De Toro v. Di-La-Ch, Inc.

142 N.W.2d 192, 31 Wis. 2d 29, 1966 Wisc. LEXIS 953
CourtWisconsin Supreme Court
DecidedMay 10, 1966
StatusPublished
Cited by19 cases

This text of 142 N.W.2d 192 (De Toro v. Di-La-Ch, Inc.) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
De Toro v. Di-La-Ch, Inc., 142 N.W.2d 192, 31 Wis. 2d 29, 1966 Wisc. LEXIS 953 (Wis. 1966).

Opinion

*33 Fairchild, J.

(1) Interest. The building was completed December 27, 1964. Plaintiff contends that $15,697.30 was then due, covering claims of subcontractors and the balance of his own claim for work and commission, and that interest accrued thereon until the respective payments were made. The last payment was the $4,713.32 disbursed pursuant to the order dated October 19th, and that order directed the clerk to hold the balance of the deposit “until after the computation of interest” and taxation of costs. Plaintiff brought his claim for interest on for hearing November 1, 1965. A memorandum decision denying the claim for interest was filed November 29,1965.

a. Interest on amounts paid to subcontractors. Plaintiff concedes that he is not entitled to recover interest on these amounts except for the benefit of the subcontractors. The assertion is made in the memorandum decision that “the subcontractors have all accepted payment, without interest.”

The record contains no transcript of reporter’s notes at this or any other hearing. The decision adopts the summary of facts in defendants’ brief, and the hearing may well have been informal. There is nothing to show whether plaintiff took issue with the facts asserted by defendants, nor whether he produced any proof that the subcontractors reserved their claim for interest when accepting payment.

Under the circumstances we consider that plaintiff is bound by the assertion of fact above quoted. It is the rule that where the record on appeal contains no transcript of reporter’s notes (formerly bill of exceptions), this court cannot review the findings of the trial court 1 and our review will be limited to the question whether the pleadings, decision, findings, and conclusions sustain the judgment. 2

*34 There was no express contract for the recovery of interest, and in this case an allowance of interest is in the nature of damages for the delay in payment. The subcontractors have accepted payment of the amounts of their claims without any indication that they reserved their rights to collect interest. Although decisions on the right to recover interest after full payment of principal are not uniform, it seems clear that the right to interest is waived or extinguished upon receipt of payment under the circumstances present here. 3

b. Interest on the balance of plaintiffs claim. The circuit court denied interest on the balance of plaintiff’s claim on the ground that it was not readily liquidable, and was not liquidated until the award of the arbitrator, late in the course of the action.

“The general rule is that in the absence of agreement to the contrary, liquidated damages bear interest, whereas unliquidated damages do not. 47 C. J. S., Interest, p. 28, sec. 19a; Beck Investment Co. v. Ganser (1951), 259 Wis. 69, 72, 47 N. W. (2d) 490. In order to recover interest there must be a fixed and determinate amount which could have been tendered and interest thereby stopped; .the amount of the claim must be known and determined,.- or readily determinable. 47 C. J. S., Interest, p. 3.0, 'sec. 19b. Ordinarily, where the amount of a demand- is- sufficiently certain to justify the allowance of interest thereon, the existence of a setoff, counterclaim, or cross-claim which is unliquidated will not prevent the recovery of interest on the balance of the demand found due from the time it became due. 47 C. J. S., Interest, p. 31, sec. 19b. See also Anno. 3 A. L. R. 809.” 4

Plaintiff’s first complaint, served March 3, 1965, demanded $5,043.40. It does not appear how this amount was arrived at, and the total which was really due was substantially larger. An amended complaint was served *35 March 25th, demanding $14,393.26. A bill of particulars was served May 17, 1965. It contained a detailed, itemized account covering plaintiff’s concrete work and extras. The amount was the same as that later awarded by the arbitrator. It also showed the amount of commission claimed, and $1,676.08 as the balance due after crediting payments. This is the same amount ultimately allowed by the court, subject to a credit of $225 on defendants’ counterclaim. The gross error in the first complaint raises a doubt as to the determinability of plaintiff’s personal claim at that time and also as to whether there had been a sufficient demand for payment. The total amount demanded in the amended complaint was approximately correct, and the detailed character of the bill of particulars and the subsequent allowance in accordance with it established that plaintiff’s personal claim was sufficiently liquidable. Accordingly plaintiff was entitled to interest at five percent on his claim of $1,676.08, reduced by the $225 credit, from May 17, 1965, to October 19th, the date of the order for disbursement. This will increase the judgment by $30.81.

It is true that defendants’ money was on deposit in court during most of the period, but it was not available to plaintiff until October 19th. Although there is authority, relied on by the circuit court, that interest does not run while the amount of a disputed claim is on deposit in court, we consider it a better rule that

“. . . except in the case of a stakeholder, one depositing money in court does not thereby stop the running of interest against him where such deposit is not a tender to plaintiff and does not entitle plaintiff to use the money.” 5

2. Error in taxation of costs. The court decided that the allowable costs amounted to $316.54, but reduced the allowance by $100 on the theory that $100 of defendants’ *36 money had been used to pay plaintiff’s share of the arbitrator’s fee. This was in error. Prior to October 19th, it had been determined that plaintiff was entitled to $4,713.32 exclusive of interest and costs. The judgment ultimately reflected this figure. So did the court’s order of October 19th. That order, however, directed that $4,613.32 be paid to plaintiff’s attorney and $100 to the arbitrator, as plaintiff’s share of the fee. It is clear that this $100 was taken out of plaintiff’s money and not out of defendants’. This amount should not have been offset against costs to which plaintiff was entitled, and the costs awarded by the judgment must be increased by $100.

3. Allowance of a second $100 item under sec. 271.0k (1) (a), Stats. Plaintiff’s proposed bill of costs included his disbursements incurred in both the principal and garnishment actions, and two $100 items for “costs (exclusive of disbursements)” pursuant to sec. 271.04 (1), Stats. One $100 item was for the principal action and the other for the garnishment action. The court disallowed the second $100 item.

The pertinent statute, sec. 267.21, Stats. 1963, 6 provided :

“In case of a trial of an.

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Bluebook (online)
142 N.W.2d 192, 31 Wis. 2d 29, 1966 Wisc. LEXIS 953, Counsel Stack Legal Research, https://law.counselstack.com/opinion/de-toro-v-di-la-ch-inc-wis-1966.