Taylor v. Graver Tank & Manufacturing Company

1959 OK 95, 344 P.2d 1045, 11 Oil & Gas Rep. 615, 1959 Okla. LEXIS 455
CourtSupreme Court of Oklahoma
DecidedMay 19, 1959
Docket38225
StatusPublished
Cited by5 cases

This text of 1959 OK 95 (Taylor v. Graver Tank & Manufacturing Company) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Taylor v. Graver Tank & Manufacturing Company, 1959 OK 95, 344 P.2d 1045, 11 Oil & Gas Rep. 615, 1959 Okla. LEXIS 455 (Okla. 1959).

Opinions

PER CURIAM.

The defendant in error, Graver Tank & Manufacturing Company, hereafter referred to as “plaintiff”, instituted this action to replevin oil-field equipment and supplies that plaintiff in error, David Taylor, dba Dixie Supply Company, hereafter referred to as “defendant”, acquired from it for use upon oil and gas leases that defendant operated in Pottawatomie County, [1047]*1047Oklahoma, which leases were known respectively as “Pruitt Lease” and “Cherry Lease.” The total agreed consideration for the property was $5,478.21.

Plaintiff took the usual and necessary steps to gain possession of the supplies and equipment in controversy by filing an affidavit in replevin and a replevin bond whereupon defendant executed a redelivery bond and retained possession of same.

The plaintiff contends that defendant acquired the equipment and supplies under a conditional sales contract in writing and under oral agreements to the effect that defendant would be privileged to use, for an agreed rental, certain supplies and equipment during the period that a test well upon the Cherry Lease was being tested, but if the well proved productive, the defendant would purchase the equipment and supplies under the same terms and conditions that were set forth in the conditional sales contracts ; that if defendant were to purchase the equipment and supplies that he so rented, he would be given credit for rentals paid or which had accrued on the purchase price of same. Defendant kept all of the equipment and supplies and paid no part of the agreed purchase price.

The conditional sales contracts in controversy read in part as follows:

“The title to the property herein described shall remain in Graver Tank & Mfg. Co., Inc., until the property is fully paid for by the purchaser. Said property shall be treated as personal property whether or not it is attached to the realty. This order shall become a contract when signed by the purchaser and accepted by an officer of Graver Tank & Mfg. Co., Inc. Graver Tank & Mfg. Co., Inc., shall not be responsible for delays beyond its control. No agreements pertaining to this order exist unless embodied herein.”

One of the conditional sales contracts was signed by defendant and the other by E. A. (Red) Connelly, who was employed by defendant as “Superintendent” of the referred-to leases. Both contracts were accepted by an officer of plaintiff.

The parties waived a jury and tried case to the court. Upon plaintiff concluding its case in chief, the defendant demurred. The demurrer was overruled to which ruling the defendant excepted. Upon the defendant electing to stand on its demurrer, the court rendered judgment for plaintiff for the return of the property in controversy, together with damages for the wrongful detention thereof in the amount of $6,279, which damages were based on the rental value of the property during the period same was wrongfully detained by defendant, and the costs of the action. Defendant filed a motion for new trial and from order denying said motion, perfected this appeal.

The defendant contends that the transactions in controversy were executed sales upon open account and not conditional sales; that plaintiff was therefore without right to replevin the equipment and supplies, and damages could not be awarded plaintiff for defendant’s detention of same; that if plaintiff was in fact entitled to re-plevin the supplies and equipment the damages awarded for detention of same are excessive; that plaintiff failed to prove that E. A. (Red) Connelly was defendant’s agent or acting within the scope of his authority when he signed the conditional sales contract that he signed.

In Phelan v. Stockyards Bank, 134 Okl. 13, 15, 276 P. 175, 177, it is pointed out that “A conditional sale is one where the property is delivered to the ven-dee and the purchase price is agreed upon and part of it paid, or none of it paid, but to be paid for in the future, and it being agreed that title does not pass until the full purchase price is paid. Such a contract is a conditional sale, though in the form of a lease. Tague v. Guaranty State Bank, 82 Okl. 197, 202 P. 510; Brooks v. Tyner, 38 Okl. 271, 132 P. 683; Hamilton v. Highlands, 144 N.C. 279, 56 S.E. 929, 12 Ann. Cas. [876], 878.” Under the quoted rule, [1048]*1048the written contract in controversy is clearly a conditional sales contract.

The record, as heretofore pointed out, develops that defendant agreed that all property which he acquired from plaintiff would be considered as having been purchased under the terms and conditions set forth in the conditional sales contracts. Accordingly, and since as between the parties an oral conditional sales contract is valid (78 C.J.S. Sales § 560, p. 267; Tague v. Guaranty State Bank of Drumright, 82 Okl. 197, 202 P. 510), there are no grounds to distinguish the transactions under which defendant acquired the property in controversy. It is, therefore, immaterial whether Connelly acted as defendant’s agent in executing the conditional sales contract that he executed.

In view of the fact that the equipment and supplies in controversy were sold under valid conditional sales contracts, plaintiff is privileged to maintain this action in replevin to recover same.

The only evidence tending to sustain the judgment for damages was that the property in controversy had a rental value and at the rental rates charged by plaintiff for like property the rental would aggregate approximately $12,000. Damages based on the usable value for the detention of property are only allowable when it is shown that the property has a distinct usable value and the owner was in position to use same and was deprived of use thereof (46 Am.Jur. p. 78), which was not shown in the instant case. In Thomas v. First National Bank of Tecumseh, 32 Okl. 115, 121 P. 272, the following is set forth in the second paragraph of the syllabus:

“One of the exceptions to the general rule, as to the measure of damage, for the wrongful taking and conversion of personal property, is where the property so taken has a distinct ‘usable value’; and horses, broken and trained to do work, would have, under ordinary circumstances, such ‘usable value,’ and where such property has been wrongfully taken by one, and detained from another, such other has the right to recover as damages the reasonable value of the use of such property during the period of its wrongful detention; and this value is ordinarily to be determined by the ordinary market price of the use of such property at the place of taking during the period of the detention.”

It is provided in part in 12 O.S.1951 § 1580, as follows:

“In an action to recover the possession of personal property, judgment for the plaintiff may be for the possession, or for the recovery of possession, or the value thereof in case a delivery cannot be had, and of damages for the detention. * * * ”

Beginning at p. 774, 33 A.L.R.2d will be found annotated notes to cases to the effect that a vendor in an action to regain property sold under a conditional sales contract is not entitled to damages based upon the usable value of property covered by the conditional sales contract.

Under the above quoted provisions of Sec.

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Taylor v. Graver Tank & Manufacturing Company
1959 OK 95 (Supreme Court of Oklahoma, 1959)

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Bluebook (online)
1959 OK 95, 344 P.2d 1045, 11 Oil & Gas Rep. 615, 1959 Okla. LEXIS 455, Counsel Stack Legal Research, https://law.counselstack.com/opinion/taylor-v-graver-tank-manufacturing-company-okla-1959.