Mardikian v. Parador Mining Co.

HOYT, J. pro tem.* The complaint alleges the sale of a tractor and bullgrader by respondent to appellant for $10,000, the reasonable value of said equipment, in- November 1956. The appellant’s answer alleges that respondent offered the loan and free use of said equipment to appellant in its uranium mining venture until commercial ore was found by appellant. That if appellant was financially able it would then purchase the equipment from respondent and pay him the fair market value thereof, and that respondent accepted said offer. The tractor had been used by respondent in building a lake on his ranch at St. Helena. The appellant was engaged in mining in New Mexico.

Elizabeth Adoor was the president of the appellant Parador Mining Company, Inc., and also was the secretary and bookkeeper of the respondent George Mardikian. The respondent was a stockholder and director of the appellant at that time. Respondent testified that Mrs. Adoor on several occasions [749]asked him to sell the equipment to the mining company but he refused because he needed it. Finally in November 1956, he acceded to the request and told Mrs. Adoor that the equipment could be picked up at any time at his ranch; that the price was to be $10,000 payable out of the first money that the mining company realized from its leaseholds, and the transportation costs were to be borne by it. Mrs. Adoor denied this and testified that the only agreement was for Parador Mining Company to borrow the tractor and grader. The equipment was transported to New Mexico by a Dean Turner. The foreman of the Mardikian ranch had recommended Turner to Mrs. Adoor. Mrs. Adoor contacted Turner. He took the equipment to his yard and then phoned her that the tractor was too high to be transported on the highways and requested permission to have the yoke of the bulldozer blade cut off so as to reduce its height. Mrs. Adoor consulted with someone other than respondent and phoned back that it would be all right to cut the yoke. Turner transported the equipment to New Mexico, and, believing respondent was the shipper billed him for the transportation charges. Mrs. Mardikian paid the bill in respondent’s absence, and when respondent returned he obtained the transportation costs from Mrs. Adoor.

Before the alleged sale Mardikian had told Mrs. Adoor that there was no trouble with the tractor and that it was in good condition. However, after its arrival in New Mexico it would not run. A mechanic tore it down and discovered that it needed repairs that would cost about $3,000. He testified that all rollers, idlers, rails and sprockets were worn out, and the head of the engine was cracked. There was a question as to whether the transportation company drained the engine before taking it into the cooler weather of New Mexico. Three witnesses for plaintiff testified that the tractor was in good condition when delivered to Turner. On this conflicting evidence the court found that the tractor was in good and workable condition when Mardikian delivered it and that through no fault of his the repairs became necessary. The trial court gave judgment for respondent for $7,000, plus interest at 7 percent from September 10, 1957.