Waterman v. Sabre

8 R.I. Dec. 305
CourtSuperior Court of Rhode Island
DecidedMay 19, 1932
DocketNo. 67505
StatusPublished

This text of 8 R.I. Dec. 305 (Waterman v. Sabre) is published on Counsel Stack Legal Research, covering Superior Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Waterman v. Sabre, 8 R.I. Dec. 305 (R.I. Ct. App. 1932).

Opinion

CHURCHILL, J.

Heard jury trial waived.

The plaintiff brought suit in assump-sit to recover the sum of $3,509 received by the defendant which the plaintiff claims he is not entitled to retain, and also the sum of $43.13 for [306]*306labor and. materials furnished the defendant.

This suit was begun on March 16, 1926. On December 9th, 1930, the Rhode Island Hospital Trust Company and George S. Stone, guardians of the estate of the defendant, were added as' parties defendant. Res adjudicata and set-off have been pleaded to the demand.

The plaintiff was a contractor and builder. The particular transaction involved in this case took place on March 27, 1920. Property consisting of a house and lot on Detroit Avenue in Providence stood in the name of Sabre, who had loaned some $1,100 to the plaintiff in the course of construction. Title in Sabre was by way of security. At the same time the plaintiff stood indebted to Sabre on a note for $2,000 secured by a mortgage on property on Broad Street.

The property on Detroit Avenue was sold oh March 27, 1920, for $4,500, of which ’$1,000 was paid to the plaintiff, Sabre retaining $3,500. A document was signed by the defendant on this date reciting the fact that the property had been conveyed; that the consideration for the same was $1,000 in cash paid to Oliver Waterman, $1,000 m cash paid to Geo. W. Sabre and a mortgage note for $2,500, and contained the following clause: “I hereby agree to place the amount of cash and note to the credit of Oliver Waterman on an unsettled, account.” Another document on the same date was signed by the plaintiff and recited among other things that “the balance of $3,500 was delivered to Geo. W. Sabre, who placed that amount to my credit on an unsettled account.” The only amount, in fact, owed by the plaintiff to the defendant at that time was under a mortgage note of $2,000 on property on Broad Street. This latter mortgage was paid and discharged on May 12, 1925.

No part of the $3,500 retained by the defendant has ever been paid to the plaintiff.

The plaintiff testified that at the time of the transaction in 1920-, he had never been able to get any statement from Sabre as to how the account stood between them; that -he did not know how any of their transactions stood until a Master’s report in an accounting was filed much later than March 27, 1920; that he had made frequent demands for statements from the defendant, Sabre, but had never succeeded in getting one, and that Sabre refused to convey the property on Detroit Avenue unless he was allowed to retain $3,500 of the purchase price. Plaintiff further testified that he had demanded repayment from Sabre of the $3,500.

The Court finds on all the facts that the defendant retained from the purchase price of $4,500, $3,500 on representations made by the defendant that the plaintiff was indebted to him; that at that time the only amount the plaintiff owed defendant was on a note for $2,000 secured by a mortgage and that such note was paid by the plaintiff in full before the commencement of the present action; that the plaintiff allowed the defendant to retain the sum of $3,500 under a mistake of fact in respect to the state of the account between plaintiff and defendant and in reliance on the representations of the defendant; and the Court further finds that the plaintiff was not guilty of any negligence in not ascertaining the correct state of the account between the parties at that time, and that the defendant, Sabre, refused-to convey the property at the request of the plaintiff unless he, the defendant, was allowed to retain $3,500, and that demand was made prior to the institution of this suit for a return of the amount retained by Sabre.

On such a state of facts, the plaintiff has made out a prima facie case.

[307]*307Woodard, Quasi-Contracts, pages 12 to 18 and cases cited therein; in particular, Kelly vs. Solari, 9 Mess. & Wels. 54.

It was not denied that the materials had been supplied and work done to the amount of $43.13.

RES ADJUDICATA

This plea sets out the final decree in a suit in equity between the same parties, which adjudged that Sabre was indebted to the plaintiff in the sum of $4,705.71; that such decree was entered on December 31, 1930, and that the bill of complaint under which the decree was filed embraced the same transactions which were included in the action at law. (Oliver Waterman vs. George W. Sabre, Eq. No. 7179).

The plea makes it necessary to explore the record in the equity cause.

The scope of the judgment or decree as to the precise matters involved when res adjudicata is pleaded is open to examination by the Court.

Perkins vs. Kirby, 39 R. I. 345;

Randall vs. Carpenter, 25 R. I. 641.

The bill was filed on February 15, 1925. It prayed for relief in respect to three lots of land, title to which was in the respondent. The particular lot involved in the transaction of March 27. 1920, was not embraced in the bill. It was alleged that the complainant Waterman had purchased the lots from the respondent Sabre and that he had a beneficiary interest therein; that he had built houses thereon and had repaid the respondent for all moneys advanced by him, but that the respondent refused to convey the property and had interfered with the possession of the complainant.

The bill prayed for conveyances and that certain mortgage notes and mortgages be declared null and void.

The bill covered transactions between 1897 and 1915. The answer set up that respondent Sabre held title by way of security for loans made; that the respondent held notes of the complainant amounting to $14,116.71, and set up the existence of a running account between the parties, and prayed for an accounting.

The answer did not set forth the dates of maturity of the notes.

The decree of reference to the Master was entered June 3, 1925 to “take a mutual account of all the dealings and transactions between the parties” and to report “what * * * upon the balance of said account shall appear to be due to either of them from the other.”

When the case came before the Master, he found on the frame of the bill and answer and decree of reference that “the difference * * * between the parties is in the amount of the balance due from one to the other, especially on January 28, 1915.”

One account as filed ended on January 20, 1915, while the amended account as filed by Sabre ran until May, 1925, and included the period of time during which the transactions in the instant case took place.

The Master, on the pleadings and decree of reference, took and stated an account up to and as of January 25, 1915, and specifically excluded as outside the scope of his findings any transactions after that date, as not being before him and as eliminated by the pleadings. He specifically ruled that such matters were more properly the subject of actions at law which were still pending between the parties. The report was filed on November 1, 1930, and at that time the instant case was pending. The final decree was entered confirming the report on December 31, 1930. No appeal was prosecuted and the decree now stands in full force and effect.

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Bluebook (online)
8 R.I. Dec. 305, Counsel Stack Legal Research, https://law.counselstack.com/opinion/waterman-v-sabre-risuperct-1932.