Herbert P. Caplan v. John H. Roberts

This appeal is from an order granting to appellee summary judgment in a diversity case. The central issue is whether the appellee is estopped from raising the defense of the statute of frauds in an action for damages based on his alleged breach of an oral contract.

In granting appellee’s motion for summary judgment, the District Court, applying California law, ruled that no estoppel applied. We affirm.

The uncontroverted facts established that an oral agreement was entered into in May of 1970 for the purchase by appellant from appellee of heavy construction equipment at a price of $35,000, f. o. b. Quarry Site, Butte, Montana. After an initial phone conversation in which the oral agreement was made, there were several conversations between the parties during the next ten months, including a visit by one of the appellant’s agents from its offices in California to Montana to inspect the equipment; in each such conversation appellant was confirmed in his belief that an agreement was in effect. When the oral agreement was made, similar equipment was available to appellant from four other sellers, but in reliance on the oral agreement, appellant refrained from obtaining the…