Warm Springs Properties, Inc. v. Andora Villa, Inc.

526 P.2d 1106, 96 Idaho 270, 1974 Ida. LEXIS 428
CourtIdaho Supreme Court
DecidedSeptember 26, 1974
Docket11444
StatusPublished
Cited by16 cases

This text of 526 P.2d 1106 (Warm Springs Properties, Inc. v. Andora Villa, Inc.) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Warm Springs Properties, Inc. v. Andora Villa, Inc., 526 P.2d 1106, 96 Idaho 270, 1974 Ida. LEXIS 428 (Idaho 1974).

Opinions

McFADDEN, Justice.

Warm Springs Properties, Inc. (plaintiff-appellant) instituted this action against Andora Villa, Inc. (defendant-respondent) seeking $60,000 special damages and [271]*271$60,000 general damages for the conversion of money on the basis of unjust enrichment.

In the first count of its complaint, Warm Springs Properties, Inc. (herein referred to as Warm Springs), alleged that both it and Andora Villa, Inc. (herein designated Andora Villa), by separate and individual agreements with Butler Brothers Corporation contracted for construction of their independent condominium projects; that each of these projects was to be financed by progress payments to be paid by Warm Springs or by Andora Villa as the work progressed on the respective condominium projects; that between September 1, 1971, and the end of that year Warm Springs paid over $60,000 to Butler Brothers with the understanding that the funds were to be used for the sole purpose of paying expenses already incurred on the Warm Springs condominium; that during the same period work on the Andora Villa project continued, even though Andora Villa failed to make payments to Butler Brothers. Warm Springs also alleged in this count that funds paid by it to Butler Brothers were misappropriated and allocated to pay expenses already incurred on the Andora Villa condominium; that Andora Villa accepted the benefit of these funds at the expense of Warm Springs. Warm Springs also alleged that Andora Villa was unjustly enriched to the general and special damage of Warm Springs.

In the second count of the complaint, Warm Springs adopted portions of its first count and further alleged that Andora Villa through its agents had actual knowledge that funds paid by Warm Springs to Butler Brothers were being used to complete construction of the Andora Villa condominium; that Andora Villa willfully accepted this benefit throughout the period in question because it was unable to furnish the needed funds for completion of its own project.

Andora Villa moved for summary judgment, supporting the motion by various affidavits of its officers and shareholders, and the deposition of Bill Butler, the manager of Butler Brothers Corporation. Warm Springs filed counter affidavits. The trial court granted defendant Andora Villa’s motion for summary judgment and this appeal was taken.

Warm Springs on this appeal contends that the trial court erred in granting the motion for summary judgment in two aspects. Warm Springs first asserts that this is an action for restitution of money had and received on the basis of the doctrine of unjust enrichment. Warm Springs then additionally contends that Andora Villa should be held liable for conversion of the Warm Springs property, i. e. cash payments it made to Butler Brothers, which money was used to pay off obligations already incurred on the Andora properties. These contentions will be discussed in inverse order.

I Conversion

It is the conclusion of the court that there is no merit to the appellant’s second contention that Andora Villa could be held liable on the basis of conversion of the funds or moneys paid by Warm Springs to Butler Brothers. From affidavits and depositions in the record it appears that Butler Brothers upon receipt of moneys from any of the principals for whom it was constructing buildings1 placed the funds in its general checking account. The record also discloses that expenses were paid by Butler Brothers from this general fund without regard to the particular contract, i. e., money paid on one project was used to pay for costs of labor and material without regard to the source of such funds.

In Klam v. Koppel, 63 Idaho 171, 179, 118 P.2d 729, 732 (1941), this court defined “conversion” as

“ * * * any distinct act of dominion wrongfully exerted over another’s per[272]*272sonal property in denial or inconsistent with his rights therein, such as a tortious taking of another’s chattels, or any wrongful exercise or assumption of authority, personally or by procurement, over another’s goods, depriving him of the possession, permanently or for an indefinite time.”

Normally conversion for misappropriation of money does not lie unless it can be described or identified as a specific chattel. Shahood v. Cavin, 154 Cal.App.2d 745, 316 P.2d 700 (1957); 53 Am.Jur., Trover and Conversion, § 9, p. 811. From the undisputed facts in this record, appellant Warm Springs is foreclosed from maintaining this action on the theory of conversion because once the funds were received by Butler Brothers they went into its general checking account and lost any specific identity.

II Unjust Enrichment

Warm Springs asserts that the trial court erred in granting the motion for summary judgment because there is an unresolved issue of fact, which if found in its favor would entitle it to judgment against Andora Villa on the theory of unjust enrichment.

Bill Butler, the manager of Butler Brothers, stated in his affidavit that during the fall of 1971, Andora Villa was behind in payments on its contract, and that the entire payroll for the Andora project was paid from money received from Warm Springs; that in his conversation with an officer of Andora Villa, the officer suggested that Butler get more money from Warm Springs to cover the obligations so that the work on the Andora project could continue.

Mr. Taylor, the office manager of Butler Brothers, stated in his affidavit that he talked by phone to one of Andora Villa’s officers and advised the officer that Butler Brothers had to have some money to keep the Andora Villa job open; and that because of promises made by Andora, Butler Brothers used moneys paid by Warm Springs, including Federal Tax reserves, to meet the current payroll of the Andora Villa job.

Although affidavits of officers of Andora Villa deny any knowledge of internal affairs of Butler Brothers, issues of fact remain unresolved as to whether Andora Villa officers encouraged or counselled Butler Brothers to use moneys paid by Warm Springs in payment of obligations incurred on the Warm Springs project and the amount paid from funds of Warm Springs to the benefit of Andora Villa.

A motion for summary judgment should not be granted when genuine issues of material facts remain unresolved. IRCP 56(c) ; Hansen v. Howard O. Miller, Inc., 93 Idaho 314, 460 P.2d 739 (1969); Holve v. Draper, 95 Idaho 193, 505 P.2d 1265 (1973).

The next issue is to determine the materiality of this unresolved issue of fact. Restatement of the Law, Restitution, § 120, p. 500 (1937), provides:

“Where a person has contracted to make improvements upon the land or chattels of another and in the course of making such improvements uses chattels or money of a third person which he has improperly obtained or improperly uses, such third person is entitled to restitution from the owner of the land or chattels, unless such owner paid the contractor without notice of the interest of the third person.”

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Warm Springs Properties, Inc. v. Andora Villa, Inc.
526 P.2d 1106 (Idaho Supreme Court, 1974)

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Bluebook (online)
526 P.2d 1106, 96 Idaho 270, 1974 Ida. LEXIS 428, Counsel Stack Legal Research, https://law.counselstack.com/opinion/warm-springs-properties-inc-v-andora-villa-inc-idaho-1974.