Welken v. Conley

252 N.W.2d 311, 21 U.C.C. Rep. Serv. (West) 1304, 1977 N.D. LEXIS 267
CourtNorth Dakota Supreme Court
DecidedApril 11, 1977
DocketCiv. 9272
StatusPublished
Cited by23 cases

This text of 252 N.W.2d 311 (Welken v. Conley) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Welken v. Conley, 252 N.W.2d 311, 21 U.C.C. Rep. Serv. (West) 1304, 1977 N.D. LEXIS 267 (N.D. 1977).

Opinion

PEDERSON, Justice.

This is an appeal by Conley Brothers from a judgment entered after a jury trial in Barnes County District Court. After the verdict was rendered for Welken in the amount of $16,040.25, the Conleys moved for judgment notwithstanding the verdict or for a new trial. The trial court denied these motions upon condition that Welken consent to a remittitur of the verdict from *314 $16,040.25 to $11,040.25, which condition Welken provisionally accepted. The Con-leys also appeal from the denial of these motions, and Welken has cross-appealed the remittitur of the verdict by the trial court. The Conleys do not question Welken’s right to cross-appeal. We affirm the judgment and the denial of the motions for judgment notwithstanding the verdict and for a new trial, and dismiss the cross-appeal.

In June of 1971, Welker purchased an A4T 1600 Minneapolis Moline tractor from the Conleys and, as part of that transaction, traded in a Model F-Gleaner combine for which he was given a trade-in allowance of $10,737.50. Welken had previously purchased the F-Gleaner combine and a larger Model G-Gleaner combine from the Northern Pacific Railroad for a total price of $9,500.00. Welken immediately experienced difficulty with the clutch system, and the Conleys acknowledge that Welken was ;.ot able to use the tractor for his farming operations.

On January 2, 1972, Welken returned the tractor for modifications directed by the factory, which were never accomplished. Ultimately the Conleys accepted the return of the tractor and resold it to another purchaser. The Conleys offered to sell other ti actors to Welken and, in December 1973, he signed a purchase order for an 1155 Massey Ferguson tractor. This tractor was found not to be available from the manufacturer, and the parties were unable to complete any other transaction to provide Welken with an acceptable substitute tractor.

When all negotiations failed, Welken brought this action, praying for recovery of his down payment — allegedly $10,737.50, the trade-in value of the Model F-Gleaner combine. In addition, Welken asked for $5,000.00 in damages for failure to deliver another tractor; $5,000.00 for alleged misrepresentation by the Conleys in lying to him and deceiving him as to their intentions; $650.00 for travel and telephone expenses incurred during negotiations; and $1,500.00 for substitute tractor rental fees incurred during negotiations between the parties.

We have recently stated the test to be applied by a court when ruling on a motion for a judgment notwithstanding the verdict in Lovas v. St. Paul Ins. Companies, 240 N.W.2d 53, 54-55 (N.D.1976):

“ * * * on a motion for judgment notwithstanding the verdict, the evidence must be viewed in the light most favorable to the party in whose favor the verdict was rendered, and such motion should not be granted unless the evidence shows that the moving party is entitled to judgment on the merits as a matter of law.”

With respect to the motion for a new trial, we held that an order denying a motion for a new trial will not be overturned in the absence of a showing of a manifest abuse of discretion. Stee v. “L” Monte Industries, Inc., 247 N.W.2d 641 (N.D.1976).

In their motion for judgment notwithstanding the verdict, the Conleys alleged that the evidence was insufficient to sustain the verdict and was against the law because the record disclosed no competent evidence establishing the fair and reasonable market value of the combine traded in by Welken, which, they argued, is the exclusive measure of damages available to plaintiff upon rescission. Their alternative motion for a new trial contained the above allegations and, in addition, alleged error by the trial court in instructing the jury as to the correct measure of damages to be awarded upon rescission of contract, error by the court in failing to give an instruction that the law does not authorize punitive damages in this action, and error by the court in reading the plaintiff’s complaint to the jury as part of the instructions.

In its memorandum opinion the trial court stated that the evidence was sufficient to sustain the verdict in favor of Welken, and that the evidence did not entitle the Conleys to a directed verdict for dismissal. The court thus denied their motion for judgment notwithstanding the verdict. The trial court also denied the motion for a new trial conditioned upon Welken’s *315 acceptance of a $5,000.00 reduction in the verdict, and indicated that its reason for remitting the verdict was its error in failing to give Conleys’ requested instruction concerning the impropriety of awarding punitive damages in this contract dispute. The court stated that the allegations of lies and deceit in Welken’s complaint presented a matter of punitive damages for the jury’s consideration, which Welken was not properly entitled to recover, and since it felt reasonably certain that the jury verdict did include $5,000.00 for those improper allegations, it remitted that amount upon Welken’s consent.

In this proceeding, the issues on appeal which the parties have presented for our determination, including the cross-appeal, are as follows:

(1) Did the trial court err in submitting to the jury Welken’s claims for damages resulting from the Conleys’ failure to deliver another tractor?

(2) Did the trial court err in failing to instruct the jury adequately as to how damages are to be determined upon rescission of a contract?

(3) Was the trial court’s reduction of the jury verdict a reasonable exercise of its discretion?

(1) SUBMISSION OF WELKEN’S CLAIMS TO THE JURY FOR FAILURE TO DELIVER ANOTHER TRACTOR.

The Conleys contend that the record provides no evidence of a legally enforceable contract obligating them to sell a substitute tractor to Welken, and therefore damages should not have been recovered against them for their failure to deliver another tractor. The dispute concerning another tractor involves a purchase order for an 1155 Massey Ferguson tractor which Welken signed on December 23, 1973. The Con-leys apparently contend that since the purchase order was not signed by them it is unenforceable, as it comes within the Statute of Frauds, § 41-02-08 (2-201), NDCC.

Assuming that this contention is correct, we do not think it precludes Welken from recovering damages on this claim. Welken’s injury need not rest upon a legally enforceable contract for the substitute 1155 Massey Ferguson tractor. Such injury may result from the Conleys’ nonconforming performance of the first contract for the A4T 1600 Minneapolis Moline tractor, the validity of which is conceded by both parties.

The confusion apparently results from the distinctive interpretations the parties have given to the remedies available upon, cancellation of the contract under the Uniform Commercial Code. Using the word “rescission,” the Conleys contend that, once the tractor was returned and accepted by them, Welken’s only remedy was a return of his down payment.

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Bluebook (online)
252 N.W.2d 311, 21 U.C.C. Rep. Serv. (West) 1304, 1977 N.D. LEXIS 267, Counsel Stack Legal Research, https://law.counselstack.com/opinion/welken-v-conley-nd-1977.