Rawlings v. Layne & Bowler Pump Co.
| Decision Date | 12 February 1970 |
| Docket Number | No. 10569,10569 |
| Citation | 465 P.2d 107,93 Idaho 496 |
| Parties | Frank N. RAWLINGS, Plaintiff-Appellant, v. LAYNE & BOWLER PUMP COMPANY, Defendant-Respondent. |
| Court | Idaho Supreme Court |
Schiller, Young & Williams, Nampa, for appellant.
Moffatt, Thomas, Barrett & Blanton, Boise, for respondent.
On March 6, 1967, Frank N. Rawlings (plaintiff-appellant) and the Layne & Bowler Pump Co. (defendant-respondent) entered into a written contract whereby Frank N. Rawlings agreed to buy and Layne & Bowler Pump Co. agreed to sell certain irrigation pumping machinery for a total price of $7,289.15. According to the provisions of the contract, Layne & Bowler Pump Co., the seller, was to install the irrigation pumps on Rawlings' land. Paragraph 10 of the contract further provided that:
'Seller or Holder shall not be liable for consequential damage particularly including loss or damage for diminution or failure of crops, shortage of water, or inability or failure to supply same, due to installation or performance of the property sold hereunder, or repair work, pump or well service, nor shall Seller be liable for collapsing, telescoping, separating or otherwise injuring the well or pump, for any cause whatsoever, including negligence, since the Buyer and Seller agree that the work is hazardous and precarious in its nature * * *.'
In spite of the terms of paragraph 10 to which Rawlings and the pump company both agreed, suit was instituted by Rawlings against Layne & Bowler Pump Co. in the amount of $61,708.55. The basis of the complaint was that Rawlings suffered crop loss because of the allegedly negligent installation of the pumping equipment. Rawlings furthermore alleged that since he (the buyer) had made known to the seller the particular purpose for which the goods were required and that he relied upon the seller's skill and judgment in providing and installing such goods, the seller breached the implied warranty of fitness for purpose because the goods and the installation thereof were not reasonably fit for such purpose.
Layne & Bowler Pump Co. in its answer admitted the contractual obligation to furnish and install the pumping equipment; denied the remaining allegations of the complaint and then set out certain affirmative defenses. In addition Layne & Bowler Pump Co. asserted a counterclaim against Rawlings for money allegedly owed to it under the terms of the contract. The counterclaim is still pending in district court. Following depositions of the appellant Rawlings and his son, and interrogatories to the appellant, respondent moved for a summary judgment on the ground that appellant's claim for damages due to crop loss was excluded by the terms of the contract and as a matter of law was therefore barred. The district court granted the respondent's motion for summary judgment and in its judgment dismissing the complaint stated:
'* * * having reviewed and considered the record, including the pleadings, deposition, admissions and affidavit on file herein, and the arguments and briefs of counsel and having found and concluded that there is no genuine issue as to any material fact upon said claims by plaintiff against defendant and that defendant is entitled to judgment as a matter of law; * * *.'
Appellant has appealed to the Supreme Court from this judgment.
The only question presented by this appeal is whether or not the trial court erred in granting summary judgment.
The purpose of I.R.C.P. 54(b) is to enable the district court to separate claims and counterclaims and allow them to be pursued to final judgment individually if there is no just reason for delay. 54 Yale L.J. 263 (1953); 65 Harv.L.Rev. 1245 (s952); Perkins v. City of Pocatello, 92 Idaho 636, 448 P.2d 250 (1968). In the case at bar a counterclaim had been interposed by the defendant-respondent, but the district judge, pursuant to I.R.C.P. 54(b) made an express determination that there was no reason for delay in entering judgment upon the plaintiff-appellant's negligence claim regardless of the outcome of the counterclaim initiated by the defendant-respondent. Since the district court expressly directed that a final judgment be entered dismissing the complaint against the defendant-respondent, this appeal is properly before this Court pursuant to I.C. § 13-201. 1
As his principal assignment of error appellant asserts that it was incorrect for the district court to have dismissed his complaint since there was evidence before it tending to show that a triable issue of fact existed, viz., that the terms of paragraph 10 of the contract are ambiguous and therefore their meaning and interpretation were for the jury's determination.
In H. J. Wood Co. v. Jevons, 88 Idaho 377, 400 P.2d 287 (1965), this Court considered a strikingly similar constractual provision 2 and determined that the provision was unambiguous and clearly exempted the seller from liability for crop damage. The Court also sustained the contention that such damages were not within the contemplation of the parties. The contractual provision in the case at bar is almost identical to the one held unambiguous in H. J. Wood v. Jevons, Supra. It is our opinion that the language contained in paragraph 10 of the contract is clear and unambiguous and its effect is to preclude the seller's liability for consequential damages such as are sought by the appellant.
We might note that the contractual transaction between Rawlings and Layne & Bowler Pump Co. was voluntarily entered into by competent parties who had equal bargaining power and there is not even the slightest hint of unconscionability. Frank Rawlings is a graduate of the University of Nebraska and a licensed chemical engineer. Before entering the farming industry he was employed by the Amalgamated Sugar Co. in a managerial capacity. If Rawlings was not satisfied with the contract as it was presented to him, there was nothing to prevent him from declining the contract or modifying it to his satisfaction provided Layne & Bowler Pump Co. so agreed.
Appellant contends that it is against public policy to allow a person to contract away his legal rights and remedies for future negligence. This rule is not absolute, and in the opinion of this Court is more realistically viewed as an exception rather than the general rule which prevails throughout the majority of American jurisdictions. Freedom of contract is a fundamental concept underlying the law of contracts and is an essential element of the free enterprise system. The Idaho Legislature has recognized this principle and codified it. I.C. § 64-601 expressly...
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