Southern Alaska Canning Co. v. Smith

194 P. 383, 113 Wash. 400, 1920 Wash. LEXIS 850
CourtWashington Supreme Court
DecidedDecember 13, 1920
DocketNo. 16067
StatusPublished
Cited by1 cases

This text of 194 P. 383 (Southern Alaska Canning Co. v. Smith) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southern Alaska Canning Co. v. Smith, 194 P. 383, 113 Wash. 400, 1920 Wash. LEXIS 850 (Wash. 1920).

Opinion

Tolman, J.

The plaintiff, appellant, brought suit upon a complaint the gist of which was that, by an agreement, partly oral and partly written, it sold to defendant a steamboat for $15,000; that he paid $14,500 when the boat was delivered to him; that he failed to pay the remaining $500, and prayed judgment for that amount.

The answer, after making certain denials, set up two affirmative defenses. The first affirmative defense was that the plaintiff had represented the boat to be in good condition and entirely seaworthy, and that it had recently been inspected by the Federal officials, and reported to be entirely seaworthy, and on the basis.of [401]*401these representations the plaintiff gave the defendant an option to purchase the boat for $15,000, with the privilege of inspection; that the defendant, upon such inspection, found that the boat had not been examined recently by the Federal examining officials, and that the tail shaft was not in a seaworthy condition; that the Federal examining authorities had condemned it as being unseaworthy until this tail shaft was replaced; that he thereupon went to the plaintiff and reported that it would cost $500 to replace this defective and worn shaft; and that he would take the boat at $14,500 as it was but would not pay more than that sum. The plaintiff acquiesced, whereupon the defendant paid the $14,500 as the full purchase price, and received possession of the boat.

The second affirmative defense was that the contract was made as alleged by plaintiff, but that, as an inducement to cause him to enter into a contract, representations were made that the boat had been recently inspected; was entirely seaworthy, etc. (being the same allegations as to representations as made in the first affirmative defense); that he found these representations to be false; that the boat was actually worth $500 less than it would have been if these representations had been true, and prayed, as an offset to the $500 balance of the purchase money, that he be allowed $500 damages by reason of the. false representations.

Plaintiff’s motion against these answers upon the ground that they were inconsistent was denied, the court holding that the defenses were not inconsistent. Thereafter the case came on for trial before another judge, and plaintiff renewed its motion to require the defendant to elect as to which answer he would rely upon, claiming them to be inconsistent notwithstanding the previous ruling made in the course of the set[402]*402tlement of the issues, and the trial court, holding the answers to he inconsistent, required an election, to which defendant excepted, and thereupon defendant elected to stand upon the first affirmative defense.

To support its case, the plaintiff introduced a written option, which, of course, did not contain the representations . as to the condition and seaworthiness of the boat, but simply gave the defendant an option to purchase the boat within a time certain for $15,000. It is apparent that the option was not a contract binding the defendant to purchase, and in order to make its case, and under the allegations of its complaint, the plaintiff introduced evidence of an oral acceptance of the terms of the option by the defendant; admitting, however, that, at the time of such alleged acceptance by the defendant, he (the defendant) called attention to the unseaworthiness of the vessel, raised the question as to the representations theretofore made by the plaintiff regarding its seaworthiness and recent inspection, and demanded or asked for a reduction of the purchase price in the sum of $500 to cover the cost of putting the boat in seaworthy condition.

Plaintiff’s officer who closed the transaction was not its chief executive officer, and seemed to feel that he had no authority to change the terms of the option, or, if he had authority, did not wish to assume the responsibility of so doing. He accepted $14,000 from the defendant, which, with $500 paid at the time the option was given, made the $14,500 which plaintiff admits it received, and which defendant claims was to be in full payment. Plaintiff’s witness, however, claims that he then said to defendant that he had no authority to change the terms of the option and that the question of the representations made, their truth or falsity, and any reduction to be made from the purchase price on [403]*403account thereof, must be taken up with, and settled by, the president of the company, and he thereupon gave defendant a receipt for the money paid, which, in terms, says that the question in dispute is to be taken up with the president of the plaintiff company.

The defendant, on the other hand, testified that he stated squarely and positively that the boat was not as represented; that he would not take it under the option price of $15,000, because it would cost $500 to put it in the condition it had been represented to him to be in; that he tendered $14,000, with the $500 already paid as the full purchase price, declaring he would pay no more for the boat, and that plaintiff’s officer accepted the money, and only after he had accepted it did he begin to indicate that he lacked authority to make a reduction in the purchase price.

Defendant admits that he received the receipt, but supposed it to be a receipt for the money paid, or a receipt in full for the purchase price, and did not examine it or learn of its conditions as to the settlement of the matter in dispute until long afterwards. A bill of sale of the boat ivas delivered at that time or shortly thereafter to the defendant as purchaser without any further suggestion that any part of the purchase price was still unpaid.

Defendant sought to offer evidence to support his allegations of the representations made by the plaintiff at or before the time the option was given, inducing him to enter into negotiations for the purchase of the boat. The trial court, however, assumed that the transaction was fully covered by the written agreement; that the defendant had accepted the option and purchased on its terms and, therefore, as the option contained no representations, parol evidence to vary the terms of the option could not be received, and ac[404]*404cordingly entered judgment for the plaintiff for the full amount claimed.

Defendant interposed a motion for a new trial, and the trial court, after hearing the arguments' thereon, concluded that he was in error in having ruled out all evidence as to oral representations; that the complaint having alleged that the agreement was partly oral and partly written, the defendant .should have been permitted to show fully what the agreement was, including the oral representations, if any, which induced it, and thereupon granted the motion for a new trial, from which this appeal is prosecuted. ■

The first question presented and the one chiefly argued here, is as to whether or not the two affirmative defenses pleaded by the defendant are inconsistent with each other. "Were we to follow strictly the apparent ruling in the caae chiefly relied upon by plaintiff, we might be forced to the conclusion that the defenses are inconsistent, but in that case, Hart-Parr Co. v. Keeth, 62 Wash. 464, 114 Pac. 169, Ann. Cas. 1912D 243, it is said:

“It is true that the doctrine should be applied with caution, and that not all seemingly inconsistent defenses are actually inconsistent; for it is sometimes necessary to make a denial which is in reality a denial of a conclusion of law instead of a fact. . . .

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Bluebook (online)
194 P. 383, 113 Wash. 400, 1920 Wash. LEXIS 850, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-alaska-canning-co-v-smith-wash-1920.