Oil Supply Co. v. Hires Parts Service

726 N.E.2d 246 (2000)

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Oil Supply Co. v. Hires Parts Service

Indiana Supreme Court
726 N.E.2d 246 (2000)

RW

Facts

To help pay down his substantial debt to Oil Supply Company, Inc. (plaintiff), William Dolin agreed to arrange sales on Oil Supply’s behalf. To pay off his substantial debt to Hires Parts Service, Inc. (Hires) (defendant), Dolin promised to send Hires 720 cases of antifreeze. At this point, neither Oil Supply nor Hires was aware of each other’s existence. Dolin called Oil Supply’s sales manager and told him to deliver 720 cases of antifreeze to Hires. Hires received the antifreeze and signed documents showing that Oil Supply was the shipper. The documents made no mention of Dolin, who subsequently skipped town. Hires refused Oil Supply’s demand to be paid for the antifreeze. Oil Supply sued. The trial court awarded judgment for Oil Supply but allowed Hires to set off its own claim against Dolin, thereby drastically reducing the amount of Oil Supply’s recovery. An intermediate appellate court essentially affirmed the trial court’s judgment. Oil Supply appealed to the Indiana Supreme Court.

Rule of Law

Issue

Holding and Reasoning (Shepard, C.J.)

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