Helmick v. Ritchie

PEEK, J. Defendant appeals from an adverse judgment in an action to recover possession of a tractor which was one of three sold by the plaintiff to defendant. Defendant contends (1) that the equipment was in fact sold to the Magnolia [777]Motor and Logging Company, Inc., and not to defendant, and (2) that the court applied the wrong measure of damages.

The defendant Ritchie, who was doing business as the Ritchie Logging Company, was interested in purchasing some heavy equipment for use in logging operations he was conducting near Peewan in Humboldt County under a contract with Magnolia. In January of 1953 he discussed with the plaintiff the possible purchase of three tractors, two of which were located at Kettle Falls, Washington. The third was in the possession of the American Machinery Company in Spokane where it was undergoing repairs and is the only one with which we are concerned on this appeal. Following a series of negotiations, an agreement was reached between the parties relative to the acquisition of the three tractors by Ritchie. As a part of the agreement defendant delivered to the plaintiff Helmick a personal check in the sum of $10,000 drawn on his bank at Ashland, Oregon. Helmick in turn delivered this cheek to one Ryan, his agent, together with three bills of sale executed by Helmick and running to Ritchie. Thereafter Ryan and Ritchie returned to Ashland where defendant maintained and shared an office with Magnolia. A check was then drawn by one Lamb, president of Magnolia, in the sum of $46,750 payable to Helmick. A second check from Magnolia to Helmick in the sum of $10,000 was delivered to Ryan to cover the check previously issued by Ritchie which had been dishonored. Ryan thereupon delivered to Ritchie on behalf of Helmick, two bills of sale covering the two tractors completely paid for but retained the bill of sale for the third tractor on which there remained a balance of $5,000. The evidence showed that the third tractor was not to be removed or taken from the possession of the American Machinery Company at Spokane unless, within 90 days, the $5,000 balance was paid or a chattel mortgage executed. This balance was never paid and the mortgage never executed. But in August of 1953, several months thereafter, the tractor was found in the possession of defendant and being used by him in his logging operations at Peewan.

Throughout the trial defendant insisted that he had abandoned his “sale transaction for the tractors” and that the Magnolia Motor and Logging Company “took over”; his position being, as stated by his counsel, that when he failed to finance the deals insofar as he was concerned the trans