Stahl v. FARMERS UNION OIL COMPANY OF RICHLAND

399 P.2d 763, 145 Mont. 106, 1965 Mont. LEXIS 448
CourtMontana Supreme Court
DecidedMarch 5, 1965
Docket10710
StatusPublished
Cited by15 cases

This text of 399 P.2d 763 (Stahl v. FARMERS UNION OIL COMPANY OF RICHLAND) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stahl v. FARMERS UNION OIL COMPANY OF RICHLAND, 399 P.2d 763, 145 Mont. 106, 1965 Mont. LEXIS 448 (Mo. 1965).

Opinion

MR. JUSTICE DOYLE

delivered the Opinion of the Court.

*108 This is an appeal from a judgment of the district court awarding the sum of $5500 damages to the plaintiff, Irvin Stahl, against the defendant, Farmers’ Union Oil Company. The court below found that the co-defendant, Wabash Fire and Casualty Co., was entitled to a judgment on the merits, as against the plaintiff. The specifications of error on plaintiff’s cross-appeal relate only to the limitation and amount of damages as against the defendant oil company. No error is assigned to that portion of the judgment relieving the surety, Wabash, and accordingly, it does not participate in this appeal.

The record reveals that the plaintiff, Stahl, hereinafter referred to as respondent, was the owner of a 1956 GMC two and one-half ton gasoline powered truck which he had purchased in November, 1958 for the sum of $5500. It was a new truck, being an unsold unit carried over from 1956. At the time of the incident giving rise to this litigation the truck had been used by the respondent for little more than a year and had been driven about 9,000 miles. The respondent had used the truck for purposes of farming and custom hauling during 1959, and in December of that year was hired by John Richardson to haul hay to the Richardson ranch at the rate of $5.50 per ton. On December 6, 1959, while engaged in this hauling operation for Richardson, the respondent stopped at the appellant’s service station in Richland, Montana for the purpose of refueling his loaded truck. The attendant on duty began refueling the truck with gasoline from the station pump. After having pumped about 25 gallons of gasoline into the fuel tanks of the respondent’s truck the supply tanks of the gas station became empty and these in turn had to be refilled. The attendant erroneously replenished the gasoline supply tank of the station with diesel fuel. Thereupon the refueling of respondent’s truck continued and, as a result, at the end of the refueling operation the truck tanks, having a capacity of 125 gallons, contained an admixture of approximately 40 gallons of gasoline and 80-85 gallons of diesel fuel.

*109 About five miles after leaving Richland, Montana, respondent noted loss of power and oil pressure but having no knowledge of the diesel fuel continued to make his hay delivery at the Richardson ranch and return home, a total distance of about 80 miles. The respondent by reason of cold weather added several cans of Heet attempting to overcome the difficulty with the engine.

Lawrence Poe, manager of the Farmers Union Oil Company, discovered the mistake in fuel delivery in the evening of December 6, 1959, and called the respondent about 7:00 A.M. on December 7, and advised him of the fueling error. The following morning Mr. Poe, acting for the appellant, went to respondent’s ranch, drained the fuel tanks, replaced the mixed fuel with gasoline, and drained and replaced the oil and the oil filter on respondent’s truck. Notwithstanding respondent’s truck continued to lack in power and had a sub-normal oil pressure. Respondent was advised by the appellant Oil Company to continue to operate the truck on the theory that it would perhaps smooth out the roughness of the engine and lack of power.

Respondent, acting on the oral advice of the appellant, continued to use the truck on different jobs, and on February 4, 1960, he was employed by a prime contractor at Glasgow Air Base to haul materials to Fort Sill, Oklahoma. While in Oklahoma, by reason of the lack of power in the damaged engine of the truck, the rear end of respondent’s truck went out. This damage was repaired by the maker of the truck under the warranty of sale.

On respondent’s return to Montana with the truck he met with the directors of the appellant corporation and one Barney Loftsgaard, a director, stated that appellant was liable for the damages and that the board of directors called the insurance carrier requesting that the carrier promptly send an adjuster.

Although the adjuster, Donald Pedersen, had been notified of the incident within one week after December 7, 1959, he did *110 not contact respondent until April 11, 1960, at which time, representing the Wabash Fire and Casualty Company, he requested the Newton Motors, Inc., of Glasgow, Montana, to dissemble' the truck so he could inspect and examine the motor.

Subsequently the insurance carrier forwarded its check in the sum of $22.50 to its adjuster, Donald Pedersen, who on July 18, 1960, mailed the check to Newton Motors.

The cover letter accompanying the check, contained this wording:

“Enclosed is a draft in the amount of $22.50 from Wabash Fire and Casualty Insurance Co. to pay for the examination and disassembly of Ervin Stahl’s motor as requested by the writer.” Signed by Donald Pedersen. (Emphasis supplied.)

This inspection revealed that the motor was in poor condition, would require a new block assembly, which included cam shaft, valves and new pistons. The cam shaft was out and the cylinder walls of the motor were scored.

There is a sharp conflict in the record as to whether the adjuster Pedersen on April 11,1960, authorized Newton Motors to repair the damaged engine above-stated in the sum of $885.01. It is clear however, that the insurance carrier for the appellant, acting through its agent Don Pedersen did offer to pay one-third of the repairs necessary on the engine on May 26, 1960, or shortly thereafter. The respondent refused this one-third compromise of the carrier.

The truck repair at Newton Motors, Inc., idled the unit for a period of approximately three weeks, at the end of which time respondent was notified that his truck was repaired. The repair company claimed and exercised a possessory lien on the truck in the sum of $885.01. On or about November 19, 1960, respondent entered into a modified purchase agreement with the lien holder, Newton Motors, and the truck was released. Respondent was unable to finance the repair bill, although he made a diligent effort to do so. The respondent was deprived *111 of the use and earnings of this motor unit for approximately eight months.

From this judgment appellant appeals reciting fifteen specifications of error. Reducing these specifications of error to three basic contentions, they are:

(1) Respondent was guilty of contributory negligence in continuing to use his truck from and after December 7, 1959, the day of the diesel fuel delivery and subsequent to that date after observing that the engine was malfunctioning;
(2) Respondent’s failure to pay Newton Motor Company the repair bill and regain possession of the truck after repairs; and
(3) As to the amount and measure of damages.

Adverting to paragraph 1 anent contributory negligence of the respondent in operating the truck after December 7, 1959.

The record discloses that on more than one occasion appellant advised respondent “Just to try and see if it [the engine] would come out of it, keep it running and see if it would come out of it.”

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Bluebook (online)
399 P.2d 763, 145 Mont. 106, 1965 Mont. LEXIS 448, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stahl-v-farmers-union-oil-company-of-richland-mont-1965.