United Engine Parts, Inc. v. Ried

584 P.2d 275, 283 Or. 421, 1978 Ore. LEXIS 1083
CourtOregon Supreme Court
DecidedSeptember 12, 1978
DocketTC 76-287-E, SC 25212
StatusPublished
Cited by20 cases

This text of 584 P.2d 275 (United Engine Parts, Inc. v. Ried) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United Engine Parts, Inc. v. Ried, 584 P.2d 275, 283 Or. 421, 1978 Ore. LEXIS 1083 (Or. 1978).

Opinion

*423 LENT, J.

Plaintiff filed suit to foreclose a statutory possessory 1 lien on defendants’ hay hauling truck to pay for the reasonable value of labor and materials provided by the plaintiff to the defendants 2 in repairing the truck. Defendant denied plaintiff’s right to the lien and counterclaimed for damages for his loss of use of the truck for the short period during which the plaintiff withheld possession of the truck from the defendant pursuant to the asserted lien. The trial court, sitting as a court of equity, found for the defendant, both on plaintiff’s suit and on defendant’s counterclaim. The trial court awarded defendant $2,040 in damages. Plaintiff appeals and we modify and affirm.

The facts of this case are not only a nightmare but are of little interest to anyone but the litigants and their counsel. The case involves a 20-year-old flatbed hay hauling truck purchased by the defendant in October 1974 for $1,800. Defendant used the truck in his hay hauling business (buying hay in Klamath Falls and hauling it to Grants Pass for sale there). On December 31, 1974, the truck "broke down.” Defendant sought bids for "overhauling the engine” from several sources and chose that of the plaintiff, which purported to be proficient in selling and installing truck engine parts, as the lowest bid.

Plaintiff purchased a reconditioned "short block” 3 and installed it in defendant’s truck with the "accessory parts” 4 from the prior engine. On January 23, *424 1975, the truck was delivered to the defendant, and a repair bill of $1,190 was tendered by the plaintiff and paid by the defendant. The short block itself earned a manufacturer’s 90-day/4,000-mile warranty, and plaintiff gave the defendant an oral 90-day/4,000-mile express warranty on "parts and labor.” Soon after the defendant got the truck back, he returned it to the plaintiff, complaining of low oil pressure and oil loss. Plaintiff examined the engine, found what appeared to be the problem, and "fixed” it. It appears that plaintiff tendered a repair bill to the defendant on February 28, 1975, that defendant refused to pay it, and that plaintiff, for whatever reason, marked it "paid.”

According to the defendant, the mechanical problem persisted, and he took the truck back to the plaintiff several times. He continued to use the truck for hay hauling, however, making, according to defendant’s records, 34 trips to Klamath Falls and back in 1975. On December 8, 1975, the truck again broke down. Plaintiff inspected the truck and estimated the cost of its repair at $150. The truck was towed to plaintiff’s shop and on December 14, 1975, while upon plaintiff’s premises was stolen and its engine completely destroyed. Plaintiff reported the loss to its liability insurance carrier, and was compensated for the actual cash value of the destroyed engine ($1,026.13). Plaintiff undertook to install a second "new” engine in defendant’s truck.

Again plaintiff purchased a reconditioned "short block” with the same manufacturer’s warranty and installed it with defendant’s accessory equipment. Plaintiff tendered no repair bill, nor did defendant pay anything for the second engine. On January 10,1976, plaintiff again delivered possession of the truck to the defendant, giving defendant an oral express warranty for 90 days or 4,000 miles for parts and labor.

On January 12, 1976, while returning from a run to Klamath Falls, the truck broke down for a third time—only two days and 550 miles after repair. Loss *425 of oil pressure and oil was the immediate cause. Plaintiff ordered a wrecker in Klamath Falls to tow the truck to plaintiff’s shop and paid the towing charge. Plaintiff repaired the damage to the engine (without replacing the short block). This was referred to by the parties as the "third engine.” No repair bill was tendered to the defendant, nor did defendant pay anything for these repairs. Plaintiff surrendered possession of the truck to the defendant on January 31, 1976.

After approximately 175 miles, on February 2, 1976, the truck broke down for a fourth time. Again the truck was towed to the plaintiff’s shop, and again plaintiff undertook to repair the engine. This time, however, plaintiff installed an "oil cooler assembly” 5 in the engine to keep the oil heat down. Plaintiff claimed excessive oil heat was the "root source” of the problem; defendant, who had previously stated unequivocally to the plaintiff that he did not want the oil cooler installed, claimed that it added no value to the truck. When the defendant was notified that his truck was ready on March 3,1976, he appeared at plaintiff’s shop to take possession. At that time plaintiff tendered a repair bill to the defendant for $596.76. Plaintiff contended that this bill covered the parts and labor for the installation of the oil cooler assembly. 6 Defendant refused to pay the bill (or to acknowledge his duty to *426 pay it). Plaintiff refused to relinquish possession and then tendered to defendant a repair bill in the amount of $3,364.30, which covered all work done on defendant’s truck subsequent to the installation of the first engine on January 23, 1975. Defendant again refused payment and demanded possession. Plaintiff again refused to relinguish possession.

Faced with this impasse, plaintiff and defendant went to their respective counsel, who, on behalf of their clients, agreed that plaintiff would relinquish possession of the truck to the defendant and defendant in turn would pay $3,364.30 to the court and submit the respective claims on this fund (as if it were the truck itself) to judicial determination in the form of plaintiff’s suit to foreclose its asserted possessory lien.

The agreement was effectuated on April 13, 1976, at which time defendant reacquired possession of the truck and deposited $3,364.30 in the court’s registry. On April 15,1976, plaintiff filed a suit in circuit court to foreclose the lien, alleging (1) plaintiff was in the auto repair business, (2) defendant hired plaintiff to make repairs on his truck and plaintiff made such repairs, (3) a reasonable charge for such repairs is $3,364.30, and (4) defendant has not paid such sum.

For answer, defendant generally denied plaintiff’s substantive allegations and contended: (1) that the repairs were negligently done and of no value to the defendant, and (2) that they were covered by plaintiff’s warranty and, therefore, there was no payment due. In addition, the defendant filed a counterclaim for damages for loss of use of the truck during the period from March 3, 1976, to April 13, 1976, during which time plaintiff withheld possession from the defendant. Defendant prayed for $650 damages for the reasonable rental value of the truck and $2,600 for lost profits during the period in question. Plaintiff replied with a general denial.

At trial the parties agreed, on the record, that the whole case was to be tried as an "equitable matter.”

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Bluebook (online)
584 P.2d 275, 283 Or. 421, 1978 Ore. LEXIS 1083, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-engine-parts-inc-v-ried-or-1978.