Standard Oil Company v. Johnson

165 So. 2d 361, 276 Ala. 578, 1964 Ala. LEXIS 408
CourtSupreme Court of Alabama
DecidedMay 28, 1964
Docket2 Div. 433
StatusPublished
Cited by37 cases

This text of 165 So. 2d 361 (Standard Oil Company v. Johnson) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Standard Oil Company v. Johnson, 165 So. 2d 361, 276 Ala. 578, 1964 Ala. LEXIS 408 (Ala. 1964).

Opinion

COLEMAN, Justice.

This is an appeal by defendant from judgment for plaintiff in action for fraud based on principles stated in § 108, Title 7, Code 1940, which recites:

*580 “§ 108. (8049) (4298) .... Misrepresentations of a material fact, made wilfully to deceive, or recklessly without knowledge, and acted on by the opposite party, or if made by mistake and innocently, and acted on by the opposite party, constitute legal fraud.”

Errors complained of are that the court erred in: rulings on demurrers to certain pleadings, refusing affirmative charges for defendant, refusing a charge requested by defendant, and overruling defendant’s motion for new trial.

Assignments 13 and 15 recite:
“13. The verdict of the jury and the judgment of the Court thereon is contrary to the preponderance of the evidence in the case. (R. 30)”
“15. The verdict of the jury and the judgment of the court thereon is contrary to the legal evidence in the case. (R. 30)”

These assignments allege no error committed by the trial court and are insufficient to present any question for review. Thomas v. Brook, 274 Ala. 462, 149 So.2d 809, and cases there cited.

Assignments 17 and 18 recite:

“17. The verdict of the jury and the judgment of the Court thereon is contrary to the law of the case. (R. 30)”
“18. The verdict of the jury and the judgment of the Court thereon is contrary to the law of the case as expressed by the Court in its oral charge and in the Appellant’s requested written charges as read by the Court to the jury. (R. 30, R. 201-208).”

Such assignments of error raise nothing for review. Thomas v. Brook, supra.

In brief outline, plaintiff charges that defendant furnished to its distributor a tank mounted on a truck; that plaintiff was employed by defendant’s distributor to deliver petroleum products to customers; that plaintiff, with defendant’s knowledge and consent, used the tank for making deliveries to customers; that defendant represented to plaintiff that the tank had a volume capacity of 1066 gallons; that said representation was false in that said tank had a capacity of 1069 gallons; that, as a proximate consequence of the misrepresentation, plaintiff was caused to pay to defendant for alleged shortages $2,000.00, was accused of theft and embezzlement, suffered injury to his reputation, suffered impairment to his credit, was caused to lose his employment, and his employability was impaired.

The case was submitted to the jury on Count A which recites:

“Count A
“The Plaintiff claims of the Defendant Ten Thousand ($10,000) Dollars damages for that heretofore in, to-wit, November, 1950, and continuously therefrom to the date of this complaint, Defendant represented to Plaintiff that a certain petroleum products delivery tank, property of the Defendant and used by the Plaintiff with the knowledge and consent of the Defendant, had a volume capacity of 1066 gallons; that Defendant acted on said representation in that he relied upon said represented volume capacity in gauging- the sale and delivery of petroleum products to wholesale and retail customers;
“That heretofore, in to-wit: December, 1949, the Plaintiff was employed under a contract or arrangement of employment by A. T. Owings, agent of the Defendant, who was then and there acting in the line and scope of his employment as a Standard Oil product distributor, as a tank truck driver of a petroleum products delivery truck whereby the Plaintiff and said A. T. Owings agreed to share equally in the profits derived from the sale of petroleum products to wholesale and retail customers from the tank truck driven by Plaintiff, the Plaintiff was to be held accountable for any and all shortages *581 of money or products, the Defendant was to furnish a properly gauged and calibrated tank and accessories to hold and transport such petroleum products, the Defendant was to well and truly audit, and the said A. T. Owings was to furnish the chassis of the delivery truck on which such properly gauged and calibrated tank and accessories of the Defendant was mounted or to be mounted. The Defendant had knowledge of and acquiesced in the Plaintiff’s said contractual relationship. That Defendant represented that it did have peculiarly appropriate facilities for performing such gauging, calibration and audit functions and that Plaintiff relied on such representations.
“That said representation was false in that said tank had a volume capacity of 1069 gallons.
“That as a proximate consequence of ■said misrepresentation by the Defendant the Plaintiff was injured and damaged as follows: He was caused to pay to the Defendant for alleged shortages large sums of money, to-wit: Two Thousand ($2,000) Dollars; he was accused of theft and imbezzlement; he suffered injury to his reputation; he was embarrassed, humiliated and chagrined ; he was caused to borrow large sums of money at a high rate of interest ; his credit was impaired; he was caused to lose his employment and his employability was impaired; all to Plaintiff’s damage in the sum of Ten Thousand ($10,000) ; hence this suit.”

Assignment 7 is that the court erred in overruling defendant’s demurrer to Count A. Defendant does not specify which ground of demurrer was good, but its argument appears to be in support of Ground 19 which recites that “it does not appear that Plaintiff and the Defendant were opposite parties in any legal relationship which would subject the Defendant to liability under the facts alleged in the complaint.”

Defendant’s argument is that, “The innocent mistake provisions of Title 7, § 108, are unusual; they apply only where the parties are ‘opposite parties.’ ” and that here there was no contractual or employment relationship such as to give rise to such a high degree of responsibility.

Neither the statute nor the cases cited, as we understand them, require that, in order to recover under § 108, Title 7, for damage .caused by misrepresentation made by mistake and innocently, the deceived party must be in a contractual or employment relation to the defendant. We are of opinion that the statute does not make, between misrepresentations made wilfully to deceive and misrepresentations made by mistake and innocently, the distinction which defendant now contends for. We do not think an employment or contractual relation is essential in either case. ¡

“An unbending rule can not be laid down for all cases, where, upon the representations of an uninterested person, one trusts another, and suffers loss. Much must depend on the circumstances of the particular case.” Einstein v. Marshall, 58 Ala. 153, 163. In the Einstein case, the defendant had no employment or contractual relation with the injured party. There defendant had written a letter representing that a merchant was good for several hundred dollars of credit and that was the representation charged to be false.

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Bluebook (online)
165 So. 2d 361, 276 Ala. 578, 1964 Ala. LEXIS 408, Counsel Stack Legal Research, https://law.counselstack.com/opinion/standard-oil-company-v-johnson-ala-1964.