Haskins v. Shelden
| Decision Date | 29 December 1976 |
| Docket Number | Nos. 2585,2596,s. 2585 |
| Parties | George S. HASKINS and Donald Hancock, Individually and d/b/a North Star Equipment Rentals, Appellants, v. Carrie A. SHELDEN and Fred Wackwitz, Appellees. Carrie A. SHELDEN and Fred Wackwitz, Cross-Appellants, v. George S. HASKINS and Donald Hancock, Individually and d/b/a North Star Equipment Rentals, Cross-Appellees. |
| Court | Alaska Supreme Court |
Before BOOCHEVER, C. J., and RABINOWITZ, CONNOR, ERWIN and BURKE, JJ.
This civil appeal arises out of a judgment of the Superior Court in a trespass and replevin action. Appeal is taken from the judgment awarding Carrie A. Shelden recovery of an Allis Chalmers tractor and $25,000 in punitive damages to be recovered from appellant George Haskins for his conversion and/or wrongful replevin of the tractor. Plaintiff Shelden has filed a cross appeal challending the trial court's rulings denying her prejudgment interest on the judgment against Haskins, and refusing to award her attorney's fees according to the schedule in Civil Rule 82(a). We affirm the decision of the trial court as to all matters raised except the award of attorney's fees. On that issue, we remand to the trial court for further proceedings.
In 1964, appellant George Scott Haskins contacted appellee Carrie A. Shelden about possible acquisition of her interest in a group on lode mining claims located off the Steese Highway near Fairbanks. The claims were held jointly by Shelden and Roudolph and Adolph Better. Shelden agreed to sell her interest in the mining claims for $35,000, taking an Allis Chalmers tractor as part payment of the purchase price. A value of $15,000 was placed on the tractor.
The Purchase and Sale Agreement for the mining claims provided that George Haskins was to pay to Carrie Shelden the agreed purchase price of $35,000, of which between $1,500 and $2,500 was to be paid on or before December 15, 1964. Haskins was also to deliver to Shelden a Bill of Sale for the HD-20 Allis Chalmers tractor. The balance of the purchase price was to be paid in three equal installments payable on October 1 of 1965, 1966 and 1967. While the payments were being made, Haskins was to have possession of the mining claims. Upon completion of the payments, Carrie Shelden was to deliver to Haskins a quitclaim deed transferring to him all of her interest in the claims. At the heart of this dispute is the extent of the interest that the parties intended to be transferred.
The Agreement which was introduced into evidence at trial originally had provided that Shelden was to deliver a quitclaim deed for a one-half undivided interest in the claims. The words 'a one half undivided' were lined out and the word 'her' inserted above the line. The interlineation is followed by the initials 'CS.' Whether the interlineation was performed at the signing of the Agreement or subsequently when Carrie Shelden discovered that she did not have a one-half undivided interest was in dispute at trial.
Following the signing of the Purchase and Sale Agreement, George Haskins executed a Bill of Sale to Carrie Shelden for the HD-20 Allis Chalmers tractor. The Bill of Sale set forth guarantees by Haskins that he was the owner of the tractor, that it was free from encumbrances, that he had a right to sell it, and that he would defend its sale against all claims and demands. Haskins also gave the Sheldens an itemization of the tractor overhaul work he was to perform as part of the Agreement. At the bottom of the itemization Haskins included a second guarantee that there would be no liens or encumbrances against the tractor or its parts on the date set for its delivery, May 1, 1965.
After execution of the agreement Haskins took possession of the mining claims. He began working the claims and successfully extracted some gold from the claims before abandoning them. Unfortunately for Carrie Shelden, Haskins was not as diligent in making his payments on the Agreement as he was in mining the claim. The December 15, 1964, payment, which was to have been $1,500 to $2,500, was only $1,200. Haskins also failed to meet the three annual October payments. Despite the nonpayment, the Sheldens did not request Haskins to leave the claims. Nor at any time between November 4, 1964, and June, 1968, did the Sheldens hear anything from Haskins indicating dissatisfaction with the mining claims or with the transfer of the tractor.
On September 15, 1965, Haskins entered into a mining lease with Adolph and Roudolph Vetter, co-owners of the mining claims. The lease provided that the Vetters would 'lease (to Haskins) their undivided 2/3 interest' in the mining property. The royalty that Haskins was to pay to the Vetters for his use of the property was based on 2/3 ownership of the property by the Vetters. Thus by the time the first annual installment was due in October, 1965, it had become apparent to Haskins that either the Vetters had overestimated their property ownership or Carrie Shelden had. It was at this point that Haskins ceased making payments to Carrie Shelden.
On June 25, 1968, Haskins wrote to appellee's husband, John Shelden, informing him that there was a $2,500 lien on the tractor. Haskins announced that if the Sheldens were unwilling to satisfy the lien, Haskins would have to take back the tractor in order to sell it to pay off the lien. John Shelden was also informed that Northern Commercial Company, the lienholder, had the registered Bill of Sale on the tractor. Regarding the mining claims, Haskins wrote:
I have vacated the mine property, it is still yours, you have passed no leanage (sic) to me. I am sorry things did not work out as we each hoped.
Prior to receipt of this letter, neither Carrie nor John Shelden had any notice of the Northern Commercial lien, even though Haskins admits that he knew of the lien when he guaranteed the tractor title against encumbrances.
In June, 1969, Northern Commercial obtained a judgment against Haskins for default on the tractor sales contract. The judgment was satisfied by execution on a debt owed to Haskins and his partner, appellant Donald Hancock. Since this execution on property jointly owned left Haskins in debt to Hancock, Haskins suggested that Northern Commercial issue the Bill of Sale for the tractor in Hancock's name.
The tractor was being stored on an unpatented claim occupied by appellee Fred Wackwitz and located along the side of the access road from Fairbanks Creek to the Steese Highway. The tractor had been left there by the Sheldens since 1966. The Sheldens had also left Wackwitz with their Bill of Sale from Haskins in case a discrepancy arose as to ownership of the tractor.
Shortly after receipt of the Bill of Sale from Northern Commercial, Haskins and Hancock flew out to where they thought the tractor was stored, but were unable to locate it. On a second trip Haskins spoke with appellee Wackwitz at his house about where the tractor was located. Wackwitz told Haskins that the only way Haskins could remove the tractor from Wackwitz's property was to return 'with the law.'
Haskins then approached Hancock and, claiming that he needed the tractor, offered to buy the tractor from Hancock if Hancock would retrieve it. After Hancock located the tractor, he presented his Bill of Sale to the State Troopers' office in Fairbanks, telling them to go get his tractor. No court or administrative proceedings were held at this point, nor did a court order accompany Hancock's request to the troopers.
On August 1, 1972, Wackwitz heard a car drive onto his property. He opened his door and observed a man, Donald Hancock, standing on top of the tractor. As Wackwitz approached the tractor, a police officer stopped him and showed him a Bill of Sale for the tractor.
Despite Mr. Wackwitz's protests, Hancock started the tractor. Mr. Wackwitz did not interfere because Hancock had 'authority' with him. Hancock drove the tractor away. In doing so, Hancock knocked a coal bin cover weighing about a quarter of a ton from the adjoining property onto Wackwitz's road, blocking access to Wackwitz's house. Hancock also took a short cut which caused the collapse of a run-off ditch needed to maintain the access road to Wackwitz's home. Wackwitz's repair work on the ditch took several hours.
After Hancock recovered the tractor, he traded it to Haskins for a 1967 truck. No Bill of Sale evidenced the transaction.
On October 17, 1972, Carrie Shelden and Fred Wackwitz filed a complaint against George Haskins and Donald Hancock. Their complaint alleged (1) that the defendants breached the agreements made pursuant to and including the Purchase and Sale Agreement; (2) that the defendants willfully represented to the State Troopers that plaintiff-appellees were wrongfully in possession of the tractor; (3) that defendants unlawfully entered onto plaintiff's land to remove the tractor; (4) that defendants converted the tractor to their own use: and (5) that in the process of removing the tractor from plaintiff Wackwitz's property, defendants acted 'wilfully, wantonly, and maliciously, in utter disregard for the rights of either plaintiff, and damaged the buildings and structures' on Wackwitz's property. Plaintiffs sought compensatory damages and punitive damages. They also sought return of the tractor.
Defendants' answers disputed the plaintiffs' right to possession of the tractor because of plaintiff Shelden's inability to perform her duties under the Purchase and Sale Agreement. This claim turned on defendant Haskins' allegation that the Agreement contemplated delivery by Shelden of a 1/2 undivided interest in the mining claims. Defendants also filed a counterclaim against plaintiffs, but it was dismissed upon motion by plaintiffs.
A jury trial was had in April, 1975. Before the case went to the jury,...
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