Hill v. Wood

19 P.2d 89, 142 Or. 143, 1933 Ore. LEXIS 238
CourtOregon Supreme Court
DecidedFebruary 3, 1933
StatusPublished
Cited by4 cases

This text of 19 P.2d 89 (Hill v. Wood) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hill v. Wood, 19 P.2d 89, 142 Or. 143, 1933 Ore. LEXIS 238 (Or. 1933).

Opinion

BAILEY, J.

In the summer of 1925, plaintiff, John R. Hill, entered into a contract with Dudley Gately whereby Gately was, for an agreed consideration, to perform certain work, principally excavating, on a portion of what was then known as the Roosevelt Coast highway.

The contract provided, among other things, as follows:

“It is further agreed that the party of the first part (Hill) shall pay to the party of the second part (Gately) the sum of money earned under the unit prices herein agreed upon, according to the monthly estimate of the state highway engineer. The said payments shall not include that portion retained by the state, until such time as the final estimate is in and the work is accepted. The monthly estimates are to be paid as soon as received by the party of the first part.
“It is further agreed that the party of the second part shall keep a clear and complete record of all ex *145 penses incurred in the performance of this contract, and of all indebtedness arising from these expenses # * *
“It is further agreed that the final payment by the party of the first part to the party of the second part shall not be made until provision shall be made, to the satisfaction of the party of the first part, for all expenses and indebtedness incurred by the party of the second part, which can be made the basis of a lien against the work, or of a claim filed against the work”.

The state highway commission was to retain, until the work was accepted, 15 per cent of the amount due according to monthly estimates.

During the month of November, 1925, the plaintiff visited in the East his father, who was seriously ill. Before Hill left for the East, Gately made an assignment to the defendant Brookings State Bank, reading as follows:

“Brookings, Oregon,
“November 13th, 1925.
“For value received, me (to) me paid by the Brookings State Bank, I hereby sell, assign and transfer my claim against John R. Hill for work done on the Roosevelt highway, for which the said John R. Hill has the contract, which said payments are estimated October 20th, November 20th and December 20th of 1925, and January 20th, 1926, to Brookings State Bank, and authorize and empower said Brookings State Bank, to act as agent for me, and in my name, place and stead, to verify said claim, and to sign an (and) receipt for said check from John R. Hill, which may hereafter be drawn.
“DUDLEY GATELY.
“Assignment accepted.
“JOHN R. HILL”.

*146 In order to enable the bank to receive the money coming to it under the above assignment, the plaintiff arranged with the defendant George G. Wood, cashier of the defendant bank, that Wood should, during the time Hill was away, check over the monthly estimates, ascertain the amounts due thereunder to Gately and furnish that information to plaintiff’s daughter, who was given authority, and had been instructed, to draw checks on plaintiff’s bank account in favor of the bank for the amounts represented by Wood as due Gately.

During plaintiff’s absence, Wood prepared two checks in favor of the defendant bank, one for $1,600, dated December 15, 1925, and the other for $1,050, dated January 21, 1926, and procured plaintiff’s daughter to sign them on the representation that the checks had been made out for the amounts due Gately on the estimates for the months ending November 20, 1925, and December 20,1925, respectively.

After plaintiff’s return from the East he ascertained that the amounts due Gately on the monthly estimates of November and December were $794.41 and $751.47, respectively, instead of $1,600 and $1,050, respectively, paid to the bank by the checks above mentioned. Plaintiff thereupon demanded of the defendants repayment of the excess amount of each check. When that was refused, this action was brought to recover the over-payment, together with interest at the rate of 6 per cent per annum from the respective dates the excess payments were made to the bank.

Plaintiff, in his amended complaint, definitely and clearly sets forth the ground on which he seeks recovery from the defendants. After alleging the facts leading up to and culminating in the execution and delivery to the bank of the two notes above mentioned, plaintiff states:

*147 “That in truth and. in fact, the ámonnt due said . Gately on December 15, 1925, was only $794.41 and the amount due him on January 21,1926, was only $751.47, and the over-payment on the first date was $805.59 and the over-payment on the second date was $298.53, and said over-payments were made through mistake and inadvertence due to carelessness and neglect on the part of defendants in making said computations, and not otherwise, and were received by defendant bank for its use and benefit”.

In its answer to the amended complaint the defendant bank as a second and further separate answer alleges that it had been the custom of the bank at the end of each calendar month to return to its customers all of the checks which had been drawn on the bank during the month, together with a statement showing the amount of money deposited, the number and amount of the checks drawn on the bank, and containing a notation that:

“If no error is reported within ten days, the account will be considered correct”.

It is further alleged that the plaintiff received these canceled checks and the statement and had not reported any error within ten days thereafter and that the plaintiff was therefore estopped from questioning the correctness of these checks.

In its third and further separate defense the Brookings State Bank alleges that the plaintiff was a contractor having certain highway construction work to perform and had sublet portions of said work to Gately, but that the terms of the contract were not known to the defendant until after January 21, 1926; that the plaintiff represented to defendant Wood in November that there was something like $3,000 due Gately over and above the 15 per cent retained until the completion of the work; and that in computing the *148 'amount which was due Gately the defendant "Wood was acting as the agent of the plaintiff and not under or by authority of the bank, or within the scope of his duties as an employee of the defendant bank. This pleading further alleges that the amounts represented by the two checks above mentioned were due and owing Gately by the plaintiff and were properly retained by the bank.

As a further answer and by way of counter-claim the defendant bank seeks to recover from the plaintiff the sum of $2,000, as damages for certain alleged misrepresentations made by the plaintiff to the defendant bank.

The affirmative matter contained in these defenses and the counter-claim was put in issue by appropriate denials.

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Cite This Page — Counsel Stack

Bluebook (online)
19 P.2d 89, 142 Or. 143, 1933 Ore. LEXIS 238, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hill-v-wood-or-1933.