Peterson, Shirley & Gunther v. State

232 N.W. 94, 120 Neb. 281, 70 A.L.R. 1205, 1930 Neb. LEXIS 218
CourtNebraska Supreme Court
DecidedSeptember 23, 1930
DocketNo. 27343
StatusPublished

This text of 232 N.W. 94 (Peterson, Shirley & Gunther v. State) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peterson, Shirley & Gunther v. State, 232 N.W. 94, 120 Neb. 281, 70 A.L.R. 1205, 1930 Neb. LEXIS 218 (Neb. 1930).

Opinion

Per Curiam.

Plaintiff, a copartnership, appealed from a decree against it for costs and dismissing its causes of action.

Plaintiff’s causes of action grew out of its contracts with the state for the construction of roads for various federal aid projects in Nebraska prior to 1925. There was considerable money due plaintiff for which settlement had not [282]*282been made chiefly because of lack of money in the road fund to pay the state’s share and partly because the state also asserted a counterclaim against plaintiff which plaintiff was unwilling to concede.

All claims involved in this suit were presented to the legislature of 1925 in an effort to get an appropriation to pay them. The legislature included in its deficiency appropriation bill, for this and other purposes and persons, the sum of $144,484.34 in favor of plaintiff. The act (Laws 1925, ch. 27), passed with an emergency clause, was approved March 31, 1925. It provides “that the several amounts herein appropriated shall be in full of claims owing by the state of Nebraska to said beneficiaries in whose favor said appropriations are made; that the said auditor of public accounts shall not deliver any warrant for any item herein appropriated until a receipt in full is filed by the beneficiary thereof.”

The evidence shows that the legislature arrived at the amount of the appropriation by the following steps: There was considered as due plaintiff for the road work on the projects here involved a total of $301,385.14, of which $97,-650.59 would shortly be furnished by the federal government to the state and paid over (as it was) to plaintiff, and that the state, on its own account, was chargeable with the balance of $203,734.55; on the 28 items making up this balance, the legislative committee allowed interest on each at 7 per cent, from the date it was considered due until January 1, 1925, making the total of $18,385.13 interest, the said balance and interest thereon aggregating $222,-119.68; the state, however, claimed $66,477.15 from plaintiff for equipment sold or rented by it to plaintiff or to parties for whose payment the state claimed plaintiff was liable; on this item 7 per cent, interest was also computed, producing $11,158.19, and making the total of principal and interest claimed by the state on its counterclaim $77,635.34. The legislature deducted this counterclaim from the $222,119.68 and appropriated the balance of $144,-484.34.

[283]*283On March 25, 1925, which was six days before the above named appropriation act was approved, the senate had passed a resolution reciting that differences exist between the plaintiff and the state relative to the amount due plaintiff for work done and materials furnished in the construction and repair of certain public highways within the state, and authorizing plaintiff to sue the state for all such demands arising out of such contracts.

About the middle of April, 1925, the plaintiff accepted from the state auditor a warrant for the amount appropriated by the legislature and gave to the auditor its receipt in full. The receipt specified that it was accepted as “payment in full of the claims mentioned in the within voucher” totaling $203,734.55 principal and $18,385.13 interest, or a grand total of $222,119.68. The claims mentioned in the voucher covered 28 different road projects. They were the items taken into consideration by the legislature in making the appropriation.

Soon after cashing its warrant the plaintiff brought suit against the state, relying on the authority of the senate 'resolution of March 25, 1925. In its amended petition it had 15 causes of action. When the case was tried it abandoned all but eight of these causes. Seven of the eight causes were based on work done on projects on which claims were presented to the legislature and on projects listed in the voucher receipted in full by the plaintiff when it received the warrant for the money appropriated by the legislature.

Only the thirteenth cause of action was based on a claim arising out of a project not shown among its 28 projects listed in the voucher receipted by the plaintiff as the consideration for the warrant for the deficiency appropriated by the legislature for the benefit of plaintiff. We think the evidence shows that this item was considered by the legislative committee but that it failed to appear on the voucher because it was for a claim on quantum meruit for extra gravel claimed to have been ordered put on road project 39 in Dawson county and settlement had been made on this project as originally contracted for. The officials repre[284]*284senting the state claimed that the gravel was required by the contract. The legislature did not allow the claim. The auditor did not list it in the voucher receipted by plaintiff.

As to the causes of action which were comprehended within the legislative appropriation we think the law is well settled and well understood. The general principle is laid down in 1 R. C. L. 198, sec. 34, in these words: “If the claimant accepts the amount appropriated by the legislature in payment of his claim, his claim for the balance will be barred.” This is the substance of the' rule announced in Calkins v. State, 13 Wis. 434, and in Massing v. State, 14 Wis. 544; it being understood that there is no evidence of fraud, accident or mistake in matter of fact. The supreme court of the United States has laid down the rule that, even where the finding of the amount due is later accepted with knowledge that it is less than the amount claimed to be justly due, it will operate as a bar to further recovery. United States v. Adams, 7 Wall. (U. S.) 463; United States v. Child & Co., 12 Wall. (U. S.) 232; United States v. Clyde, 13 Wall. (U. S.) 35; Hemingway v. Stansell, 106 U. S. 399. In the last cited case, the opinion written by Mr. Justice 'Gray, it was held that “the settlement and receipt bound the contractors as an accord and satisfaction, and they could not maintain a suit upon the original contract to recover further compensation for the work.”

As to the causes of action now under discussion, the evidence shows that the receipt executed by the plaintiff, before the delivery by the auditor of the warrant for the full amount appropriated by the legislature, clearly identified all the projects which are the bases of the claims upon which these causes of action were founded. Before executing that receipt and accepting the voucher, it was the duty of the plaintiff to consider and to decide whether it would take the sum appropriated or whether it would rely on the authority of the senate resolution and sue the state for all claims it had against the state and disregard the appropriation. It elected to execute a receipt for the warrant and to specify as a consideration therefor the settlement of each and every project item listed in the receipt. There was [285]*285no fraud, accident or mistake of fact on plaintiff’s part. It may be that the amount appropriated was far less than it could have proved to be due it and that the counterclaim of the state taken into consideration by the legislature was unjustly allowed in fixing the amount of the appropriation. With those things we have nothing to do, as they belonged to the legislative branch. The plaintiff has by its election made it impossible under the law for us to go behind the receipt.

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Related

Hemingway v. Stansell
106 U.S. 399 (Supreme Court, 1883)

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Bluebook (online)
232 N.W. 94, 120 Neb. 281, 70 A.L.R. 1205, 1930 Neb. LEXIS 218, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peterson-shirley-gunther-v-state-neb-1930.