Cengage Advantage Books: Business Law Today, The Essentials 10th Edition by Roger LeRoy Miller

تمرين 1

Johnson Construction Co. v. Shaffer
FACTS A truck owned by Johnson Construction Company needed repairs. So John Robert Johnson, Jr., took the truck with its attached fifteen-ton trailer to Bubba Shaffer, doing business as Shaffer's Auto and Diesel Repair, LLC. The truck was supposedly fixed, and Johnson paid the bill. Thereafter, though, the truck continued to leak oil and water. Johnson returned the truck to Shaffer who again claimed to have fixed the problem. Johnson paid the second bill. The problems with the truck continued, however, so Johnson returned the truck and trailer to Shaffer a third time. Johnson was given a verbal estimate of $1,000 for the repairs, but Shaffer ultimately sent an invoice for $5,863. Johnson offered to settle for $2,480, the amount of the initial estimate ($1,000), plus the costs of parts and shipping. Shaffer refused the offer and would not return Johnson's truck or trailer until full payment was made. Shaffer retained possession for almost four years and also charged Johnson a storage fee of $50 a day and 18 percent interest on the $5,863.
Johnson Construction filed a suit against Shaffer alleging unfair trade practices. The trial court determined that Shaffer had acted deceptively and wrongfully in maintaining possession of Johnson Construction's trailer, on which it had performed no work. The trial court awarded Johnson $3,500 in general damages plus $750 in attorneys' fees. Shaffer was also awarded the initial estimate of $1,000. Shaffer appealed.
ISSUE Was Shaffer entitled to receive the full amount of his invoice ($5,863) and reasonable storage fees for the truck and trailer?
DECISION No. The reviewing court affirmed the trial court's decision and also assessed Shaffer all costs of the appeal.
REASON The reviewing court examined the testimony with respect to the verbal estimate of $1,000 for the repairs of the truck. In Louisiana, to enforce an oral agreement pertaining to something priced in excess of $500, the contract must be authenticated by at least one additional witness or other corroborating circumstances. Johnson testified that he had agreed to the initial $1,000 estimate but he had not authorized Shaffer to perform additional repairs or tear down the engine. A mechanic employed by Shaffer testified that Johnson had not authorized additional repairs to the truck. Thus, those repairs were not part of any agreement because they involved tearing down the engine. The trial court had not been in error when it viewed Shaffer's testimony on the issue as "disingenuous." The court noted, "As for the amount that Shaffer contends is due for storage, had it invoiced Mr. Johnson the amount of the original estimate in the first place, there would have been no need to store the truck or trailer." Therefore, the reviewing court rejected the request for storage fees. Finally, that Shaffer kept the trailer for nearly four years even though no work had been done on it was viewed by the court as holding the trailer "hostage in an effort to force payment for unauthorized repairs." The award of $3,500 in general damages to Johnson Construction seemed appropriate for such lengthy unlawful conversion of the trailer.
WHAT IF THE FACTS WERE DIFFERENT? Suppose that Shaffer had invoiced Johnson for only $1,500. Would the outcome have been different ? Explain your answer.