Title: Cailler v. Humble Oil & Refining Co.

State: new-hampshire

Issuer: New Hampshire Supreme Court

Document:

117 N.H. 915 (1977) LEO J. CAILLER v. HUMBLE OIL AND REFINING COMPANY & a. No. 7843. Supreme Court of New Hampshire. October 31, 1977. *916 Sheehan, Phinney, Bass & Green, of Manchester, and W. Michael Dunn and Calderwood, Ouellette & Hallisey, of Dover (Mr. Dunn and Mr. Dennis L. Hallisey orally), for Leo J. Cailler. Wiggin & Nourie, of Manchester, and W. Wright Danenbarger (Mr. Danenbarger orally), for Humble Oil & Refining Company. Devine, Millimet, Stahl & Branch, of Manchester, and Richard E. Galway (Mr. Galway orally), for Fireman's Fund American Insurance Companies. GRIMES, J. The United States District Court for the District of New Hampshire has certified under our rule 20 the following questions: These questions were certified on an agreed statement of facts which are set forth in toto as follows: Cailler's multi-count complaint in the district court alleges that the station was defective in design and manufacture in that the glass in an interior door leading from the office to the bay area was approximately one-eighth of an inch thick with an area of about ten square feet and that no protective devices were provided and no warnings were given. Clause 3 of the lease provided in part that the lessee agrees: Clause 5 of the lease provided as follows: Cailler contends that the lessor cannot exculpate itself from liability for its negligence to him and that the provisions of the lease purporting to do so should be declared void. [1] Our rule, which has been referred to as a minority rule, does prohibit some exculpatory contracts. Shaer Shoe Corporation v. Granite State Alarm, Inc., 110 N.H. 132, 262 A.2d 285 (1970). Even when applicable, the rule has been stated that "one may not by contract relieve himself from the consequences of the future non-performance of his common-law duty to exercise ordinary care." (Emphasis added.) Papakalos v. Shaka, 91 N.H. 265, 268, 18 A.2d 377, 379 (1941); cf. Wessman v. Railroad, 84 N.H. 475, 478, 152 A. 476, 478 (1930) ("consequences of the non-performance of his common-law duty . . . ."). In the instant case, we need not consider the effect of this rule on Humble's exculpation clause, because there was no duty to exculpate. Unlike the situation in Papakalos, the accident did not occur on a part of the premises over which the lessor retained control or otherwise as to which he had the duty at common law to use reasonable care to keep in reasonably safe condition. See Sargent v. Ross, 113 N.H. 388, 392, 308 A.2d 528, 534 (1973). Rather the accident occurred on a part of the leased premises over which the lessee had exclusive control and as to which at common law the owner owed no duty in the absence *919 of "warranty or deceit or fraud." Marston v. Andler, 80 N.H. 564, 122 A. 329 (1923). As the facts that gave rise to this case occurred before our decision in Sargent, which abrogated the control test and imposed reasonable care duties on landlords, there is no need to consider the extent of Humble's present duties to the plaintiff. The case before us also differs from Weaver v. American Oil Co., 276 N.E.2d 144 (Ind. 1971), relied on by Cailler because that case involved the negligence of an employee of the lessor who was on the premises delivering gasoline after the execution of the lease. This would of course qualify as nonperformance of a common-law duty under our rule. However, that case recognized the validity of exculpatory clauses when fairly entered into. The court in Weaver struck down the clause because of the unfair circumstances under which the lessee signed the lease. [2] Cailler further argues that the exculpatory clause should be declared void in this case because there was unequal bargaining power between the parties and because the clause is unconscionable in nature. Nothing in the agreed statement of facts indicates any unequal bargaining power between the parties. Difference in size is not to be equated per se with difference in the power to bargain. There are no facts that indicate a shortage of alternative rental properties or long occupation and substantial investment that might have created pressures on a businessman of specialized skills akin to those on a lessee of residential property, which is needed for shelter, one of the necessities of life. Cailler had rented another gas station from Humble for four years ending in 1968. It does not appear what he did between 1968 and 1971 when the lease in question was executed, nor is there anything which tends to show that he was under any pressure or compulsion to enter into the lease. It appears here that in fact each party was free to make his own bargain. Shaer Shoe Corporation v. Granite State Alarm, Inc., 110 N.H. 132, 262 A.2d 285 (1970). [3] Nor do we find the clauses to be unconscionable per se. Before signing the lease, Cailler went over it with a Humble representative and read it over himself. The clauses in question are written in plain language and not in smaller print than the rest of the thirteen clauses. The case therefore differs greatly from Weaver v. American Oil Co., 276 N.E.2d 144 (Ind. 1971), where the contract *920 was put before the lessee and he was told to "sign it" without his reading it or having it explained to him. The answer to the first certified question is "yes"; clauses 3 and 5 bar Cailler's action. It is unnecessary to answer the second certified question in view of the answer to the first. Remanded. BOIS, J., did not sit; KENISON, C.J., dissented; the others concurred.