Tri-Circle, Inc. v. Brugger Corp.

829 P.2d 540, 121 Idaho 950, 18 U.C.C. Rep. Serv. 2d (West) 375, 1992 Ida. App. LEXIS 29
CourtIdaho Court of Appeals
DecidedJanuary 27, 1992
Docket18314
StatusPublished
Cited by7 cases

This text of 829 P.2d 540 (Tri-Circle, Inc. v. Brugger Corp.) is published on Counsel Stack Legal Research, covering Idaho Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tri-Circle, Inc. v. Brugger Corp., 829 P.2d 540, 121 Idaho 950, 18 U.C.C. Rep. Serv. 2d (West) 375, 1992 Ida. App. LEXIS 29 (Idaho Ct. App. 1992).

Opinion

SUBSTITUTE OPINION

The Court’s prior opinion dated September 30, 1991, is hereby withdrawn.

SILAK, Judge.

This action was brought by Tri-Circle, Inc., to obtain payment for materials and labor supplied to farm property owned by Brugger Corporation (hereinafter Brugger/Western Ag) 1 and leased and operated by Jason Weimer. The district court, sitting without a jury, found that Weimer had acted as Brugger/Western Ag’s agent when he ordered materials and labor from Tri-Circle to repair components of the farm’s irrigation system. The district court entered an amended judgment (hereinafter the judgment) in favor of Tri-Circle against Brugger/Western Ag, and dismissed Tri-Circle’s claim against Weimer, finding that Weimer had acted as the agent of a disclosed principal. The district court ordered Brugger/Western Ag to pay TriCircle’s attorney fees, and Tri-Circle to pay Weimer’s attorney fees. Brugger/Western Ag appeals, arguing a lack of substantial evidence to support the district court’s finding that Weimer was Brugger/Western Ag’s agent, and disputing the applicability of service charges. Weimer has cross-appealed, arguing that Brugger/Western Ag, not Tri-Circle, should be liable for Weimer’s attorney fees.

FACTS

At trial, Weimer testified that in January of 1987, while in California, he met with *953 Grant McQueen, manager of Western Ag Systems, to discuss Weimer’s proposal for a new lease agreement for the farm. He further testified that one of the terms proposed to McQueen was that Brugger/Western Ag pay for repairs to certain components of the farm’s irrigation system which had fallen into a state of dysfunction. Under the proposal, the components contemplated for repair by Brugger/Western Ag were a specified rain-cat pivot sprinkler, some mainline piping, and various Rain Bird sprinklers on hand and wheel line sprinkler systems. Weimer testified that McQueen said the proposed terms looked good, but that he could not approve the proposal until Mr. Brugger had reviewed it.

Weimer further testified that a week following the meeting in California he spoke with McQueen by telephone and informed McQueen that he would not be able to farm the land covered by the dysfunctional irrigation components mentioned above unless Brugger/Western Ag had those components of the irrigation system repaired. Weimer testified that at that point McQueen told him to go ahead and have the repairs performed and that Brugger/Western Ag would pay for them.

In the spring of 1987, Weimer contacted Tri-Circle relative to providing labor and materials for the repair of irrigation systems on the Brugger/Western Ag farm and other land farmed by Weimer. Weimer asked Tri-Circle to set up an account separate from his personal account, to which materials and labor expended on specified components of the irrigation system would be charged to Brugger/Western Ag. Weimer informed Tri-Circle that the bills on the Brugger/Western Ag account should be sent to him, and that he would, after verifying their accuracy, forward them to Brugger/Western Ag.

By June 1987, Tri-Circle had charged $9,769.33 to the Brugger/Western Ag. account. The bills for these charges had been sent to Weimer, who in turn forwarded them to Brugger/Western Ag. On June 30, 1987, Brugger/Western Ag paid directly to Tri-Circle the $9,769.33 owing on the account. This amount was paid by a check signed by Grant McQueen and Joseph Car-lino, comptroller of Brugger Corp.

Subsequent charges totalling $11,540.71 were billed to the Brugger/Western Ag account in 1987. These bills were also sent to Weimer, who testified that he forwarded them to Brugger/Western Ag. Tri-Circle, however, received no further payments from Brugger/Western Ag, nor any other communications regarding Tri-Circle’s billings or Brugger/Western Ag’s willingness to pay on the account.

Brugger/Western Ag claims it has no record of any invoices sent by Weimer, including the initial invoices on which it paid. The evidence showed that by November or December of 1987 Grant McQueen had been fired by Brugger/Western Ag. McQueen was not located to testify at trial.

Michael Kechter, general manager and president of Tri-Circle, testified that he dictated a letter in December 1987, requesting Brugger/Western Ag to pay the amount owing on its account. Sandy Johnson, Kechter’s secretary at Tri-Circle, testified that she typed this letter and sent it directly to Brugger/Western Ag’s address as found on the check Brugger/Western Ag had sent in June. Evidence showed that this address was at all times Brugger/Western Ag’s current address. Johnson further testified that this letter was not returned to Tri-Circle. Brugger/Western Ag claims it has no record of this letter.

In January of 1988, Tri-Circle’s attorney sent a letter to Brugger/Western Ag, demanding payment for the services billed to the Brugger/Western Ag account. Brugger/Western Ag argues that this is the first time it became aware of the account with Tri-Circle. Brugger/Western Ag denied any liability on the account, claiming that Weimer had no authorization to set up such an account. After Brugger/Western Ag refused to pay on the account, TriCircle sued Brugger/Western Ag and Weimer to recover the account’s balance of approximately $11,500, plus service charges and attorney fees.

Following trial, the district court specifically found that Weimer had acted as the *954 authorized agent of Brugger/Western Ag in purchasing the labor and materials necessary to repair the specified irrigation equipment, and that Brugger/Western Ag was a disclosed principal. Brugger/Western Ag contends on appeal that the district court erred in finding it liable on the account to Tri-Circle based on an agency relationship between Weimer and itself.

STANDARD OF REVIEW

Once sufficient evidence is submitted to make the issue of agency disputable, the issue becomes a question of fact. Simplot Soilbuilders v. Leavitt, 96 Idaho 17, 18, 523 P.2d 1363, 1364 (1974). Findings of fact by a trial court will not be disturbed on appeal unless they are clearly erroneous. I.R.C.P. 52(a). Clear error will not be deemed to exist if the findings are supported by substantial and competent, though conflicting, evidence. Sun Valley Shamrock v. Travelers Leasing, 118 Idaho 116, 118, 794 P.2d 1389, 1341 (1990). Rasmussen v. Martin, 104 Idaho 401, 404, 659 P.2d 155, 158 (Ct.App.1983). Consequently, our standard for reviewing a trial court’s findings and conclusions is to determine whether the findings of fact are supported by substantial, competent evidence, and to determine whether the trial court properly applied the law to the facts as found. Sun Valley Shamrock, 118 Idaho at 118, 794 P.2d at 1341; Bischoffv. Quong-Watkins Properties, 113 Idaho 826, 828, 748 P.2d 410, 412 (Ct.App.1987).

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Bluebook (online)
829 P.2d 540, 121 Idaho 950, 18 U.C.C. Rep. Serv. 2d (West) 375, 1992 Ida. App. LEXIS 29, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tri-circle-inc-v-brugger-corp-idahoctapp-1992.