this, that the seller’s tender of the goods is treated as an offer of them in full satisfaction, but the buyer is allowed a reasonable time for accepting the offer. Moreover, if he declines to take the goods in full satisfaction he need not return them. The practical advantages of the statutory rule and its ease and certainty of application commend it.
“The section differs from other provisions of the Statute in changing substantially the common law of all or nearly all of the states. . . . [M] any states hold that at common law acceptance of title necessarily involves a release of the seller’s liability from certain of his contractual obligations in regard to the goods. In other states this is denied unless there is an intent to surrender the seller’s obligations. Under the common law as expounded in both of these classes of jurisdictions great difficulties in determining questions of fact are inevitable. . . .

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Bluebook (online)
250 P.2d 4, 114 Cal. App. 2d 240, 1952 Cal. App. LEXIS 1165, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reininger-v-eldon-manufacturing-co-calctapp-1952.