Walla Walla Port District v. H. G. Palmberg

280 F.2d 237, 1960 U.S. App. LEXIS 4307
CourtCourt of Appeals for the Ninth Circuit
DecidedJune 13, 1960
Docket16547_1
StatusPublished
Cited by21 cases

This text of 280 F.2d 237 (Walla Walla Port District v. H. G. Palmberg) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Walla Walla Port District v. H. G. Palmberg, 280 F.2d 237, 1960 U.S. App. LEXIS 4307 (9th Cir. 1960).

Opinion

JERTBERG, Circuit Judge.

Judgment was entered in the district court, based on a jury verdict in favor of appellee [plaintiff in the district court] and against appellant [defendant in the district court] in the amount of $33,920.-00 for additional compensation on a construction contract. Judgment was entered on the verdict, the court, however, reserving jurisdiction to determine whether appellee was entitled to interest thereon prior to the judgment. By supplemental judgment the court adjudged and decreed that the appellee recover nothing on his claim for interest, and further adjudged and decreed that ap-pellee recover interest at the legal rate from March 19, 1956 until paid on the sum of $50,186.40, it having been stipulated and agreed between the parties that said sum was admittedly due, owing and unpaid from appellant to appellee. Appellant appeals from the judgment based on the jury verdict and from that portion of the supplemental judgment which allowed interest on said sum of $50,186.40.

The appellant, Walla Walla Port District, is a municipal corporation organized and existing under the laws of the State of Washington, and appellee, H. G. Palmberg is a citizen and resident of the State of Oregon. Hence, diversity of citizenship existed between the parties, and the amount in controversy exceeded the sum of $10,000. The district court, therefore, had jurisdiction under Title 28 U.S.C.A. § 1332. This Court’s jurisdiction is based on Title 28 U.S.C.A. §§ 1291 and 1294.

Appellant sets forth three main specifications of error which are: (1) the district court erred in refusing to grant appellant’s motion for a directed verdict and to set aside the jury verdict and enter judgment for the appellant; (2) the court erred in permitting the introduction of opinion evidence on the part of appellee relative to the amount of cost in dredging rocks and boulders that it claimed could not have reasonably been anticipated under the contract; and (3) the court erred in allowing interest on the sum of $50,186.40 admittedly due from appellant to appellee.

We will first consider appellant’s contention that the district court erred in allowing interest on the sum of $50,186.40 from March 19, 1956 to date of payment, as set forth in the supplemental judgment.

Under the law of the State of V/ash-ington the governing body of a municipal corporation is required to withhold fifteen percent of progress payments on public works projects until after completion of the project and after payment of claims, etcetera. In the instant case, on March 15, 1956, appellee submitted to the engineer of appellant his final estimate showing total contract earnings. This final estimate contained the following statement: “In addition to the above, claim in the amount of $53472.91 is pending per letter of Jan. 20, 1956, from H. G. Palmberg to Walla Walla Port District.” As part of the final estimate is the certificate of the engineer of the district certifying that the partial payment is due and payable. On March 19th the engineer of the district certified to the district that the final amount due on the contract and payable to the appellee was the sum of $50,186.40. The engineer’s certificate was submitted to the port commissioners, who promptly prepared and signed a voucher in the sum of $50,186.40 to be signed by appellee. The voucher contains the following statement: “Final payment on construction work at Attalia per statement dated March 15, 1956 — $50,186.40.” Correspondence between the parties establishes that the district refused to in any way change or modify the statement con *240 tained in the voucher. The position of the district is set forth in a letter directed to counsel for appellee by counsel for appellant, the pertinent part of which states:

“As you know, we have already forwarded a voucher to Mr. Palm-berg covering the final payment on his contract. Obviously, we do not wish to make any commitment concerning this matter which would jeopardize any defense the Port might wish to make. As you know, I represent a tax-paying body, which in turn represents tax payers, with the result that neither the Commissioners nor myself are in a position to waive proper defense that might be made.”

Appellee refused to sign and deliver the voucher because of his fear that to do so might jeopardize his claim for extra compensation. This impasse was not broken, and the appellant demanded a return of the voucher, with which demand appellee complied.

In urging that the district court erred in the allowance of interest, appellant relies on Sections 42.24.010, Revised Code of Washington, 1 ******and Section 53.36.010, Revised Code of Washington. 2 From such code provisions appellant argues that since the appellee failed to sign and present the voucher, and failed properly to perfect his claim, therefore, the liability of the district never matured and the award of interest by the district court was without legal sanction. In the agreed statement of facts contained in the pretrial order it was agreed, “That plaintiff became entitled to payment for the balance of the work on said contract in the sum of $50,-186.40 on the final and closing estimate * * *. That Defendant has at all times offered to and been willing to pay the amount of said final estimate to the Plaintiff as full payment under the contract.” It is clear from the record that said sum became due and owing on March 19, 1956. Absent the Code provisions mentioned, appellee would have become entitled to interest on said sum from the due date to the date of payment. McHugh v. City of Tacoma, 1913, 76 Wash. 127, 135 P. 1011. In that case there was involved a construction contract with the City of Tacoma, Washington. At page 1016 of 135 P., it is stated:

“It is also argued by the appellant that interest should be allowed upon the amount found due from the time of the completion of the contract until payment. This no doubt is correct. Parks v. Elmore, 59 Wash. 584, 110 P. 381.”

The Code sections relied upon do not cover or purport to cover a situation such as that involved here wherein the voucher contains a condition or stipulation which may operate as a waiver of other valid claims against the district. It is to be noted that the language on *241 the voucher states that it is “final payment on construction work at Attalia” and not “final payment on construction contract at Attalia.” It is also clear that if appellee had signed the voucher and secured payment that the district would have interposed accord and satisfaction as an additional defense to appellee’s claim for additional compensation. Accord and satisfaction constitutes a good defense under Washington law. James v. Riverside Lumber Co. et al., 1922, 121 Wash. 130, 208 P. 260. In our view ap-pellee did not forego his right to interest on the sum admittedly due because of his unwillingness to run the risk of waiving or jeopardizing his claim for extra compensation.

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Bluebook (online)
280 F.2d 237, 1960 U.S. App. LEXIS 4307, Counsel Stack Legal Research, https://law.counselstack.com/opinion/walla-walla-port-district-v-h-g-palmberg-ca9-1960.