Stamp v. Rippe

• Decision Date: 26 January 1971
• Docket Number: 24039,Nos. 70--522,s. 70--522
• Citation: 483 P.2d 420,29 Colo.App. 185
• Parties: Norman STAMP and Norm 'Fair-Trade' Stamp, Inc., a corporation, Plaintiffs in Error, v. Lester RIPPE and Betty Rippe, Defendants in Error. . II
• Court: Colorado Court of Appeals

Page 420

483 P.2d 420

29 Colo.App. 185

Norman STAMP and Norm 'Fair-Trade' Stamp, Inc., a corporation, Plaintiffs in Error, v. Lester RIPPE and Betty Rippe, Defendants in Error.

Nos. 70--522, 24039.

Colorado Court of Appeals, Div. II.

Jan. 26, 1971.

Rehearing Denied Feb. 23, 1971.

Certiorari Denied April 19, 1971.

Craig A. Murdock, Denver, for plaintiffs in error.

Kripke, Carrigan & Dufty, P.C., Jim R. Carrigan, Denver, for defendants in error.

ENOCH, Judge.

This case was originally filed in the Supreme Court of the State of Colorado and subsequently transferred to the Court of Appeals under authority vested in the Supreme Court.

This is an action for damages based on alleged fraud in the sale of certain farm implements. Lester and Betty Rippe, as plaintiffs below, obtained a judgment based on a favorable jury verdict. The defendants below were Norm 'Fair-Trade' Stamp, Inc., a corporation engaged in selling used farm tractors and implements, and Norman Stamp, the corporation's president and general manager.

The evidence disclosed that the Rippes operated a farm near Monte Vista, Colorado. On August 16, 1966, they went to Stamp's place of business in Longmont, Colorado (a distance of about 250 miles) to buy a tractor. Stamp told the Rippes that he would sell them a used John Deere 4020 tractor for $3,500 or $3,600. He further represented that the tractor was to be a 1964 model which had seen very little use and was in good condition. At that time Stamp did not have such a tractor, but he assured the Rippes that he knew where he could obtain one. At the same time, the parties discussed the purchase of a baler for $750, a windrower for $3,200 and a rake for $300. The baler was described by Stamp to be a New Holland brand, declaring it was a 1963 model in perfect shape.

After these negotiations on August 16th, the Rippes returned to Monte Vista, and arranged to borrow $8,000 from their bank to finance the entire purchase. On August 25th, Rippe called Stamp and asked if he had the John Deere 4020 tractor, the windrower, baler and rake. Stamp indicated that he had all the implements except the tractor. As a result, Rippe asked Stamp whether Stamp had a tractor which he could use until the John Deere came in, to which Stamp replied in the affirmative.

On August 27, 1966, Rippe went to Longmont to purchase the windrower, baler and rake and to borrow a tractor. Stamp agreed that Rippe could use a Ford 6000 tractor which had a 72 h.p. and 3-plow rating, until the John Deere 4020 tractor which had a 92 to 96 h.p. and 4-plow rating arrived. Relying on Stamp's representations, Rippe paid Stamp for the equipment. However, instead of writing up the Ford tractor as a loan, Stamp put it on the sales slip at the price previously quoted for the John Deere 4020 tractor, namely $3,500. Later, Stamp insisted on treating the Ford tractor as having been sold rather than loaned to Rippe.

Stamp represented that the equipment would be serviced and in good operating condition for immediate use in Rippe's fall work. However, on August 27th, the baler and Ford tractor had not been serviced by Stamp. Prior to returning to Monte Vista with the windrower and rake, the Rippes made arrangements to leave the tractor and baler for servicing and to pick them up four days later.

When Rippe returned on August 31st to pick up the tractor and baler, the tractor still had not been serviced and the baler was damaged and full of wet straw so that Rippe could not properly inspect it. In loading the tractor, Rippe discovered that one axle had been cut and rewelded. Rippe did not concern himself with this defect as he believed he was only borrowing the tractor and returned to Monte Vista with the equipment. Later, on September 8th, Rippe telephoned Stamp to inquire whether the John Deere tractor had come in yet, to which he received a negative answer. He also informed Stamp at that time that the baler had given him a lot of trouble and cost him some money, and that the Ford tractor had not performed adequately.

On October 11, 1966, having finished the immediate fall work for which the Ford tractor had been borrowed, Rippe hauled the Ford tractor back from Monte Vista to Longmont. Rippe again asked Stamp if the John Deere was in, and again received a negative answer. Rippe then asked for a refund of the money paid for the tractor, which Stamp refused. The most Stamp would agree to was to accept the Ford tractor on consignment and to sell it for Rippe. Being given no other alternative, Rippe consigned the Ford tractor for sale.

Rippe again was in need of a tractor during the month of November. When Rippe called Stamp on November 19, 1966, the Ford tractor was still in Stamp's possession and had not been sold. Since Rippe was in need of a tractor, Stamp agreed to have the Ford tractor fully serviced and put in condition according to their prior agreement. On November 26th the Rippes drove from Monte Vista to Longmont to pick up the tractor, but it still had not been serviced.

The Rippes later initiated this action for damages. The primary fraudulent misrepresentation, which precipitated the entire transaction, was Stamp's assertion that he would sell the Rippes a 1964 Model 4020 John Deere tractor in good condition with very little use for $3,500. In addition, the condition of the loaned tractor was misrepresented.

Also misrepresented were the year of manufacture and condition of the baler. Stamp represented that the year of manufacture was 1963 when it actually was manufactured in 1961. Furthermore, Rippe testified that the baler broke down the first time he tried to use it.

In proof of damages, the Rippes presented evidence that the difference in value in Longmont, Colorado, on August 27, 1966, between the John Deere tractor they had bargained for and the Ford 6000 tractor they received was $2,000. They presented evidence that the baler they received was a 1961 model, not the 1963 model as promised, and that the difference in value between the 1963 baler and the 1961 baler was $400. They further presented evidence that the baler was not in good working condition as represented, and as a result, that the Rippes' hay crop lay on the ground five and one-half days while the baler was being repaired. During that time, the hay was soaked by rain. As a result, the Rippes lost $630 through loss in value of their 1966 hay crop.

In addition, the Rippes presented evidence that they incurred an expense of $680 to hire tractor work done because the Ford tractor was not in working condition as Stamp represented it to be, and it could not do the work the promised John Deere tractor would have done.

Finally, the Rippes presented evidence as to damages of $250 for two extra round trips with their truck to haul the Ford 6000 tractor between Monte Vista and Longmont because of Stamp's misrepresentations. Thus, the total compensatory damages sought were $3,960, in addition to $4,000 exemplary damages. The jury found for the plaintiffs and awarded them $3,523 compensatory damages and $3,400 exemplary damages.

Stamp now seeks a reversal of this verdict,...