Olson v. Harvey

68 Colo. 180
CourtSupreme Court of Colorado
DecidedJanuary 15, 1920
DocketNo. 9436
StatusPublished
Cited by7 cases

This text of 68 Colo. 180 (Olson v. Harvey) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Olson v. Harvey, 68 Colo. 180 (Colo. 1920).

Opinion

Mr. Justice Denison

delivered the opinion of the court.

This was a suit for an accounting. The plaintiff Harvey and the defendant Olson built St. John’s Cathedral and several of the buildings at Clayton College, on contracts between Olson and the owners. For the cathedral contract Olson and Harvey entered into 'a written agreement whereby Harvey was to superintend the work for Olson for $20.00 per week, and one-half the profits.' This contract was not disputed. For the college contract there was no written agreement between Olson and Harvey. Harvey alleged an oral agreement which Olson denied. This issue was tried by jury and a verdict was rendered for Harvey. Thereupon an accounting was had, upon both contracts, before a referee, who found Olson indebted to Harvey in the sum of $26,480.39, with interest at 8% from December 6, 1911, and that defendant pay the costs. His findings were sustained by the court and defendant comes here on error.

1. The complaint, in form, stated one cause of action. It is objected that two causes are commingled, because the contracts with the cathedral and college authorities were separate, the contracts between Olson and Harvey relating to them were separate and, since the college work, though begun later, was finished first; the causes of action therefore arose separately; and counsel for plaintiff in error cite Hall v. Cudahy, 46 Colo. 324, and Pinnacle Co. v. The People, 58 Colo. 86, 89, which hold that the provision of the Code 1908, sec. 76, that causes be separately stated is mandatory. They argue that, according to Pomeroy’s analysis of causes of action, violations of separate primary [183]*183rights giye rise to separate causes of action. That Harvey-had two primary rights, if he had any, one created by his-agreement with Olson in regard to the cathedral, and the other by their contract as to the college; that therefore the refusal to order the separation was reversible error.

It is true that in the cathedral matter, Harvey might have relied on his primary right created by Olson’s.promise to pay him, and so have sued in assumpsit, and he might have sued on another primary right in the college matter alone, but he had still another primary right, that is to an accounting, and Olson owed him another primary duty, which was to account in all matters between them, the cathedral matter as well as that of the college, and, since the complaint showed that these two matters had run on together and that Harvey’s share of the proceeds of both had been mixed and appropriated by Olson and converted to his own uses, Harvey, for that reason also, had a primary right to an accounting in both matters, and Olson’s refusal to .account in the college matter, and his partial and inaccurate account in the cathedral matter gave plaintiff one cause of action.

Nor is Olson’s position better if we suppose defendant in error had but two primary rights, as assumed by Olson’s counsel.

In the cases above cited it is indicated that the refusal to order separate statement may or may not be prejudicial error. In this case it is not prejudicial. The causes, if there be two, are separately stated if we merely prefix to paragraph 7th of the complaint the words “For a second cause of action”; therefore defendant was not misled nor were the issues confused. These issues were tried as they ought to have been if the amendment had been made. So denial of the motion to separate, if it had been error, would in this case have been without prejudice.

2. The next objection argued is that these two causes of action were not such as might be joined. This objection was waived by answering over. Code 1908, sec. 79. Hall v. Cudahy, 46 Colo. 324, 326, 104 Pac. 415; Hayden [184]*184v. Patterson, 39 Colo. 15, 17, 88 Pac. 457; Bd. Commrs. El Paso County v. City of Colo. Spgs., 66 Colo. 111, 180 Pac. 301, 302; Field v. Kincaid, 67 Colo. 20, 184 Pac. 833; Sweet et al. v. Barnard, 66 Colo. 526, 182 Pac. 22.

3. It is claimed that defendant was denied trial by jury upon the issues whether Harvey had performed the cathedral contract and whether the action so far as it concerned that matter was prematurely brought.

It is clear that this case is,of equitable cognizance. The code 1908, § 223, provides that the court may .send such a case to a referee, which was done in this case, and this court has held, that, if a case requires an accounting for complete determination, all the issues may be referred. Huston v. Wadsworth, 5 Colo. 213. There was, then, no error in denying a jury.

4. It is objected that the action on the cathedral matter was prematurely brought. The contract between Olson and Harvey provided that the plaintiff’s share in the profits should be paid when defendant had fully performed his contract, had received full compensation, had paid all claims for labor, machinery, etc., and the work had been accepted; that Harvey should have no interest whatever in and to the money received by Olson until full, final and satisfactory settlement of all matters relative to said contract between Olson and the owners should have been made and all indebtedness incurred by Olson in carrying out said contract should have been paid, which indebtedness Olson agreed to pay promptly when due.

It appeared that when the suit was brought, some $50 worth of work in cleaning up the cathedral premises remained to be done and was done afterwards; that $193.50 was paid to Olson nearly a year after the building was accepted and some ten months after suit was begun for “extras” not within the original contract; that a few trifling bills of Olson’s for work or materials remained unpaid, and these facts are made the basis of the claim that the suit was prematurely brought.

As to Olson’s unpaid indebtedness he had agreed to pay [185]*185it promptly when due, and he could not make his own delinquency a basis of postponing settlement with plaintiff.

As to'the other points the referee held that Olson had waived them before suit was begun. We think this was right, because Olson had presented a statement of account, offered full payment of the balance thereon, without suggestion that the time for settlement had not arrived; and settlement between the parties was prevented by a dispute as to the accuracy of the account presented, not because the accounting was premature.

It would, we think, be unjust to allow one from whom an account was about to become due to present it, dispute about it, offer to pay the balance and treat the accounting as due, and then, when the account had been rejected as inaccurate and wrong and when suit was brought for an accounting, say that it was premature. That is "It is time to settle my way but not yours.” It is evident that both parties, up to the time of the suit, treated these items as too trifling to consider. Such things are inevitable áfter every large work. It is also true that this defense should have been specially pleaded in abatement. Watson v. Lemen, 9 Colo. 200, 202. An amendment allowing a plea in abatement would be at least unusual.

5. Error is claimed on the ground that since the jury found that the interest of the plaintiff in the college matter was other than a partnership, the action as to' that matter was one of law.

This is, answered by what we have said above as to the right to an accounting. After the special findings of the jury the Court might modify them (which it did) by making findings of its own.

6.

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68 Colo. 180, Counsel Stack Legal Research, https://law.counselstack.com/opinion/olson-v-harvey-colo-1920.