Tarter v. MonArk Boat Co.

430 F. Supp. 1290, 22 U.C.C. Rep. Serv. (West) 33
CourtDistrict Court, E.D. Missouri
DecidedMay 5, 1977
Docket74-765C(4)
StatusPublished
Cited by9 cases

This text of 430 F. Supp. 1290 (Tarter v. MonArk Boat Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tarter v. MonArk Boat Co., 430 F. Supp. 1290, 22 U.C.C. Rep. Serv. (West) 33 (E.D. Mo. 1977).

Opinion

430 F.Supp. 1290 (1977)

Roy L. TARTER, Plaintiff,
v.
MonARK BOAT COMPANY, Defendant and Third-Party Plaintiff,
v.
SteelSHIP CORPORATION and AlumaShip Corporation, Third-Party Defendants.

No. 74-765C(4).

United States District Court, E. D. Missouri, E. D.

May 5, 1977.

*1291 Charles D. Dalton, Klamen, Summers & Compton, Clayton, Mo., for plaintiff.

Francis L. Kenney, Jr., Kenney, Leritz & Reinert, St. Louis, Mo., for defendant and third-party plaintiff.

MEMORANDUM

NANGLE, District Judge.

Plaintiff Roy L. Tarter brought this suit seeking to recover damages allegedly sustained for breach of warranties in connection with a custom-built houseboat. Defendant MonArk Boat Company filed a third-party complaint. One of the three third-party defendants was dismissed from this suit. The remaining two third-party defendants filed petitions in bankruptcy and accordingly, suit did not proceed with respect to the third-party complaint. Defendant MonArk counterclaimed, seeking to recover additional payments under the contract.

Following trial to the Court sitting without a jury, the Court makes the following findings of fact and conclusions of law as required by Rule 52, Federal Rules of Civil Procedure:

FINDINGS OF FACT

1) Plaintiff Roy L. Tarter is a citizen of the state of Missouri. Defendant MonArk Boat Company is an Arkansas corporation with its principal place of business in Monticello, Arkansas.

2) On August 4, 1972, plaintiff and defendant executed a customer sales order for the construction of a fifty-eight foot custom-built houseboat.

3) On August 12, 1972, plaintiff and defendant executed a contract in connection with the same. The contract incorporated the customer sales order and incorporated by reference certain drawings, parts lists and exhibits describing in detail the items to be included in the construction of the boat.

4) The contract stated, in part,

II. WARRANTY
MonArk Boat Company guarantees their workmanship and material for six months after the date of delivery of the vessel to the owner. All of the equipment and main propulsion machinery are warranted to be new and from reputable marine manufacturers, and said equipment carries its manufacturers standard warranty. MonArk's warranty covers labor and material, with service performed within one hundred miles of a MonArk factory facility. If it is deemed necessary by the customer to perform field service work beyond one hundred miles then the customer shall be liable for travel and extra expenses incurred.
The above policy is MonArk's entire warranty and no other warranty is intended or implied other than the above stated policy.

The contract further specified that it was to be construed in accordance with the laws of Arkansas.

5) On July 13, 1973, by a stock purchase agreement, MonArk sold to Star Enterprises, Limited the stock of MonArk Shipyards, Inc. and the name was changed to SteelShip, Inc. As part of this sale, Star Enterprises, Limited, acquired the stock of MonArk *1292 Custom Craft, Inc. which was renamed AlumaShip, Inc.

6) Pursuant to this sale, the contract with plaintiff was assigned to AlumaShip who "shall be deemed to have assumed all responsibility thereunder . . .".

7) Terrel Spencer, who worked on plaintiff's boat while construction was being done on it by defendant MonArk, told plaintiff in July, 1973 that he had been taken off the job and could not do any more work "unless they pay me for it down there". Apparently, plaintiff understood that "they" referred to AlumaShip. This was the only information plaintiff received about the assignment. Plaintiff then wrote letters to various persons at MonArk complaining about the situation. One person at MonArk telephoned plaintiff and told him that he would be better off with AlumaShip. This individual promised to write plaintiff a letter about the situation but never did.

8) Plaintiff visited the AlumaShip facility. The sign at the entrance to the facility remained "MonArk", and not "AlumaShip" until after the end of 1973.

9) Plaintiff did not consent to the assignment of this contract and the evidence fails to establish that plaintiff received any details of the assignment.

10) In October, 1973, plaintiff wrote to MonArk stating that "[i]t is unfortunate and a shame that you abandon my Contract with you to someone that up to this date has never telephoned or wrote me regarding any phase of the construction of my houseboat".

11) Under the contract, the purchase price of $160,000.00 was to be paid as follows: 20% on the signing of the contract; 20% upon completion of the hull, installation of the cabin and setting of the machinery; 10% upon completion of the vessel and 10% upon delivery.

12) Between August 10, 1972 and July 9, 1973, plaintiff made four payments of $32,000.00 each to defendant MonArk. Thus, plaintiff paid defendant MonArk a total of $128,000.00. The evidence did not establish the phase of construction at the time of payment.

13) Final payment was made to AlumaShip by means of an escrow account. In December, 1973, plaintiff received a guarantee stating that Star Enterprises, Limited, having assumed the responsibility of MonArk under the Contract, agreed to indemnify plaintiff against any claim by MonArk for payment of the remaining purchase price. Plaintiff also received a Lien and Claim Affidavit from AlumaShip Corporation and Ed Fry, individually, agreeing to indemnify plaintiff for any and all claims, liens, charges and demands by laborers and furnishers of material and equipment.

14) In late December, 1973, plaintiff went to the AlumaShip facility to pick up the boat. The boat was immediately taken to Morgan City, Louisiana for repairs of a bent propeller. In transit a fire broke out.

15) The boat as delivered was deficient in numerous respects. There have been several electrical fires on board and the testimony adduced at trial was to the effect that the entire electrical system was deficient. Among the problems were that incorrect wiring was used; some wiring was left open; inappropriate splicing was done; wiring was run through the air conditioning duct in violation of the National Electrical Code; there was no protection between the insulation and metal on the boat; and grounding was insufficient. The evidence also established that the windows and sliding glass doors throughout the main deck and upper deck leaked causing damage to the draperies, carpeting and wallpaper. Defendant MonArk attempted to correct the same by caulking around the windows. This was required because the windows were not installed properly. The caulking has affected the aesthetic quality of the boat and has made correction of future leaking problems difficult if not impossible. The air conditioning system was improperly installed as the vent work was constructed of wood rather than metal. There were difficulties with the steering mechanism. The below-deck compartments lacked *1293 watertight integrity. Insulation was inadequate.

16) Plaintiff notified AlumaShip of deficiencies within three days of delivery. In March, 1974, plaintiff sent a letter to AlumaShip, with a copy to defendant MonArk, setting out the deficiencies of which plaintiff was then aware. In April, 1974, a meeting was arranged on the boat in Greenville, Mississippi. Representatives from MonArk were present.

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Cite This Page — Counsel Stack

Bluebook (online)
430 F. Supp. 1290, 22 U.C.C. Rep. Serv. (West) 33, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tarter-v-monark-boat-co-moed-1977.