State Ex Rel. MacRi v. City of Bremerton

111 P.2d 612, 8 Wash. 2d 93
CourtWashington Supreme Court
DecidedMarch 21, 1941
DocketNo. 28218.
StatusPublished
Cited by113 cases

This text of 111 P.2d 612 (State Ex Rel. MacRi v. City of Bremerton) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. MacRi v. City of Bremerton, 111 P.2d 612, 8 Wash. 2d 93 (Wash. 1941).

Opinion

*94 Millard, J.

In August, 1937, Sam Macri and the city of Bremerton entered into a written contract for the construction, by Macri, of a city sewer system. Under one of the provisions of that contract, Macri was obligated to indemnify and hold harmless the city of Bremerton from any and all claims for damages arising from or through the operation of contractor Macri, which provision included all claims for injuries or damages to the property or right of any person. The city was authorized, in the event of the failure of contractor Macri to obtain a valid release of any and all such claims prior to the final acceptance of the work, to settle or compromise such claims and charge the cost thereof to the contractor as so paid on the contract.

About four months prior to the completion of the work under the contract, Walter R. Warren filed with the city of Bremerton a claim, in December, 1937, for damages in the amount of four thousand five hundred dollars for alleged removal of lateral support to his land through the contractor’s operations. Without notification to the contractor of the claim, the city rejected the claim.

Two months later, Walter R. Warren instituted an action upon the claim, naming as defendants the city of Bremerton, contractor Macri, and the contractor’s surety. Although regularly served with process, the city did not appear; however, as disclosed by the statement of the trial court as dictated into the record, “the city attorney knew the suit was brought and wilfully refrained from defending.” Macri- and his surety duly appeared by motion and demurrer. Without joining final issue with the contractor and his surety, Warren obtained the entry of default against the city. Thereafter the court made findings as to the extent of damage to Warren’s land and entered judgment against *95 the city, solely, in the amount of twelve hundred dollars, which judgment was taken without knowledge of Macri and his surety. Warren satisfied the judgment of record pursuant to the procedure prescribed by Rem. Rev. Stat., § 953 [P. C. § 8396], and demanded a warrant from the city in payment of that judgment.

The then city attorney of Bremerton, who is responsible for the city’s wilful default, allowed entry and satisfaction of record of the default judgment, rejected certified copy of such judgment satisfaction as a claim, and appeared in, but did not resist, entry of decree in mandamus proceedings instituted June 22, 1938, by Warren to compel the city of Bremerton to issue to him a warrant in payment of his judgment. Macri and his surety had no notice of that proceeding.

The city then notified Macri and his surety of the mandate judgment and demanded that they pay same. Macri and his surety, after serving notice upon Warren, procured two orders, in the action instituted by Warren upon his claim, dismissing the action against them. The city was notified through its then city attorney that Macri and his surety would not pay the mandate judgment, and that they would hold the city responsible for any payment thereof from Maori’s retained percentage of the contract price for the sewer construction. Despite that notice, the city paid Warren out of that retained percentage the amount of the mandate judgment.

August 29, 1938, Macri instituted an action in mandamus to compel the city and its officers to accept full performance of the work under the contract, to certify such acceptance, and to issue to contractor Macri a city warrant in the amount of $6,064.67 in full payment of the work. The city pleaded as a partial defense its payment of the judgment in the Warren damage action. Trial to the court resulted in entry *96 of a decree awarding Macri the total amount of the retained percentage in the amount of $6,058.10 “less any claims filed as provided for by law.” The city did not appeal from that decree, nor did it formally accept Macri’s work or pay to him the amount of the retained percentage -as fixed by the decree. It submitted, instead, to Macri, and insisted upon his. acceptance of, two claims designated “purchase requisitions,” the effect of which was to deduct from the retained percentage amounts representing the Warren judgment and also two other damage claims which were subsequently disallowed.

Macri thereupon instituted contempt proceeding to compel obedience by the city and its officers to the decree and peremptory writ of mandate. The defense pleaded in the contempt proceeding was payment by the city of the judgment in the Warren action. The trial court held that the Warren judgment was a proper deductible item, on the theory that it had been concluded by the Warren litigation. Macri appealed from that judgment.

We held (State ex rel. Macri v. Bremerton, 2 Wn. (2d) 243, 97 P. (2d) 1066) that the basic controversy between the parties throughout the various stages of: the action had always been whether the claim originally asserted by Warren was one for which Macri was legally liable and, if so, to what extent; that Macri’s covenant to hold harmless the city against claims for damages had reference to damages arising from legal liability, and in so far as the city acted as a mere volunteer in paying Warren, the city could not look to Macri for indemnity. We concluded that the principal question that should have been presented and decided in the trial court was whether, or to what extent, there were any valid claims which should be deducted from the amount of the retained percentage. The judgment *97 was reversed, and the cause remanded with direction to the trial court to proceed in accordance with the foregoing views.

Pursuant to the foregoing, a further hearing was had which resulted in findings that Macri was entitled to judgment against the city of Bremerton in the amount of $6,058.10, with costs which included the statutory attorney’s fee of ten dollars. The trial court specifically found that Macri had been compelled to secure, and there had been furnished him, very considerable legal services in this litigation, and that such services were to an unusual extent required by the conduct of the city officers; and that the reasonable value of such legal services as sustained by the uncontroverted evidence is fifteen per cent of the total amount to be recovered by Macri in this litigation. However, the trial court was convinced that an attorney’s fee in excess of the amount fixed by statute was not recoverable. Judgment was entered in consonance with the foregoing. The city’s tender of cash payment of the judgment, including the statutory attorney’s fee of ten dollars, was accepted with the exception of the item of ten dollars. The appeal is prosecuted by Macri from that portion of the judgment which awards to him only the statutory attorney’s fee of ten dollars:

The sole question presented by this appeal is whether, by reason of the fact that the city was adjudged to have wrongfully paid from and withheld the balance of appellant contractor’s retained percentage earned under the public works contract in question, the contractor was entitled to recovery against the city, as costs or damages, an attorney’s fee in excess of the amount fixed by statute (Rem. Rev. Stat., § 481 [P. C. § 7462]), in action against the city to collect the retained percentage.

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Bluebook (online)
111 P.2d 612, 8 Wash. 2d 93, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-macri-v-city-of-bremerton-wash-1941.