Hughes Tool Co. v. Max Hinrichs Seed Co.

Complaint on a note. Cross-complaint on product liability and implied warranty.

In January 1971 Hughes Tool Company (Hughes) sold a helicopter and certain agricultural spray equipment to a family partnership doing business in the State of Washington as Max Hinrichs Seed Company (Hinrichs). The partnership made a small down payment and executed a promissory note for the balance of the purchase price. The terms of the note called for payment of $43,000 principal and $9,400 interest on the declining unpaid balance. The note and accompanying chattel mortgage were signed on behalf of the partnership by Don Hinrichs, one of the partners, without indication of his representative capacity.

Hinrichs experienced a number of difficulties with the helicopter and spray equipment, which difficulties were communicated to a Hughes service representative. On July 30, 1971, after 498 hours of flying time, the helicopter caught fire in midair during spraying operations. The pilot managed to land the aircraft and escape injury, but the fire completely destroyed the helicopter and spray equipment. Hughes’ service representative, present at the scene, reported to Hughes the next day on the…