Transcontinental Refrigeration Company v. Figgins

585 P.2d 1301 (1978)

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Nature of the Case

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Facts

Matthews, a salesman for P, met with D, showed him various promotional brochures, and discussed aspects of the available display cases for meat. D ordered two 3000 units and signed a four-page document captioned 'LEASE,' together with a separate 'shipping order.' D gave Matthews a check for $918 as the 'rent' payment for the first month and the last five months of the 'lease.' The next day, Matthews informed D that the 3000 model was not available in wood grain. The only model in wood grain was one called an MD. Matthews informed D that the MD model would 'do the job' and D consequently agreed to change his order to two MD-8 cases. The 3000 unit differs significantly from the MD unit in that the 3000 model uses a 'gravity coil' system with no air circulation and the MD model has three fans which blow air over the surface of the items stored in the case. D had a new 3/4 horsepower compressor of his own that he wanted to use to operate his two MD-8 units. Matthews informed D that his 3/4 horsepower compressor might work. The factory installed compressors were eliminated from the shipping order, and D was credited with a discount for the resultant reduction in price. John Dermer, a serviceman with 17 years experience in commercial refrigeration, installed the units, hooking them up to D's 3/4 horse compressor. In operation, D observed that his meat was dehydrating inordinately fast, drying out, and discoloring. P was called, and letters and phone calls galore transpired, but P never visited to examine the cases. D eventually informed P that the display cases were not suitable for the purpose they had been purchased for and offered to return the cases in exchange for the down payment. D removed the display cases and replaced them with cases ordered from a different company. A formal notice of cancellation and rescission was served on P.

P sued for breach of the lease agreement. D denied any breach and alleged fraud and misrepresentation on the part of P. On a counterclaim, D alleged that the display cases were not fit for the purpose for which sold and did not function as represented. Warrington, a Ph.D. professor of mechanical engineering who teaches thermodynamics at Montana State University, was allowed to testify over P's objection to the effect that circulating air coolers should not be used with fresh meat because evaporation will cause the meat to 'scorch or burn.' The court denied P's claim and granted D's. Judgment was entered rescinding the contract and awarding D his $918 down payment, $563.80 in miscellaneous expenses and damages, and $585 in attorney fees. P appealed.