JAMES P. ACED, Rеspondent, v. HOBBS-SESACK PLUMBING COMPANY (a Partnership), Appellant
S. F. No. 20188
In Bank
Apr. 6, 1961
55 Cal.2d 573
Ropers, Majeski & Kane and Eugene J. Majeski for Respondent.
GIBSON, C. J.—This is an appeal by cross-defendant Hobbs-Sesack Plumbing Company (hereafter called Hobbs) from an order granting a new trial to cross-complainant Aced, who was doing business under the fictitious name of Functional Construction Company.
It appears that the job of installing the heating system was done in a workmanlike manner, and Aced stipulated that he was relying solely on the theory that there had been a breach of an implied warranty of merchantability. The court found that there was a sale of the tubing by Hobbs to Aced under a written agreement giving rise to an implied warranty of merchantability but that there was no breach of the warranty because the leaks could hаve been produced by several causes and Aced had failed to prove that they were due to unmerchantable quality of the tubing. The court also concluded that Aced‘s cause of action was barred by the four-year limitation of
A preliminary question is presented as to whether the court‘s order may properly be treated as granting a new trial upon the ground of insufficiency of evidence.
Several cases decided by the District Courts of Appeal have held, contrary to the views we havе expressed, that a declaration in the order that a new trial is granted as to “all issues,” or as to all issues made by the pleadings, adequately specifies the ground of insufficiency of the evidence. (Legg v. Mutual Benefit H. & A. of Omaha, 136 Cal.App.2d 887, 890-892 [289 P.2d 550, 290 P.2d 87]; Bayley v. Souza, 42 Cal.App.2d 166, 169-172 [108 P.2d 725]; Lucerne Country Club v. Beal, 21 Cal.App.2d 121, 124-128 [68 P.2d 408]; see Piru Citrus Assn. v. Williams, 95 Cal.App.2d 911, 914-916 [214 P.2d 426].) These cases rely in part upon the general principle that the correctness of a court‘s order will be presumed, and they express the view that if the language used is susceptible of being interpreted as showing an intent
We are not concerned here with the cases which have held that an order granting a new trial with respect to the issues of excessiveness or inadequacy of damages constitutes a proper specification of the ground of insufficienсy of the evidence as to those issues. (E.g., Sinz v. Owens, 33 Cal.2d 749, 760-761 [205 P.2d 3, 8 A.L.R.2d 757]; Kralyevich v. Magrini, 172 Cal.App.2d 784, 787 et seq. [342 P.2d 903]; People ex rel Dept. of Public Works v. McCullough, 100 Cal.App.2d 101, 104-105 [223 P.2d 37]; Cox v. Tyrone Power Enterprises, 49 Cal.App.2d 383, 389-390 [121 P.2d 829]; cf. Secreto v. Carlander, 35 Cal.App.2d 361, 364-365 [95 P.2d 476].) These cases, correctly or incorrectly, rely upon the theory that an order granting a new trial for excessive or inadequate damages necessarily includes a specification that the evidence is not sufficient to support the judgment. No such problem, of course, is presented here. We are likewise not concerned here with cases which hold that where the sole ground for new trial stated in the motion is insufficiency of the evidence, an order for new trial made without statement of any ground is adequate to show that it was granted on the ground of insufficiency of the evidence. (E.g., Ice-Kist Packing Co. v. J. F. Sloan Co., 157 Cal.App.2d 695, 697-699 [321 P.2d 840]; cf. Van Ostrum v. State of California, 148 Cal.App.2d 1, 4 [306 P.2d 44].)
It follows from what we have said that the order of the trial court did not amount to a specification of insufficiency of the evidence as a ground for granting a new trial. However, in view of the fact that before we could reach this conclusion it was necessary to disapprovе of cases upon which both the trial court and counsel may have relied with respect to the form of the order, we feel that we should not refuse to consider the ground of insufficiency of the evidence as a basis
Hobbs contends that the order granting a new trial must be reversed because, it asserts, as a matter of law no decision may properly be reached other than the one originally made by the trial court. As sepаrate reasons for this conclusion it argues that under the circumstances of this case there was no implied warranty of merchantability, that even if such a warranty existed there is no substantial evidence that it was breached, and that Aced‘s action is barred by the statute of limitations.
In determining whether there was an implied warranty of merchantability we must first consider whether, as found by the trial court, the transaction between the parties was a sale, in which event the warrаnty provisions of the Uniform Sales Act (
Several cases not involving the statute of frauds have applied the Massachusetts rule in holding that there was no sale in situations where the person supplying the labor and materials incorporated the product into a building. (Authorized Supply Co. of Arizona v. Swift & Co., 277 F.2d 710, 712 [refrigeration installation]; Rino v. Statewide Plumbing & Heating Co., 74 Idaho 374 [262 P.2d 1003, 1005] [heating system]; Crystal Recreation v. Seattle Assn. of Credit Men, 34 Wn.2d 553 [209 P.2d 358, 362] [restaurant fixtures]; see Thomas v. Buttress & McClellan, Inc., 141 Cal.App.2d 812, 815 [297 P.2d 768] [construction of building]; United States v. San Francisco Electrical Contractors Assn., 57 F.Supp. 57, 67 [construction of building]; 77 C.J.S. 584-585; cf Steiger etc. Pottery Works v. Sonoma, 9 Cal.App. 698, 700-701 [100 P. 714] [contract to manufacture tile and set it on roof].)
In such a situation the test is not whether the materials used were specially manufactured for the particular work but whether the finished product in which they are incorporated is specially constructed for the job and not suitable for use in the ordinary course of the contractor‘s business. Here the tubing was embedded in concrete as part of a heating system designed for the particular home in which it was installed.
The following decisions, cited by Aced for the proposition that the transaction was a sale under the Uniform Sales Act, are not persuasive here: Burge Ice Machine Co. v. Weiss, 219 F.2d 573; Service Conveyor Co. v. Shatterproof Glass Corp., 219 F.2d 583; Wiseman v. Gillioz, 192 Ark. 950 [96 S.W.2d 459]; Carver v. Denn, 117 Utah 180 [214 P.2d 118]. The two federal cases were both governed by Michigan law and were decided solely on the authority of Cox-James Co. v. Haskelite Mfg. Corp., 255 Mich. 192 [237 N.W. 548], in which no question was raised as to whether or not there was a sale but the
For the reasons given we conclude that the contract is one for labor and material.
There may nevertheless be an implied warranty. It was said in Gagne v. Bertran, 43 Cal.2d 481, 486 [275 P.2d 15], that for historical reasons warranties have become identified primarily with transactions involving the sale or furnishing of tangible chattels but that they are not confined to such transactions. Several cases dealing with construction contracts and other contracts for labor and material show that ordinarily such contracts give rise to an implied warranty that the product will be fit for its intended use both as to workmanship and materials. (Kuitems v. Covell, 104 Cal.App.2d 482, 484-485 [231 P.2d 552]; Economy Fuse & Mfg. Co. v. Raymond Concrete Pile Co., 111 F.2d 875, 878-879; In re Talbott‘s Estate, 184 Kan. 501 [337 P.2d 986, 989]; Mann v. Clowser, 190 Va. 887 [59 S.E.2d 78, 84]; cf. Jose-Balz Co. v. De Witt, 93 Ind. App. 672 [176 N.E. 864, 865]; Baerveldt & Honig Construction Co. v. Szombathy (Mo.), 289 S.W.2d 116, 120.) These cases support the proposition that although the provisions of the Uniform Sales Act with respect to implied warranty (
As we have seen, Aced stipulated that in his action against Hobbs he was relying solely on breach of an implied warranty of merchantability. The reference in the stipulation to merchantability, a term generally used in connection with sales, does not preclude reliance on breach of warranty although the contract is one for labor and material. With respect to sales, merchantability requires among other things that the substance sold be reasonably suitable for the ordinary uses it was manufactured to meet. (Simmons v. Rhodes & Jamieson, Ltd., 46 Cal.2d 190, 194 [293 P.2d 26]; Burr v. Sherwin Williams Co., 42 Cal.2d 682, 694 [268 P.2d 1041].)
There is no merit in Hobbs’ contention that the evidence is insufficient to show a breach of a warranty of merchantability. The evidence shows that the leaks in the tubing used in the radiant heating system were caused by corrosion. The tubing was made of steel and was coated with plastic to prevent corrosion, which would occur if the coating was broken or scratched and not repaired. An expert testified that the coating on this type of tubing could be damaged in many ways during the normal course of installation, that the abrasive action of stones contained in the concrete in which the tubing is embedded or the boots of workmen walking over the tubing would cause its coating to chip, that workmen are required to walk on it “in the natural course of this kind of job,” that the tubing had leaked on other jobs which had been done in the customary manner, and that its coating was “insufficient” and, “having failed,” left only a “piece of steel pipe that corroded in accordance with the usual laws of nature.”
Nor do we agree that Aced‘s action was barred by subdivision 1 of
We are satisfied, however, that this is a case which could properly be found to come within the operation of the
As illustrated by the cited Missouri case, the principle in question has been followed with respect to implied as well as express warranties, and it has long been recognized in this state that the time when the statute of limitations begins to run is the same whether a warranty is express or implied. (Cf. Gross v. Kierski, 41 Cal. 111, 114.)
A warranty that the tubing was of а quality reasonably permitting its use in a radiant heating system would include a prospective warranty that the tubing would not, within a reasonable period of time, corrode and leak. It obviously could be determined that a reasonable time had not expired when the leaks were first noticed about a year after the heating system had been installed. Even if it might be inferred from some of the evidence that the tubing was so defective in character that a general contractor such as Aced should have discovered the defect at some time before the leaks occurred, there is other evidence from which a contrary finding could be made. There is testimony, for example, that at the time of the transaction those engaged in the building trade, as well as governmental agencies, believed that the brand of tubing used was of merchantable quality, and
Mary Pickford Co. v. Bayly Bros., Inc., 12 Cal.2d 501 [86 P.2d 102], is readily distinguishable. That case did not involve a warranty of merchantability but a warranty that securities issued by the defendants were genuine and valid. The warranty arose out of an implied representation that the corporation commissioner had authorized issuance of the securities, and the falsity of that representation could easily have been ascertained at the time of the transaction. There was thus no warranty relating to a future event before which the defect could not reasonably have bеen discovered. In holding that the statute of limitations began to run as of the time of the transaction, the court stated: “The typical warranty, being an undertaking regarding the quality of goods at the time of their sale must, if ever broken, be broken at that time; and the statute of limitations, therefore, begins to run immediately.” (12 Cal.2d at p. 521.) This statement, as shown by the word “typical,” was made solely with respect to the ordinary situation and was not intended to affect the rule regarding prospective warrаnties.
It should also be pointed out that the filing of Aced‘s suit may have been timely regardless of whether the running of the statute of limitations began when the heating system was installed or when the leaks appeared. The statute of limitations is tolled where one who has breached a warranty claims that the defect can be repaired and attempts to make repairs. (Southern Calif. Enterprises v. D. N. & E. Walter & Co., supra, 78 Cal.App.2d 750, 755; Louisville Silo & Tank Co. v. Thweatt (Ark.), 295 S.W. 710, 712; Heath v. Moncrieff Furnace Co., supra, 156 S.E. 920, 922; see Williston on Contracts [rev. ed. 1938] § 2020, p. 5677; 75 A.L.R. 1086, 1087.) Whether this rule is applicable is not entirely clear from the present record, but there is testimony that early in 1954 a representative of Hobbs came to the home when the owners complained of hearing running water under the floor, that he made holes in the concrete floor of the living room and
The order granting a new trial is affirmed.
Traynor, J., McComb, J., White, J., and Dooling, J., concurred.
PETERS, J., Concurring and Dissenting.—I dissent from that portion of the majority opinion that holds that when a motion for new trial is made on several grounds, including insufficiency of the evidence, and is granted on “all issues” or “as to all the issues made by the pleadings,” such order does not adequately specify insufficiency of the evidence. I concur with all other portions of the majority opinion.
In reaching the conclusion that an order granting a new trial in the form above described does not include insufficiency of the evidence, the majority opinion frаnkly concedes that its conclusion is contrary to the existing case law on this subject, and finds it necessary to overrule that case law. The cases thus specifically overruled are Legg v. Mutual Benefit H. & A. of Omaha, 136 Cal.App.2d 887 [289 P.2d 550, 290 P.2d 87]; Bayley v. Souza, 42 Cal.App.2d 166 [108 P.2d 725]; Lucerne Country Club v. Beal, 21 Cal.App.2d 121 [68 P.2d 408]; and Piru Citrus Assn. v. Williams, 95 Cal.App.2d 911 [214 P.2d 426]. The earliest of these cases was decided in 1937, and the latest in 1955. In two of the four cases—the Legg and Bayley cases—hearings were denied by this court. In the Bayley case there was a dissent, fully setting forth the arguments now approved by the majority, but nevertheless this court denied a hearing, with two justices voting for a hearing.
Thus, the point overruled is not a new or novel one, but to the contrary has been the announced law of California at least since 1937, a period of 24 years. No case has been found containing the interpretation approved in the majority opinion. Certainly the majority cites no such case, and I have found none. Thus, the rule announced by the four overruled cases is well settled and presumably is well known to and has been followed by trial judges and lawyers in this state. In frank acknowledgment of this fact, the majority takes the highly unusual position that the old overruled rule shall be applied to the instant case and that the new rule shall be applied prospectively only. Under the circumstances of this case, that amounts, practically, to conceding that the
There is no doubt, of course, that this court possesses the power to overrule prior cases, and also, in proper cases, possesses the power to make its decisions operate only prospectively. But these powers should be exercised sparingly, and only when there exist compelling reasons of policy, logic or law that require their exercise. No such reasons are announced by the majority. In fact, in my opinion, they do not exist.
Certainly, it can be said, that the rule announced in the overruled cases is not only a possible but is a reasonable interpretation of
The majority opinion seems to recognize the correctness of the well-settled rule that a general order granting a new trial on the issues of excessiveness or inadequacy of damages constitutes a proper specification of insufficiency of the evidence. At least one fairly recent Supreme Court case and four appellate court casеs are cited as announcing such a rule. If such a specification “necessarily” includes a specification of insufficiency, so does the specification of “all issues” necessarily and inevitably include insufficiency as one of its grounds.
Under these circumstances it is my opinion that we should not overrule the existent well-settled rule, and certainly should
For these reasons I dissent as to the one issue discussed. On all other issues I am in hearty accord with the opinion as written.
Schauer, J., concurred.
