880 F.2d 995 (8th Cir. 1989), 88-2484, Hines v. A.O. Smith Harvestore Products, Inc.

Docket Nº:88-2484.
Citation:880 F.2d 995
Party Name:Floyd HINES and Mildred Hines, Appellants, v. A.O. SMITH HARVESTORE PRODUCTS, INC., et al., Appellees.
Case Date:July 26, 1989
Court:United States Courts of Appeals, Court of Appeals for the Eighth Circuit
 
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Page 995

880 F.2d 995 (8th Cir. 1989)

Floyd HINES and Mildred Hines, Appellants,

v.

A.O. SMITH HARVESTORE PRODUCTS, INC., et al., Appellees.

No. 88-2484.

United States Court of Appeals, Eighth Circuit

July 26, 1989

Submitted June 16, 1989.

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Brock R. Snyder, Topeka, Kan., for appellants.

John C. Dods, Kansas City, Mo., for appellees.

Before JOHN R. GIBSON, Circuit Judge, FLOYD R. GIBSON, Senior Circuit Judge, and WOLLMAN, Circuit Judge.

FLOYD R. GIBSON, Senior Circuit Judge.

Floyd and Mildred Hines appeal from an order of the district court granting A.O. Smith Corporation and A.O. Smith Harvestore Products, Inc.'s joint motion for summary judgment and Agristore Credit Corporation's motion for summary judgment. The district court concluded that the Hineses' breach of contract and fraud claims were barred by the applicable statute of limitations. For the reasons that follow we reverse and remand.

I. BACKGROUND

Because this is an appeal from a grant of summary judgment, we will relate the facts in the light most favorable to the appellants Floyd and Mildred Hines. This is a diversity case brought by the Hineses against A.O. Smith Corporation, A.O. Smith Harvestore Products, Inc., and Agristor Credit Corporation (collectively referred to as Harvestore). 1 The Hineses are farmers who purchased Harvestore grain silos for their farming operation in southwest Missouri. The Hineses purchased two silos and related equipment, one in September 1976 and one in October 1976. These silos were purchased based on numerous oral and written representations and warranties made by the Harvestore salesmen and contained in promotional pamphlets and videos prepared by Harvestore.

The two Harvestore silos were installed on the Hineses' property in September and October of 1976. The Hineses agreed to purchase the silos only after repeated solicitations by the local Harvestore dealer and a Harvestore salesman. Various representations were made to Floyd Hines to induce him to purchase one or more Harvestore silos. He also attended large meetings which were held to promote the sale of the Harvestore silos. The representations concerning the performance of Harvestore silos were made orally by Harvestore dealers and salesmen, and through pamphlets, brochures, books, and fliers. In addition, the Hineses were persuaded by Harvestore dealers and salesmen to visit other Missouri farms to see the Harvestore silos in operation.

The Harvestores were represented to be the state of the art in feed storage systems. The Harvestores were described as "oxygen free" and/or "oxygen limiting" structures which sealed out oxygen and thus enhanced the nutritional value of the grain stored in the silo. This enhancement of the nutritional value of the silage was accomplished through the process of fermentation.

The Hineses were told that they would be able to extend their feed supply because the Harvestores would prevent spoilage. Because the Harvestores would enhance

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the silage stored within them, Mr. Hines was told that he would no...

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