Reeves v. Nichols

GRIFFIN, J. Plaintiffs brought this action against defendants to recover rental due under a written agreement for the leasing of oil well drilling equipment, for damages in failing to keep the machinery in repair, as agreed upon, and for reasonable attorney’s fees provided for in the contract.

The agreement, dated July 30, 1945, provided that plaintiff rented to defendant company, Utility Oil Associates, the equipment for fifteen hundred dollars ($1,500), beginning July 30, 1945, for 10 days, then two additional extensions of 10 days each were granted at $1,500 for each 10 days extension. The amount due after the first payment of $1,500, was payable at the rate of $150 per day while the equipment was operating and $75 per day for stand-by time until the equipment was returned.

The defense to the action was predicated mainly upon the claim that a maximum rental price had not been fixed by the Office of Price Administration for the leasing of such machinery, as required under Revised Price Regulation No. 136— Order L-608, and that plaintiffs leased the outfit in violation of said regulation.

By cross-complaint defendants alleged that the equipment was second-hand—badly worn, and on account of interruptions and delays, caused by breakdowns, the machinery could not be used by them for a total period of 23 days of the time it was in their possession. It is further alleged that the contract was induced by misrepresentation of facts as to the condition thereof and as a result of which defendants were damaged in the sum of $8,500.

After trial the court found generally that defendants took possession of the equipment on July 30, retained it for 39 days, and during that period it was operated for a period of 21 days; that during the remaining 18 days it was not being used. It then found that at the time the equipment was leased to defendants the Office of Price Administration had not fixed a maximum or other rental price on said equipment but did on June 13, 1946, make an order fixing it at $82 per day; that the order provided that the rental of $82 should be retroactive and apply to all rentals of said equipment since May 22, 1942, whether said equipment was in use or not; that by the terms of the order there was due from defendants to plaintiffs rental in the sum of $82 per day for the period of 21 days and $75 per day for the period of 18 days, totaling $3;072, and that no part thereof had been paid except the [774]sum of $1,500, leaving a balance of $1,572. It then found that by the terms of the rental agreement defendants agreed that they would, at their own cost and expense, cause the equipment to be kept in good repair and would return it to plaintiffs in as good condition as when received, reasonable wear and tear from use excepted; that defendants failed to keep it in such repair and that by reason thereof plaintiffs were damaged in the sum of $2,098.30. Twelve hundred dollars was allowed as reasonable attorneys’ fees. An additional sum of $54.75 was allowed for materials furnished to defendants by plaintiffs.