Hughes v. Oberholtzer

162 Ohio St. (N.S.) 330
CourtOhio Supreme Court
DecidedDecember 15, 1954
DocketNo. 33864
StatusPublished

This text of 162 Ohio St. (N.S.) 330 (Hughes v. Oberholtzer) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hughes v. Oberholtzer, 162 Ohio St. (N.S.) 330 (Ohio 1954).

Opinion

Middleton, J.

Is recovery on the alleged oral agreement barred by the statute of frauds, which is embodied in Section 8621, General Code (Section 1335.05, Revised Code)? That section provides:

“No action shall be brought whereby to charge the defendant * * * upon a contract or sale of lands, tenements, or hereditaments, or interest in, or concerning them, nor upon an agreement that is not to be performed within one year from the making thereof; unless the agreement upon which such action is brought, or some memorandum or note thereof, is in writing, and signed by the party to be charged therewith, or some other person thereunto by him or her lawfully authorized.”

The Court of Appeals held that the amended petition pleads facts showing a cause of action arising [334]*334under a quasi contract due to unjust enrichment, and, therefore, that the statute of frauds does not apply.

It is manifest that the subject matter of the alleged oral agreement in its entirety is such as comes within the provisions of the statute of frauds unless removed therefrom by the circumstances pleaded.

It is to be observed that this is an action for damages for breach of an alleged oral agreement, which damages are alleged in detail and specifically allocated to alleged breaches of the respective provisions of the agreement pleaded. This is an action at law. It is not an action for specific performance. It is not an action for restitution. It is not an action to recover the value of property transferred.

The plaintiff asserts that the facts pleaded show a cause of action arising under a quasi contract, as held by the Court of Appeals, and relies in large part upon the cases of Hummel v. Hummel, 133 Ohio St., 520, 14 N. E. (2d), 923, and La Bounty v. Brumback, 126 Ohio St., 96, 184 N. E., 5. Reference is also made to the discussion of quasi contract in the opinion written by Judge Zimmerman in Rice v. Wheeling Dollar Savings & Trust Co., Exr., 155 Ohio St., 391, 99 N. E. (2d), 301, and to the definition of quasi contract contained in the third paragraph of the syllabus of that case, which is as follows:

“A quasi contract is an obligation imposed by law whereby civil liability arises as to one who has received benefits which he is not justly entitled to retain and for which he may be made to respond in an action in the nature of assumpsit.”

Quasi contracts are not contractual obligations. They are imposed by law without reference to the assent of the obligor. Woodward’s The Law of Quasi Contracts, Chapter 1, paragraph 3; 17 Corpus Juris Secundum, 322, Contracts, Section 6; 12 American Jurisprudence, 502, Section 6.

[335]*335Concerning the nature of quasi contracts, Corbin says:

“A quasi-contractual obligation is one that is created by the law for reasons of justice, without any expression of assent and sometimes even against a clear expression of dissent.” Corbin on Contracts, Section 19.

It is generally agreed that there can not be an express agreement and an implied contract for the same thing existing at the same time. 17 Corpus Juris Secundum, 321, Section 5; 12 American Jurisprudence, 505, Section 7; Creighton v. City of Toledo, 18 Ohio St., 447.

However, by the weight of authority, even though the minds of the parties have not met as to some essential term of the contract, one who has furnished materials or labor may recover the reasonable value of the materials or services. The promise to pay such reasonable value is implied. This is not in reliance upon the contract or by way of enforcement of the contract. It is the enforcement of an equitable right through the fiction called quasi contract. Though equitable in nature and origin, the right may be enforced at law.

The purpose of the quasi-contract action is not to compensate the plaintiff for any loss or damage suffered by him but to compensate him for the benefit he has conferred on the defendant. Thus, while equity might compel a return of the article involved, the obligation which is recognized and enforced in law is the obligation to pay the reasonable worth of the benefit received.

The recovery in a quasi-contract action is based upon value and is imposed without the assent of the defendant to prevent such defendant from enriching himself at the expense of the plaintiff.

The plaintiff in the instant case alleges an express [336]*336oral contract with certain items of consideration to which he alleges the defendant assented, but which now the defendant fails and refuses to perform to the plaintiff’s damage. There is no allegation in the petition that the land here involved has a value greater than the amount admittedly paid by the defendant nor is there any allegation that the failure to comply with the terms of the contract will unjustly enrich the defendant. The pleadings rely on express promises and this is not such a situation where plaintiff is seeking to have the law create the fictional implied promise of the quasi contract.

The quasi-contract action being based primarily on unjust enrichment the pleader must show such enrichment in his petition. The court can not by implication insert therein the basic element of plaintiff’s cause of action. In the present case it is admitted in the amended petition that consideration has moved both ways and there is no allegation that the consideration moving to the plaintiff is inadequate to fairly compensate him for the benefit he has conferred on the defendant.

In Hummel v. Hummel, above mentioned, Peter and Elizabeth Hummel had paid all the annual premiums on a 15-year $1,000 endowment policy on the life of their adult son. The mother was named as beneficiary. When the policy matured the full face amount of the policy was paid to the son by the insurance company. The father, to whom the mother had transferred her rights, brought an action against the son for money had and received, claiming an oral agreement that the parents should “pay the premiums and get the money” on the policy. Although the court held that the agreement as such was unenforceable because it was not one which could be performed within a year, recovery was granted on the theory of quasi contract. The equities of the case, are manifest. The [337]*337parents had fully performed. Their course of conduct was such as the parties would not have followed unless on account of the agreement alleged and with a direct view to its performance. If the son had been permitted to retain the proceeds of the policy, unjust enrichment would clearly have resulted. In that case the equitable principles on which quasi contract must be based are clearly evident. It is not, however, authority for finding such equitable basis for quasi contract in the instant case.

The case of Rice v. Wheeling Dollar Savings & Trust Co., Exr., also referred to above, involved only the question whether a quasi contract, as distinguished from a true contract, can be made the basis of an attachment proceeding under Ohio statutes. The facts are so dissimilar to those involved in the instant case that the decision is of no help in solving the problem now before us.

In the instant case the plaintiff does not seek to recover the value of something furnished the defendant.

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Related

Rice v. Wheeling Dollar Savings & Trust Co.
99 N.E.2d 301 (Ohio Supreme Court, 1951)
Hummel v. Hummel
14 N.E.2d 923 (Ohio Supreme Court, 1938)
La Bounty v. Brumback
184 N.E. 5 (Ohio Supreme Court, 1933)
James Hampson's Adm'r v. Sumner
18 Ohio St. 444 (Ohio Supreme Court, 1849)

Cite This Page — Counsel Stack

Bluebook (online)
162 Ohio St. (N.S.) 330, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hughes-v-oberholtzer-ohio-1954.