Grand Lodge, Benevolent Knights of America v. Murphy Const. Co.

92 So. 757, 152 La. 123, 1922 La. LEXIS 2865, 152 La. 125
CourtSupreme Court of Louisiana
DecidedMay 22, 1922
DocketNo. 23547
StatusPublished
Cited by29 cases

This text of 92 So. 757 (Grand Lodge, Benevolent Knights of America v. Murphy Const. Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grand Lodge, Benevolent Knights of America v. Murphy Const. Co., 92 So. 757, 152 La. 123, 1922 La. LEXIS 2865, 152 La. 125 (La. 1922).

Opinion

ST. PAUL, ■ J.

This is a concursus proceeding growing out of a building contract. The owner (plaintiff) has calíed in the contractor, the surety on the latter’s bond, and certain furnishers of material. The controversy in this court is entirely between [125]*125these last and the surety, and only four claims are involved. The matter was tried before a commissioner, whom we recognize as being then a practicing member of the bar, now deceased. He allowed: (1) Kenny, for hauling, $69.50; (2) Geier Bros., for lumber, $822.98; (3) Holzer, for metal work, $572.50; (4)Maurer, for painting, $1,120.25. The trial judge disallowed the Kenny claim, but otherwise approved the finding of the commissioner. The surety appealed; Kenny answered, praying that his- claim be reinstated; Geier Bros, answered, praying for an increase.

I.

[4] The commissioner, who was fully qualified to discharge his duties, was better situated than the district judge to resolve the simple question of fact whether Kenny had or had not made out his claim; for he had seen and heard the witnesses, and the district judge had not. We think the evidence justifies his finding that hauling was done to the amount claimed. The suggestion that Kenny’s teams were employed to assist the contractor in diverting material from this building to other quarters is one which doe's not appeal to us. It involved a charge of fraud, not only against the contractor, but against Kenny, and cannot be founded on mere suspicions.- There are many things which must be removed from a building site, as well'as brought to it, including surplus materials; and the mere fact that materials are removed from one building to another is no ground for a drayman employed for that purpose to suspect that his employer is without right to make the transfer. This claim should be re-instated.

II.

[5] Geier Bros, complain that the commissioner deducted too much for materials contracted for, but not delivered. They could have made certain the proper amount to be deducted by producing evidence of the amount of their original charges; which they agreed to do, but afterwards failed, neglected, or refused to do. The commissioner made as fair an estimate of the value as he could, by averaging the price of all similar material furnished, which was the best he could do. We see no manifest error in this method, under the circumstances.

[6] They also complain that they were charged with the cost of scraping and smoothing certain floors; whilst the surety, on the other hand, claims that they should be charged also with the cost of scraping and smoothing still another floor, to wit, the ballroom floor. The facts are that they furnished certain flooring, not of uniform thickness (as it should have been), and the architect refused to accept it unless scraped and smoothed to make an even surface. This was agreed to; and of course Geier Bros, are liable for the extra cost entailed. The commissioner allowed this extra cost as to all floors but the ballroom floor, which, according to the specifications, was to have been scraped, smoothed, and sandpapered in any event.- There is no proof in the record that Geier Bros, agreed to bear the cost of scraping and smoothing this ballroom floor, as a consideration for having the flooring accepted; and there is no evidence how much more, if any, this lack of uniform thickness added to the cost of the scraping and smoothing which had to be done in any event. The commissioner’s conclusion to charge Geier Bros, with the cost of scraping and smoothing all floors but the ballroom floor, but not to charge them with the cost of scraping and smoothing that floor, was the fairest and most equitable thing to do under, the circumstances. We therefore approve his action on this claim.

III.

The claim of Holzer and that of Maurer may be considered together. The amount claimed by each is admitted to be correct; [127]*127and the only question is whether or not certain payments which they received from the contractor during the course of their work were properly imputed to other claims which they had against him, or should have been imputed to their claims in this case.

This court has not had occasion to pass upon imputation of payment in connection with the claims of furnishers of materials under building contracts. But the Court of Appeal for the Parish of Orleans has had occasion to do so several times.

In Roca v. Caruso, 7 Orleans App. 451, that court said:

A furnisher of building materials, who knowingly receives from a contractor money earned under one contract, cannot impute such payment to any other account, even though older, as long as the debt incurred in connection with such contract remains unpaid.

But in Jordy Bros. v. Judlin, 9 Orleans App. 43, it was stated that—

The ruling in Roca v. Caruso, 7 Court of Appeal, 451, is not to be extended beyond those cases where the furnisher of materials knows the origin of the funds paid to him by the contractor and has received nó instructions to impute the payment to any particular account.

In the Jordy Case it was stated that in the Roca Case the contractor had sent (to the furnisher of materials), not money or even his own check, but the check of a party for whom work had been done, and without instructions as to how to impute the payment, and that the presumption was that the contractor intended the payment to be applied to the contract out of which the money came. But in the Jordy Case the contractor had paid with his own personal check, and had sent instructions as to how the payment should be imputed. And the court held that he had a right to do so.

This was in strict accord with provisions of the Civil Code:

Art. %168: The debtor of several debts has the right to declare, when he makes a payment, what debt he means to discharge.

[1] In géneral, therefore, the debtor may impute his payments as he pleases, and cannot be controlled therein by a surety (Robson & Allen v. McKoin, 18 La. Ann. 544), although that rule may be subject to some exception, as whgre the payment, to the Knowledge of the crediioi', is derived from a source such that it would be a fraud for the creditor to consent with the debtor that the money be diverted and applied otherwise than as the debtor had expressly or impliedly agreed with his sureties. See, for instance, Merchant’s Ins. Co. v. Herber, 68 Minn. 420, 71 N. W. 624; First Nat. Bank of Elizabeth City v. Scott, 123 N. C. 538, 31 S. E. 819, and Burbank v. Buhler, 108 La. 39, 32 South. 201. See, also, Panama Sash & Door Co. v. U. S. Fid. & Guar. Co., 12 Orleans App. 15, 20; Lamson v. Beard, 94 Fed. 30, 42, 36 C. C. A. 56, 45 L. R. A. 822; Merchants’ Loan & Trust Co. v. Lamson, 90 Ill. App. 18; First Nat. Bank v. Gilbert & Clay, 123 La. 845, 49 South. 593, 25 L. R. A. (N. S.) 631, 131 Am. St. Rep. 382; State v. Jahraus, 117 La. 286, 41 South. 575, 116 Am. St. Rep. 208; also Conservative Homestead v. Pollock, No. 7430, Orleans Court of Appeals, and 30 Cyc. 1251.

Hence except where such imputation of payment would amount to a fraud on the part of both debtor and creditor, the debtor may always impute the payment as he pleases.

[2, 3] Hence, also, article 2166, C. C., has no application except to the imputation

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Caldwell Wholesale Co. v. Central Oil & Supply Corp.
761 So. 2d 684 (Louisiana Court of Appeal, 2000)
WHITNEY NATIONAL BANK OF NEW ORLEANS v. DERBES
436 So. 2d 1185 (Louisiana Court of Appeal, 1983)
Whitney Nat. Bank of New Orleans v. Derbes
436 So. 2d 1185 (Louisiana Court of Appeal, 1983)
Marks v. Deutsch Construction Co.
258 So. 2d 676 (Louisiana Court of Appeal, 1972)
Continental Casualty Co. v. Associated Pipe & Supply Co.
310 F. Supp. 1207 (E.D. Louisiana, 1969)
Duffy v. Roman
209 So. 2d 502 (Louisiana Court of Appeal, 1968)
Lennox Industries, Inc. v. Pitcher Co.
209 So. 2d 507 (Louisiana Court of Appeal, 1968)
Maxwell Hardware & Lumber Co. v. Mercer
201 So. 2d 660 (Louisiana Court of Appeal, 1967)
Hayes v. Russell & Hazel Builders, Inc.
179 So. 2d 689 (Louisiana Court of Appeal, 1965)
Baudoin v. Gallier
153 So. 2d 169 (Louisiana Court of Appeal, 1963)
Madison Lumber Co. v. Helm
13 So. 2d 349 (Supreme Court of Louisiana, 1943)
Madison Lumber Co. v. Helm
8 So. 2d 648 (Louisiana Court of Appeal, 1942)
R. P. Farnsworth & Co. v. Electrical Supply Co.
112 F.2d 150 (Fifth Circuit, 1940)
Madison Lumber Co. v. Globe Indemnity Co.
161 So. 775 (Louisiana Court of Appeal, 1935)
N. O. Nelson Mfg. Co. v. Wilkerson
152 So. 157 (Louisiana Court of Appeal, 1934)
Brinson v. Guyon
150 So. 866 (Louisiana Court of Appeal, 1933)
Electrical Supply Co. v. Eugene Freeman, Inc.
152 So. 510 (Supreme Court of Louisiana, 1933)
George E. Breece Lumber Co. v. Morris
141 So. 787 (Louisiana Court of Appeal, 1932)
Calatex Oil & Gas Co. v. Smith
144 So. 243 (Supreme Court of Louisiana, 1932)

Cite This Page — Counsel Stack

Bluebook (online)
92 So. 757, 152 La. 123, 1922 La. LEXIS 2865, 152 La. 125, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grand-lodge-benevolent-knights-of-america-v-murphy-const-co-la-1922.