Sanders v. Sanders Tractor Co., Inc.

480 So. 2d 913
CourtLouisiana Court of Appeal
DecidedDecember 4, 1985
Docket17410-CA
StatusPublished
Cited by15 cases

This text of 480 So. 2d 913 (Sanders v. Sanders Tractor Co., Inc.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sanders v. Sanders Tractor Co., Inc., 480 So. 2d 913 (La. Ct. App. 1985).

Opinion

480 So.2d 913 (1985)

Ronald D. SANDERS and LaVerne Stephens d/b/a S & S Logging Company, Plaintiffs-Appellants,
v.
SANDERS TRACTOR COMPANY, INC., Defendant-Appellee.

No. 17410-CA.

Court of Appeal of Louisiana, Second Circuit.

December 4, 1985.

*914 Whitehead Law Offices by C.R. Whitehead, Jr., Natchitoches, for Ronald D. Sanders and LaVerne Stephens, d/b/a S & S Logging Co., plaintiffs-appellants.

*915 Charles B. Bice, Winnfield, for Sanders Tractor Co., Inc., defendant-appellee.

Before MARVIN, SEXTON and NORRIS, JJ.

SEXTON, Judge.

Plaintiffs, Ronald D. Sanders and LaVerne Stephens, d/b/a S & S Logging Company, appeal the trial court's rejection of their demands in quanti minoris against Sanders Tractor Company, Inc. We reverse.

The facts pertinent to this litigation may be briefly stated. On January 20, 1984, plaintiffs purchased a used Crown log loader with a Detroit power unit from Garland Sanders, the apparent sole stockholder of Sanders Tractor Company, Inc. The parties negotiated for approximately a week prior to the sale and finally agreed upon a price of $8,000, reduced from the original asking price of $12,000.

The machine in question apparently has two major subparts, one being the engine or power unit, and the other being the loading apparatus itself. We gather that the latter consists principally of a large hydraulic cylinder which operates a grasping mechanism. The cylinder is operated by a hydraulic pump which receives its power from the engine located on the power unit of the machine.

When the plaintiffs examined the equipment at defendant's place of business prior to the sale, they noticed that the main cylinder was leaking. This cylinder was repaired by plaintiffs shortly after purchase at Ronald Sanders' home with parts purchased elsewhere. In addition to this defect which was apparent to the purchasers at the time of the sale, it was discovered after delivery that the engine contained in the power unit had a cracked block.

Although the loading machine was assigned as collateral on a debt to another creditor and subsequently repossessed, plaintiffs instituted this action seeking a reduction in the sales price as a result of the repairs necessary to make the loader serviceable. However, plaintiffs were admittedly aware of the leaking cylinder at the time of purchase and conceded that no recovery was available for these repairs. See LSA-C.C. Art. 2521.

In oral reasons for judgment, the trial court held that the logging machine was sold "as is" and rejected plaintiffs' demands. In this ensuing appeal, plaintiffs contend that the fact that the used item was sold "as is" did not relieve defendant of all warranties, but only put the buyer on notice as to the qualification of the implied warranty.

In Louisiana, the seller is bound by an implied warranty that the thing sold is free of hidden defects and is reasonably fit for the product's intended use. LSA-C.C. Arts. 2475, 2476, 2520; Hob's Refrigeration & Air Conditioning, Inc. v. Poche, 304 So.2d 326 (La.1974); Rey v. Cuccia, 298 So.2d 840 (La.1974). When a defect or vice renders the thing sold either absolutely useless or makes its use so inconvenient and imperfect that it must be supposed that the buyer would not have purchased it had he known of the vice, the buyer may demand reduction of the price. LSA-C.C. Arts. 2520, 2541; Fraser v. Ameling, 277 So.2d 633 (La.1973). The decision to grant a reduction in price is based on a factual determination that the defect does not render the thing sold useless or totally unsuited to its purpose. Davis v. Davis, 353 So.2d 1060 (La.App. 2d Cir.1977), writ denied, 355 So.2d 549 (La. 1978); Ark-La-Tex Builders & Realty v. Hoge, 344 So.2d 90 (La.App. 2d Cir.1977).

Although the warranty against redhibitory defects in sales of used equipment is not as extensive as in sales of new equipment, it does require that the equipment operate reasonably well for a reasonable period of time. Hob's Refrigeration & Air Conditioning, Inc. v. Poche, supra; Red Arrow Sales, Inc. v. Dixie Motors, Inc., 442 So.2d 570 (La.App. 1st Cir.1983); Gisclair v. Cajun Trucking, Inc., 421 So.2d 339 (La.App. 1st Cir.1982); Bamber Contractors, Inc. v. Henderson Brothers, Inc., 392 So.2d 92 (La.App. 1st Cir.1980).

*916 A sale made "as is" is not a waiver of all warranties. The vendor is not relieved of the implied warranty under LSA-C.C. Art. 2520 that the thing must be fit for the use for which it is intended. The "as is" stipulation, especially in a sale of a used thing, means that the thing is not warranted to be in perfect condition and free of all defects which prior usage and age may cause. Juneau v. Bob McKinnon Chevrolet Company, 260 So.2d 919 (La. App. 4th Cir.1972); Maddox v. Katz, 8 So.2d 749 (La.App.Orl.Cir.1942).

The parties are free to limit or diminish, by express agreement, the warranty imposed by law. Slack v. Inglehart, 386 So.2d 967 (La.App. 3d Cir.1980); see also LSA-C.C. Art. 2503. The seller can limit this warranty by declaring to the buyer the hidden defects at the time of the sale, Article 2522, or can otherwise limit his obligations as seller, providing he do so clearly and unambiguously, LSA-C.C. Art. 2474. Rey v. Cuccia, supra.

In Hendricks v. Horseless Carriage, Inc., 332 So.2d 892 (La.App. 2d Cir. 1976), this court, in construing the provisions of C.C. Art. 2474, held that three elements must exist before a waiver is held to be effective: (1) the waiver must be written in clear and unambiguous terms; (2) the waiver must be contained in the sale and chattel mortgage document; and (3) the waiver must either be brought to the attention of the buyer or explained to him. See also Edwards v. Port AMC Jeep, Inc., 337 So.2d 276 (La.App. 2d Cir. 1976), writ denied, 339 So.2d 854 (La.1976).

In the instant case, the Hendricks criteria were not met as plaintiff did not execute a written waiver of the implied warranty. Consequently, the implied warranty of fitness was not waived.

However, latent defects which have been declared by the seller to the buyer before or at the time of the sale may not form the basis of a redhibitory action. LSA-C.C. Art. 2522. This article specifically provides:

Art. 2522. Latent defects made known to buyer.
Art. 2522. The buyer can not institute the redhibitory action, on account of the latent defects which the seller has declared to him before or at the time of the sale. Testimonial proof of this declaration may be received.

Thus, the issue presented by this appeal is whether, within the context of these facts, the cracked block was either an apparent defect or was declared by the defendant-seller to the plaintiffs as a latent defect existing in the machine at the time of sale.

Ronald Sanders testified that the loader was sold "as is" but that he was under the impression that he could "put it on the truck and go to the woods and go to work with it." On cross-examination, after conceding that he was aware of the cylinder leak at the time of purchase and that he knew he was getting a piece of used equipment "on the shop floor just like [he] saw it with no guarantee," he insisted that he thought he would be able to take the machine to the woods and use it for the purpose it was intended.

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