Rush v. G-K MacHinery Co.

367 P.2d 280, 84 Idaho 10, 1961 Ida. LEXIS 228
CourtIdaho Supreme Court
DecidedDecember 20, 1961
Docket9024
StatusPublished
Cited by8 cases

This text of 367 P.2d 280 (Rush v. G-K MacHinery Co.) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rush v. G-K MacHinery Co., 367 P.2d 280, 84 Idaho 10, 1961 Ida. LEXIS 228 (Idaho 1961).

Opinion

SMITH, Justice.

Appellant brought this action seeking to recover a balance of moneys allegedly due and owing from respondent growing out of the sales of two pieces of heavy equipment — a crane and a dump truck. The crane was peaceably repossessed under a defaulted conditional sales contract, and the truck, encumbered by a mortgage as additional security for payment of the contract, was peaceably delivered for sale.

A dispute arose out of the settlement on the sales of the equipment. Appellant asserted there was still due and owing $4,-340.05 from the sale of the crane and $3,345.00 from the sale of the truck; that the truck belonged to appellant, instead of to Hayden J. Foster as asserted by respondent (or to Foster’s estate); and that Foster (or his executor or administrator) was not a proper party to the action as asserted by respondent.

At the conclusion of a pre-trial conference, where respondent’s motion to dismiss the action was treated as a motion for summary judgment, I.R.C.P., Rule 12(b), the trial court entered judgment in favor of respondent, dismissing the action. Appellant perfected an appeal therefrom.

Inasmuch as the facts are somewhat complicated we shall set them forth in some detail.

Appellant Lloyd A. Rush conducted business as Rush Construction Company until “shortly before the first of the year 1959” when he took in a partner, Hayden J. Fos *13 ter; whereupon “Rush owned 60 percent of the partnership business and Foster 40 percent,” according to Mr. Rush’s affidavit.

On January 2, 1959, the partners entered into a written conditional sales contract with respondent to purchase the crane for the time sale price of $64,114.73, upon which respondent credited $7,620.82 for machinery traded in, leaving owing a balance of $56,-494.91. As collateral security for payment thereof, the partners executed and delivered to respondent a chattel mortgage encumbering their dump truck.

Respondent, with the knowledge of the partners, transferred the conditional sales contract to C.I.T. Corporation, respondent remaining liable for payment of the indebtedness. Thereafter the partners made payments according to the contract to C. I.T. Corporation for the months of February and March, 1959, totaling $2,671.08.

Next, the partners, on May 27, 1959, entered into a contract in writing, entitled ■“Agreement for Winding Up and Dissolution of Rush Construction Co., a partnership.” By this contract Hayden J. Foster transferred most of his interest in the partnership business to Lloyd A. Rush, retaining however the dump truck involved in this proceeding, which the parties set over to Foster. The parties then covenanted that the partnership theretofore existing between them was dissolved, and that neither party had any claim or demand whatsoever against the other party.

On or about June 20, 1959, payments on the conditional sales contract being delinquent, the parties, Rush and Foster, agreeably returned the crane, and delivered the mortgaged truck, to respondent to be sold and payment to be made from the proceeds on the balance owing to C.I.T. Corporation. The balance due such Corporation during June 1959 after crediting the unused carrying charge on the time sale price was $44,440.88.

On June 29, 1959, following such delivery of the equipment, respondent leased the crane to a third party. In the meantime all the parties tried to sell the truck. Respondent found a buyer for the truck on September 19, 1959, and accomplished its sale for the sum of $6,250, which respondent alleges was reasonable. Appellant thereupon vóluntarily endorsed the title to the truck for transfer to the buyer.

During April 1960 the lessee of the crane exercised an option to purchase it for the sum of $48,000. Thus respondent collected as proceeds of the sales of both pieces of equipment the sum of $54,250.00.

Following the sale of the crane, and on June 27, 1960, respondent remitted to “Lloyd A. Rush, H. Jay Foster and Rush Construction Co.” its voucher check for $5,469.07, showing thereon:

*14 “Total proceeds obtained from sale of crane and 1958 Ford track $ 54,250.00
Less payoff Cond. Sale Contract to CIT $ 44,440.88
Less selling expenses 4,340.05
48,780.93 48,780.93
Balance-----------------$ 5,469.07”

Accompanying this check was respondent’s letter which, after referring to the transaction, stated:

“We are enclosing our check drawn to Lloyd A. Rush,- H. Jay Foster and Rush Construction Co. This check is tendered on the basis that it represents full settlement with all parties on this complete transaction. Details of this transaction are on the voucher part of this check attached thereto. Upon your cashing of this check, we will consider the matter closed.”

From the proceeds of this check Foster on or about June 29, 1960, received through his attorneys the sum of $1500, from Mr. Rush, who handled “all the business transactions,” which was “as and for any interest he (Foster) may have in the crane and truck irrespective of the written dissolution agreement.” (Affidavit of Pearl Rush.) Thereupon on August 1, 1960, the parties, Rush and Foster, executed a mutual release in writing, each releasing the other from all claims and demands whatsoever. Thereafter as developed by appellant’s brief and argument, Foster died before the trial court’s disposition of respondent’s motion to dismiss, the record not showing the exact date.

Recapitulation of the financial transactions herein before recited are as follows:

*15 1959 1959 1959
Jan. 3 Sale price of crane $ 52,105.00 Carrying charge for 72 months 12,010.73 Sept Proceeds, sale of truck 6,250.00
Total time sale price $ 64,115.73
Credit for machinery traded in 7,620.82
Mortgage to C.I.T. Corporation on track as additional security -0-
Net time sale price------$ 56,494.91
Feb-March 2 cash payments — 2,671.08
Balance owing---------$ 53,823.83
June Credit for unused carrying charge--------- 9,382,95
1960 1960
Balance on financed crane contract paid C.I.T. Corporation ---------------$ 44,440.88 April Proceeds, sale of crane 48,000.00
June 27 Paid respondent expenses of sale----------------- 4,340.05
Paid balance to appellant, check No. 5403 _________ 5,469.07
$ 54,250.00 $ 54,250.00

Appellant in his complaint alleged his ownership of the dump track. He alleged, inasmuch as the crane sold for $48,000,— more than enough to pay off the debt of $44,440.88 owing to C.I.T. Corporation,— that respondent should not have sold the truck, and alleged damages growing out of the sale of the crane and truck.

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Bluebook (online)
367 P.2d 280, 84 Idaho 10, 1961 Ida. LEXIS 228, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rush-v-g-k-machinery-co-idaho-1961.