Fred M. Wells, Inc. v. Marshall & Stevens

SHINN, P. J. Cross-complainant Fred M. Wells, Inc., appeals from that portion of the judgment rendered in favor of cross-defendant Marshall and Stevens, a corporation. The action arose in the following manner. The appellant, a corporation, was engaged in the operation of a machine shop which did general metal fabricating. It became interested in adding a honing activity to its business through the purchase of equipment from Wright Honing Company. Appellant engaged Marshall and Stevens, a corporation, a professional appraising organization, to appraise the entire equipment of Wright Honing Company, including three Barnes Drill Honing machines. The appraisal was made by a D. S. Duncan, an employee of respondent, and the report was delivered to appellant.

The briefs discuss the conflicting evidence as to the values of the honing machines, as compared with the appraised values. It would serve no purpose to relate this evidence further than to say that all the equipment including the honing machines was appraised by Duncan as having a liquidation value of $33,366. Wells purchased it for $35,000. $5,000 was paid down and a note and chattel mortgage were executed for the balance. Wells took possession and operated the machines for approximately six months and then gave notice of rescission to Wright Honing Company on the grounds that the three honing machines were found to be in an advanced state of disrepair and that the capacities of said machines were represented to be substantially larger than the manufacturer’s rating. Thereupon, on October 30, 1959, Wright Honing Company filed an action on the note and chattel mortgage. Wells cross-complained agáínst re[258]spondent, alleging negligence in making the appraisal, to its damage in the sum of $22,000. On August 22, 1960, at the conclusion of the trial, but before judgment was entered, the parties entered into a written stipulation for judgment. Based on the findings of fact and said stipulation, the court entered judgment, in part, that Wells take nothing by its cross-complaint against Marshall and Stevens. Judgment was given in favor of Wright Honing Company against Wells, and was duly satisfied. Marshall and Stevens moved to dismiss the appeal of Wells upon the ground that the judgment against Wells was by consent of the parties; the motion was opposed and was denied without prejudice. Although it is now urged that the appeal should be dismissed the cause has been briefed and we shall consider it on its merits.

As previously stated, the gravamen of the cross-complaint was the alleged negligence of Marshall and Stevens in making an appraisal of the machines. The court found that Marshall and Stevens was not guilty of negligence. The sole question on appeal is whether that finding had substantial support in the evidence. The record discloses ample support for the finding.