Walker v. Pacific Mobile Homes, Inc., 38047

• Decision Date: 07 April 1966
• Docket Number: No. 38047,38047
• Court: Washington Supreme Court
• Parties: Melvin D. WALKER, Respondent, v. PACIFIC MOBILE HOMES, INC., a Washington Corporation, Appellant.

Page 347

68 Wn.2d 347

413 P.2d 3

Melvin D. WALKER, Respondent, v. PACIFIC MOBILE HOMES, INC., a Washington Corporation, Appellant.

No. 38047.

Supreme Court of Washington, Department 1.

April 7, 1966.

Riach & Gese, J. Gaylord Riach, Lynnwood, W. Morgan Johnson, Edmonds, for appellant.

Dore, Dubuar & Cummins, David C. Cummins, Seattle, for respondent.

HALE, Judge.

Plaintiff left his trailer to be sold on consignment. One of the defendant's salesmen sold it and absconded. Defendant, disclaiming responsibility for the consignment, appeals the $1,290.51 judgment.

The case turns on whether the court properly found from conflicting evidence that defendant's salesmen acted within their apparent or ostensible authority. Plaintiff Walker owned a 25-foot, 1953 Mainliner trailer in Seattle. Deciding to sell it and return to his former home in Oregon, he went to several trailer lots to see if the dealers would handle it on consignment. He found no dealers interested in a consignment until he met Robert Stewart at the lot of defendant Pacific Mobile Homes at South 140th and Pacific Highway.

At the trailer lot where plaintiff first talked to Stewart, he noticed a large sign designating it as Pacific Mobile Homes, Inc, an office, a number of trailers on display, and observed that Mr. Stewart appeared to be the sole employee in attendance. Behind the lot was a large trailer park known as 'Southgate Trailer Park.' Plaintiff told Stewart he would sell on consignment if he could get a net price of $1,500, and Stewart told him that he was too busy moving the trailers around at the moment to complete the deal but would pick up the trailer in a few days.

A few days later, Stewart came with a truck to plaintiff's residence and towed the trailer to the Pacific Mobile Homes lot where plaintiff on several occasions saw it among the other trailers displayed there. May 27, 1959, plaintiff stopped at the trailer lot where he again found Stewart alone in the office, and suggested that, since he intended to go to Oregon for a while, some sort of writing should be made out. Thereupon, plaintiff says, Stewart got a blank form having the legend 'Trailer Consignment Agreement' in bold-faced type across the top, filled it out in ink, but, in barely legible handwriting, designated thereon Southgate Trailers as consignee. Plaintiff signed the consignment agreement, stating at the trial that, being primarily concerned at the time with the provisions as to net price and the a oidance of storage charges if the trailer was not sold, he did not notice the name of the consignee.

About one month later, a Robert Henderson telephoned plaintiff in Oregon, asking if plaintiff had left his trailer on consignment with Stewart at Pacific Mobile Homes and explained that Stewart was no longer with the firm but that he, Henderson, was the new manager. Henderson then told plaintiff they still had the trailer and had lined up a possible buyer. A few weeks later, plaintiff returned to Seattle from Oregon and talked to Henderson at the trailer lot. Plaintiff saw his trailer on this occasion still on display among the others and testified that Henderson, like Stewart before him, was there alone at the office and trailer lot.

Henderson again told him that he had a likely deal pending, and plaintiff went back to Oregon to have the deal confirmed by mail. He received a letter on the business stationery of Pacific Mobile Homes, Inc., giving the corporation's main office address at Edmonds and the branch office at 140th and Pacific Highway South, and containing also an installment note signed by one Korsmoe as maker. The letter, handwritten by Bob Henderson, dated July 25, 1959, explained that, after four payments, the enclosed note would be discounted and balance thereof paid in cash. Each month for the next three months, plaintiff received a monthly payment in the form of a check signed by Henderson, and when these ceased he returned to the trailer lot to inquire about the unpaid balance.

He found that Henderson had actually sold the trailer not to Korsmoe but to one Anderson for $1,500 cash, and, save for the three payments totaling $209.41, had absconded with the balance. After more than a year spent in tracing him, plaintiff located Henderson in the penitentiary at Walla Walla.

Henry M. Shelly, president of Pacific Mobile Homes, testified that his company maintained a small one-room office on the South 140th street trailer lot; that the lot had a sign 28 feet high and 14 feet long with 'Pacific Mobile Homes, Inc.' on it; that he visited the lot to check it about three times a week. He said that Stewart worked at the lot from April to July, 1959, and Henderson started to work there in June, but ordinarily there would be only one salesman on duty at any one time.

He said that neither had authority to complete a sale without approval of himself or the company sales manager and that all sales documents had to be signed by himself personally. He said too that the company forbade its salesmen to take trailers on consignment; that neither he nor the company had any record or knowledge of either the plaintiff's trailer, the consignment arrangement, or any other phases of the transaction; that he had never, during his periodic inspections, seen plaintiff's trailer on the lot. Only on a few occasions, he said, had his company taken trailers for sale on consignment and that...