Tidwell v. Reeder

247 P.2d 860, 56 N.M. 617
CourtNew Mexico Supreme Court
DecidedSeptember 12, 1952
DocketNo. 5511
StatusPublished
Cited by2 cases

This text of 247 P.2d 860 (Tidwell v. Reeder) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tidwell v. Reeder, 247 P.2d 860, 56 N.M. 617 (N.M. 1952).

Opinion

McGHEE, Justice.

The plaintiff is an automobile service station operator and the defendants are owners of the Valley Oil Company, an unincorporated wholesale petroleum distribution enterprise. The plaintiff brought this action for a declaratory judgment to determine whether he is under a duty to purchase gasoline and other petroleum products used in the operation of the service station exclusively from the defendants.

. On November 14, 1948, O. C. Shields, the sole owner of the Valley Oil Company, leased certain unimproved lots in the City of Albuquerque from the owners thereof, the New Mexico Credit Corporation, Hugh B. Woodward and Helen K. Woodward, his wife. The term of the lease was for fifteen years, at annual rental of $1,200 per year, and the premises were to be used as an automobile service station. The lessee covenanted to improve the leased property at his expense, the improvements to become the property of the lessors on the termination of the lease. The lessee was given the right to assign the lease or sublet any part of the premises, but such assignment or sublease was not to alter the obligations of the lessee under the lease.

Prior to the execution of the lease Shields had shown the property to the plaintiff and had entered into an arrangement with him whereby the plaintiff was to erect at his expense buildings and other improvements necessary for the enterprise and operate it, while Shields was to install pumps and tanks for the vending of gasoline.

After the execution of the lease Shields and the plaintiff proceeded with the arrangement and the plaintiff obtained from Shields an assignment of the lease, absolute in form, and containing a provision the plaintiff was to have the use of the pumps and tanks installed by Shields free of charge during the term of the lease, but he actually paid one-eighth of a cent more per gallon' for his gasoline than others who owned their pumps.

The' plaintiff purchased his gasoline and other petroleum needs from Shields for the operation of the business and paid the monthly rental installments to Shields, who in turn paid the lessors. Then, in June of 1950, Shields sold the Valley Oil Company to the defendants. In October, 1950, the plaintiff attempted to pay the rental installment directly to the lessors. The defendants objected and for some months both the plaintiff and the defendants attempted to pay or did pay rent for the premises. On March 7, 1951, the plaintiff notified the defendants he was discontinuing his purchases of gasoliné and petroleum products from them and offered to purchase the tanks, pumps and connections. The offer was refused and this action followed.

■ The defendants contended the assignment from Shields to the plaintiff was a conditional one and was secured from Shields upon the representation of the plaintiff that he had to have the assignment in order to finance the building of the service station, and further contended the plaintiff was under a duty, for the duration of the lease, to purchase his supply of gasoline, etc., from the defendants as owners of the Valley Oil Company.

The trial court found, in substance, as follows: (1) No contract was ever made between the plaintiff and Shields providing for the purchase of gasoline and other products exclusively from Shields’ Valley Oil Company. (2) At the time the assignment of lease was made no repre-' sentation was made by the plaintiff to Shields that the assignment was merely for security for the financing of the improvements to be erected by the plaintiff. (3) The financing of the improvements was not secured by the assignment of lease, but was obtained solely upon the personal credit of the plaintiff.

The lower court concluded the assignment of lease was absolute in form and substance and that there was no subterfuge, fraud or mistake in the execution and delivery of the assignment. The court found it was the local custom for the retailer of gasoline and oil using equipment of a distributor to purchase such equipment from the distributor upon discontinuance of purchases of the products of the distributor. The trial court declared the plaintiff had the right to terminate at any time the purchase of gasoline or' other products from the defendants, subject to tender by the plaintiff of the reasonable value of the pumps, tanks and connections originally installed by Shields and to reimbursement of the defendants for duplicate rental payments made by them to the lessors. The court further provided in-the event the parties could not reach agreement upon the reasonable value of the equipment that an appraiser would be appointed to determine said value. The court also declared that if the defendants refused tender of the reasonable market value of the equipment the plaintiff could discontinue purchase of defendants’ products and the use of the name of the Valley Oil Company, by using equipment other than that of the defendants for the sale of gasoline at retail on the leased premises.

On appeal the defendants assign numérous errors, argued under the following points: (1) That the evidence required the conclusion the assignment of lease was conditional and not absolute. (2) The evidence did not warrant the decision of the trial court requiring the sale or removal of the defendants’ pumps and tanks.

Under their first point the defendants urge the principle that where a written agreement does not express the true intent of the parties due to a mistake of fact or law, equitable reformation should be granted. General authorities are cited to this effect, and our case of Naramore v. Mask, 1948, 52 N.M. 336, 197 P.2d 905. In that case, upon the sale of a filling station and camp ground there was an express agreement the buyer would assume a three year contract to purchase Continental products from Naramore, which contract included a liquidated damage clause omitted from the subsequent sales contract through oversight. We held under such circumstances reformation was proper. But that case and the general authorities on reformation are not in- point in the present case because the trial court found here there was no mistake of fact or law, that the parties dealt at arms’ length and that there was never an agreement of any sort binding the plaintiff to purchase his petroleum supplies from Shields or the ¡Valley Oil Company.

We must view the testimony in the light most favorable to support the findings and judgment. Hopper v. White, 1950, 54 N.M. 181, 217 P.2d 260; Brown v. Cobb, 1949, 53 N.M. 169, 204 P.2d 264; Pavletich v. Pavletich, 1946, 50 N.M. 224, 174 P.2d 826; Thurmond v. Espalin, 1946, 50 N.M. 109, 171 P.2d 325; Pugh v. Heating & Plumbing Finance Corporation, 1945, 49 N.M. 234, 161 P.2d 714; McDonald v. Polansky, 1944, 48 N.M. 518, 153 P.2d 670. So viewing the testimony, we find there is sufficient evidence to support the trial court’s findings and judgment.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Horton v. Driver-Miller Plumbing, Inc.
414 P.2d 219 (New Mexico Supreme Court, 1966)
Mountain States Aviation, Inc. v. Montgomery
371 P.2d 604 (New Mexico Supreme Court, 1962)

Cite This Page — Counsel Stack

Bluebook (online)
247 P.2d 860, 56 N.M. 617, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tidwell-v-reeder-nm-1952.