Hot Springs Golf & Country Club Ass'n v. Community Bank & Trust Co.

32 S.W.2d 427, 182 Ark. 715, 1930 Ark. LEXIS 533
CourtSupreme Court of Arkansas
DecidedNovember 17, 1930
StatusPublished
Cited by2 cases

This text of 32 S.W.2d 427 (Hot Springs Golf & Country Club Ass'n v. Community Bank & Trust Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hot Springs Golf & Country Club Ass'n v. Community Bank & Trust Co., 32 S.W.2d 427, 182 Ark. 715, 1930 Ark. LEXIS 533 (Ark. 1930).

Opinion

Mehappy, J.

The 'Southwestern Marble & Tile Company brought suit in the Garland Chancery Court against appellants, Robert Higgins and Hot Springs Golf & Country Club Association, and against appellees, A. W. Griffee, C. J. Horner and Community Bank & Trust Company. It alleged that the Hot Springs Golf & Country Club Association was the owner of certain real property situated in Garland County, Arkansas, and that it had entered into a contract with appellant, Robert" Higgins, for the erection of a building on said lands, and Higgins sublet a part of said contract to appellee, Griffee. . That Griffee purchased certain materials from the Southwestern Marble & Tile Company in the sum of $1,432.67, which materials went into said improvement, and it claimed a lien on the lands on which the building was erected. It also alleged that Horner and the Community ■Bank & Trust Company claimed an interest in the property. It had previously filed a mechanic’s lien in proper form and in the time prescribed by law for the sum sued for. It asked judgment against Griffee, and that the same be declared a lien upon the real property described in the complaint. The Community Bank & Trust Company filed answer admitting the contract between the Hot Springs Golf & Country Club Association and Higgins for the erection of the building and the subletting of part of the contract to Griffee. This answer also alleged that it had no knowledge in reference to the claim of the Southwestern Marble & Tile Company and denied that it had any claim. The Community Bank & Trust Company made its answer a cross-complaint alleging that on July 11, 1928, it at the instance and request of Griffee, and in pursuance to the agreement of 'Higgins, agreed to advance tp Griffee certain sums of money for the purpose of paying for labor and materials on the subcontract which Griffee had with Higgins, and with the provision that the payments of estimates due Griffee by Higgins should be paid to Community Bank & Trust Company, and provided that in no case should any advances be made in excess of the contract price $5,500, the amount which Higgins had agreed to pay Griffee. That Higgins was the general contractor, accepted the agreement and agreed to pay the amounts as they became due to the Community Bank & Trust Company. The agreement between Higgins and Griffee as to the bank advancing money, was as follows:

“July 11, 1928.
_ “Mr. Robert Higgins, General Contractor,
“Hot Springs Golf and Country Club, City.
“Dear Sir: The Community Bank & Trust Company is advancing me money for labor and material on the Hot 'Springs Golf and Country Club job and request that you make all payments direct to them as estimates become due, in no case to exceed the amount of the contract: fifty-five hundred dollars ($5,500).
“Yours very truly,
“A. W. Griffee.
“I accept the above agreement and -will pay the amounts as they 'become due direct to the Community Bank fe Trust Company.
“R. T. Higgins.”

The Community Bank & Trust Company alleged that it loaned Griffee, on the security of its agreement and the acceptance thereof by Higgins, sums aggregating $1,675 evidenced by three promissory notes executed by Griffee to it, and that the money was loaned for the purpose-of paying for labor and material; that it went into the work Griffee was performing for Higgins. That, while the bank did not enter into any agreement with Griffee and Higgins to do so, it acted with their consent and approval and honored checks and paid for material alleged to have been used in the building in the amount of $2,928.98, and for labor $2,849.93. It alleged that Higgins executed and delivered to it on October 27,1928. his check for $2,456.75 drawn on the Arkansas National Bank of Hot Springs with the notation on the check, “Paid in full Country Club Job for A. W. Griffee, contract.’’’ That at the time said check was delivered to it Griffee was indebted to it in the sum of $1,675 principal on said notes executed by Griffee for the purpose of securing money to pay for the labor and materials which went into the building and interest on said notes of $15.16, aggregating $1,690. That no part of this sum had been paid. That the bank had agreed to apply the balance of the proceeds of said check after paving these notes, upon bills which had been presented to it and had been approved by Griffee and Higgins. It accepted the check, and the bank refused to pay same, and it was returned to 'Community Bank & Trust Company. It asked judgment against Higgins and Griffee for $2,456.75 with interest and that upon the payment of the check it would be authorized and directed to first pay the sum due it on said notes with interest, and that the balance be applied under the order and direction of the court. Copies of the notes and check were attached to the complaint as exhibits, also a list of cheeks drawn by Griffee which purported to be payments for material and labor. The total amount paid out by the bank being $5,778.91.

C. J. Horner filed answer alleging that he had furnished materials for Griffee to go into the Country Club job; had filed his mechanic’s lien against the property of the Hot Springs Golf & Country Club Association and asked for judgment and a lien for $251.90.

A. W. Griffee did not answer.

Peyton Bondurant filed intervention alleging that he furnished materials to Griffee which went into the Country Club job and claimed a mechanic’s lien and judgment for $223.97.

Robert Higgins filed answer denying that at the request of Griffee the Community Bank & Trust Company agreed to advance to either Griffee or him sums of money for the purpose of paying for labor and materials. He admitted that Griffee executed the instrument, and that he signed the memorandum at the bottom, but stated that he at no time entered into any agreement with the Community Bank & Trust Company other than that contained in his acceptance of the order directed to him and signed by Griffee; denied that money was paid by the bank to Griffee with his consent and approval. He alleged that the agreement entered into between himself and Griffee formed a part of and was subject to the agreement and specifications for the erection of the building. Higgins also alleged that on October 27 Griffee delivered to him receipts showing payment of $1,432.67 to the Southwestern Marble & Tile Company the sum of $472.21 to Homer, which receipts purported to be in full payment of all materials furnished to Griffee and used in the erection of the building. That Griffee also exhibited to him a receipt from Peyton Bondurant, and that the Southwestern Marble & Tile Company, Horner and Bondnrant were claiming liens on the building and premises and claiming they had never been paid, and alleged that, if the liens were established, Higgins would be compelled to pay and discharge them as a liability against Griffee, and that, if the liability on the liens was established, it should be discharged out of the sums due on his contract as a part of the consideration for the performance thereof.

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Bluebook (online)
32 S.W.2d 427, 182 Ark. 715, 1930 Ark. LEXIS 533, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hot-springs-golf-country-club-assn-v-community-bank-trust-co-ark-1930.