Sinclair Refining Co. v. May Bros. Oil Co.

194 N.E.2d 75, 118 Ohio App. 263, 25 Ohio Op. 2d 96, 1963 Ohio App. LEXIS 784
CourtOhio Court of Appeals
DecidedApril 17, 1963
Docket1239
StatusPublished
Cited by1 cases

This text of 194 N.E.2d 75 (Sinclair Refining Co. v. May Bros. Oil Co.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sinclair Refining Co. v. May Bros. Oil Co., 194 N.E.2d 75, 118 Ohio App. 263, 25 Ohio Op. 2d 96, 1963 Ohio App. LEXIS 784 (Ohio Ct. App. 1963).

Opinion

Per Curiam.

This is an appeal on questions of law from a judgment of the Common Pleas Court in favor of the plaintiff, Sinclair Defining Company, and against the defendant, May Bros. Oil Company.

It appears undisputed in evidence that on or about August 14, 1957, the plaintiff, as lessee, and the defendant Arnold, as lessor, signed and executed a lease for a term of ten years providing, among other things, that Arnold was to construct an automobile service station on the tract of land described in the lease and that plaintiff was to furnish certain improvements and equipment to be utilized in the operation of the service station. The lease never became effective, for its execution and delivery was made on the express condition that it should not become effective or binding upon Arnold unless he would be successful in obtaining a loan of $30,000 from The Citizens National Bank of Bluffton, Ohio, on the security of the leased premises. Notwithstanding this conditional execution and delivery, Arnold went forward with the construction of the service station and the plaintiff furnished and installed all the tanks, pumps, piping, wiring, hoists, air compressors, and other equipment customarily used in the operation of a service station, together with necessary concrete work, at a cost to plaintiff alleged to be $12,112.65, and the station was opened for business by Arnold, as operator, in November of 1957.

By letter of August 21, 1957, Arnold was advised by The Citizens National Bank of Bluffton that it would not loan the *265 amount of $30,000 to him unless Sinclair would unconditionally guarantee rent payments, and when plaintiff Sinclair did not do so, or provide other financing, Arnold thereupon notified plaintiff by letter dated December 10, 1957, that the lease of August 14, 1957, was null and void and that the plaintiff should remove from the premises immediately any property which plaintiff might have thereon. By letter of the same date, defendant May Bros, notified plaintiff that it had signed Arnold to its petroleum supply contract and requested plaintiff “to invoice us for what equipment you have installed at this location at recognized prices and authority to begin delivering into the equipment within ten days.” May Bros, thereupon disconnected plaintiff’s distinctive pumps from the service islands and installed its own. Thereafter, Sinclair picked up these pumps and other unattached equipment which May Bros, would not be using in its operation, and Arnold, as operator, resumed operating the service station with May Bros, as his supplier. Arnold’s relationship with May Bros, was formalized further by a written lease from Arnold to May Bros., executed under date of February 6, 1958, which lease is not in evidence hut is not disputed.

In response to May Bros. ’ letter of December 10, 1957, Sinclair, under date of February , 1958 (sic) sent to May Bros, its debit memorandum itemizing the equipment installed by it on the premises, with the price stated as to each item. At the end of the memorandum appears an item, “original equipment inst. cost covered on SOX-6991 $7421.27,” and the total of the memorandum is in the amount of $12,112.65. The debit memorandum has a rubber stamped notation thereon that “upon payment of this invoice Sinclair Defining Company conveys and assigns all its title and interest in and to the equipment herein described, as is, in its present condition and without any warranty of fitness for any purpose or any other warranty of any kind. ’ ’

On May 6, 1958, May Bros, mailed plaintiff a check for $3,981.28, with attached voucher listing all items for which payment was being made in conformity with the price for each item set forth in plaintiff’s invoice. The check was forwarded with a letter from May Bros, which stated, “Enclosed find our check for $3981.28 for the various items of equipment located at the *266 Arnold service station at Beaverdam, Ohio. On the items not included by this check the equipment has either been picked up by your company or they are at the above station. You will note that the amounts of each item checks with those shown on your invoice dated February 5th, 1958 No CB-17. This settlement is in accordance with recognised prices between major oil companies.'” (Emphasis added.) This check was cashed by plaintiff on May 9,1958, and paid by the bank upon which it was drawn on May 14, 1958. The record does not reveal any communication from plaintiff to May Bros, after receipt of the check until plaintiff’s letter of July 1, 1958, under the signature of its attorney, notifying May Bros, that an unpaid balance was due for installation charges in the amount of $12,112.65.

It appears from the prayer of plaintiff’s petition, and from a pre-trial stipulation, that plaintiff’s action is based upon the equiptable principle of unjust enrichment, upon the claim that May Bros, was unjustly enriched to the extent of installation costs incurred by Sinclair and not paid for by May Bros., and the same was tried to a three-judge court upon this claim. At the conclusion of plaintiff’s evidence, and upon his motion, a verdict was directed in favor of defendant Arnold. The case proceeded against May Bros, as the only defendant, and after the receipt of all the evidence, including that hereinbefore and that hereinafter referred to, the court rendered its judgment in favor of the plaintiff in the amount of $5,324.95. It is from this judgment that the defendant May Bros, has perfected its appeal to this court.

Appellant’s first two assignments of error may be summarized that the judgment is not sustained by the evidence, is manifestly against the weight of the evidence, and is contrary to law.

Sinclair and May Bros, each produced evidence to show, and it is conceded, that there exists in the gasoline distribution industry a well-established custom and practice for the gasoline supplier to furnish to the station operator and install all the tanks, pumps, compressors, hoists and incidental equipment necessary for the furnishing of gas and lubrication services, and that when the station operator changes from one supplier to another the first supplier will invoice the second supplier for all non-distinctive equipment which the second supplier can utilize *267 in. its operation of the service station, the invoice prices of snch equipment following, to the extent scheduled, schedules of prices which each company has adopted for its use in buying or selling such equipment and in completing the transfer thereof. The schedules adopted and followed by plaintiff and other major oil companies were placed in evidence and, subject to certain exceptions not applicable here, also in conformity with the established customs and practices of the industry, the schedule prices include all the costs incurred by the seller in the installation of the equipment, i. e., for pipes, fittings, wiring, labor, freight, etc. The prices in the schedules adopted by different gasoline suppliers will for the same items of equipment vary to some slight extent in amount. In the event that the invoiced prices furnished by the selling first supplier to the buying second supplier are found to be acceptable by the latter (usually when in reasonable accord with the latter’s own price schedule) then the latter will pay the invoiced price and title to the equipment will thereupon pass.

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Bluebook (online)
194 N.E.2d 75, 118 Ohio App. 263, 25 Ohio Op. 2d 96, 1963 Ohio App. LEXIS 784, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sinclair-refining-co-v-may-bros-oil-co-ohioctapp-1963.