Jung v. Gwin

147 So. 47, 176 La. 962, 1933 La. LEXIS 1628
CourtSupreme Court of Louisiana
DecidedFebruary 27, 1933
DocketNo. 32077.
StatusPublished
Cited by1 cases

This text of 147 So. 47 (Jung v. Gwin) 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
Jung v. Gwin, 147 So. 47, 176 La. 962, 1933 La. LEXIS 1628 (La. 1933).

Opinion

LAND, Justice.

On October 25, 1927, the Oscar M. Gwin Construction Company entered into a contract with plaintiffs for the erection of the Jung Hotel Annex on La Salle street, be- ' tween Canal and Cleveland streets, in the city of New Orleans, in accordance with certain plans and specifications. This contract was signed by the Maryland Casualty Company of Baltimore as surety.

In the course of making the excavations, the contractor encountered certain difficulties which he claimed necessitated extra work, and for which he made demand for extra compensation, which plaintiffs refused to recognize.

On April 16, 1928, plaintiffs and defendant entered into an agreement, in an endeavor to adjust the differences between them by arbitration.

In accordance with this agreement, three arbitrators were named, and the dispute was heard by them. Two of the arbitrators rendered an award in favor of defendant, under date of August 29, 1928; the third arbitrator dissenting from the award.

On September 10, 1928, plaintiffs appealed to the civil district court for the parish of Orleans from the award of the arbitrators, and prayed for its reversal.

Article 23 of the building contract reads as follows: “If the work should be stopped under an order of Court, or other public authority, for a period of three months, through no act or fault of the Contractor or of anyone employed by him, or if the Architect should fail to issue any certificate for payment within seven days of its maturity and presentation, any sum certified by the Architect or awarded by arbitrators, then the contractor may, upon seven days’ written notice to the owner and the Architect, stop work or terminate this contract and recover from the owner payment for all work executed and any loss sustained upon any plant or material and reasonable profit and damages.”

Defendant contended that, under the provisions of this article, he had the right to cease building operations and discontinue the work, and, by letter of his attorney, dated September 12, 1928, addressed to the attorney of plaintiffs, gave notice that, unless payment was made, he would, within seven days, cease all operations.

*965 On September 13, 1928, attorney for plaintiffs sent to attorney for defendant a check in the snm of $14,616.60 under protest and without prejudice to any of plaintiffs’ rights, or to the suit which they had filed appealing from the award of the arbitrators; plaintiffs contending that defendant well knew at the time that the building was about 90 per cent, complete, and that cessation of operations would necessarily entail extreme hardship, undue litigation, and a tremendous loss to either plaintiffs or defendant, or both, in the event defendant carried out his threat to stop work.

On September 14, 1928, attorney for defendant acknowledged receipt of the check for $14,616.60, and accepted the payment made by plaintiffs under protest, and with full reservation of plaintiffs’ rights.

On January 16, 1931, judgment was rendered in the civil district court for the parish of Orleans, reversing the award of the arbitrators, and, after applying for a new trial, defendant appealed from this judgment to the Supreme Court. On January 4, 1932, the judgment of the lower court was affirmed by this court, and rehearing was refused, February 1, 1932. 174 La. 111, 139 So. 774.

At the time of the arbitration agreement, there was an additional claim by defendant of $1,842.98, which was treated as an addendum and part of the award of the arbitrators. On January 30, 1929, plaintiffs paid this claim to defendant, with the agreement that this amount was to follow the result of the litigation between the parties, in connection with the setting aside of the award of the arbitrators.

Inasmuch as the Supreme Court affirmed the judgment of the civil district court, setting aside the award of the arbitrators; plaintiffs seek in the present suit to recover from defendant and his surety in solido the repayment of the sum of $14,616.60, paid to defendant on September 13, 1928, as well as the sum of $1,S42.98, paid to defendant on January 30, 1929, with legal interest on both amounts from the respective dates of payment, and all costs of the arbitration, and all court costs.

Plaintiffs also seek to obtain, judgment against defendant in the additional sum of 5 per cent, attorney’s fees, on an averment that the building contract entered into by the parties provides that such fees should be paid, in the event that it should become necessary to place this claim in the hands of an attorney at law.

Judgment was rendered in the civil district court in favor of plaintiffs, for the sum of $14,616.60, with legal interest from judicial demand, and for the sum of $1,842.98 with legal interest from judicial demand, and plaintiffs’ demand for attorney’s fees was rejected. From this judgment defendant has appealed.

Peter Jung,' Sr., one of the plaintiffs, Having died in the city of New Orleans on January 18, 1933, his succession was made party plaintiff to this suit through Peter Jung, Jr., administrator of the succession of decedent.

Plaintiffs have answered the appeal, and pray for damages for frivolous appeal,- for interest'on the amounts paid-to -defendant from date of each payment, and' for 5. per *967 cent, additional as attorney’s fees, on the ground that such fees are provided in the building contract entered into between the parties.

The exception of no right or cause of action, urged by the Maryland Casualty Company of Baltimore, surety of defendant, was maintained .in the lower court, and plaintiffs’ suit as to the surety was dismissed. We find no complaint in the brief of the plaintiffs as to the action of the lower court in this respect.

In defendant’s supplemental brief, filed February 10, 1933, it is said: “We can answer the plaintiff’s attorney in a few words. The plaintiff’s attorney is asking your Honbrs to:

“(lj Ignore articles 2301 and 2302 of the Civil Code, and
“(2) Repudiate your Honors’ decision in Peter Jung et al. v. O. M. Gwin, 174 La. 111, 139 So. 774, and
“(3) Stultify yourselves.
...“This is all we have to say.” Defendant’s .Sup. Brief, page 1.

The articles of the Civil Code relied upon by defendant read as follows:

Article 2301: “He who receives what is not due to him, whether he receives it through, error or knowingly, obliges himself to restore it to him from whom he has unduly received it.”

Article 2302: “He who has paid through .mistake, believing himself a debtor, may reclaim what he has paid.”

In Jung et al. v. Gwin, 174 La. 117, 139 So. 774, 776, it is said: “If plaintiffs can recover at all, they can only do so as having paid by mistake, or through coercion, something they did not owe. Rev. Civ. Code, art. 2302.”

AVe held that plaintiffs could not recover, under article 2302 of the Civil Code, for the reason that, “if they paid what they did not owe, it was not through any mistake in believing themselves debtors, but from some other cause; that is, through coercion.” Page 118 of 174 La., 139 So. 774, 777.

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Bluebook (online)
147 So. 47, 176 La. 962, 1933 La. LEXIS 1628, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jung-v-gwin-la-1933.