Sedlacek v. Welpton Lumber Co.

197 N.W. 618, 111 Neb. 677, 1924 Neb. LEXIS 40
CourtNebraska Supreme Court
DecidedFebruary 13, 1924
DocketNo. 22636
StatusPublished
Cited by7 cases

This text of 197 N.W. 618 (Sedlacek v. Welpton Lumber Co.) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sedlacek v. Welpton Lumber Co., 197 N.W. 618, 111 Neb. 677, 1924 Neb. LEXIS 40 (Neb. 1924).

Opinion

Redick, District Judge.

Action to recover the cash paid and to cancel a note given for the purchase of a farm tractor. The action is based upon an alleged rescission of the contract by plaintiff for breach of warranty that the tractor was suitable for and would do the work for which plaintiff intended to use it. The petition alleges that on April 23, 1920, plaintiff purchased of defendant a Wallace Cup Junior Tractor upon representations of defendant that it would pull three plows in any condition of soil, and that it would pull an eight-foot tandem disc with press drills on high, and that, though a secondhand tractor, it had a new motor; that said representations were false; that it would not do the work as represented, and that it was of no value to plaintiff; that upon learning that it would not work he orally rescinded the contract, and later served a written notice of rescission upon defendant and returned the tractor to defendant’s place of business, and demanded return of $350 cash paid and his note for $990 given for the purchase price, all of which was refused. The answer admitted the sale of the tractor, but denied all representations, and alleged that - the failure of the tractor to work was due to the inexperience and negligence of plaintiff. These allegations were put in issue by the reply.

. The case was tried to a jury, but at the close of plaintiff’s case, on motion of defendant, the court instructed the jury to return a verdict for defendant. Judgment followed expressly stating it was without prejudice to future action for damages, and, upon motion for new trial being overruled, plaintiff appeals.

The evidence presented for plaintiff, for the purposes of the appeal, must be taken as true, and is sufficient to sustain a finding that the warranty and representations were made, and that the tractor failed to do the work for which it was intended. Except as to the “new motor” the representa[679]*679tions were in the nature of warranty, and are so treated by the parties. Whether the expression “new motor” was intended to mean an unused motor complete in all its parts, or one newly fitted, or a new type of motor (it being shown that a tractor of that make had been a failure), might be for the jury upon consideration of the circumstances under which the words were used. But the real complaint is that the tractor would not do the work, and if this be so, it would be immaterial what kind of motor it had.

Two questions then are for decision: (1) Is the contract one which may be rescinded? (2) Was there a rescission by plaintiff ?

On the first question, appellee contends that, inasmuch as the contract had been completely executed by the delivery of the tractor, plaintiff’s only remedy was for damages for breach of warranty, as it was not a part of the agreement that it might be returned if not as warranted. The weight of authority is said to support this position, 35 Cyc. 138, where a case from this state, Mundt v. Simpkins, 81 Neb. 1, is cited as announcing it. The same authority proceeds: “There are, however, many decisions holding that the buyer may rescind an executed contract merely on the ground that there has been a breach of warranty, and it seems to be the established rule in some jurisdictions” — and cities the same case of Mundt v. Simpkins, supra. It will therefore be instructive to see just what was there decided. The action was upon promissory notes given in the purchase of a secondhand steam traction engine, and the answer set up representations and warranties of a similar character to those in the present case, and notification to the seller that he would not keep it and that it was subject to the seller’s order. A counterclaim for repairs to the engine, loss of time, payment of freight, etc., amounting to $100, was also included, for which judgment was prayed. Judgment went generally for defendants, on the ground, as stated in the opinion, that the contract had been rescinded, doubtless because if it had been upon the counterclaim it would have been for some amount. The court then held that no facts [680]*680were pleaded or proof made to establish a rescission by defendant, and stated the rule (page 4): “It is undoubtedly the better law that a sale of personal property with a warranty of quality, even without fraud on the part of the vendor, may be treated as a sale upon conditions subsequent, at the election of the purchaser, and in the event of a breach of warranty the property may be returned and the sale rescinded, since a breach of the warranty may be equally injurious to the buyer, whether the vendor acted in good faith or bad faith” — citing Millikin v. Skillings, 89 Me. 180. If this is a binding authority, we should follow it, notwithstanding the law in other jurisdictions, at least until convinced that justice requires a different holding.

But plaintiff contends that the above statement is “wholly dictum” and not controlling upon the court, in this case. We are unable to yield our consent to this contention. A dictum has been defined: “An opinion expressed by a court upon some question of law which is not necessary to the decision of the case before it.” 1 Bouvier, Law Dictionary (3d Rev.) 863. This is a strict definition and is subject to many qualifications, as stated by the author. But taking it as it is, how can it be maintained that a statement of the rule in question was not necessary to a decision of the Mundt case? The question before the court was the sufficiency of the pleadings and evidence to support the judgment. This required a determination of the right to rescind, as the verdict was based upon the finding that the contract had been rescinded. Having announced the rule, the court proceeds to discuss the acts necessary to accomplish such rescission, and holds, with the Maine court, that it is not sufficient to merely give notice that he holds the goods subject to the order of the seller, but “must tender back the goods to the seller at the place of delivery, unless upon making the offer so to do he is relieved of the obligation, as stated, by refusal to receive them if tendered.” It seems clear that the court was under necessity to state the rule in order to decide whether defendant’s allegations brought his case within it. The case was tried in the lower court as though rescission had been [681]*681properly pleaded, and that question was submitted to the jury, for which error the case was reversed.

In Union P. R. Co. v. Mason City & Ft. D. R. Co., 199 U. S. 160, 166, it was said: “Whenever a question fairly arises in the course of a trial, and there is a distinct decision of that question, the ruling of the court in respect thereto can, in no just sense, be called mere dictum. Railroad Companies v. Schutte, 103 U. S. 118, in which this court said (p. 143) : ‘It cannot be said that a case is not authority on one point, because, although that point was properly presented and decided in the regular course of the consideration of the cause, something else was found in the end which disposed of the whole matter. Here the precise question was properly presented, fully argued, and elaborately considered in the opinion. The decision on this question was as much a part of the judgment of the court as was that on any other of the several matters on which the case as a whole depended.’ ” The rule announced in Mundt v. Simpkins, supra, on the right to rescind is not dictum.

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Bluebook (online)
197 N.W. 618, 111 Neb. 677, 1924 Neb. LEXIS 40, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sedlacek-v-welpton-lumber-co-neb-1924.