Williams v. International Harvester Co.

141 P.2d 837, 172 Or. 270, 1943 Ore. LEXIS 94
CourtOregon Supreme Court
DecidedSeptember 8, 1943
StatusPublished
Cited by22 cases

This text of 141 P.2d 837 (Williams v. International Harvester Co.) 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
Williams v. International Harvester Co., 141 P.2d 837, 172 Or. 270, 1943 Ore. LEXIS 94 (Or. 1943).

Opinion

*274 LUSK, J.

The plaintiff has appealed from a judgment of involuntary nonsuit.

The action grows out of the sale by the defendants Amundson & Baur, partners, of a new International Pickup truck to the plaintiff. Amundson & Baur are alleged to have been agents of the defendant International Harvester Company. The latter defendant will be hereinafter referred to as International.

We are met at the outset with the contention of the defendants that the amended complaint, upon which the case was tried, does not state facts sufficient to constitute a cause of action, and shall first consider that question.

In substance, the amended complaint alleges that the plaintiff on August 6,1941, ordered a new International Pickup truck from Amundson & Baur, upon the following terms and conditions: $325.00 of the purchase price was to be paid by a credit equal to the value of a used automobile to be turned in by the plaintiff to the defendants, and the plaintiff was to give Amundson & Baur a note for $609.34, the balance of the purchase price, together with a conditional sales contract and a chattel mortgage upon the truck. The order called for insurance on the truck, and the stipulated purchase price included a charge for insurance against fire, theft and collision. At the time the order was given plaintiff informed defendants that she “preferred to carry her own insurance ’ ’, but was advised by the defendants that until the truck was fully paid for the defendants would obtain the insurance for her. Subsequently, on August 11,1941, the truck was delivered to the plaintiff who delivered her used automobile to the defendants and executed the note, conditional sales con-ti-act, and chattel mortgage in accordance with the *275 terms of the order. Later the plaintiff paid for the truck in full. She had at that time arranged to obtain insurance from a company of her own selection, but was informed by the defendants that until she signed “a release for the insurance” the truck was insured, and that they would present such release to her for her signature, but never did so. It is alleged that the representation that the truck was insured was knowingly false, that plaintiff relied on it, and that on September IB, 1941, the truck was “involved in an accident” and “practically demolished”. It is further alleged that on October 1, 1941, at defendants’ request and upon their assurance that her car had been insured and that she owed the premium for such insurance, she paid an insurance premium of $47.25 to the defendant International, although the defendants at that time knew that the truck was not insured and had been wrecked. It is next alleged that on October 1,1941, the plaintiff delivered the truck to the defendants in consideration of their agreement “to deliver the car to Prineville for repairs”, and said car was delivered to Terrell’s Body & Paint Shop at Prineville, Oregon; that the repairs should have been made and the truck redelivered to plaintiff within thirty days; that the defendants failed, neglected, and refused to order said repairs and refused to pay plaintiff the value of said car; that the defendants stored the truck in a garage at Prineville; that “towage and storage accrued against it”, and that on May 6, 1942, the truck was advertised for sale for storage charges; that the defendants failed to buy in the truck or to notify the plaintiffs that they would not do so; and the truck was sold on June 2, 1942, by the sheriff of Crook County, Oregon, and plaintiff “thereby deprived of all right, title, and interest in *276 and to said car.” Paragraph XVI of the amended complaint reads:

“That by reason of defendants’ wrongful conduct as aforesaid plaintiff was deprived of the use of said car between November 1st, 1941, to April 18th, 1942, to her damage in the sum of $5.00 per day, or a total of $845.00 and on June 2, 1942 was deprived of her ownership in said car to her further damage in the sum of $869.00 and the further sum of $47.85 insurance charges which the defendant caused plaintiff to pay on October 1st, 1941 by assuring her the car had been insured at the time of the accident on September 13th, 1941. ’ ’

The prayer is for damages as alleged in the paragraph just quoted.

Before the trial the defendants orally submitted a motion to require the plaintiff to elect whether she would proceed on the theory of a liability against the defendants for (1) failure to procure insurance for the plaintiff’s truck, (2) claim of liability against the defendants for failure to repair the truck, and (3) a claim of liability against the defendants for allowing the truck to be sold for the payment of storage charges. The court denied the motion and announced that the case would be submitted to the jury, if at all, upon the theory that the action was brought for failure to procure insurance for the truck and that the other matters mentioned in the complaint were, in the opinion of the court, evidentiary.

On the argument here counsel for the plaintiff stated that the action is not one for damages for breach of an oral agreement to insure the truck, but is one for its conversion. The amended complaint, the essential allegations of which we have attempted to summarize, mixes up in one cause of action different alleged wrongful acts in such a manner as to tend to conceal, *277 rather than make plain, the theory upon which the pleader intended to proceed. There are' allegations appropriate in an action of fraud; a breach of an agreement to procure insurance is certainly alleged; but apt words to charge conversón are nowhere to be found.

The difficulty is partly resolved by reference to the allegations of damage in Paragraph XVI. They show conclusively that a cause of action for breach of an oral agreement to insure has not been stated. The measure of recovery in such an action against an insurance agent (and we take it that no different rule would apply here) would be the same as in an action upon the policy had one been issued — in this ease the extent of the damage to the automobile. Hardwick v. State Insurance Company, 20 Or. 547, 553, 26 P. 840; British Insurance Company v. Lambert, 26 Or. 199, 202, 37 P. 909; Humphry v. Hartford Fire Insurance Company, 15 Blatchf. 35, Fed. Cas. No. 6974; 32 C. J., Insurance 1089, § 172. See cases in annotation, 18 A. L. R. 1219. Not only is the extent of the damage to the truck not alleged (“practically demolished” is wholly insufficient), but, with the exception of the claim for the insurance premium paid by plaintiff, Paragraph XVI attributes the damages not to breach of an agreement to insure, but to the wrongful acts of the defendants after the truck was delivered to them to be repaired. The demand for return of the insurance premium is itself a repudiation of the theory of a cause of action based on an agreement to insure, because if the plaintiff was entitled to the insurance, or its equivalent by way of damages, she would be required to pay the cost of a policy. 32 C. J., Insurance 1090, § 172.

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Bluebook (online)
141 P.2d 837, 172 Or. 270, 1943 Ore. LEXIS 94, Counsel Stack Legal Research, https://law.counselstack.com/opinion/williams-v-international-harvester-co-or-1943.