Narum v. City of Billings

673 P.2d 1253, 207 Mont. 322, 1983 Mont. LEXIS 879
Montana Supreme Court·Decided December 22, 1983·No. No. 83-99·Published

Opinion

MR. JUSTICE MORRISON

delivered the opinion .of the Court.

Larry Narum filed a complaint June 9, 1981 in the Thirteenth Judicial District Court, County of Yellowstone, naming as defendants the City of Billings, Barry Beringer and Richard Wagner. The complaint requested judgment against the defendants for twice the alleged value of paint equipment Narum lost due to defendants’ actions, or $5,600 plus costs. Following a bench trial, it was found that: (1) Narum lost paint equipment valued at $1,843.70 due to the negligence of the City of Billings; (2) Beringer was unjustly enriched in the amount of $800 when he sold Narum’s equipment to Wagner for that sum; and (3) Wagner was a bona fide purchaser for value without notice and entitled to retain the paint equipment. Judgment was entered November 19, 1982, limiting Narum’s recovery to the actual value of the lost equipment. Beringer was ordered to pay Narum the $800 by which he was unjustly enriched and the City was ordered to pay Narum the remaining $1,043.70.

A motion was subsequently filed by Narum requesting the [324]*324trial court to reconsider its judgment insofar as it failed to award Narum double damages pursuant to Section 70-5-209, MCA (1981). In addition, defendant Beringer filed a motion and supporting memorandum requesting the trial court to amend that portion of its judgment finding Beringer to have been unjustly enriched and ordering him to pay Narum $800. A hearing was held December 30, 1982, following which an order denying motions was issued.

A notice of appeal from both the judgment and the order was filed by Narum on January 26, 1983. Beringer and the City of Billings have filed cross appeals, Beringer requesting reconsideration of its motion to amend and the City requesting reconsideration of the judgment against it.

Larry Narum was hired in 1979 to paint a warming house at Terry Park in Billings, Montana. One of Narum’s employees completed the paint job on Friday, November 2, 1979. He then, per instructions from Narum, left the spray painting equipment by the curb near the warming house to be picked up by Narum later that evening.

Barry Beringer noticed the equipment on his way to dinner that evening. When the equipment was still there on his return, Beringer decided to call the police. Beringer testified at trial that he presumed the equipment belonged to the City of Billings since it had obviously been used to paint a public building in a city park and that, as a concerned taxpayer, he notified the police of the equipment in order to prevent its theft. Beringer remained with the equipment until the police arrived, then told the investigating officer that if no one claimed the property, he would be interested in having it. The investigating officer told Beringer to check with the department in thirty days and if no one had claimed the property, it would be his.

The investigating officer’s report of the incident contained the following information:

1. Complainant reports he found several items near the warming house in Terry Park.

2. Complainant also reports that someone had been paint[325]*325ing the warming house and that the items probably belong to that person.

3. The found items consist of: (1) a small prop air compressor; (2) an eight foot ladder; (3) three gallons of paint; (4) five gallon mixing cans; (5) one five gallon can containing an unknown chemical; (6) an extension cord; and (7) a paint scraper.

Beringer checked with the police department after the thirty days had passed and was told by property Officer Stanley Frank that he would have to wait another sixty days before he could claim the property. Beringer testified at trial that Officer Frank told him:

“ ‘Technically, we have to hold it for a year and then advertise it, and then we will give it to you.’ But he said, ‘we don’t have the budget and we don’t have the place to store it, so we just wait 90 days. And then after 90 days, that allows people to go on vacation, extended vacation, and stuff.’ And that’s what he told me.” Tr. p. 20.

At the end of the ninety days, Beringer once again contacted Officer Frank and was told he could claim the property. Beringer and Officer Frank testified in detail concerning their conversation when Beringer picked up the property.

BERINGER:

“Q. Was there any time that anyone conveyed to you that the idea that there had been any report filed that this had been lost or was missing or had been stolen?
“A. No.
“Q. Did you have any idea that such a report had been filed?
“A. No.
“Q. Would it be fair to say that as far as you could tell from the information given to you by the police report that the property was abandoned?
“A. Yeah.
“Q. Did you ask whether you could sell the property?
“A. I asked if it was mine, and I was told that it was.
[326]*326“Q. Prior to the time that property was delivered to you by the City, on February 1st, 1980, did you think you had any rights whatsoever to that property?
“A. Before February?
“Q. Before it was delivered to you, did you consider it yours in any way?
“A. No.
“Q. Whose do you think it was?
“A. The City’s.” (Tr. pp. 21, 22)
OFFICER FRANK:
“Q. Did you tell Mr. Beringer when he came to pick up the property that no claims had been filed on it?
“A. I told him that I didn’t receive one.
“Q. So you indicated to him that it was unclaimed?
“A. When I gave it to him.
“Q. It would have been wrong to give it to him if you had knowledge that someone else owned it?
“A. (Nods head affirmatively.)” (Tr. p. 46)

A witness to most of the conversation, David Webber, confirmed Beringer’s testimony.

Relying on Officer Frank’s comments, Beringer sold the paint equipment to Richard Wagner for $800. Evidence showed the value of the equipment to be $1843.70.

Meanwhile, Narum had telephoned the Billings Police Department on November 6, 1979 to report the theft of his property. A written report was to have been filed by an employee while Narum was on vacation. The employee failed to do so. Therefore, Narum’s wife filed a written report with the police on December 21, 1979, more than thirty but less than ninety days after Beringer reported the property to the police.

The property officer searched the department’s computer twice during the initial thirty day period for a written report concerning the theft of the paint equipment. Despite retaining the property an additional sixty days, no other search of the stolen property reports was ever made. Thus, the property officer was unaware that the equipment had [327]*327been reported as stolen when he released it to Beringer.

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Narum v. City of Billings, 673 P.2d 1253, 207 Mont. 322, 1983 Mont. LEXIS 879 (Mo. 1983).

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