Rainbow Petroleum Co. v. Union Drilling & Petroleum Co.

In an action upon a contract in writing for the rental of personal property consisting of oil-well drill . pipe, judgment was awarded the plaintiff, from which the defendant appealed.

It is admitted that the plaintiff and respondent rented and delivered to the appellant certain piping for drilling purposes, that the same was so used, and that with slight exceptions it was returned to the lessor. By the terms of a written contract between the parties it was agreed that appellant should pay a per diem rental for use of the pipe, and that it would compensate respondent for any portions not returned. Upon the institution of this action for agreed rental and the value of missing pipe the defendant for the first time complained of defects alleged to have interfered with the success of its project and to have caused the loss of a portion of the pipe. Such defense was founded upon an asserted implied warranty by the bailor. It affirmatively appeared that in drawing the pipe from great depth it parted, leaving the lost section in the ground. It was second-hand pipe, which had theretofore been used in various wells, of which the hirer was informed. A representative of the latter called at…