Young Dental Manufacturing Co. v. Engineered Products, Inc.

838 S.W.2d 154, 1992 Mo. App. LEXIS 1426, 1992 WL 209691
CourtMissouri Court of Appeals
DecidedSeptember 1, 1992
Docket59943
StatusPublished
Cited by19 cases

This text of 838 S.W.2d 154 (Young Dental Manufacturing Co. v. Engineered Products, Inc.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Young Dental Manufacturing Co. v. Engineered Products, Inc., 838 S.W.2d 154, 1992 Mo. App. LEXIS 1426, 1992 WL 209691 (Mo. Ct. App. 1992).

Opinion

SATZ, Judge.

This is a breach of contract action. Defendant, Engineered Products, Inc., appeals from a jury verdict and judgment in favor of plaintiff, Young Dental Manufacturing Company. We reverse.

The parties characterize the contract in issue as a bailment contract. The dispute arises over the meaning of the contractual term “scrapped”. Defendant argues the term is unambiguous. Plaintiff argues it is ambiguous.

Plaintiff entered into the contract with defendant in January 1983. The contract provided that defendant, a custom injection molding specialist, produce certain parts for plaintiff. Plaintiff shipped to defendant three custom injection molds, a base, dome, and chimney mold. 1 Using two of the molds, a base and dome, defendant ran a production of parts in April, 1983. About four years later, in September or October, 1987, plaintiff requested the return of several molds, including the three molds shipped in early 1983 pursuant to the contract in issue. While defendant was able to return several other molds, it was unable to locate and return the base and dome molds.

The reverse side of the contract states: “Dies, tools and fixtures will be held for your [plaintiffs] exclusive use.... Tools, dies and fixtures not used for a period of three years may be scrapped.” Defendant did not produce any parts for plaintiff using the chimney, base, or dome molds at any time after April, 1983. Thus, the molds had not been used for over four years when plaintiff requested their return in 1987. Plaintiff sought damages for those molds not returned.

Plaintiff’s legal position throughout trial was that the contractual term “scrapped” required evidence extrinsic to the contract to determine the term’s correct meaning. Defendant’s defense was that the term “scrapped” was unambiguous and, thus, required no extrinsic evidence to determine its obvious, plain meaning. At the close of the entire case, defendant moved for a directed verdict on the grounds, among others, that the plain meaning of the term gave it the unconditional privilege to dispose of the molds if not used for three years. The court denied the motion. The jury returned a verdict in favor of plaintiff and awarded it $6,402.00 as damages. Defendant’s appeal followed.

Defendant raises several issues on appeal. One is the contention that the term “scrapped” is unambiguous and, therefore, needs no extrinsic evidence to determine its correct meaning. We agree. This issue is determinative, and, thus, we address only it.

As noted, the parties disagree about the meaning of the contractual term “scrapped” in the sentence: “Tools, dies and fixtures not used for a period of three years may be scrapped.” This disagreement stems from their disagreement over whether the term “scrapped” is unambiguous.

Whether a contract is ambiguous is a question of law. Harris v. Union Electric Co., 622 S.W.2d 239, 247 (Mo.App.1981); Busch & Latta Painting v. State Highway Com’n., 597 S.W.2d 189, 197 (Mo.App.1980). “A contract is ambiguous only if its terms are susceptible of more than one meaning so that reasonable men may fairly and honestly differ in their construction of the terms.” Union Center Redevelopment Corp. v. Leslie, 733 S.W.2d 6, 9 (Mo.App.1987); J.E. Hathman, Inc. v. Sigma Alpha Epsilon Club, 491 S.W.2d 261, 264 (Mo. banc 1973). A contract is not *156 ambiguous merely because the parties disagree over its meaning. Hathman, 491 S.W.2d at 264; Union Center, 733 S.W.2d at 9. To determine whether a contract is ambiguous, we consider the whole instrument and give the words in the contract their natural and ordinary meaning. Hathman, 491 S.W.2d at 264; e.g., Union Center, 733 S.W.2d at 9. Forced or strained meanings should not be used. E.g., Grantham v. Rockhurst Univ., 563 S.W.2d 147, 150-151 (Mo.App.1978). Extrinsic or parol evidence cannot be used to create an ambiguity. Harris, 622 S.W.2d at 247.

There are two kinds of ambiguity, patent and latent. The terms patent and latent are borrowed from the area of wills and trusts, where the issue is the testator’s intent, not the intent of parties to contract. A patent ambiguity arises from the face of the document; a latent ambiguity arises when the particular words of a document apply equally well to two different objects or some external circumstances makes their meaning uncertain. Busch & Latta Painting, supra, 597 S.W.2d at 197; Boswell v. Steel Haulers, Inc., 670 S.W.2d 906, 912 (Mo.App.1984).

Simply put, to paraphrase Professor Corbin, we should take people as they are and language as it is. Admittedly, a dictionary does not and cannot give all the possible meanings of a word. It can, however, give the meaning which is the ordinary meaning when used in common parlance. And, when that meaning is common enough, a court should not indulge in the vagaries of the legal mind to seek an uncommon meaning.

The meaning of “scrap” or “scrapped” has such an ordinary, everyday meaning. “Scrapped” is defined as “to make into scrap: dispose of as scrap often for salvage; to abandon or get rid of as no longer of enough worth or merit, use, or effectiveness to retain.” Webster’s Third New International Dictionary 2039 (unabridged) (1967). “Scrap” is also defined as “being in the form of scraps or fragments: valuable only as raw material.” Id. The synonym offered by Webster’s dictionary for “scrap” is “discard”. Id. Thus, to discard, to dispose of, or to abandon is the plain, common sense, ordinary meaning of the term “to scrap” and “scrapped” follows this meaning.

Nonetheless, plaintiff argues the contractual term “scrapped” is ambiguous. To support this argument, plaintiff relies on the testimony of two of its witnesses, Mr. Fred Langhauser and Mr. Don Vineyard, and one of defendant’s witnesses, Mr. Ronald McGee. Plaintiff’s two witnesses described defendant’s conduct with relation to other molds sent to defendant by plaintiff, and this conduct, plaintiff argues, is a manifestation of how defendant would or did interpret the contractual term “scrapped” in issue here.

Plaintiff’s counsel asked Mr. Langhau-ser, formerly defendant’s General Manager:

Q: Did [defendant] ever dispose of [plaintiff’s] molds to your knowledge, sir, without giving [plaintiff] any opportunity to reclaim it.

After the court overruled defendant’s objection, Mr. Langhauser answered:

A: I think the answer is no, if I recall the question.

Then, Mr.

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838 S.W.2d 154, 1992 Mo. App. LEXIS 1426, 1992 WL 209691, Counsel Stack Legal Research, https://law.counselstack.com/opinion/young-dental-manufacturing-co-v-engineered-products-inc-moctapp-1992.