Vandalia Ranch, Inc. v. Farmers Union Oil & Supply Co.

718 P.2d 647, 221 Mont. 253, 1 U.C.C. Rep. Serv. 2d (West) 677, 1986 Mont. LEXIS 891
CourtMontana Supreme Court
DecidedMay 9, 1986
Docket85-356
StatusPublished
Cited by9 cases

This text of 718 P.2d 647 (Vandalia Ranch, Inc. v. Farmers Union Oil & Supply Co.) 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
Vandalia Ranch, Inc. v. Farmers Union Oil & Supply Co., 718 P.2d 647, 221 Mont. 253, 1 U.C.C. Rep. Serv. 2d (West) 677, 1986 Mont. LEXIS 891 (Mo. 1986).

Opinions

MR. JUSTICE WEBER

delivered the Opinion of the Court.

Defendant Monsanto Company (Monsanto) appeals a jury verdict entered against it and defendant Elanco Products Company (Elanco) in Valley County District Court. The jury awarded plaintiff over $200,000 in damages for loss of its wheat crop which had been treated with herbicides manufactured and marketed by Monsanto and Elanco. We affirm, with modification.

The issues are:

1. Was the District Court in error in disregarding certain disclaimers of liability and limitations of remedies printed on the cans of Far-Go and in the Far-Go instructions?

2. Did the District Court err in instructing the jury that any ambiguities in the wording on the labels and instructions for Far-Go must be resolved against Monsanto?

3. Did the District Court properly admit into evidence the expert testimony of Dr. Peter Fay and Donald Watterud?

4. Was there substantial evidence to support the jury’s verdict on defendants’ liability and on the amount of damages?

Vandalia is a family farm corporation owned and operated by a father and two sons, the Strommens. At the time involved here, Vandalia Ranch consisted of over 2,000 acres of irrigated and non-irrigated cropland, and about 500 cows.

In 1980, the Strommens anticipated a weed problem with wild oats and pigeon grass. They had used herbicides and other methods to control weeds, but had not found anything which satisfied them. After reading advertisements in farm journals and receiving oral recommendations from Monsanto and Elanco representatives, the Strommens decided to use a tank mix of Far-Go, manufactured and marketed by Monsanto, and Treflan, manufactured and marketed by Elanco. They purchased the herbicide from Farmers Union Oil & Supply Company of Hinsdale, Montana (Farmers Supply). Farmers Supply also applied the herbicide.

This case involves 495 acres planted with Prodax spring wheat seed, on which the Far-Go/Treflan mix was used. Having received no instructions to do otherwise, the Strommens followed their usual procedure in planting the seed in the bottom of furrows at a depth of IV2 to 2 inches. Then the Farmers Union representative, follow[256]*256ing the written Far-Go instructions, applied the herbicide to the soil surface and mixed it into the top 1 inch or IV2 inches of soil using a multi-weeder implement. In the process of mixing, the furrows were smoothed out and the seeds were left 3 to 4 inches deep in the soil. There was testimony that this was too deep. The seed failed to germinate and a replacement crop had to be planted. Vandalia sued Monsanto, Elanco, and Farmers Supply under theories of breach of implied and express warranty and strict liability in tort.

The jury found no breach of implied warranty by any of the defendants and no fault on the part of Vandalia or Farmers Supply for any damages. It found that Monsanto and Elanco were each 50 percent liable to Vandalia for damage under breach of express warranty and strict liability in tort. This appeal is brought solely by Monsanto so that we are not concerned with Elanco or its Treflan herbicide.

I

Was the District Court in error in disregarding certain disclaimers of liability and limitations of remedies printed on the cans of Far-Go and in the Far-Go instructions?

The written instructions furnished with the Far-Go herbicide set forth limitations of warranty and liability which confined Monsanto's liability for damages from use of Far-Go to providing a free replacement batch of herbicide, or a refund of the purchase price. The Strommens testified that they were not made aware of the limitations on Monsanto’s liability until a copy of the instructions was mailed to them after they had made a claim for their losses. The District Court held that Monsanto’s limitations on liability were not part of the contract between the parties because the limitation clause was not negotiated between the parties and was not part of the bargain. The District Court also ruled that the limitations were unconscionable. As a result of these rulings, the jury was not allowed to consider the limitations of liability in assessing damages.

A disclaimer or limitation of warranty contained in a manufacturer’s manual received by purchasers after sale does not limit recovery for implied or express warranties made before or at the time of sale. Whitaker v. Farmhand, Inc. (1977), 173 Mont. 345, 354, 567 P.2d 916, 921. There is substantial evidence in the record to support the conclusion that the Strommens were not aware of the Monsanto limitations on liability, whether through advertisements which they [257]*257had read, through the written disclaimers on the drums, through the instruction disclaimer, or through their oral contract for the purchase and application of the chemicals. We affirm the District Court’s holding that the disclaimers of liabilities and limitations of remedies printed on the cans and in the Far-Go instructions were not a part of the contract between the parties. Because the limitations were not a part of the contract, we do not find it necessary to rule upon the holding of the District Court that the limitations of liability were unconscionable.

II

Did the District Court err in instructing the jury that any ambiguities in the wording on the labels and instructions for Far-Go must be resolved against Monsanto?

This issue relates to the Far-Go planting and application instructions, as they were used by the Farmers Union representative. The District Court instructed the jury, over Monsanto’s objections, that any ambiguities in the labels and instructions provided by defendants should be construed against them. Monsanto cites an Oregon case, Weber v. Kamyr, Inc. (1974), 269 Or. 617, 525 P.2d 1307, 1314, which held that this rule of construction is a rule of law for the court to apply and is not a proper subject for a jury instruction. Vandalia argues that this jury instruction was justified because, at trial, defendants presented the meaning of the application instructions as a factual issue.

We conclude that under the Monsanto case as presented to the jury, the meaning of the written instructions for planting and application constituted an issue of fact for determination by the jury. We conclude that the jury instruction is a correct statement of law under the facts of the present case. See Section 28-3-206, MCA. We affirm the giving of this instruction.

III

Did the District Court properly admit into evidence the expert testimony of Dr. Peter Fay and Donald Watterud?

At trial, Vandalia presented expert testimony by Dr. Peter Fay of Montana State University about his greenhouse study of the effects of deep-seeding and herbicide incorporation on spring wheat. [258]*258Vandalia also presented testimony by Donald Watterud as to the potential crop yield of its 495 acres of field.

Monsanto argues that Dr. Fay’s testimony should not have been admitted into evidence. Dr. Fay testified in a deposition that he was unable to draw any conclusions as to this case as a result of his greenhouse study. Monsanto argues therefore that his testimony did not meet the purpose of expert testimony as defined in Rule 702, M.R.Evid.:

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

Related

Mears v. Safeco Insurance
888 F. Supp. 2d 1048 (D. Montana, 2012)
Blevins v. New Holland North America, Inc.
97 F. Supp. 2d 747 (W.D. Virginia, 2000)
Adams v. Neoplan U.S.A. Corp.
881 P.2d 373 (Colorado Court of Appeals, 1993)
Story v. City of Bozeman
Montana Supreme Court, 1992
Melotz v. Scheckla
801 P.2d 593 (Montana Supreme Court, 1990)
Thayer v. Hicks
793 P.2d 784 (Montana Supreme Court, 1990)
Wagner v. Cutler
757 P.2d 779 (Montana Supreme Court, 1988)
Vandalia Ranch, Inc. v. Farmers Union Oil & Supply Co.
718 P.2d 647 (Montana Supreme Court, 1986)

Cite This Page — Counsel Stack

Bluebook (online)
718 P.2d 647, 221 Mont. 253, 1 U.C.C. Rep. Serv. 2d (West) 677, 1986 Mont. LEXIS 891, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vandalia-ranch-inc-v-farmers-union-oil-supply-co-mont-1986.