Madera Sugar Pine Co. v. Adams

228 P. 544, 68 Cal. App. 111, 1924 Cal. App. LEXIS 209
CourtCalifornia Court of Appeal
DecidedJuly 8, 1924
DocketCiv. No. 2749.
StatusPublished
Cited by7 cases

This text of 228 P. 544 (Madera Sugar Pine Co. v. Adams) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Madera Sugar Pine Co. v. Adams, 228 P. 544, 68 Cal. App. 111, 1924 Cal. App. LEXIS 209 (Cal. Ct. App. 1924).

Opinion

FINCH, P. J.

Plaintiff sued to foreclose its lien for the value of materials furnished for and used in the construction of certain buildings upon town lots belonging to defendant D. P. Adams. It was given judgment against Adams in the sum of $751.71, which was $1,000 less than the amount claimed to be due, and plaintiff prosecutes this appeal from the judgment.

Munson constructed the buildings in question under an oral contract with Adams and was paid the full contract price therefor before plaintiff’s notice of lien was filed. At different times as needed, from July 6 to October 9, 1922, plaintiff sold Munson materials for and which were used in the construction of the buildings of the total value of $1,751.71. Munson had buildings under construction for four other persons during the same time that he was carrying out the Adams contract and purchased materials for all of them from plaintiff. Plaintiff entered all charges for materials in a single general account with Munson, designating therein the particular job for which each item was furnished. Payments made by Munson were credited to his account generally, without applying the same to any particular item or to charges for material furnished for any particular job. Munson deposited the moneys received under all his contracts in one general bank account and drew thereon in payment of bills incurred on any job, regardless of the source from which the moneys then on deposit were received.

The evidence does not show when or in what amounts the plaintiff furnished materials for buildings other than those of Adams, or whether such materials were furnished prior or subsequent to the time that the greater part of the materials for the Adams buildings were furnished. The evi *114 dence shows that Munson was indebted to plaintiff prior to the furnishing of any material for the Adams job, but it does not appear in what amount or whether such indebtedness was subsequently paid prior to the particular payments hereinafter mentioned. In the latter part of July Munson was indebted to plaintiff in the sum of about $3,000, more than $1,000 of which was for materials used on the Adams job, and plaintiff requested Munson to reduce the amount of such indebtedness. The latter replied that he could probably pay something in a few days. On the first day of August Adams paid Munson something over $500 on the contract and thereafter, on the same day, Munson paid plaintiff on account the sum of $500, without stating the source from which the money was derived. Adams paid Munson an additional sum of $500 on August 23d and thereafter, on that day, Munson made plaintiff an additional payment of $500 on account. Neither Munson nor the plaintiff applied either payment to the extinction of any particular item or items of the account, and the question to be determined is the proper application of such payments.

Section 1479 of the Civil Code provides that where neither party makes such application, “the performance must be applied to the extinction of obligations in the following order: ... 1. Of interest due at the time of the performance. 2. Of principal due at that time. 3. Of the obligation earliest in date of maturity. ..." This section would afford an easy solution of the question if the evidence showed what items of plaintiff’s general account with Munson were ‘ ‘ earliest in date of maturity. ’ ’ Since the record is silent in that regard, the issue must be resolved against the party having the burden of proof.

It is the general rule that where a plaintiff has proved the creation of a debt within the period of the statute of limitations, the burden is on the defendant to prove the payment thereof. (Melone v. Ruffino, 129 Cal. 514, 518 [79 Am. St. Rep. 127, 62 Pac. 93].) This rule has been held applicable in a suit against an owner to foreclose a lien for materials furnished his contractor. (Barrett-Hicks Co. v. Glas, 14 Cal. App. 289, 300 [111 Pac. 760].) Similar rulings, under somewhat different circumstances, have been made in other states. (Jones v. Mansfield Lumber & Mercantile Co., 97 Ark. 643 [132 S. W. 1004]; Flexner Univer *115 sity v. Strassel Gans Paint Co. (Ky.), 112 S. W. 686.) A contrary rule is laid down in the state of Oregon. In Bartels v. McCullough, 102 Or. 66 [201 Pac. 733], it is said: “Contrary to the rule in other cases, the burden of proof of nonpayment is upon the person asserting the lien, and this is particularly the case where the contract out of which the lien arose was made with some one not the owner of the property upon which it is sought to fasten the lien.”

“ The burden of proving a particular application of ' a payment by either the debtor or creditor is on the party claiming that such application was made.” (30 Cyc. 1267.) “ The burden is on the creditor where he claims to have applied a payment to a debt other than the one in suit to prove both debts, and the application of payments thereon. ’ ’ (21 R. C. L. 114:) In Davis v. Ball, 70 Neb. 678 [97 N. W. 1023], it was held that while the burden was on defendant to prove payment of the notes there sued on, the burden was on plaintiff to show that an admitted payment was properly applied on a note not in suit. In Gunther v. McCormick, 60 Cal. App. 350 [212 Pac. 715], the plaintiff sued to foreclose a lien for work under three separate contracts. A payment on account had been made prior to the time the notice of lien was filed, but the record on appeal did not show whether the payment had been applied to any particular contract or to all of them. The lien was invalid as to work under two of the contracts, because not filed in time, and valid as to the third. It was held that the burden of proof was on the plaintiff to show what application was made of the payment and, in the absence of evidence on the question, the appellate court applied the payment to the contract under which the plaintiff had a valid lien. Where a lien claimant has received payment during the existence of the obligation for which his claim of lien is thereafter filed, without applying it to any particular obligation, in a suit to foreclose his lien, in which he claims that such payment was properly applicable to some other obligation, it is logical to place upon him the burden of proving facts warranting such application, especially so where, as here, the evidence of such facts, plaintiff’s book account with Munson, is in the possession and under the control of the plaintiff and not accessible to the defendant. By simply producing such book account the plaintiff would have enabled the court to apply *116 the admitted payments in accordance with the provisions of section 1479 of the Civil Code. Having failed to produce such evidence, or any evidence upon the question, the plaintiff is not in a position to complain of the application of such payments to the claim in suit.

It is urged that the answer is insufficient to support the finding that Adams was entitled to have the two $500 payments applied to plaintiff’s claim.

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Bluebook (online)
228 P. 544, 68 Cal. App. 111, 1924 Cal. App. LEXIS 209, Counsel Stack Legal Research, https://law.counselstack.com/opinion/madera-sugar-pine-co-v-adams-calctapp-1924.