Shepherd v. Hub Lumber Co.

541 P.2d 439, 273 Or. 331, 1975 Ore. LEXIS 326
CourtOregon Supreme Court
DecidedOctober 16, 1975
StatusPublished
Cited by21 cases

This text of 541 P.2d 439 (Shepherd v. Hub Lumber Co.) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shepherd v. Hub Lumber Co., 541 P.2d 439, 273 Or. 331, 1975 Ore. LEXIS 326 (Or. 1975).

Opinion

*335 TONGUE, J.

This is an action for rent allegedly dne under a rental contract for the use of a log skidder, with a counterclaim for the value of repairs made by defendant. The case was tried before a jury. Defendant Hub Lumber Co. appeals from an adverse judgment.

The facts.

On or about November 10, 1972, the timber manager of defendant Hub Lumber Co., a Mr. Larson, entered into an oral rental agreement with plaintiff for the use by defendant Kenwisher of a log skidder owned by plaintiff. Defendant Kenwisher was one of Hub’s contract loggers and was logging timber purchased by Hub in Douglas County.

The testimony is in conflict whether the agreed rental payments were to be $600 per month, as claimed by Mr. Lawson, the Hub timber manager, or “upon the rate of $600 per two weeks,” as claimed by plaintiff. In any event, $600 was paid by Hub to plaintiff at that time. It was also agreed that the rent for the equipment was to be paid by Hub. The skidder was then picked up by Hub and delivered to Kenwisher at the logging site.

At the time of the rental agreement there was no agreement or discussion between plaintiff and defendant Hub about maintenance of the skidder. Plaintiff testified that upon delivery, the skidder had three gallons of “anti-freeze” in it, which would not evaporate.

In early December 1972, there was severe cold weather. Plaintiff called Lawson at his office to express concern about the skidder and a “cat” also rented by him to Hub. Lawson went to check the “cat” and *336 plaintiff went to check the skidder at the place where it was being' used. According- to his testimony, when he arrived there were icicles hanging from it and it “had probably been frozen for quite some time.”

The next morning- plaintiff called Lawson to say that “he thought the radiator was broke and he didn’t know what else,” according to Lawson, who then arranged for repairs to be made despite the fact that, according to him, plaintiff did not ask him to repair it. Lawson also testified that in December, after the skidder had frozen and was unusable, he told plaintiff that “we would have to terminate that contract” and that plaintiff “didn’t say anything.” Plaintiff denied that conversation and testified that he told Lawson that he “wanted the machine returned as it was when it went out.”

In any event, Hub made repairs to the cooling system of the machine, but did not redeliver it to plaintiff until early February. It then developed that the engine block had been cracked. Hub again took the equipment back to its shop, installed a new motor, and returned it to plaintiff on or about April 10, 1973.

Plaintiff testified that the engine block cracked because of a lack of sufficient anti-freeze or a failure to drain the radiator. Defendant Hub contended that if there had been sufficient anti-freeze in the radiator when the skidder was delivered to it by plaintiff the engine would not have frozen.

1. Defendant’s affirmative defenses.

Defendant Hub first assigns as error the sustaining of plaintiff’s demurrer to two affirmative defenses alleged in its original answer.

Plaintiff’s only response to this assignment is to contend that upon “pleading over” by the filing of an *337 amended answer defendant waived its right to assign as error the sustaining of a demurrer to these affirmative defenses alleged in its original answer. Such a contention was rejected in Moore v. West Lawn Mem’l Park, 266 Or 244, 248, 512 P2d 1344 (1973), overruling previous decisions to the contrary.

The first affirmative defense in defendant’s original answer alleged that the skidder became “totally unusable” as a result of weather conditions which were so “unprecedented” and “unforeseen” as to constitute an “Act of God” and that this terminated the lease.

Defendant contends that the obligation to pay rent under a lease of personal property may be terminated not only by its total destruction, but also by damage which renders such property “totally unusable,” at least in the absence of fault or want of care by the lessee. See New York, L. E. & W. R. Co. v. New Jersey Electric Ry Co., 60 NJL 338, 38 A 828 (1897). In any event, a lessee of personal property has a duty to return it to the lessor in good condition, unless otherwise provided by contract or unless its failure to do so is excused as not being due to its fault or want of care. National Fire Ins. Co. v. Mogan et al, 186 Or 285, 289, 206 P2d 963 (1949).

Thus, defendant was entitled to plead as an affirmative defense facts showing that damage to this equipment was not due to its fault or want of care, but was the result of weather conditions which were so “unprecedented” and “unforeseen” as to constitute an “Act of God” which was the sole cause of the damage to the equipment, so as to relieve defendant from responsibility for damage to the equipment (cf. Schweiger et ux v. Solbeck et ux, 191 Or 454, 464-65, 230 P2d 195 (1951)). Thus, the trial court erred in sustaining plaintiff’s demurrer to this affirmative defense.

In this case, however, defendant was permitted to *338 amend its answer to allege, again as an affirmative defense, that the slddder was totally destroyed and rendered unusable by a cold snap and that such destruction was not caused by defendant’s negligence. That defense, which was a proper one if supported by substantial evidence, did not require that defendant sustain the more difficult burden of proof that the “cold snap” was so extraordinary and unforeseeable as to constitute an “Act of God” which was the sole cause of the damage. See Schweiger et ux v. Solbeck et ux, supra at 464.

ORS 19.125(2) provides that “No judgment shall be reversed * # * except for error substantially affecting the rights of a party.” In our opinion, defendant suffered no substantial prejudice from the sustaining of the demurrer to the affirmative defense as originally alleged.

The second affirmative defense to which plaintiff’s demurrer was sustained alleged that on or about December 12, 1972, defendant notified plaintiff that the slddder “was of no use due to its damage”; that Hub “did not desire to use” it and “thus terminated any liability to pay rent.”

It is well established that a lease of personal property for an indefinite period of time is ordinarily terminable at any time at the will of either party. See Sawman Oil Co., Inc. v. Bush, 136 SW2d 938, 940 (Tex Civ App 1940); Karp v. Perry, 164 NYS 685 (S Ct 1917).

It is equally well established, however, as discussed below, that such a lessee ordinarily has a duty to return the leased property upon termination of the lease. Nat. Cash Reg. Co. v. I.M.C., Inc., 260 Or 504, 509-10, 491 P2d 211 (1971); cf. National Fire Ins. Co. v. Mogan et al, supra at 289.

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Bluebook (online)
541 P.2d 439, 273 Or. 331, 1975 Ore. LEXIS 326, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shepherd-v-hub-lumber-co-or-1975.