City of Tacoma v. Peterson

5 P.2d 1022, 165 Wash. 461, 1931 Wash. LEXIS 1145
CourtWashington Supreme Court
DecidedDecember 11, 1931
DocketNo. 23355. Department Two.
StatusPublished
Cited by4 cases

This text of 5 P.2d 1022 (City of Tacoma v. Peterson) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Tacoma v. Peterson, 5 P.2d 1022, 165 Wash. 461, 1931 Wash. LEXIS 1145 (Wash. 1931).

Opinion

Beals, J.

— The city of Tacoma instituted this action against Bussell C. Peterson, who served as city controller from June, 1928, to November, 1929, and the surety on Mr. Peterson’s official bond. In its complaint, plaintiff stated two causes of action, it being alleged in the first that one O. E. Torkelson, being indebted to the city in the sum of $2,500, executed and delivered his promissory note, bearing date November 17,1926, due in two years, whereby he promised to pay to the city the amount of his indebtedness, together with interest at the rate of six per cent per annum, the note being endorsed by two other persons.

The complaint further alleged that, during the month of November, 1928, the city entered into a contract with Mr. Torkelson for the construction of a storm drain, the contract price being approximately $40,000; that Mr. Torkelson’s note was then in the possession of the defendant Peterson, in his official capacity as city controller; and that, when defendant settled with Mr. Torkelson under the contract for the construction of the drain, defendant failed to retain out of the money due Mr. Torkelson on the contract the amount of the promissory note and interest, to plaintiff’s damage in the amount due on the note.

For a second cause of action, plaintiff alleged that, in accordance with the terms of the contract with Mr. Torkelson calling for the construction of the drain, the city advanced certain engineering expenses, etc., which *463 were to be repaid to tbe city by Mr. Torkelson ont of tbe contract price; and tbat defendant Peterson failed to deduct from tbe payments wbicb became due under the contract tbe amount so due tbe city, in tbe sum of $4,050.

After tbe argument of several questions of law, defendants answered, denying any liability to plaintiff, and alleging affirmatively tbat tbe mayor of Tacoma and other city officers participated witb defendant Peterson in tbe acts of wbicb tbe city complained; tbat defendant Peterson bad consulted bis assistant and a “state examiner,” and, in paying tbe money to Mr. Torkelson, bad followed tbe advice wbicb be bad received, and tbat be bad paid tbe money in good faith. Tbe defendants further alleged tbat tbe city bad made no demand upon Mr. Torkelson for tbe payment of tbe note, or for tbe payment of tbe engineering costs. By its reply, plaintiff denied tbe affirmative allegations of tbe answer.

On demand of defendants Peterson and bis surety, tbe former mayor of Tacoma and the surety upon his official bond were made parties defendant, together witb tbe surety of a deceased member of tbe board of contracts and awards, defendant Peterson claiming by way of a cross-complaint tbat, if any liability to tbe city existed on bis part, tbe additional defendants should share tbe same.

Upon tbe trial of tbe action before tbe court, sitting without a jury, defendants, at tbe close of plaintiff’s case, challenged tbe sufficiency of tbe evidence, and moved for judgment in their favor. Tbe trial court, being of tbe opinion tbat, under tbe evidence, plaintiff was not entitled to recover as against any of tbe defendants upon either of tbe causes of action set forth in its complaint, sustained tbe challenge and entered *464 judgment dismissing the action, from which judgment plaintiff appeals.

The additional defendants brought in upon motion of the original defendants have moved'to dismiss the appeal, basing their motion upon the ground that appellant neither sued them nor seeks against them any relief, and that, therefore, there is no controversy, pending between appellant and the moving respondents.

The additional defendants, being the moving respondents above referred to, were brought into the action by way of a cross-complaint filed by the original defendants. They objected to being brought into the action, but no questions concerning the propriety of the ruling of the court making them additional parties are now before us. They are, of course, as the record stands, concerned in the ultimate result of the action. Whether they were made parties thereto by the plaintiff or by cross-complaint filed by the original defendants, is, as far as the question now being considered is concerned, immaterial. They are parties to the action, and no ground exists for dismissing this appeal as to them.

This ruling disposes of the motion made by the respondents who were the original defendants to dismiss the appeal in case the motion of the additional respondents above referred to should be granted. The motions to dismiss the appeal are denied.

In regard to the first cause of action set forth in appellant’s complaint, and the evidence introduced by appellant in support thereof, it is evident that Mr. Peterson was, to say the least, extremely careless in the performance of his official duty. The city attorney, as the law officer of the city of Tacoma is denominated by the charter, is by that instrument made the legal *465 adviser of the city officials, including the city controller ; and, as Mr. Peterson knew that he had in his possession Mr. Torkelson’s note for $2,500, his attention having been particularly directed thereto in connection with the matter of the payment to Mr. Torkel-son of money due under the contract for the construction of the drain, Mr. Peterson, as city controller, should have, in the manner prescribed by charter, requested the advice of the city attorney as to the proper method of procedure to be followed by him in mailing claim upon the note, if any such claim should have been set up at that time. It is doubtless true that the city controller could have held out of the contract price, money to apply upon the note, only in so far as it should appear that payments under the contract were due to Mr. Torkelson, and that no claims had arisen to such money under the trust fund doctrine, or under any other circumstances which would render the rights of the claimant superior to those of the city under its note.

By its bond, Mr. Peterson’s surety undertook that he would

... well and faithfully perform all and singular the duties incumbent upon him by reason of his election or appointment as said controller and honestly account for all moneys coming into his hands as said controller. ’ ’

In the absence of any showing that Mr. Peterson was guilty of bad faith or anything more than mere carelessness or ignorance of his duties in failing to call upon the city attorney for legal advice, we conclude that the trial court rightly held that appellant had failed to make a prima facie case under its first cause of action. In the case of State v. Chadvick, 10 Ore. 465, the court said:

*466 “The law presumes, generally, that every one may be honest and diligent, but not that he is skilled in any particular art. Hence, since the appellant in the transaction of his appointment is not a party to a contract, the principles applicable in the case of a contracting party cannot apply to him. He executes a duty imposed by the public, and it would seem, therefore, that he should be held liable for that degree of skill only which he possesses.”

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Bluebook (online)
5 P.2d 1022, 165 Wash. 461, 1931 Wash. LEXIS 1145, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-tacoma-v-peterson-wash-1931.