Thiel S Welding v. Vermeer

2005 MT 211N
CourtMontana Supreme Court
DecidedAugust 30, 2005
Docket04-226
StatusPublished

This text of 2005 MT 211N (Thiel S Welding v. Vermeer) 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
Thiel S Welding v. Vermeer, 2005 MT 211N (Mo. 2005).

Opinion

No. 04-226

IN THE SUPREME COURT OF THE STATE OF MONTANA

2005 MT 211N

THIEL’S WELDING, INC.,

Plaintiff and Appellant,

v.

VERMEER OF WASHINGTON, INC., a Washington corporation, d/b/a VERMEER SALES & SERVICE MONTANA AND VERMEER MANUFACTURING COMPANY, an Iowa corporation,

Defendants and Respondents.

APPEAL FROM: District Court of the Thirteenth Judicial District, In and for the County of Yellowstone, Cause No. DV 00-949, The Honorable Susan P. Watters, Judge presiding.

COUNSEL OF RECORD:

For Appellant:

Kenneth D. Peterson, Peterson and Schofield, Billings, Montana

For Respondent Vermeer of Washington, Inc.:

Donald R. Herndon, Herndon, Sweeney & Halverson, P.C., Billings, Montana

Geoffrey R. Keller, Matovich & Keller, Billings, Montana

For Respondent Vermeer Manufacturing Company:

Calvin J. Stacey, Stacey and Funyak, Billings, Montana

Submitted on Briefs: March 8, 2005 Decided: August 30, 2005 Filed:

__________________________________________ Clerk Justice John Warner delivered the Opinion of the Court.

1 ¶1 Pursuant to § I, Para. 3(c), Montana Supreme Court 1996 Internal Operating Rules,

the following decision shall not be cited as precedent. It shall be filed as a public document

with the Clerk of the Supreme Court and shall be reported by case title, Supreme Court cause

number and result to the State Reporter Publishing Company and to West Group in the

quarterly table of noncitable cases issued by this Court.

¶2 Thiel’s Welding, Inc., appeals from an Order of the Thirteenth Judicial District Court,

County of Yellowstone, denying Thiel a new trial. We affirm.

¶3 The issues are restated on appeal as follows:

¶4 1. Did the District Court err when it denied Thiel’s Motions to Compel discovery?

¶5 2. Did the District Court err in refusing to admit into evidence a letter from Vermeer

Manufacturing to Thiel’s attorney, as it constituted an offer of compromise?

¶6 3. Did the District Court err in limiting testimony of the witnesses Seth Shumaker,

Kathy Thiel and Bob Roberts?

¶7 4. Did the District Court err in its jury instructions?

¶8 5. Was there substantial credible evidence to support the jury’s finding that Vermeer

Sales had not “sold” the D80 to Thiel?

FACTUAL AND PROCEDURAL BACKGROUND

¶9 At the time of trial, Thiel’s Welding, Inc. (“Thiel”), which is owned and operated by

John Thiel and his wife Kathy, had been in the pipeline construction business for almost 30

years. In September 2000, Thiel filed suit against Vermeer Sales and Service of Montana

(“Vermeer Sales”), and Vermeer Manufacturing Company (“Vermeer Manufacturing”).

Thiel alleged it purchased a D80 horizontal boring machine manufactured by Vermeer

2 Manufacturing from Vermeer Sales to use on a contract it had with Cenex to lay 19 miles

of pipe for petroleum transmission. It alleged claims for relief based on negligent

misrepresentation, constructive fraud, breach of contract and breach of warranties, in

connection with the acquisition and use of the D80 boring machine.

¶10 John Thiel has been a long-time customer of Vermeer Sales and is acquainted with

Bob Roberts (“Roberts”), the principal owner of Vermeer Sales. Around the time Thiel

acquired the Cenex contract, Roberts and Thiel discussed the possibility that Thiel do its own

horizontal boring on the Cenex project using a new Vermeer Manufacturing product, the

D80 horizontal boring machine. Thiel had not been involved in the business of horizontal

boring prior to that time. Thiel was assured by Vermeer Sales that the D80 was capable of

completing the bores required by the Cenex contract, including one of some 1,200 feet under

the Yellowstone River. The Yellowstone River crossing was known to be the longest and

most difficult of the eight underground bores required by the Cenex contract. Vermeer Sales

agreed to provide Thiel with a D80 for the purpose of completing the boring contract.

Vermeer Sales ordered a D80 from Vermeer Manufacturing. Thiel later paid Vermeer Sales

$50,000 for use of the machine. The parties disputed whether the payment was intended as

a down payment on the “sale” of the D80 to Thiel or whether Thiel was simply going to rent,

or “demo,” the D80 for the purpose of testing it on the job before actually purchasing it. The

jury ultimately found that the machine was not sold by Vermeer Sales to Thiel.

¶11 The machine was delivered to Vermeer Sales in November 1998. Roberts, acting for

Vermeer Sales, made arrangements to have a Vermeer Manufacturing factory instructor

present when the machine arrived so that he could instruct Thiel how to operate it on some

3 of the less difficult bores required by the contract. However, even though work was

originally to begin in November, 1998, Thiel did not start on the project until January 1999,

at which time the factory instructor was not available to provide training. However,

Vermeer Sales did send one of its salesmen, who was experienced in horizontal boring, to

instruct John Thiel on how to use the machine on several of the easier bores. John Thiel,

acting for his company, operated the machine.

¶12 John Thiel saved the Yellowstone River bore for last, even though he told Roberts he

would attempt it as soon as he completed a few of the easier bores. Thiel twice attempted

the Yellowstone River bore. The measure of a successful bore is whether one is able to pull

the pipe back through the bore hole. In this case, Thiel failed to successfully pull the 10 inch

pipe back through the bore hole. Thiel eventually left the D80 on the banks of the

Yellowstone River. Two representatives from Vermeer Manufacturing attempted the

Yellowstone River bore after Thiel abandoned the project, and they too were unable to pull

the pipe through the bore hole. Nevertheless, at trial Vermeer Sales and Vermeer

Manufacturing maintained that the D80 is capable of completing the Yellowstone River bore

and the problem was that Thiel made so many mistakes in planning the bore and in operating

the machine that the project failed. Vermeer Sales eventually sold the machine to another

customer. The evidence at trial was that the machine performed satisfactorily for the new

owner.

¶13 Thiel filed suit against Vermeer Sales and Vermeer Manufacturing alleging breach

of contract, negligent misrepresentation, constructive fraud, and breach of warranties. Thiel

withdrew the claim for breach of contract prior to trial.

4 ¶14 Thiel filed two separate pre-trial motions to compel discovery from Vermeer

Manufacturing seeking information concerning to whom other D80 boring machines had

been sold. Both were denied. The case proceeded to jury trial. By special verdict the jury

found that there was not a sale of the D80 boring machine from Vermeer Sales to Thiel,

neither defendant had constructively defrauded Thiel, neither defendant was negligent, and

neither defendant negligently misrepresented the D80 to Thiel. The jury also found that

Thiel was not liable to Vermeer sales based on its counter-claim for unjust enrichment.

Thiel moved for a new trial. The motion was denied. This appeal followed.

STANDARDS OF REVIEW

¶15 Denial of a motion to compel discovery is a district court ruling to which this Court

applies an abuse of discretion standard. See e.g., State v. Warclub, 2005 MT 149, ¶ 20, 327

Mont. 352, ¶ 20, 114 P.3d 254, ¶ 20; Lynch v. Reed (1997), 284 Mont.

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