Farmers' National Bank v. Woodell
Opinions
Mr. Justice Moore
delivered the opinion of the court.
This is an action to recover an installment alleged to be due under a contract entered into March 29, 1898, between the defendant and Yee Sing & Company, by the terms of which he agreed to> plow, put into a good state of cultivation, and seed 100 acres of suitable land in Union County, Oregon, to- sugar beets, and, as soon as they were up and read}'- for cultivation, to surrender the premises to Yee Sing & Company, who, in the proper season, were to furnish sufficient labor to care for said crop in a good and husband-manlike manner, as directed by the agricultural superintendent of the Oregon Sugar Company, causing the beets to be properly thinned, weeded, and cultivated while growing, to top them when matured, and load them upon wagons to be furnished by the defendant, who, in consideration thereof, agreed to1 pay them $1.15 per ton for all the beets grown on said land, as follows: $5 per acre at the expiration of six weeks after entering upon the performance of the work, [297] $2.50 per acre September x, 1898, and the remainder when the beets were delivered and weighed at La Grande. It is alleged in the complaint that Yee Sing & Company took possession of said land, and entered upon the performance of their part of the contract, about May 1, 1898, and within six weeks from that time they assigned the first installment due under the agreement to the bank, plaintiff herein, which, on June 23, 1898, notified defendant thereof, and on July 8, 1898, demanded of him the payment of $500 due under the contract, but that he neglected to pay any part thereof.
The defendant, after denying the material allegations of the complaint, set up separate defenses, in substance, as follows : (1) That when the beets were up and ready for cultivation he tendered the possession of said land to Yee Sing & Company, who for more than ten days thereafter refused to enter upon the performance of their agreement, and that after taking possession of said premises they neglected to furnish sufficient laborers to care for said crop in a good and husbandmanlike manner, or as directed by said superintendent, in consequence of which the first payment of $5 per acre never became due or payable to plaintiff’s assignor; (2) that in order successfully to grow sugar beets, or as required by the terms of said contract, it is necessary that the young plants should be thinned not later than ten days after they are out of the ground, and for six weeks from that time they must be constantly hoed and weeded, requiring one laborer to each two acres of land; that about May 18, 1898, defendant had growing, ready for thinning and weeding, 100 acres of sugar beets, on .which day he so notified Yee Sing & Company, to whom he tendered, but they refused to take possession, of said premises, and did not enter upon the performance of their contract until May 28, 1898, and thereafter they refused, though requested to do so, to furnish a sufficient number of laborers to properly care for and cultivate said crop, in consequence of which the beets were in[298] jured, and the quantity thereof curtailed at least four tons to the acre, to defendant’s damage in the sum of $1,200; (3) that on June 22, 1898, Yee Sing & Company abandoned said contract, and permitted their employees to- quit; whereupon defendant was compelled to engage laborers, and to pay them the sum of $500, to cultivate the crop, so as to avoid an entire failure thereof, and that, in consequence of the neglect of Yee Sing & Company in this particular, he was damaged in the sum so expended for labor; (4) that about June 23, 1898, and prior to- the service upon defendant of any notice of said assignment, the employees of Yee Sing & Company informed him that unless they were paid weekly for their labor they would abandon the cultivation of said beets; whereupon lie-entered into a contract with them, with the consent of Yee Sing & Company, by which he agreed to pay said employees for the labor they had theretofore performed, and that which they might thereafter render, until the beets were thinned, weeded, and cultivated, not exceeding the amount of said first payment, and that in pursuance of such agreement he paid said laborers the sum of $500. The reply having put in issue the allegations of new matter in the answer, a trial was had, resulting in a judgment for the defendant in the sum of $1, and the plaintiff appeals.
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Mr. Justice Moore
delivered the opinion of the court.
This is an action to recover an installment alleged to be due under a contract entered into March 29, 1898, between the defendant and Yee Sing & Company, by the terms of which he agreed to> plow, put into a good state of cultivation, and seed 100 acres of suitable land in Union County, Oregon, to- sugar beets, and, as soon as they were up and read}'- for cultivation, to surrender the premises to Yee Sing & Company, who, in the proper season, were to furnish sufficient labor to care for said crop in a good and husband-manlike manner, as directed by the agricultural superintendent of the Oregon Sugar Company, causing the beets to be properly thinned, weeded, and cultivated while growing, to top them when matured, and load them upon wagons to be furnished by the defendant, who, in consideration thereof, agreed to1 pay them $1.15 per ton for all the beets grown on said land, as follows: $5 per acre at the expiration of six weeks after entering upon the performance of the work, [297] $2.50 per acre September x, 1898, and the remainder when the beets were delivered and weighed at La Grande. It is alleged in the complaint that Yee Sing & Company took possession of said land, and entered upon the performance of their part of the contract, about May 1, 1898, and within six weeks from that time they assigned the first installment due under the agreement to the bank, plaintiff herein, which, on June 23, 1898, notified defendant thereof, and on July 8, 1898, demanded of him the payment of $500 due under the contract, but that he neglected to pay any part thereof.
The defendant, after denying the material allegations of the complaint, set up separate defenses, in substance, as follows : (1) That when the beets were up and ready for cultivation he tendered the possession of said land to Yee Sing & Company, who for more than ten days thereafter refused to enter upon the performance of their agreement, and that after taking possession of said premises they neglected to furnish sufficient laborers to care for said crop in a good and husbandmanlike manner, or as directed by said superintendent, in consequence of which the first payment of $5 per acre never became due or payable to plaintiff’s assignor; (2) that in order successfully to grow sugar beets, or as required by the terms of said contract, it is necessary that the young plants should be thinned not later than ten days after they are out of the ground, and for six weeks from that time they must be constantly hoed and weeded, requiring one laborer to each two acres of land; that about May 18, 1898, defendant had growing, ready for thinning and weeding, 100 acres of sugar beets, on .which day he so notified Yee Sing & Company, to whom he tendered, but they refused to take possession, of said premises, and did not enter upon the performance of their contract until May 28, 1898, and thereafter they refused, though requested to do so, to furnish a sufficient number of laborers to properly care for and cultivate said crop, in consequence of which the beets were in[298] jured, and the quantity thereof curtailed at least four tons to the acre, to defendant’s damage in the sum of $1,200; (3) that on June 22, 1898, Yee Sing & Company abandoned said contract, and permitted their employees to- quit; whereupon defendant was compelled to engage laborers, and to pay them the sum of $500, to cultivate the crop, so as to avoid an entire failure thereof, and that, in consequence of the neglect of Yee Sing & Company in this particular, he was damaged in the sum so expended for labor; (4) that about June 23, 1898, and prior to- the service upon defendant of any notice of said assignment, the employees of Yee Sing & Company informed him that unless they were paid weekly for their labor they would abandon the cultivation of said beets; whereupon lie-entered into a contract with them, with the consent of Yee Sing & Company, by which he agreed to pay said employees for the labor they had theretofore performed, and that which they might thereafter render, until the beets were thinned, weeded, and cultivated, not exceeding the amount of said first payment, and that in pursuance of such agreement he paid said laborers the sum of $500. The reply having put in issue the allegations of new matter in the answer, a trial was had, resulting in a judgment for the defendant in the sum of $1, and the plaintiff appeals.
In Phillips v. Terry, 3 Abb. Dec. 607, an action was brought to recover damages for injuries resulting from backing water on a meadow, and the plaintiff, having testified in regard to- the injury sustained thereby, was asked, “Taking that hay as it stood there, what would it yield to the acre?” and, having been permitted to answer the question, it was held that no. error was thus committed, the court say[302] ing: “The farmer, acquainted with the subject-matter of such an inquiry as this under consideration, is an expert, and, unless the witness has the peculiar knowledge which constitutes him an expert, his opinion would be excluded.” In Harpending v. Shoemaker, 37 Barb. 270, a witness who was then a merchant, but had been engaged in farming, having testified respecting the quantity of buckwheat grown on certain land; that he had examined the straw after-the grain was threshed, — and that he thought it was not threshed clean,' — was not permitted to answer the question, “How much less buckwheat was there than there would have been if the same had been properly threshed?” and it was held that an error was thereby committed. In Seamans v. Smith, 46 Barb. 320, it was held that, a witness being a farmer, his experience as such rendered him competent to answer the question, “What portion of the buckwheat the defendant’s horses destroyed, in the fall of 1861,” and that an objection to such interrogatory was properly overruled. In Barnum v. Bridges, 81 Cal. 604 (22 Pac. 924), it was held that no error was committed in permitting a witness, who, as a farmer and logger, had ordinary knowledge of timber land, to state what, in his judgment, it would cost to clear off such land, though he might never have actually cleared any land just like that in question. In Isaacs v. McLean, 106 Mich. 79 (64 N. W. 2), an action of trover for a quantity of hay which had been cut from a given acreage, but not weighed at the time of the conversion, it was held that a witness who had shown himself competent might be asked to state the average crop per acre for that season upon the premises in question. So, too, in Buffum v. Harris, 5 R. I. 243, it was held that a farmer who testified that he had been engaged in draining lands for the purpose of rendering them cultivatable was competent as an expert, and might express an opinion that the land in controversy required draining to fit it for cultivation. We think it is apparent [303] from these excerpts that the testimony of the defendant respecting the time when the cultivation of the sugar beets should have been commenced, and the quantity which could have been raised on his land, properly cultivated, was admissible.
Plaintiff’s counsel assigned other alleged errors relating to the competency of witnesses and the admissibility of testimony of like character, but we think the legal principles insisted upon have been examined, and such alleged errors will not be further considered.
The bill of exceptions states, in effect, that testimony was introduced at the trial tending to show the following facts: That on May 18, 1898, the said sugar beets were up and growing on 100 acres of defendant’s land, and should have been thinned and weeded within ten days from that time, to accomplish which required from 40 to 50 laborers daily; that Yee Sing & Company took possession of said land about May 28, 1898, with 22 laborers, and from that time until July 1, 1898, there were not less than 11 nor more than 32 laborers daily employed in cultivating said beets, which was not completed until about July 21, 1898, and that, in consequence of the failure of Yee Sing & Company to comply with the terms of their contract in these respects, the defendant was damaged from $500 to $1,000; that plaintiff advanced money to Yee Sing & Company, taking as security therefor an assignment of the first payment due under the contract entered into between them and the defendant, who on June 23, 1898, was notified by plaintiff’s agent that said installment of $500 had been assigned to his principal; that on July 2, 1898, the laborers employed by Yee Sing & Company quit work, refusing longer to continue cultivating defendant’s beets unless they were .paid for their labor, whereupon the defendant, in order to save his crop from being destroyed, was compelled to guaranty to said laborers the payment of $250 for the labor which they had performed, and to assume the payment of $250 for the work which they might thereafter render, and in consideration of such guaranty and assurance said laborers resumed work, and com[310] pleted the cultivation of defendant’s crop, for which he paid them, with the consent of Yee Sing & Company, the sum of $500, after having received notice of the assignment to plaintiff by Yee Sing & Company of that amount.
It is contended by plaintiff’s counsel that the defendant, having been notified of the assignment by Yee Sing & Company, could not thereafter make payments to their employees to plaintiff’s prejudice; while defendant’s counsel insist that Yee Sing & Company could not transfer any greater interest in the chose in action than they possessed, and that the defendant, having been compelled to pay to said laborers the sum of $500 in consequence of the failure of Yee Sing & Company to keep their contract, is entitled to< off-set his damage against plaintiff’s demand. It is admitted that, if the defendant had made the payment directly toi Yee Sing & Company afer he was notified of the assignment, such payment would not ■ relieve him from liability to> the plaintiff: 2 Am. & Eng. Enc. Law (2 ed.), 1077; Andrews v. Beecker, 1 Johns. Cas. 411; Sanders v. Soutter, 136 N. Y. 97 (32 N. E. 638); Eastman v. Wright, 6 Pick. 316; Parker v. Kelly, 10 Smedes & M. 184. So, too, if Yee Sing & Company had earned the first installment at the time they assigned it, and defendant had notice thereof, he could not thereafter pay any portion of the sum so due to the employees of Yee Sing & Company, to the prejudice of the plaintiff.: McCloskey v. City of San Francisco, 66 Cal. 104 (4 Pac. 1092). In Fisken v. Milwaukee Bridge Works, 86 Mich. 199 (49 N. W. 133), the defendant, having enterd into a contract with the City of Detroit for the construction of a bridge, sublet the building of the piers thereof to¡ one Esson, agreeing to pay him monthly 85 per cent of the work done or material furnished, and the remainder of the contract price upon the completion of the work; reserving the right, however, to refuse at any time to1 make payments to Esson until he should have presented full releases or waivers of claims or liens by [311] all persons supplying material to, or performing labor for, him. Esson having commenced the construction of the piers, plaintiff loaned him $5,500 to. enable him to complete his sub-contract, taking as security therefor an assignment of the 15 per cent of the contract price to. become due on the completion of the piers. The defendant, having been notified of such an assignment, refused to. pay plaintiff any part of the drawback, amounting to the sum of $4,385.77; whereupon an action was instituted to recover the same, at the trial of which the defendant sought to show that the work done and material furnished by Esson under the contract amounted to $26,580.57, on account of which there had been paid the sum of $24,700, — a part therof having been paid after notice of the assignment, — and that there yet remained about $7,000 due to stonecutters and other persons for work done on Esson’s contract; but the court, having rejected the testimony so offered, directed the jury to return a verdict for plaintiff in the full amount demanded, and, judgment having been rendered thereon, the defendant appealed. In reversing- the judgment, Mr. Justice McGrath, speaking for the court, says: “It did not appear just when this $24,700 was paid out by defendant, nor did it appear just what portion of that sum, if any part, was paid after notice of the assignment. It was admitted, however, that this sum had been paid out by defendant, and, if so; it left but $1,880.57 of a balance in defendant’s hands, under the Esson contract, irrespective of the question as to whether or not defendant was entitled to retain that sum until Esson should produce releases for all claims due his sub-contractors for labor and material. It appeared that defendant had required from Esson certificates of the correctness of the amounts paid out by it to third parties for labor and material, and the court held that payments made under such certificates were equivalent to payments to Esson. Plaintiff was in no better position than if Esson’s contract had been [312] assigned to1 him, and he had brought suit thereon, and defendant was entitled to' set up in defense any matter which it might have availed itself of had suit been brought under the contract, except, perhaps, voluntary payments to Esson since the notice of the assignment. The fact that defendant, as a further protection to itself, in making payments to third parties, required Esson’s certificate of the correctness of the amounts, would not, of itself, preclude defendant from offsetting such amounts, if it was shown that such payments became actually necessary in the conduct of the work. The very object of this reservation of 15 per cent was defendant’s protection, and it was entitled to avail itself of this reserve to do what was actually necessary for the completion of Es-son’s contract, and its own protection. Its lien upon that reserve was prior to that of plaintiff. Plaintiff did not take the assignment of the contract, and had not chosen to assume its control, but had left that with Esson. Defendant was not bound to protect the reserve at its own expense. Defendant should have been allowed to show when, and under what circumstances, the payments by it were made, and, so far as they were properly made, it was entitled to off-set them against the amount of Esson’s work.”
In James v. Cincinnati, etc., Ry. Co., 2 Disn. 261, it is held that, if the subject-matter of the contract be left within the power and under the control of the assignor, the risk of its being impaired or destroyed, so as bo defeat the performance, is assumed by the assignee, the court saying: “The defense is, in substance, a want of ability on the part of one of the contracting parties to comply with the terms of the contract. If this want of ability had been caused by the defendant, after notice of the assignment, then the assignee might justly complain of such an act as a fraud upon his rights. But how can it be claimed that the assignment and notice devolved upon the defendant the duty of so supervising and controlling the acts of the assignor that a continued [313] ability to- perform should exist? It Avould be for the assignee, and not the defendant, to protect and secure rights depending upon the conduct of the assignor.” The plaintiff, as assignee of Yee Sing & 'Company, stands in the place of the assignor, and may recover what the- latter would have recovered but for the assignment, and no more: Sanders v. District of Columbia, 20 Ct. Cl. 337. In a note to- the case of Bradley v. Thompson Smith’s Sons, 98 Mich. 449 (39 Am. St. Rep. 565, 57 N. W. 576, 23 L. R. A. 305), it is said: “The assignment of a contract is generally held to be subject to the equities, including set-off, growing out of the contract itself, regardless of when they mature.” See, also, Smith v. Wall, 12 Colo. 363 (21 Pac. 42); Newton v. Lee, 69 Hun, 90 (23 N. Y. Supp. 536). The contract in this case was entire as far as it related to the first payment to- be due thereunder, an assignmnet of which could not so- sever the installment as to compel the defendant to apportion a part thereof to the labor performed when the assignment was made, if he sustained any damage as the result of the default of Yee Sing & Company. Their employees refused longer to work for them, and defendant, not being able to secure other laborers, was compelled to take active measures to prevent the failure of his crop; and having discharged the duty which devolved upon the plaintiff, if it sought to recover -under the assignment, he should be entitled to- an offset against its demand to the extent of the damages resulting from the failure of its assignors to keep their agreement.
There are other alleged errors assigned, but, deeming them unimportant, the judgment is affirmed. Affirmed.
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