Opinion ID: 1185824
Heading Depth: 1
Heading Rank: 1

Heading: contractual liability for repairs

Text: Paragraph 6 of the lease states: [T]he lessee shall keep the equipment in good repair and condition and will return the equipment in as good condition when leased, including final servicing, reasonable wear and tear excepted. The jury was charged with the responsibility of construing the contract language and resolving what was a factual dispute as to the intention of the contracting parties under this language as to liability for repairs. The language of the contract regarding repairs does not require the conclusion as a matter of law that the lessor rather than the lessee must pay the cost of the backhoe repairs, nor can this Court rule that reasonable persons could not have found in favor of plaintiffs after hearing the conflicting testimony of the parties. Evidence of course of dealing and industry custom and usage was in dispute and presented a question for the jury. There was testimony that the lease rate did not include a reserve for repairs, contrary to defendant's contention, and that the rental price would have been significantly higher had it included such a reserve. Testimony by plaintiffs' witnesses rebutted defendant's contention that it was an established ASCO policy to pay for the types of repairs that were made in the present case. And despite the numerous breakdowns in the mechanical systems of the backhoe detailed by defendant as suggestive of negligence in making repairs, the evidence does not require a finding that Baldwin or any other mechanic was negligent as a matter of law. It was within the prerogative of the jury to find the defendant contractually liable for the cost of repairs. The evidence in the record gives ample support for the jury verdict. During the term of the lease the backhoe was under the exclusive control of the defendant. It was operated by defendant on construction projects miles from the plaintiffs' business location. Employees of defendant, as well as of Shurtleff & Andrews, were involved in the servicing and repair of the machine. The mechanical problems clearly exceeded what could be termed reasonable wear and tear. Among explanations offered for the contamination of the hydraulic system that necessitated many repairs was defendant's failure to oil the equipment properly, to follow proper warm-up procedures, or to change the filters as needed. There was no evidence that the filter had been changed at all during the lease period, although there was testimony that it should have been changed at least three times during that period. There was also evidence that problems with an axle and with the charging system were due to improper operation and use by defendant. Defendant contends further that ASCO is not the real party in interest entitled to collect a judgment based on the cost of repairs to the backhoe because the work was done by Shurtleff & Andrews, and the work orders signed by defendant's employees constituted a promise to pay that company, if anyone, and not plaintiff. [1] Defendant contends that if ASCO is allowed to recover for the amount of the judgment, defendant could be subject to double liability in the event Shurtleff & Andrews were to sue to collect on the work orders for repairs performed by its employees. A defendant has the right to have a cause of action prosecuted by the real party in interest to avoid further action on the same demand by another and to permit the defendant to assert all defenses or counterclaims available against the real owner of the cause. Shaw v. Jeppson, 121 Utah 155, 239 P.2d 745 (1952). Under the circumstances of this case it is clear that the purpose of the rule has been satisfied. When repairs were required, defendant directly notified ASCO, specifying the nature of the problem. ASCO directed Shurtleff & Andrews to dispatch mechanics to repair the backhoe, and ASCO was billed for the services rendered. ASCO in turn billed defendant. Shurtleff & Andrew did not seek payment from the defendant. This procedure was also followed when repairs required specialized training of other repairmen. Bills for services rendered were submitted to ASCO, not to defendant. Plaintiffs' obligation for the cost of repairs was therefore established by the record.