Walpole v. Prefab Manufacturing Co.

230 P.2d 36, 103 Cal. App. 2d 472, 1951 Cal. App. LEXIS 1199
CourtCalifornia Court of Appeal
DecidedApril 16, 1951
DocketCiv. 17730
StatusPublished
Cited by29 cases

This text of 230 P.2d 36 (Walpole v. Prefab Manufacturing Co.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Walpole v. Prefab Manufacturing Co., 230 P.2d 36, 103 Cal. App. 2d 472, 1951 Cal. App. LEXIS 1199 (Cal. Ct. App. 1951).

Opinion

VALLEE, J.

Appeals from a judgment for plaintiff in an action for damages for breach of a contract to sell and deliver prefabricated houses.

In September, 1945, plaintiff and defendant Prefab Manufacturing Company (referred to as Prefab), a copartnership, entered into an oral agreement whereby Prefab appointed plaintiff sales agent and distributor for the sale of prefabricated houses manufactured by Prefab. The latter agreed to sell to plaintiff as many prefabricated houses as she would *479 order at such dealers’ list prices as, from time to time, would be published by Prefab. It was understood that plaintiff was to resell the houses. She was to pay cash for them; or if the purchaser desired to buy on credit, Prefab would fill the order only if the credit of such purchaser was approved by Allied Building Credits, Inc. Either party had the right to sell the prefabricated houses at any place and in competition with the other. The agreement was terminable by either party at will.

From time to time Prefab issued price lists showing the price to be paid by plaintiff and the price that plaintiff was to charge her customers. The difference between the two prices was 25 per cent of the cost to plaintiff. The 25 per cent was 20 per cent of plaintiff’s selling price.

On January 25, 1946, the parties orally agreed that Prefab would sell and deliver to plaintiff, at Prefab’s dealers ’ existing list price, prefabricated houses on all bona fide orders which had been received by plaintiff or her subdealers prior to midnight on January 25, 1946, provided a list of such orders had been submitted by plaintiff to Prefab prior to midnight of January 31, 1946, and that each such order had been paid for in cash or was in actual process of financing with Allied Building Credits, Inc., on or before February 9, 1946, and would thereafter be approved by Allied.

On January 30, 1946, plaintiff submitted to Prefab a list in writing of 103 orders for 121 houses. On February 1, 1946, Prefab notified plaintiff that it would fill orders for only 25 houses.

Of the 103 orders submitted by plaintiff, the court found that 34 were bona fide orders which had not been filled as promised by Prefab and that the remainder were not bona fide. The 34 orders would have been sold to plaintiff for $50,215.39 and plaintiff would have resold them for $62,737.72, a difference of $12,522.33.

The complaint was in six counts. Counts 3 and 6 were dismissed by plaintiff. The remainder alleged (1) damages for failure of Prefab to fill accepted orders; (2) damages for sales made by Prefab in territory alleged to be exclusive to plaintiff; (4) commisisons on an order received by Prefab directly and alleged to have been turned over to plaintiff; (5) damages on certain orders alleged to have been taken by plaintiff and cancelled because the houses did not pass building law requirements.

*480 The court found that plaintiff had been damaged in the sum of $12,522.33, the amount she would have received on resale had Prefab filled the 34 bona fide orders. It found for defendants as to counts 2, 4, and 5. Judgment was for plaintiff against Prefab and its copartners for $12,522.33, with interest from February 1, 1946. All parties appeal.

Appeal of Defendants

Defendants’ assignments of error are: (1) The court erred in awarding plaintiff the difference between the price she would have paid Prefab had the orders been filled and the price she would have received on resale. (2) The court erred in awarding interest on the damages adjudged.

The measure of damages for failing to deliver goods is prescribed by Civil Code section 1787, enacted in 1931, which reads: “ (1) Where the property in the goods has not passed to the buyer, and the seller wrongfully neglects or refuses to deliver the goods, the buyer may maintain an action against the seller for damages for nondelivery. (2) The measure of damages is the loss directly and naturally resulting in the ordinary course of events, from the seller’s breach of contract. (3) Where there is an available market for the goods in question, the measure of damages, in the absence of special circumstances showing proximate damages of a greater amount, is the difference between the contract price and the market or current price of the goods at the time or times when they ought to have been delivered, or, if no time was fixed, then at the time of the refusal to deliver.” Section 1787 is section 67 of the Uniform Sales Act. It comes from section 51 of the English Sale of Goods Act, with the insertion at the beginning of subsection (1) of the words: “the property in the goods has not passed to the buyer, and ...”

The court did not make a specific finding that there was not an available market for prefabricated houses of the kind and quality manufactured by Prefab; however, there is evidence to that effect. The only inference that can be drawn from the uncontradicted evidence is that there was no available market. The complaint alleged that plaintiff “could only get such units from defendant Prefab.” The prefabricated houses were specially built and designed, were made of a variety of materials cut into varying sizes which, when assembled, became the prefabricated units offered for sale. In the nature of things, they were a commodity not usually found on the market. ■ (Cf. Patty v. Berryman, 95 *481 Cal.App.2d 159, 172 [212 P.2d 937].) It is apparent that plaintiff could not replace the prefabricated units and thus satisfy her own vendees who were entitled to insist upon receiving the specific prefabricated units they had ordered and not reasonable substitutes therefor. The case was tried by all parties upon the theory that there was not an available market for the houses. The trial judge in his memorandum opinion stated they were such that they could not “be procured in the market.” Having proceeded on this theory at the trial, Prefab cannot now complain of error. (Wolfsen v. Hathaway, 32 Cal.2d 632, 646-47 [198 P.2d 1]; Kantlehner v. Bisceglia, 102 Cal.App.2d 1, 6 [226 P.2d 636].) Further, where the trial court has not made a finding on an issue, the reviewing court will not assume that it would have made a finding contrary to the uncontroverted evidence and the reasonable inferences therefrom. On the contrary, the reviewing court will assume that had the finding been made it would have been in accord with such evidence. (Sun-Maid Raisin Growers v. Papazian, 74 Cal.App. 231, 238 [240 P. 47].) It is evident from the facts found and the judgment ordered, in the light of the entire record, that if the court had found on the question of whether there was an available market, the finding would have been adverse to Prefab. Prefab cannot complain of the lack of such specific finding. (Chamberlain v. Abeles, 88 Cal.App.2d 291, 300 [198 P.2d 927]; see Boas v. Bank of America,

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Bluebook (online)
230 P.2d 36, 103 Cal. App. 2d 472, 1951 Cal. App. LEXIS 1199, Counsel Stack Legal Research, https://law.counselstack.com/opinion/walpole-v-prefab-manufacturing-co-calctapp-1951.