Majority
Headnote
[1] Jury Trials—Equity—Discretion.—The granting or refusing of a demand for a jury trial in suits in equity is entirely within the discretion of the court.Action in equity for the rescission of a contract of sale of an automobile on the ground of false and fraudulent representations inducing the purchase. The action was tried with a jury, which on May 3, 1922, returned a general verdict in favor of plaintiff. On the same day, in conformity with the verdict, the clerk entered judgment, on which notice of appeal was filed May 11, 1922. On May 18, 1922, the trial court made an order purporting to vacate the judgment entered by the clerk; in this order the trial court said that the entry of the clerk appeared to be inadvertent, and “that said judgment was so entered by the clerk prior to the rendition of any judgment in this action by this court, and without any order from this court.” On
Plaintiff had demanded a jury at the time of setting the case for trial, and at the time of trial defendant objected to its impanelment on the ground that the action was purely equitable, the only issue being the fraud charges. The court overruled the objections, and the trial proceeded before a jury. [1] The granting or refusing of a demand for a jury trial in suits in equity is entirely within the discretion of the court. (Curnow v. Blue Gravel etc. Co., 68 Cal. 262 , 264 [ 9 Pac. 149 ], (See, also, La Societe Francaise v. Selheimer, 57 Cal. 623 , and Vallejo etc. R. R. Co. v. Reed Orchard Co., 169 Cal. 545 [ 147 Pac. 238 ].)
The complaint alleges that the automobile was falsely represented to be in first-class condition in every respect, free from defects, slightly used, but carefully driven during such use, and in all respects as good as a.new car; that plaintiff believed and relied upon said representations and was thereby induced to purchase the car; that as a matter of fact the main frame of the automobile had been broken prior to June 21, 1921 (the date of the preliminary contract of purchase), had been patched up in a careless and unworkmanlike manner and was on said date weak and unfit for its purposes, and that due to such defective condition the automobile frame broke and plaintiff was unable to use it. That shortly after the breaking of the frame plaintiff learned for the first time that the automobile had been in a wreck, immediately notified defendant of his rescission of the contract, tendered back the car and demanded the return of the purchase price. The sale price of the automobile was $4,000, $1,500 of which was to be paid in cash, plaintiff’s 1916 Apperson automobile delivered at a valuation of $1,000, and the balance to be paid in installments covering a year’s time. The installment payments were anticipated and the car was fully paid for on September 6, 1921. Plaintiff prayed that the “contract be declared to be rescinded and at an end and that he recover from said defendant the sum of four thousand dollars,” together with interest and costs.
Defendant answered, denying the making of any false or
As affirmative defenses it was alleged that plaintiff was a man of large experience in the use of automobiles, acquainted with their construction and operation; and defendant set up the making by plaintiff of a preliminary order contract on June 21, 1921, after an examination of the automobile, “subject to demonstration being satisfactory to purchaser,” and containing also the following provision: “There are no understandings, agreements, representations or warranties, expressed or implied, not specified herein, respecting the goods hereby ordered.” After a demonstration of the car, defendant alleges that on June 23, 1921, plaintiff made and delivered a formal contract of purchase of said automobile, in which he admits that the automobile is in first-class condition, and also that “it is understood that no warranty accompanies said property except the standard warranty under which said car is manufactured.” It is also alleged that after delivery of the contract, in response to plaintiff’s desire to have the warranties made more definite, defendant by letter to plaintiff dated June 25, 1921, applied the standard warranty for new cars to the car sold, excepting items mentioned as trade accessories, separately warranted by the respective manufacturers thereof, on which the warranties had expired. Defendant further specifies that on completion of payment for the car on September 7, .1921, the plaintiff still being doubtful as to the sufficiency of identification of the warranties mentioned in the contract, a letter was delivered him by the company in which
The case went to trial on the issues thus framed.
Defendant concedes that “the only issue in the ease is the truth or falsity of the charges of fraud made by the plaintiff.” He complains that the trial court “committed prejudicial error in submitting the entire case to a jury,” pointing out that no special issues were submitted to the jury and that the jury returned a general verdict. [2] In this instance no harm could result from the failure to submit special issues for the following reasons: The verdict in an equitable action is merely advisory; a court is not bound by the verdict of a jury, even “where issues of fraud are involved. (Moore v. Copp, 119 Cal. 429 [ 51 Pac. 630 ]; Angus v. Craven, 132 Cal. 691 , 696 [ 64 Pac. 1091 ]; Davis v. Judson, 159 Cal. 121 [ 113 Pac. 147 ]; Cobe v. Crane, 173 Cal. 116 [ 159 Pac. 587 ].) [3] 'The trial was not concluded with the rendition of the verdict, but required findings by the court to complete the record (Vallejo etc. R. R. Co. v. Reed Orchard Co., supra). [4] The rendition of a general verdict in equity cases is not determinative of the pleaded issues. (Leonard v. Castle, 67 Cal. 41 [ 7 Pac. 34 ]; Moore v. Copp, supra; Vallejo etc. R. R. Co. v. Reed Orchard Co., supra.)
[5] It therefore follows that the action of the clerk in entering the judgment of May 3d upon the verdict was premature and without authority or effect. (Vallejo etc. R. R. Co. v. Reed Orchard Co., supra; Farrell v. City of Ontario, 39 Cal. App. 351 [ 178 Pac. 740 ].) As a corollary of this proposition it is clear that the trial court was not without jurisdiction to correct its records in the premises, even though appeal had been taken. [6] Any error or defects in a record, occurring through acts of omission or commission
Passing to a consideration of the case on its merits, the record shows that the findings of the trial court substantially followed the allegations of the complaint, with a particular finding on inducement by silence with regard to the wreck and failure to disclose the name of the former owner of the car. Judgment was for rescission of the contract and the return of $4,000 to plaintiff ordered, on which payment the automobile was to be returned to defendant. [8] It is objected that the findings and judgment of the court are not supported by the evidence.
Defendant testified that he did business in 1921 in San Francisco under the name Frasier Motor Company, and handled the Apperson agency for northern California. The automobile in question was purchased from his predecessor by one Mori some time before October, 1920, and had been in an accident in which it turned over with the purchaser, his wife and baby, killing the child. Defendant took the wrecked car from the insurance company in transactions to give Mori a new car, receiving about $1,200 from the insurance company and $250 from Mori, and the wrecked car, giving Mori a used car which had been held by defendant at $3,850. Defendant’s testimony as to the condition of the wrecked car is as follows: “ . . . The top had been mashed in and left where it was wrecked. The windshield was off, a couple of fenders were off, and the running-board.
S. A. Ponce, a garageman at Half Moon Bay who had been in the automobile and repair business since 1912, testified that he put the ear in condition to be taken into San Francisco in the spring of 1921. To defendant’s description of the elements of the wrecked condition of the car he added a third wheel dished, the side caved in, the frame was bent in on the right side and cracked on the left side. “ Cracked right at the bottom of the U bar—that is, broke, about one inch ahead of the steering gear—where the steering gear bolts on to the frame. We had to straighten the rear end. I put the car in shape so that it would run into -San Francisco. In doing so I welded this crack in the left side of the frame. At the time I towed the car into my garage the crack in the frame was on the inside of the U bar, but you could see it because the frame had sagged. My man delivered the car to the American Insurance Company and I had no communication with Mr. Frasier or Mr. Barthorpe. iWhen I saw the car this morning there was a crack in the frame through the old weld which I had put in the frame. There was also a new crack in the frame about an inch and a half from the first one.”
Being recalled, he was asked if the weld or evidence of the weld in the frame could have been detected at the time
Plaintiff testified that he was a pathologist for the United States Department of Agriculture, connected with the forestry service, that he made trips to the mountains in summer and less in winter. "While engaged in seeing about repairs to his 1916 Apperson car at the Frasier Company in June, 1921, he was urged by the men there to buy a new car. “I had conversation with Mr. Barthorpe and Mr. Conant at which Mr. Frasier was present, at the Frasier Motor Company is office on Van Ness Avenue. I stated that my work took me largely into the mountains over dangerous mountain roads; that I used the car hardly at all in the city . . . very little on the highways and mostly on dangerous mountain roads. This was in May and June, 1921, . . . at perhaps the eighth or tenth visit to their establishment. It was said that this particular car had been slightly used only; . . . that the ear was put in perfect condition; that
The letter of rescission written November 2, 1921, was introduced in evidence and it was admitted defendant received it. Dr. Meinecke further stated that he had driven automobiles for several years and was a careful driver; that although he knew something about the general relations of
Being recalled for further cross-examination, plaintiff testified that after many visits for repairs to his own car, Mr. Frasier suggested that he exchange his old car for the new car. The car was on the floor of the Frasier Motor Company’s place. “I asked Mr. Frasier why the price was so high, $4,000—so close to $4,650. The answer was that the car was in such perfect shape that it was practically as good as new, in fact better than new.”
H. E. Hobbs, an automobile machinist for seven years, testified that in October, 1921, he went to Oakdale and brought back an Apperson car. He found the car in the garage at Oakdale and “on examination found the frame was broken and sagging down. . . . There was a break there before. ... It was welded and broken apart at the weld. . . . They had not been sawed. ' I am not certain, but I think I went up there to get the car on the 7th day of October, 1921. The car had been in the Oakdale garage a couple of weeks when I got there.”
On recalling Dr. Meinecke for cross-examination, defendant introduced the preliminary contract set out in the pleadings, and the formal contract of sale, and elicited the statement from plaintiff that he had been out in the car prior to signing the formal contract, and that he liked the motor— “the motor is practically the only thing that a layman driver like myself can judge. I was satisfied with the warranty with regard to the ear itself. ... I was told that the ear with its accessories', with one exception—the tires—would be guaranteed as new accessories. That is what I referred to in this letter. I took the ear on two trips outside of San Francisco. There may have been some shorter trips. I was on the first trip, I should say, a week or ten days. Another trip was the one on which the accident occurred. That trip was to Mariposa Big Trees and from there to Angels Camp, and from there to Jamestown and to Oakdale. There is where the accident occurred. During the time from June 21st to the time of the accident I had driven 1894 or 1895 miles. After the accident at Oakdale I took the ear to a garage and came to San Francisco and communicated
On redirect he again testified that he first learned that the car had been in a wreck on October 11th. “Immediately after that I wrote to the motor vehicle department at Sacramento to find out the name of the former owner of my car, as Mr. Frasier in the conversation of October 11th did not disclose the name.”
Defendant introduced first a radiator, fender, and welding worker with an experience in that line of ten years, who testified that a recent examination of the automobile showed that the frame had been sawed in two places “from the looks of it for removing something and was straightened back, and there was a very poor job of welding. If the job had been done properly the frame would never have broken down under any condition, because welding today can be done as good as a new piece. ... It is stronger at that place than it was before if the job is done properly. A second break would never take place at the same point. The two sawed lines are absolutely straight. ... I have never known an instance where there was a break in an iron framework of that kind, where the frame was broken in absolutely parallel lines.”
On cross-examination he testified the sawing had been done prior to the welding and the welding was over the sawed part; he could see the toothmarks of the saw. They had tried to weld it. It was not welded. “The metal was never fused together and it just simply fell apart. ... It is in a place where it would be very hard to notice unless he was looking for . . . some trouble like that. . . . Where the welding shows is underneath. . . . The saw marks would be belowi”
Burton Larkins, of Larkins & Company, automobile body building and top repairing, testified for defendant that he
Arthur M. Corona, an automobile mechanic in the employ of Frasier in 1921, testified that all the work on the automobile was done under his supervision. He testified that “we . . . disassembled . „ . inspected the motor and everything in the car. Everything- was inspected and overhauled.” He detailed what was done. On inspection of the car the morning of the trial he found two cuts. “That frame has been sawed. There are two saw' marks there, about an inch and á half apart.” He stated that by sawing the framework at this particular point and then taking that part of the frame and twisting it at right angles the steering-post can be taken out without disassembling it. He did not notice the cuts or saw marks at the time.the work was done on the machine in Frasier’s shop. The cuts had something to do with the sagging of the body, or the freezing of the steering-post. “When the cap there wore out to the top the frame just sagged right down. There was just a lot of metal put on the bottom of the frame to cover up the crack. The frame itself was never welded. The metal was never fused. We lined up the frame.” Asked if he did not see the crack, he replied, “No, we did not look underneath. . . . On the side it was all right.”
On cross-examination this witness’ testimony is as follows: “The cuts were old cuts and had been in the frame for some time; I saw no tooth marks. The weld was put on after the cuts were made. We did not clean the dirt out of the frame when we repaired the car before it was sold to Dr. Meinecke.”
The mechanic who worked on the car detailed the work done on it in the Frasier shop. He did not see any cuts or breaks in the frame at the time, or evidence of any, or of
On cross-examination he stated he did not think the cuts were ever closed. “They seem to be just about as wide as a saw blade apart now.” He also stated that no welding had been done in the shop of the Frasier Company, there was no equipment there for welding.
John S. Barthorpe was employed as bookkeeper and assistant to Mr. Frasier by the Frasier Motor Company at the time the transactions respecting the car took place. He stated that the car was registered with the motor vehicle department as a demonstrator, “although this was against the law and a mistake on my part.” “I took the car to Larkins myself at the time it left the shop. At that time it was in A-l condition. That was just the chassis.”
The defendant Frasier testified that about June Id, 1921, Dr. Meinecke talked to him, saying that he would like to own a new car but could not afford one. “I showed him this particular car, told him the price was $4,000. I turned the case over to a man by the name of Conant. . . . Mr. Conant then proceeded to complete the sale. I told Dr. Meinecke the history of the car and I told Dr. Meinecke that the car had been rebuilt, and we considered it in perfect condition. I told him that the car had been turned over with a man and his wife and child, and that the child had been killed. I gave him the price of the car, I told him the entire history of the car, the man’s name as well. The car was known in my place as the Mori car. There was no secret about the car. I do not recall talking to Dr. Meinecke directly relative to this car until after he had an accident and came to my store. Dr. Meinecke came in and told me what had happened to Ms frame. The first thing I asked of Dr. Meinecke was where the car was. He said that I had nothing to do with that, he wanted to know what I was going to do. . . . In tMs conversation he did not admit that the car was in the vicinity of Oakdale. This conversation I presume was within a week or ten days after this accident.
In rebuttal Dr. Meinecke stated that Frasier did not offer to give him an automobile that had never been used, but had offered him a 1917 car which had run a long distance and was old in appearance, and the other a seven-passenger touring car for which he would have no use in his work.
[9] We think that the evidence is sufficient to sustain the findings.
Defendant complains that the judgment is not supported by the findings because the court failed to find upon the special defense in the answer concerning the contract of sale and certain written warranties. It is the contention of defendant that in the determination of the ease the trial court
Knight, J., and Oabaniss, P. J., pro tem., concurred.
A petition by appellant to have the cause heard in the supreme court, after judgment in the district court of appeal, was denied by the supreme court on January 19, 1925.
All the Justices concurred.
Cases cited
- Curnow v. Gravel 68 Cal. 262 at 264 p. 690
- La Societe Francaise D'eparngnes et de Prevoyance Mutuelle v. Selheimer 57 Cal. 623 p. 690
- Vallejo & Northern R.R. v. Reed Orchard Co. 169 Cal. 545 p. 690
- Moore v. Copp 119 Cal. 429 p. 692
- Angus v. Craven 132 Cal. 691 at 696 p. 692
- Davis v. Judson 159 Cal. 121 p. 692
- Cobe v. Crane 173 Cal. 116 p. 692
- Learned v. Castle 67 Cal. 41 p. 692
- Farrell v. City of Ontario 39 Cal. App. 351 p. 692
- Halpern v. Superior Court 190 Cal. 384 at 387 p. 693