Loomis Construction Company v. Matijevich

425 S.W.2d 39, 45 A.L.R. 3d 695, 1968 Tex. App. LEXIS 2936
CourtCourt of Appeals of Texas
DecidedFebruary 7, 1968
Docket74
StatusPublished
Cited by12 cases

This text of 425 S.W.2d 39 (Loomis Construction Company v. Matijevich) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Loomis Construction Company v. Matijevich, 425 S.W.2d 39, 45 A.L.R. 3d 695, 1968 Tex. App. LEXIS 2936 (Tex. Ct. App. 1968).

Opinion

TUNKS, Justice.

This is a suit on a sworn account. The defendant in the trial court, appellant here, pleaded the two-year statute of limitations as a defense. The plaintiff, appellee here, by supplemental petition, alleged that because of facts hereinafter set out, the defendant was estopped to assert the defense of limitations. The trial was to the court without a jury. The defendant admitted that the materials and services which were the subject matter of the account were received and that the charges were reasonable. The evidence showed as a matter of law that the plaintiff’s petition was filed more than two years after the cause of action on the account accrued. The trial court sustained the position of the plaintiff and rendered judgment for plaintiff for $945.54 on his account and for $375.00 attorney’s fees.

*41 This account grew out of a contract to repair storm damage to a building in Galveston, Texas. The appellant had an oral general contract to repair the building and, in turn, entered into an oral subcontract with appellee under the terms of which ap-pellee agreed to do that portion of the repair job which consisted of refinishing the floors. No specific price was fixed by the agreement. Appellee began work in December, 1961. His first statement for materials and services was dated December 12, 1961. The work continued until February 13, 1962, and on February 16, 1962, ap-pellee submitted to appellant his second and final statement. Appellant did not pay the account forthwith and gave as its reason for not doing so the fact that the owner of the building had not paid it. A controversy developed between the appellant and the owner and it became necessary for appellant to file suit against the owner on the contract for repairs.

Appellee made repeated demands on appellant for payment and appellant continued giving the owner’s failure to pay it as an excuse for its non-payment of appellee. Appellant also repeatedly told appellee that when it settled its suit against the owner, it would pay appellee out of the proceeds of such settlement.

In the suit against the building owner, the general contractor, appellant, set out as one of the items for which it sought recovery, the floor finishing work which had been done by appellee.

Appellant’s suit against the building owner was settled on February 10, 1964. The proceeds of the settlement, however, were not paid directly to appellant. Its cause of action had been assigned to a bank to whom the proceeds of the settlement were paid. The bank paid out of the proceeds the fee and expenses incurred by appellant’s attorney in prosecuting the claim and paid the claim of one other sub-contractor who had filed a Mechanic and Materialman’s Lien. Appellee did not receive any of the proceeds.

Immediately upon hearing of the settlement of appellant’s suit against the owner, appellee referred this claim to his lawyer for collection. His lawyer telephoned appellant’s lawyer and was, at first, told that the claim would be paid. Later, in about two weeks, appellee’s lawyer was told that the claim would not be paid. That was the first time that appellant had ever told ap-pellee that the debt would not be paid.

Appellee filed his suit in the trial court on August 7, 1964. The record does not show why he waited almost six months after he had been told that his claim would not be paid before he filed suit. In fact, the attorneys for both parties took the position in the trial court that the evidence should be confined to events that occurred before the limitation period had run — that evidence as to events occurring after that date would be irrelevant.

In response to the request of the defendant, the trial court made the following findings of fact:

“ * * * 4. Defendant has never raised any objections to the bill submitted to him by Plaintiff and never denied owing the bill until after two years had expired after such labor and material were furnished.
“5. After the work was completed differences arose between Defendant and the owner of the Phi Chi Medical Fraternity House resulting in the filing of a law suit on August 22, 1962, by Defendant against such owner, and in such law suit Defendant included in its claim against the owner the said sum of NINE HUNDRED FORTY FIVE AND 54/100 ($945.54) DOLLARS as the amount it was obligated to pay to Plaintiff.
“6. On many occasions, both before and after the filing of the lawsuit by Defendant against the owner, Plaintiff inquired of GUS LOOMIS, Defendant’s President, as to when Plaintiff’s bill would be paid, and said GUS LOOMIS *42 on behalf of Defendant represented to Plaintiff and agreed that Plaintiff’s bill would be paid as soon as Defendant was able to settle its differences with the owner of the Phi Chi Medical Fraternity House.
“7. Plaintiff relied on such representations and agreements and waited until Defendant could settle its differences with the owner and if these representations and agreement had not been made, Plaintiff would have filed suit for the collection of his account prior to the expiration of the two year statute of limitations.
“8. The lawsuit filed by Defendant against said Owner was settled on February 10, 1964, resulting in the payment by Owner of the sum of THIRTEEN THOUSAND SEVEN HUNDRED THIRTY FOUR AND 27/100 ($13,-734.27) DOLLARS to the Moody National Bank of Galveston, Texas, to whom Defendant had assigned its claim against the Owner. * * *”

The trial court also concluded as a matter of law that, “Defendant is estopped from pleading or relying upon the defense of limitations.”

Appellant’s points of error may be classified into two general areas: first, appellant contends that there was no factual or legal basis for the trial court’s finding and conclusion that appellant was estopped to assert the defense of limitations. Second, appellant proposes that, if any estoppel ever arose, appellee was not entitled to urge estoppel at the time suit was filed because of the six-month delay after appellant had renounced the debt.

We are of the opinion that the evidence supports the trial court’s findings that appellant told appellee that the claim would be paid as soon as appellant’s suit against the building owner was settled and that ap-pellee’s reliance on that statement was the reason he did not file suit within the two-year limitation period. At one point in the direct testimony of appellee, he testified as follows:

“Question: All right; if Mr. Loomis had not told you this, what would you have done?
“Answer: I would have sued him. I would have put the mechanics’ lien like the rest, like Chester Scruggs did.
“Question: You would have sued him if he had told you he wouldn’t pay you?
“Answer: Yes, I would. He kept telling me all the time he would pay me, he would pay me as soon as he settled the job.”
Again he said:
“Question: Now, Mr. Loomis told you about his differences with the owners of the property, promising he would pay you?
“Answer: Right.

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Bluebook (online)
425 S.W.2d 39, 45 A.L.R. 3d 695, 1968 Tex. App. LEXIS 2936, Counsel Stack Legal Research, https://law.counselstack.com/opinion/loomis-construction-company-v-matijevich-texapp-1968.