DocketNumber: File No. 5872.
Citation Numbers: 238 N.W. 552, 61 N.D. 452, 78 A.L.R. 1338, 1931 N.D. LEXIS 297
Judges: Birdzell, BuRKE, Bukke, Burr, CheistiaNsow, ChristiaNsoN, Nubs, Nuessle
Filed Date: 8/22/1931
Status: Precedential
Modified Date: 11/11/2024
[EDITORS' NOTE: THIS PAGE CONTAINS HEADNOTES. HEADNOTES ARE NOT AN OFFICIAL PRODUCT OF THE COURT, THEREFORE THEY ARE NOT DISPLAYED.] *Page 454
[EDITORS' NOTE: THIS PAGE CONTAINS HEADNOTES. HEADNOTES ARE NOT AN OFFICIAL PRODUCT OF THE COURT, THEREFORE THEY ARE NOT DISPLAYED.] *Page 455 On July 16th, 1928, plaintiff entered into a written contract with the defendant for the purchase of one Rumely No. 3 Pr. Combine Harvester with standard equipment, also one 2 ft. extension, one flax sieve and one pickup attachment. The purchaser agreeing to pay the freight and charges from the factory, and upon delivery or tender thereof, settle therefor the purchase price of $1,581 as follows: $250 cash and notes at eight per cent from date, one note for $666 due September 1, 1928, and one note for $665 due September 1, 1929. All notes to be secured by first mortgage on said machinery, and also by a mortgage on one half interest in two hundred acres of wheat on the southeast 1/4 of the southwest 1/4 of 32 and the northeast 1/4 of 31, 139, 93. The machinery was sold under the following warranty.
(2) "Said machinery (except belts, magnetos, and other accessories and parts not manufactured expressly for seller, none of which are warranted) is purchased and sold upon and subject to the following expressed warranty and agreements, and none others: When properly adjusted and competently operated according to seller's instructions on land or grain in suitable condition it will be capable of doing as good or better work than any other machine of the same kind, size and rated capacity working under like conditions on the same job.
(3) "Seller agrees to repair or replace free, F.O.B. factory, any part (except parts not warranted) which with proper use proves defective *Page 459 during the first three months after delivery, provided the defective part is returned to seller's branch through which it was sold, charges prepaid, within four months after delivery, and seller on inspection is satisfied it is defective. Remedy and damages for failure to repair or replace defective parts shall be limited to the cost of such part or parts, as fixed by seller's current repair price list.
(4) "Purchaser agrees to give each machine a fair trial in the manner aforesaid as soon as possible after delivery, and within five days after its first use, which, it is agreed, is a reasonable time for purchaser to inspect and test same, for latent, patent or other defects and if he shall claim it fails to fulfill said warranty he shall give seller written notice by registered letter addressed to LaPorte, Indiana, and also at seller's branch place of business through which said machine was sold, mailed within four days from the date during trial period when such defect or failure first appears, specifying the machine and in what particular it fails to fulfill the warranty, and allow a reasonable time for seller to send a competent man to examine it and put in order to comply with this contract, purchaser agreeing to render friendly assistance without compensation for labor or material furnished; or allow seller, at its option, to substitute a machine or part which when tested under like terms and conditions as to notice and otherwise shall comply, upon failure so to do the purchaser shall immediately discontinue the use of said machine, or substituted machine, shall place the same, in as good condition as when received, at the disposal of seller at the place where he received it, free of charge, give seller immediate written notice thereof, and this sale and purchase of such defective machine or part shall be considered rescinded; seller shall return the money, notes and securities received, or proportionate part thereof, and this shall constitute the exclusive remedy of each party and a full settlement and release of all claims of every nature by one against the other pertaining to this transaction, except the obligation of purchaser to pay for all machinery not defective, and in no event shall seller be liable for any damage on account of any breach of warranty or omission by it in excess of the purchase price paid for the defective goods. Purchaser shall pay all expenses due to improper handling. . . .
(5) "Failure of purchaser to give said notice or to strictly comply with each and every covenant, promise and condition hereinbefore *Page 460 specified to be performed or permitted by him as and when stated, or retention of possession or use of said machine or substitute subsequent to said times of test shall constitute an unconditional acceptance thereof and fulfillment of all warranties and obligations of seller, and no assistance rendered by seller in operating said machine or remedying any defect either before or after said trial shall waive or excuse purchaser for failure to give said notices or to comply with said covenants and conditions.
(6) "There are no terms, conditions or warranties, express, implied or statutory of quality, fitness, capacity or otherwise of the goods ordered other than or different from the printed conditional warranty aforesaid.
(7) "If this order includes more than one machine or attachment it will constitute a separate order for each machine or attachment at separate prices bearing the same ratio to the price of all as the list price of each bears to the total list price of all as shown by seller's current price list, and . . .
(12) "Should any part, term or provision of this contract be by the courts decided to be illegal or in conflict with any law of the state where made, the validity of the remaining portions or provisions, or the right of seller to recover from purchaser the aforesaid purchase price of said goods, shall not be affected thereby. . . ."
At the time of the delivery of the machine to the plaintiff he signed a receipt stating: "It is expressly understood and agreed that the above described machinery is received by the undersigned under and pursuant to the terms and conditions of said written warranty, and not otherwise (any changes in the machinery ordered or terms of payment notwithstanding), and that said written order and warranty contains all the agreements and understandings between us on account of or pertaining to said purchase of said machinery, oral or otherwise."
M.H. Eskestrand was defendant's agent at Richardton, N.D., and the machine was purchased through him. Testifying for the defendant he said: "The machine arrived on the third of August. They had them all assembled, it appeared so and they found it was wrong and had to take the pickup off and rebore the holes for it to fit. They finally got them assembled and it took out a day and half extra. Bratberg took his machine out. I took Garrison (the defendant's expert) *Page 461 out to Bratberg and left him there. When he came in he asked for the expert and I called Fargo and asked them if they could get an expert out there and they told me he was at Beach, and I called the hotel at Beach. I tried a long time to get in touch with the expert." Ques. "What was this story about your phoning to Malmo and telling him that these people were going to return their machines and wanted their money back?" Ans. "No, it might have been like Jesperson, said, they might have threatened to. I don't recall that Bratberg came into the store on October 1928, and said that he didn't want the machine, that he wanted his money back. He might have. I went to Fargo in July 1929, with Bratberg and these other gentlemen to see Mr. Malmo. I suggested that all three of them go down to Fargo, and maybe they could iron out this stuff whatever they figured they had coming and I said you better go down there, they were kicking about the machine had not been assembled right and that it should have been fixed before this time, and that they were promised before that replacement parts would come in. They insisted that I go with them. I took them in the office and I said to Mr. Malmo, here is the three fellows face to face now you can have it out. Malmo put down the repairs on a piece of paper for each one, and he said they could go out and get whatever they agreed on there, and they could have it. Hamann and Malmo had a little tilt to start with, but they got it ironed out. That was in the latter part of July 1929. Bratberg came into Richardton on the 15th of August and said he did not want the machine, and wanted his money back. He came in on the 26th day of August and I said, ``Hello Oscar, how is your combine working?' And he said, ``Just fine, you know I found where my trouble was. It was in the feeder raddle chain, it was too tight. After I started out this fall it broke every few rods, so I loosened it a little and haven't had as much trouble with my combine as I would have with my binder.' Several days afterwards, I saw Mr. Bratberg and he asked me when I wanted the combine. I told him I was agent no longer, and that was all that was said. I had a conversation with Bratberg and Jesperson in October 1928, I told them I had a letter from the Fargo office that every part that was damaged or showed flaws or whatever was broken and such stuff they would replace."
Bratberg testified: "I had 550 acres in crop in 1928, I have operated farm machinery, binders, threshing machines, tractors but had never *Page 462 seen a Rumely No. 3 Combine operate before. The machine was delivered to me at Richardton. Mr. Garrison took them off the cars and set them up. We had to take the platform all apart and the header apart in order to drill holes to fasten the pickups on. The holes were drilled wrong. It was along about the eighth or ninth that we got them set up. We followed the instructions in the book furnished by the company, and the expert also gave advice. Mr. Garrison (the expert) was present when we started the machine, around the tenth or twelth of August. We started first to pick up some grain that we had swathed down with the header. (Grain lying in the swath.) It had been drying for four or five days and would average about twelve bushels to the acre. We started to pick up this grain and the pin on the drive sheared off when we had gone just a few rods. We had to stop to put in a new one, we only went a short distance when the same thing happened again. The pickup was too heavy for the platform and weighed it down and it was out of shape. It must weigh about 600 pounds. Going over a little rough ground where the ground would vary there was too much weight there, and it would twist the platform which would become uneven and it sagged and twisted from one side to the other. This would make quite a load on the drive and shear the pin, and the general frame of the machine would twist too. It would throw the sprockets out of line on the header part and throw the chains off, break the links, and the sprockets would get out of line. The chains would come off or break, this happened three or four times every round. We started about ten o'clock in the forenoon, we worked until noon, and after dinner until four o'clock picking up three or four acres, and going down hill it would not pick the grain up. Garrison (the expert) stayed until we took the pickup off and changed it into a straight combine. Mr. Garrison suggested that we do this. About two days after he left we started the combine, and the chains would come off the same as before and shear pins. We had to stop to make repairs three or four times every round. We operated it two or three days, and the machine kept on troubling the same as when we started in. We cut ten or twelve acres in two or three days, straight combining, working full days. I went to Mr. Eskestrand and I said, ``I am not satisfied, and I want to know what to do,' and he said, ``maybe the machine man they sent did not set it up quite right, or adjust it quite right,' and he said, ``maybe we can get *Page 463 another man to adjust it.' He advised me to go home and do the best I could with the machine until he could get a man there. I did, and it worked just as it did before. We averaged about six or seven acres a day. I went back to Eskestrand and told him the machine was not working any better and the expert did not seem to show up and I wanted to return the machine. He said, ``I will call up Mr. Malmo.' I heard him call Mr. Malmo over the phone, Mr. Jesperson was present. He said to Malmo, well he said, ``Mr. Jesperson and Mr. Bratberg are in here complaining about their machines not working very good and they want to return them unless you can get men out there to fix them up.' He told us that the experts were busy and he did not know when he could get one of them but he thought it would be very soon. He again advised us to get along the best we could until the expert came. In the meantime I started out with the binder, we were making no headway with the combine so we started cutting with the binder. We went in several times after that to see Mr. Eskestrand inquiring about experts. On the sixth of September we wrote a letter to Mr. Malmo, no experts had come to that time." The letter reads as follows:
"Taylor, No. Dak. Sept. 6, 1928.
"Advance Rumely Co.
"Fargo, No. Dak.
"Dear Sirs:
"I am writing you in regard to my combine, which has not worked satisfactory from the time I got it. I have nothing but trouble and breakdowns all the while. It was not set up right in the first place, as the man that come here to set it up didn't know his stuff; so I have taken a big loss on my crop.
"I had to cut over half of my crop with the Binder and also had to hire some cut with a combine, so if you had sent a man that knew his business or sent another man when we called for one it probably would have been different.
"I also lost my threshing run on account of monkeying along such a long time not getting my harvesting done, which meant $1,000 or more loss to me, so what are you going to do about it.
"I remain yours truly, "Oscar Bratberg." *Page 464
The following letter is the answer to Mr. Bratberg's letter.
Sept. 11, 1928.
"Re: Order 61641-Oscar Bratberg.
"Mr. Oscar Bratberg,
"Taylor, N.D.
Dear Sir:
"We have your letter of the 6th advising us that the combine has not worked satisfactorily and that you have had a number of breakdowns, and you ask what we are going to do about it.
"I imagine the simplest way of setting forth our position on the matter, is to refer you to your copy of the purchase contract that you signed for this combine. That purchase contract sets forth clearly just what is required of you if the machine does not fulfill its warranty, and what is required of us in return.
"We have never had any notice from you within the period covered by the order form, to the effect that the machine was not fulfilling its warranty, and can only conclude therefore that it has done so. You may have had some minor difficulties, that we do not question as we are not in position to argue it with you, but in any event you evidently did not have difficulties to the point of not continuing operation of the machine.
"We are not responsible for such delays or damages as you set forth, and naturally must stand on our purchase contract with you, just as you would do if the positions were reversed. Your September 1st note of $666.00 is part due, with interest from July 13, 1928, and we must insist that you kindly remit for this note in full at once in the amount of $675.00.
"Your very truly,
"Advance Rumely Thresher Co., Inc. "G.M. Malmo, Branch Manager."
"I hired Frank Madison to come with his combine. About two or three days after we had received the letter from Mr. Malmo, Mr. Peterson came out, he put on a new raddle chain or fixed up the old one and *Page 465 he worked a day, or a day and a half fixing up the machine; he said it was all right. It worked a little better for about a day or two when we ground off the sprocket of the header part. I went back to Richardton and saw Mr. Eskestrand again. Mr. Peterson was there again on the 21st and it broke while he was operating it. He told me to go to Jesperson and get a sprocket off of his machine and put on that, and I did. He put on the sprocket and started it up. It worked pretty well. The next morning we went about a mile and there goes the old fender chain through the cylinder, it broke and went through again. I went and saw Mr. Eskestrand again, that was the 28th or 29th of September 1928. I told him I was broke down again worse than before, and I wanted nothing more to do with the machine and wanted my money back, I would return the machine. I offered to bring the machine into town. He still contended it was a good machine. I did not use it any more that fall. I told Eskestrand it was there any time he wanted it, and I got Mr. Madison with his combine to finish cutting the wheat. Altogether in 1928, we cut about 125 to 150 acres of grain with the combine and had 550 acres altogether. Mr. Church came there, and said, first money was due and I better pay it. I said, I did not feel like paying until I was sure they would do something. I offered to return the machine but he did not want it. The company did come and take parts off of the machine. I did not pay Church the first note and he started a foreclosure of the mortgage on the crop, and I paid it to the sheriff. Later I had a talk with Mr. Eskestrand and he told me, later in the fall that they were going to rebuild the machines and put them in good running order before the next season. We sent Walter Hamann down to Fargo to see Mr. Malmo. I said to Mr. Church at the time I paid the sheriff, they got the mortgage and rather than have my crop tied up I would pay up and deal with the company later. Sometime later we received a letter from the company (plaintiff's exhibit 11) dated June 29, 1929, and reads as follows:
"``Dear Sir:
"``We have shipped to you by Freight Prepaid new parts for your combine, as per attached railway Bill of Lading. Please take delivery of these parts and hold them until our service man gets to you. *Page 466
"``In the course of the next thirty days one of our service men will be there for the purpose of installing these parts on your combine
"``Yours very truly,
"``Advance Rumely Thresher Company, Inc. "``J.J. McCutcheon, Assistant Branch Manager.'
"The latter part of July 1929, the expert, Mr. Peterson, installed the different parts and on the 28th or 29th Jesperson, Hamann, Eskestrand and myself went to Fargo, and talked to Malmo. When he got through with Jesperson he turned to me and said, ``what is your story,' and I said, ``very much like Jesperson's,' Jesperson said, the parts put on his machine did not seem to help any. Malmo said, ``it really did not take much to overcome the difficulty.' Jesperson said, he did not see how those parts would help any that he had not tried it, but if it keeps on working like it did last year I will return it. He asked me, if I had started it up and I said no, because, there were some parts missing yet from the year before. They had taken them off. Some parts were taken off and I hadn't received them yet. I tried to get them while we were in Fargo, but they were not on hand. I got one little part for the shute, and Malmo gave me an order to get these parts from the repair room. I started up the machine about the 10th or 11th of August in wheat that would average about 11 to 12 bushel. The machine cut good for a few days and then it came back to the same trouble I had a year before, chains broke and came off and the machine sagged and twisted. I worked with it better than a week, averaged about ten to twelve acres a day, when I got into flax I tried to cut flax it would not cut it, or separate it and I figured if it would not cut flax it was no good to me. I went to Mr. Eskestrand and told him I was going to return the machine and he said he did not want it. It was a day or two after I offered to bring it in to Richardton and put it right there by his place where I received it. He said he didn't want a thing to do with it. I then told him it would be on my dad's place. I cut the flax then with a header part of it and then Mr. Madison came and cut some of it with his combine. The machine is still there with the attachments. I am willing to return it to the company and can do so."
Mr. Bratberg was recalled for further cross-examination. Ques. *Page 467 "And the next thing that happened after you shook hands with Mr. Malmo and took your parts and Malmo said good by to you was this letter of September 4th, 1929 in which you said here is your machine, I want my money back, that is all the communication you had with the company aside from your talk with Eskestrand?" Ans. "Yes."
Plaintiff's exhibit 9 reads as follows:
"Richardton, N. Dak., April 8, 1929.
"Advance Rumely Thresher Co., Inc.,
"Gentlemen:
"We the undersigned having bought No. 3 Prairie type combines with pickup attachments, from your local dealer Martin Eskestrand, in the summer of 1928, feel that these combines did not give as good service as we expected and were told. We are making the following complaints and wish you would try to remedy these weaknesses of your combines and pickups.
"The feeder chain, raddle chain, return elevator and elevator chains, chain driving sickle, canvas and reels and also chain driving pickup are too weak and wish you would put in heavier chains with sprockets to fit.
"The wooden boxings on header spout always burn out and should have either roller or babbit bearings.
"The header spout should be built more solid and should not be sticking so far in the feeder house. The header spout either should not be sticking so far in the feeder house or the feeder should be built bigger. By building the header spout more solid it would not be so apt to tear the main canvas.
"The platform should be braced off better as it twists and sags thus throwing the drive chain off line, that drives the canvas reels, and sickle. It also tears the canvas by doing this.
"The pickup should have spring teeth and should have a stronger platform to be fastened onto, or a special platform which we think we should have as we bought these pickups with the understanding that they would work with this platform. It is impossible to use the pickup with the ordinary platform.
"The lever to raise and lower platform is too weak and we should have a stronger lever or the same attachment as on the No. 2 combine. *Page 468
"It is almost impossible to use these combines without having these parts replaced.
"Hans Jesperson V.M. Zimmerman
"Oscar Bratberg Water Hamann."
The plaintiff's testimony is corroborated in part by Mr. Knuteson, Mr. Jesperson and Mr. Hamann, and is disputed in part by Mr. Malmo and Mr. Eskestrand.
On October 1, 1929, the plaintiff brought this action to recover of the defendant the purchase price paid for the machine, claiming that there was an implied warranty that the machine was reasonably fit for the purpose for which it was purchased; that after inspecting and testing of said machine it did not prove to be reasonably fit for the purpose for which it was purchased, and that within a reasonable time after delivery, inspection and testing the contract was rescinded by giving notice to the defendant and its agent within a reasonable time and that he offered to return the said combine and attachment to the defendant and placed the same at the disposal of the defendant.
The defendant answered setting up its contract of guaranty and alleged that the combine and attachments were received and delivered under the terms and conditions of the original contract and order, that said machinery was accepted by the plaintiff after full and complete trial and examination of said machinery strictly in accordance with the terms in said order. The sale thereby became an absolute sale, and the warranty therein contained became and was, and is, fully satisfied and discharged; that said plaintiff has used said machinery for a period exceeding ten days after the date of delivery and that said machinery was reasonably fit for the purpose for which it was purchased; said defendant relies solely upon the written contract of guaranty, and alleges that the plaintiff has not complied therewith.
Defendant further alleges that chapter 238, Laws of 1919, relied upon by plaintiff is unconstitutional, that it deprives the defendant of valuable property rights, the freedom of contract, attempts to impair the right of the defendant to freely contract with its customers, and is in violation of the constitution of the state of North Dakota, and in violation of the Constitution of the United States. *Page 469
The case was tried to a jury and a verdict was returned for the plaintiff.
Service of notice of entry of judgment was admitted by defendant's attorneys on the 14th of December 1929, and on the 12th day of June, 1930, the sheriff of Stark county served upon plaintiff's attorney a motion for a judgment notwithstanding the verdict, or in the alternative for a new trial, based upon a statement of the case to be thereafter settled, allowed and certified by the court and upon all the pleadings, files, records and orders of the court. Attached to this motion is a notice that the defendant intends to move for judgment notwithstanding the verdict, or in the alternative for a new trial. The motion to be submitted to the court on the 12th day of June at the court house in the chambers of the court at Dickinson, Stark county, North Dakota, or at such time as the hearing may be extended and continued by the court. After the service of this notice upon plaintiff's attorney, he made and filed a special appearance objecting to the jurisdiction of the court to hear and determine the said motion, for reason, that the same had not been served within six months from the time of the service of notice of entry of judgment upon the defendant.
Plaintiff's objection is supported by the affidavit of H.A. Mackoff to the effect that the notice was served upon him about 11 o'clock A.M. June 12, 1930, that the court was not in session at the court house or at chambers of the court at Dickinson, in Stark county, and that said motion was not brought on for hearing at said time and place by the defendant, or by any other person, and that no proceedings at all were had, and that affiant did not have an opportunity to present a special appearance and objection to the motion at said time and place. This notice of motion to be made on the 12th day of June, 1930, does not state any hour upon which the motion will be heard, and there is in the record an ex parte order signed by the Judge dated June 10, 1930, fixing the time for hearing of said motion on August 12, 1930. There is a notice which was served August 18, 1930, on plaintiff's attorney that the motion would be brought on for hearing on the 27th of August at 10 o'clock. On the fifth day of September, 1930, the trial judge signed an order denying the motion of the defendant for judgment notwithstanding the verdict, or in the alternative for a new trial, stating, "the motion of the defendant in the above entitled action for a judgment *Page 470 notwithstanding the verdict, or in the alternative for a new trial having been noticed for hearing before the court on the 12th day of June, 1930, at Dickinson, N. Dak., and thereafter the plaintiff having filed his special appearance and objection to the jurisdiction of the court to hear the said motion, and thereafter the defendant having served an additional notice of the hearing of said motion at chambers at Hettinger, N. Dak. on the 27th day of August, 1930, and this court on the said 27th day of August, 1930, having considered the motion of the defendant for judgment notwithstanding the verdict or in the alternative for a new trial and the special appearance and objection of the plaintiff, and the court having considered the same and all of the files, pleadings, and records, and statement of the case. . . .
It is hereby ordered, that the motion of the defendant is hereby in all things denied upon the merits." Thereafter and on the 12th of September, 1930, the defendant appealed from the order.
It is the contention of the respondent that the court lost jurisdiction, for the reason, that the motion was not served in time, and that it was not waived by a general appearance.
Section 7664, Comp. Laws 1913, provides that an "Application for a new trial based upon a statement of case or affidavits, or both, except applications upon the ground of newly discovered evidence, must be heard within sixty days after the rendition of a verdict or notice of the decision of the court to be reviewed, or such further time as a court shall allow."
Section 7666, Comp. Laws 1913, provides that, "The court or judge may, upon good cause shown, in furtherance of justice, extend the time. . . ."
The notice of entry of judgment was given on the 14th of December, 1929. Nothing further was done in the matter until the 12th day of June, 1930, when the appellant served notice of his motion for judgment notwithstanding the verdict or for a new trial. This notice was served upon the same day that the hearing was to be had, viz., the 12th day of June, 1930, no hour is stated in the notice for the hearing of the motion, and it appears from the affidavit of the attorney for respondent, filed with his special appearance that there was no judge in Dickinson on that day and no opportunity for the hearing of any case. Two days *Page 471 before the date set for hearing the judge issued an ex parte order extending the time for hearing to the 12th of August.
Section 7664, supra, provides that, "All applications for a new trial, made upon the minutes of a court, must be heard upon eight days' notice, within sixty days after the return of a verdict or decision of the court." An application for a new trial based upon the statement of a case must be heard within sixty days from the rendition of the verdict or notice of a decision. No time for service of notice is specified but when the motion is based on a statement of the case, notice is, of course, required and since no time is specified it is governed by § 7955, Comp. Laws 1913, which provides that, "Notice of motion or other proceeding before a court or judge, when personally served, shall be given at least eight days before the time appointed therefor." The service of the notice of motion having been made on the same day that the hearing was noticed for, was a mere nullity and was not waived by a general appearance. There was no legal service of the motion until August 18, 1930, more than two months after the expiration of the six month period, and it is well settled in this state that the notice must be served and the date of hearing on the motion fixed within the time that an appeal may be taken from a judgment, which time is six months from the date of the service of notice of entry of judgment. Coughlin v. Ætna L. Ins. Co.
It follows, that the appeal from the order denying appellant's motion for judgment notwithstanding the verdict, or for a new trial, must be dismissed. Appellant, however, appealed from the judgment in time, specifying the same errors as those specified in the motion for a new trial and including an assignment of error in overruling a motion for a directed verdict made at the close of the case, so that every question raised on the motion for a new trial is before the court on the appeal from the judgment. "A motion for a directed verdict challenges the sufficiency of the evidence and raises question of law, reviewable on appeal from judgment." Rokusek v. National Union F. Ins. Co. *Page 472
The first contention is, that the action is in equity to rescind a contract. There is no merit in this contention. It is an action to recover the purchase price of machinery which is claimed by the plaintiff to be unfit for the purpose for which it was purchased, the purchaser claiming that the contract was duly rescinded.
Second, the appellant contends that chapter 238 of the Laws of 1919, which provides that, "Any . . . person . . . purchasing any gas or oil burning tractor, gas or a steam engine, harvesting or threshing machinery for their own use shall have a reasonable time after delivery for the inspection and testing of the same, and if it does not prove to be reasonably fit for the purpose for which it was purchased the purchaser may rescind the sale by giving notice within a reasonable time after delivery to the parties from whom any such machinery was purchased, or the agent who negotiated the sale or made delivery of such personal property or his successor, and placing same at the disposal of the seller, is unconstitutional." It is appellant's contention that this law is in conflict with the 14th Amendment to the Constitution of the United States, and § 13 of the constitution of North Dakota.
There is nothing in the 14th Amendment or in said section 13, which affects in any way the right of a state to make reasonable classifications. The 14th Amendment does not prohibit reasonable classsifications of persons and things for the purpose of legislation, but such classification is distinctly contemplated by the amendment. The state may classify persons and objects for the purpose of legislation if the classification is based on proper and justifiable distinction considering the purpose of the law. "From the earliest days, classification has been made by legislatures whereby some people have rights or suffer burdens which others do not. It has been said that it is the essence of a classification that on one classs are cast duties and burdens different from those resting on the general public and that the very idea of classification is that of inequality. The mere fact that legislation is based on a classification and is made to apply to certain classifications and not to others does not affect its validity if it be so made that all persons subject to its terms are treated alike under like circumstances and condition." 6 R.C.L. 373, § 369. *Page 473
In the instant case the law applies equally to all persons within the classification. It affects every seller of any gas or oil burning tractor, gas or steam engine, harvesting or threshing machinery in the same way. On the other hand, every person who purchases any of said machinery has the same privileges as every other purchaser of such machinery. There is no discrimination made between sellers. They all have the same burden if it is a burden and there is no discrimination between purchasers. Therefore, it is a reasonable classification, and there was no error overruling the appellant's objections, or in refusing to give his instructions requested to be given to the jury on that subject.
Section 2 of the act reads as follows: "Any provision in any written order or contract of sale, or other contract which is contrary to any of the provisions of this act is hereby declared to be against public policy and void." It is the contention of appellant that both sections of the law interfere with the freedom of contract and is a violation of the 14th Amendment of the Constitution of the United States and § 13 of the Constitution of the State of North Dakota, relying on Allgeyer v. Louisiana,
If the legislature had authority to enact a law providing that: "Any purchaser of any gas or oil burning tractor, gas or steam engine, harvesting or threshing machine for their own use shall have a reasonable time after delivery for the inspection and testing of the same, and if it does not prove to be reasonably fit for the purpose for which it was purchased the purchaser may rescind the sale by giving notice within reasonable time," it follows as a matter of course, that it would have authority to provide that any written order of contract of sale, or other contract which is contrary thereto shall be void. The statutory provisions relating to a reasonable time for inspection and testing, and to a reasonable time for returning the machinery in case it is not reasonably fit for the purpose for which it was purchased if legal, becomes a part of every contract of sale of any such machinery, and if *Page 474 the first section of chapter 238 is legal section 2 is also legal. Section 2, however, does emphasize the necessity of such legislation as a police regulation and declares all orders and contracts contrary to any provisions of the act void as against public policy.
It is well settled that a state may pass laws and police regulations for the prevention of fraud, regulating weights, measures, packages, inspection laws, substitutes, imitations, adulterations, forms of business liable to abuse, etc., but the loss occasioned by fraud which may be sustained in such business is merely nothing when compared to the loss which may be sustained by fraud and deceit in the purchase of farm machinery, in a great agricultural state like North Dakota. Even the "blue sky" laws regulating the sale of stocks is not so affected with a public interest as the sale of farm machinery in an agricultural country, and the state legislature has a wide latitude in the enactment of police regulations affecting a public interest.
In the case of Powell v. Pennsylvania,
On appeal to the Supreme Court of the United States, Powell v. Pennsylvania, supra, the court said: "It is scarcely necessary to say that if this statute is a legitimate exercise of the police power of the State for the protection of the health of the people, and for the prevention of fraud, it is not inconsistent with that Amendment; for it is the settled doctrine of this court that, as government is organized for the purpose, among others, of preserving the public health and public morals, it cannot divest itself of the power to provide for those objects; and that the Fourteenth Amendment was not designed to interfere with exercise of that power by the States. Mugler v. Kansas, *Page 475
The question was before the court again in the case of Schollenberger v. Pennsylvania,
In the case of People ex rel. Durham Realty Corp. v. LaFetra,
In the case of Strickley v. Highland Boy Gold Min. Co.
In the case of McLean v. Arkansas,
In Schmidinger v. Chicago,
In the case of Purity Extract Tonic Co. v. Lynch,
In Booth v. Illinois,
In Armour Co. v. North Dakota,
In the case of Cofman v. Ousterhous,
We have not overlooked the case of Jay Burns Baking Co. v. Bryan,
In the case of Weaver v. Palmer Bros. Co.
The case of Chas. Wolff Packing Co. v. Court of Industrial Relations,
In the case of Chicago, B. Q.R. Co. v. McGuire,
In the case of Erie R. Co. v. Williams,
In the case of Wanberg v. National Union F. Ins. Co.
It is pointed out on behalf of the company that the very application which the defendant in error signed contained an express consent that the policy should not take effect until the company's agency at Waseca, Minnesota, should have an opportunity to examine it and should accept it. It is clear that, if the statute is valid, such a consent is void, because *Page 484
it defeats the very object of the statute. This is settled by Whitfield v. Ætna L. Ins. Co.
In Holsman v. Thomas,
In the case of Hutchinson Ice Cream Co. v. Iowa,
In the cases of Merrick v. N.W. Halsey Co.
In the case of Otis v. Parker,
In the case of State v. Prince,
We are of the opinion, that chapter 238 of the Session Laws of 1919 is a reasonable regulation of the sale of certain kinds of farm machinery; that it is designed to affect a public object and has a real and substantial relation to the public object sought to be accomplished. The record in this case shows that four "combines" were sold at the same agency, on the same day to four different men in the same neighborhood; that all had the same trouble; that none of the machines were reasonably fit for the purpose for which they were purchased, and we must assume from the enactment of the law with its declaration "that all contracts contrary thereto, are void as against public policy," that there was a widespread demand for the enactment of the law as a police regulation for the protection and promotion of agriculture in the state, and it is not in conflict with the due process clause of the Constitution of the United States or the constitution of North Dakota.
Appellant's next contention is that the defendant did not rescind in a reasonable time even under the statute.
A case very much in point is the case of Dwinnell v. Boehmer,
Under the statute, chapter 238 of the Laws of 1919, the plaintiff had a reasonable time for the inspection and testing of the machine. What would be a reasonable time, in testing and determining whether a harvester combine was reasonably fit for the purpose for which it was purchased, would be an unreasonable time in the testing of some simple machine. It is a matter of common knowledge that a harvester combine is an intricate, complex machine which cuts, threshes and sacks the grain, and was something new in the harvesting of grain at that time. The record shows that the plaintiff had no experience with, and had never used such a machine. He had to rely largely on the instructions and assistance of the defendant's experts and agents. The record shows that he had trouble from the beginning. New holes had to be drilled in some parts of the machinery before it could be put together and made to fit. With the experts there working the machine it would break down three or four times in a round. The plaintiff took the matter up with the agent at Richardton within three days from the time the machine was first used as a combine and the general agent at Fargo promised to send an expert but did not until more than a month later which would certainly be an unreasonable time in the harvest season. There was such a loss of time in repairing and delay in the operation of the machine that plaintiff went back to his binder and employed Mr. Madison to cut a goodly portion of the crop with an International Combine. Clearly the jury might well find from the record that the machine was not reasonably fit for the purpose for which it was purchased. The plaintiff, after repairs were made on the machine by the defendant in 1929, started to cut on the 10th or 11th of August. He had the same trouble that he had the year before and on the 21st of August he quit using the machine and offered to bring it in and return it to Mr. Eskestrand and when Mr. Eskestrand refused to accept it he told him where it was and it would be at his disposal. It also appears from the record that he notified Mr. Malmo at the Fargo office by letter on September 4th, 1929.
We are of the opinion that it was a question of fact for the jury to determine whether the rescission was made within a reasonable time *Page 488
after determining that the machine was not reasonably fit for the purpose for which it was purchased and it was submitted to the jury under proper instructions. Appellant specified as error the admission of plaintiff's exhibit 9, the letter notifying the defendant of defects in the machinery on the ground that the letter is signed by three other different parties. If the letter had been signed by Bratberg alone it would certainly be admissible as a statement showing notice to the defendant of the defects in the machine which he purchased. There were four machines all of the same kind ordered and came to Richardton in the same shipment. Each of the parties signing the statement purchased one of the machines. Each of the parties had the same troubles. Walter Hamann had been sent down to the Fargo office as a representative of the others, prior to the writing of the letter. Statements had been made to the plaintiff and the others that these machines would be rebuilt and this statement describes the parties which were necessary to be replaced before the machine could be used. Instead of writing four different statements they made and each signed the one statement. It is a statement of the defects in plaintiff's machine. It was admissible to show that defendant had notice of such defects. The appellant further contends that the court erred in the admission of evidence of other alleged warranties and representations not contained in the written contract. The court permitted the plaintiff to prove what the agent of the company at the time of the sale said regarding the machine purchased and before the signing of the contract. It is the contention of the plaintiff that this evidence was admissible to show that the defendant knew at the time of the sale the purpose for which the plaintiff was buying the combine, and in order to prove this knowledge on the part of the defendant the plaintiff testified to conversation which took place between him and the agent as to the character of the farm the plaintiff had, its extent, the character of the crops it was raising, the size and power of the combine, how much it would cut per day and whether it would operate on rolling land of the character of plaintiff's farm. The plaintiff admits the contract of warranty, except in so far as it is modified by chapter 238 of the Session Laws of 1919, both as to the statutory warranty of reasonable fitness and the effect of the provision in the contract limiting the period of rescission to a reasonable time. These provisions of the *Page 489
statute are a part of and must be read into the contract. Dwinnell v. Boehmer,
The judgment is affirmed.
CHRISTIANSON, Ch. J., and NUESSLE and BURR, JJ., concur.
Barbier v. Connolly , 5 S. Ct. 357 ( 1884 )
McLean v. Arkansas , 29 S. Ct. 206 ( 1909 )
Strickley v. Highland Boy Gold Mining Co. , 26 S. Ct. 301 ( 1906 )
Brodnax v. Missouri , 31 S. Ct. 238 ( 1911 )
Noble State Bank v. Haskell , 31 S. Ct. 186 ( 1911 )
New York Ex Rel. Silz v. Hesterberg , 29 S. Ct. 10 ( 1908 )
National Union Fire Insurance v. Wanberg , 43 S. Ct. 32 ( 1922 )
Rast v. Van Deman & Lewis Co. , 36 S. Ct. 370 ( 1916 )
Chas. Wolff Packing Co. v. Court of Industrial Relations , 43 S. Ct. 630 ( 1923 )
Weaver v. Palmer Brothers Co. , 46 S. Ct. 320 ( 1926 )
Erie Railroad v. Williams , 34 S. Ct. 761 ( 1914 )
Orient Insurance v. Daggs , 19 S. Ct. 281 ( 1899 )
Allgeyer v. Louisiana , 17 S. Ct. 427 ( 1897 )
Merrick Et Al. v. N. W. Halsey & Company Et Al., and the ... , 37 S. Ct. 227 ( 1916 )
Yick Wo v. Hopkins , 6 S. Ct. 1064 ( 1886 )
Muller v. Oregon , 28 S. Ct. 324 ( 1908 )
Whitfield v. Aetna Life Ins. Co. of Hartford , 27 S. Ct. 578 ( 1907 )
Engel v. O'MALLEY , 31 S. Ct. 190 ( 1911 )
Butchers' Union Slaughter-House & Live-Stock Landing Co. v. ... , 4 S. Ct. 652 ( 1884 )
Northwestern Equipment, Inc. v. Tentis , 1956 N.D. LEXIS 92 ( 1956 )
Gimbel v. Kuntz , 1979 N.D. LEXIS 342 ( 1979 )
Southeast Cass Water Resource District v. Burlington ... , 1995 N.D. LEXIS 23 ( 1995 )
State v. Finney , 65 Idaho 630 ( 1944 )
Jackson v. Advance-Rumely Thresher Co. , 62 N.D. 143 ( 1932 )
Holden v. Advance-Rumely Thresher Co. , 61 N.D. 584 ( 1931 )
State Ex Rel. Workmen's Compensation Fund v. E.W. Wylie Co. , 79 N.D. 471 ( 1953 )
Uhrig v. J. I. Case Threshing MacHine Co. , 64 N.D. 189 ( 1933 )
State Ex Rel. Gammons v. Shafer , 63 N.D. 128 ( 1933 )
Hamman v. Advance-Rumely Thresher Co. , 61 N.D. 505 ( 1931 )
Land O'Lakes Creameries, In. v. Commodity Credit Corporation , 308 F.2d 604 ( 1962 )
Eggl v. Letvin Equipment Co. , 2001 N.D. LEXIS 162 ( 2001 )
Jesperson v. Advance-Rumely Thresher Co. , 61 N.D. 494 ( 1931 )