Walters v. Campeau

668 P.2d 1054, 205 Mont. 448, 1983 Mont. LEXIS 800
CourtMontana Supreme Court
DecidedSeptember 2, 1983
Docket82-377, 82-378
StatusPublished
Cited by2 cases

This text of 668 P.2d 1054 (Walters v. Campeau) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Walters v. Campeau, 668 P.2d 1054, 205 Mont. 448, 1983 Mont. LEXIS 800 (Mo. 1983).

Opinions

MR. JUSTICE WEBER

delivered the opinion of the Court.

William P. Chilcote (Chilcote), not a party to the original action, seeks a Writ of Review and appeals from the determination by the District Court of the Fourth Judicial District, Missoula County, that Chilcote was in contempt of court, and that Fred G. Carl and Joan A. Carl (Carls) should therefore have judgment against him for $40,350. We reverse the judgment of the District Court.

While a number of issues have been stated by the parties, we restate the controlling issue: Does the evidence support the findings of the District Court, its conclusion of contempt by Chilcote, and its judgment of $40,350 against Chilcote?

The Carls entered into a contract for the construction by Paul Campeau (Campeau) of four duplexes in Missoula, Montana. During construction, a mechanic’s lien was filed by plaintiff Walters. Walters obtained summary judgment against Campeau and is no longer a party to the controver[450]*450sies between Campeau and Carls.

After trial of the claims for relief by Carls against contractor Campeau, the Carls obtained judgment against Campeau on April 27, 1981 for breach of contract. The District Court ordered that the necessary repairs be made to correct substantial defects in the four duplexes, Campeau was ordered to pay to Carls the cost of the correction, repairs and related expenses, the total of which was not to exceed $30,000 per unit, i.e. $120,000. Campeau failed to complete the improvements or payments.

Carls recorded their $120,000 judgment against Campeau in Richland County, Montana. Campeau and Chilcote were engaged in a joint venture in Richland County where they were constructing and selling residences. The Campeau-Chilcote joint venture had nothing to do with the Missoula County construction contract, and Chilcote did not in any way participate in the construction of the Carls’ Missoula County duplexes.

In order to obtain title insurance required for the sale of the Richland County houses, Chilcote personally borrowed $120,000 from First National Bank in Missoula and deposited that $120,000 in Richland National Bank of Sidney, pursuant to a written agreement between the title and abstract companies and the bank whereby the $120,000 would protect the title to the Richland County properties against the Carls’ judgment. That agreement provided that Chilcote was to be treated as the sole owner of the fund and that all funds were to be returned to Chilcote upon termination of the trust account.

Next the Carls moved the District Court to force Campeau’s compliance with the April 27, 1981 court order. A hearing was held. The District Court issued an order on November 4, 1981, allowing Campeau to complete the repairs to the duplex under supervision of designated architects. Security for payment of materialmen and subcontractors was ordered in the form of an interest-bearing account established in the amount of $60,000. Campeau’s attorney, [451]*451William Baldassin, was to maintain the account in the name of William Baldassin, Trustee, to be used to pay materialmen and subcontractors. That order also required the Carls to release the property in Richland County from the lien of the April 27, 1981 judgment, so that “the defendant Campeau’s funds can be released from the sale of the residences and be transmitted to Mr. Baldassin as Trustee.” The order did not name Chilcote in any manner and did not require or prohibit any conduct on his part.

Pursuant to the November, 1981 order, Carls executed partial releases of judgment on the Richland County properties. The releases were forwarded by Carls’ counsel to Mr. Baldassin, Campeau’s counsel. Campeau’s counsel forwarded the releases to the abstract company in Sidney. In his letter forwarding the releases, Baldassin asked the abstract company to “notify the bank that the judgments have been released and that they [the bank] can release all monies held in the Chilcote account to me for deposit in my trust account.”

At this point the testimony and understanding of Campeau’s attorney, the abstract company and the bank is at variance. The attorney’s letter to the abstract company did not condition recording of the releases upon the receipt by the attorney of the $60,000, but instead requested notification of the bank that it “can release” all monies held in the Chilcote account for deposit in the attorney’s trust account. The attorney testified that he understood that he was to receive the $60,000 in return for the releases, and that he was not aware of any misunderstanding on this point between the officers of the abstract company or the bank and himself. In contrast, the officer of the abstract company testified that he did not understand this to be a conditional delivery of the releases, and he therefore recorded the releases, advised the bank of that recording, and furnished them a copy of the attorney’s letter. In turn, the bank officer testified that he contacted his legal counsel, who advised him to return the $120,000 to Chilcote, which [452]*452he did.

The sales of the Richland County houses were completed and Chilcote received the net sales proceeds, as well as the balance of the $120,000 deposit in the Richland Bank. Chilcote repaid his $120,000 personal loan to the Missoula bank.

On November 23, 1981 he paid $60,000 to Campeau as Campeau’s share of their joint venture profits in Richland County. This is the action which the District Court found to be contemptuous in that it frustrated the November 4, 1981 order of the court requiring that $60,000 be held in a trust account with Mr. Baldassin as trustee. While Chilcote was not involved in the Missoula County construction, the contract problems or the court action between the Carls and Campeau, Chilcote was aware of the plan for a $60,000 trust account with Mr. Baldassin as trustee. Chilcote’s testimony with regard to his $60,000 payment to Campeau is as follows:

“Q. You had some awareness of the supplementary hearing in October, did you not? A. Yes.
“Q. And you know that Mr. Baldassin wanted $60,000? A. Yes.
“Q. But did you have any knowledge that anyone had required you to provide that $60,000 to any of them? A. No.
“Q. What did you do with the money that Mr. Campeau had coming out of the proceeds of the sale? A. In November, you mean?
“Q. Yes. A. I paid it to him. He’s got all the money.
“Q. At the time you paid it to him because you knew generally what was going on, did you tell him? A. I told him he better get that money down and give it to Bill Baldassin, right, Bill?
“Q. Did he acknowledge to you that he would do that? A. He said he wasn’t going to get me in trouble.
“Q. That didn’t prove to be accurate, did it? A. No.” (emphasis added)

Campeau paid $2,650 to the Carls and $17,000 to Baidas[453]*453sin, which was deposited in the trust account. Campeau then disappeared and none of the parties were able to bring him before the court during the balance of the proceedings. At oral argument counsel advised the court that Campeau apparently was in Australia.

On December 30, 1981, Carls petitioned the District Court to find Baldassin, Campeau and Chilcote guilty of contempt for failure to obey the supplemental order.

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Related

Carl v. Chilcote
735 P.2d 266 (Montana Supreme Court, 1987)

Cite This Page — Counsel Stack

Bluebook (online)
668 P.2d 1054, 205 Mont. 448, 1983 Mont. LEXIS 800, Counsel Stack Legal Research, https://law.counselstack.com/opinion/walters-v-campeau-mont-1983.