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Warm Springs Properties, Inc. v. Andora Villa, Inc.
526 P.2d 1106
Idaho
1974
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*1 Burt, supra; Ames Van Houten v.

Ames, (Alaska 1971) (per 487 P.2d 680 judgment is

curiam). Since the 1971 reviewable, since the 1973 se, per challenged is not based thereon appeal judg both follows that ments must be dismissed. respondent. appeal is Costs to dismissed.

SHEPARD, DONALDSON, J., and C. BAKES, McQUADE JJ., concur. PROPERTIES, INC., WARM SPRINGS Inc., Village, International d/b/a Plaintiff-Appellant, VILLA, INC., ANDORA Defendant- Respondent.

No. 11444. Supreme Court Idaho.

Sept. 26, 1974. Walker, Lloyd Falls, plain- Twin J.

tiff-appellant. Benjamin Clair, Willis B. of St. St. Clair, Hiller Benjamin, & Ketchum and Falls, defendant-respondent. McFADDEN, Justice. (plain- Inc.

tiff-appellant) instituted this action (defendant-respondent) seeking special damages *2 summary judg- Andora moved for $60,000 damages the conversion Villa general ment, by af- supporting the motion various of enrich- money of the basis on shareholders, fidavits of its officers and ment. Butler, man- deposition and the Bill the of complaint, its In the first count of Corporation. ager Butler Brothers of (herein Inc. re- Warm Springs filed counter affidavits. Warm that Springs), alleged ferred to as Warm Andora granted court defendant trial (herein it and Andora des- both summary judgment motion for Villa’s ignated Villa), by separate and in- Andora appeal this was taken. agreements with Butler Brothers dividual appeal Springs on this Warm contends Corporation of contracted for construction granting in that the trial court erred projects; independent their condominium summary in motion for two as- projects to be fi- that each of these was pects. Springs first asserts that Warm by by progress payments to nanced be money this is action for of restitution Springs or Andora Villa as Warm had received on the basis of the doc- respective progressed on the condo- work of trine enrichment. Warm projects; September minium that between Springs additionally then that contends 1, 1971, year and the end of that Warm held Andora Villa should be liable for con- Springs paid over to Butler Broth- Springs property, version of the Warm i. understanding ers with the that the funds payments e. cash it made Butler Broth- were purpose to be used for the of sole ers, pay used off was obli- paying expenses already on incurred gations already incurred on the Andora Springs condominium; Warm during properties. These contentions will be dis- period the same work on Andora Villa cussed in inverse order. project continued, though even Andora payments Villa failed to Butler I Conversion Springs Brothers. Warm alleged also It is the conclusion of the court this paid by count that funds it to Butler appellant’s there is no merit to the second Brothers misappropriated were and allocat- Andora contention that Villa could be held expenses ed already on incurred liable on basis of conversion of the condominium; that Andora moneys paid by funds Springs or Warm accepted Villa the benefit of these funds at dep- Brothers. From affidavits expense Springs. Warm Warm appears ositions in the record it that Butler Springs alleged also upon moneys Brothers receipt any unjustly enriched general spe- principals of the for whom it was con- damage cial Springs. of Warm structing buildings1 placed the funds its In the complaint, second count of the general checking account. The record also Springs adopted portions its first expenses paid by discloses that were count alleged and further that Andora Vil- general Brothers from this fund without through la agents knowledge had actual contract, regard particular e., to the i. paid by funds to But- money paid project on one was used to ler Brothers being complete were used to for costs of labor and material without re- construction of the gard Andora Villa condo- to the source such funds. minium; willfully that Andora Villa ac- 171, 179, In Koppel, Klam v. cepted period this throughout benefit (1941), 118 P.2d this defined question “conversion” as because it unable to furnish ** * the needed completion funds for of its own any distinct act of dominion project. wrongfully per- exerted over another’s year During 1. Butler Brothers tions or individuals for construction of residences, only parties was the contractor dominiums or action, corpora- but for some six other property moneys paid sonal denial or inconsistent used therein, Springs, reserves, rights including with his as a tortious Federal Tax such chattels, payroll meet taking or current of the Andora another’s job. assumption wrongful exercise of au- Villa or thority, personally by procurement, Although affidavits of officers of An- *3 goods, depriving over another’s him of deny any knowledge dora Villa of internal possession, in- permanently or for an Brothers, affairs of Butler of fact issues definite time.” remain unresolved as to whether Andora encouraged officers Villa or counselled misap Normally conversion for paid moneys by Brothers use propriation money it of does not lie unless Springs payment obligations Warm of specific can be described identified as a or Springs project incurred on the Warm Cavin, Cal.App.2d chattel. 154 Shahood v. paid the amount funds of from Warm 745, Am.Jur., (1957); 316 P.2d 700 53 Springs to the benefit of Andora Villa. Conversion, 9, p. Trover 811. From § summary judgment A motion for should record, appel undisputed facts in this granted genuine not be when of ma- issues Springs lant from Warm is foreclosed remain terial facts unresolved. IRCP theory maintaining this of action on ; Miller, Inc., 56(c) Hansen v. Howard O. re the funds were conversion because once 314, Idaho (1969); 93 460 P.2d 739 Holve they by Butler went ceived Brothers into Draper, 193, 505 P.2d checking general account and lost specific identity. issue is to mate- next determine the Unjust riality II Enrichment of this issue of unresolved fact. 120, Law, Restitution, Restatement of the § the trial Springs asserts that Warm p. (1937), provides: granting court erred in the motion for summary judgment person there is un- “Where a because has contracted to fact, improvements upon if in its the land resolved issue of found or would entitle it to chattels of another and in the course of favor theory making improvements Andora of en- chattels Villa on such uses money person of a has third which he richment. uses, improperly improperly obtained or Butler, manager Bill person such third is entitled restitu- Brothers, that dur- stated in his affidavit tion from the of the land or chat- owner 1971, be- the fall ing tels, unless paid such owner the contrac- contract, and that payments hind on its tor of the without notice of the interest payroll project the entire for person.” third money from Warm from received Springs; in his with an conversation Springs’ theory Under Warm this ac- sug- officer of Andora officer tion, when the officers of Andora Villa money gested get that Butler more prevailed upon Butler Brothers to use obligations so Springs cover the funds which Butler received from project could that the work on the Andora Springs existing obligations continue. An- wages on the materials used manager project, But- dora Taylor, the office so that construction

Mr. his affidavit that he could continue on the Andora Villa ler condo- stated minium, phone obligated of Andora Villa’s Andora Villa became by to one talked that Butler sums under the officer for such officers and advised Restitution, keep Restatement, provisions Brothers had have some 120, supra. be- in this open; and that There is merit job the Andora Villa § Andora, Butler tention. promises made cause of 327, person enti- Allphin, will render to

In Hixon 333- one equity which in 334, quot- tled thereto that this court (1955), conscience, belongs to the latter. good ed from various decisions as follows: > * * * Gattavara, 34 Bill v. Wash.2d “ ‘The a quasi essence of contractual 645, pages P.2d at 459-460. obligation lies the fact the de- Restatement, ‘Going Law of to the fendant has received a benefit which Restitution, general we statements find inequitable would be him to retain. supporting judgment. the instant Sec. clearly pointed This was out Lord person “A who has been en- recognizing Mansfield in the first case expense riched at the is re- another quasi the doctrine of “If contracts. quired to make restitution to other.” defendant,” said, he “be an obliga- under implies Comment under above c. tion, justice, from the ties of natural *4 person where from a receives a benefit refund, debt, implies the gives law a and another he is liable to therefor if the action, equity this in the founded the receipt circumstances of its retention plaintiff’s case, were, upon it a as con- are such as the is between two it {‘quasi tract ex contractu’ as the Roman ’ * * * unjust * * for * him to retain it. expresses it). law This kind Scott, Duffy 142, v. 235 N.W. Wis. equitable to action recover back mon- 273, 276, at page See A.L.R. 487. ey, ought justice in kept, not to be also, Vial, Pa.Super. Lauffer is very beneficial and therefore much ” 342, * 777, * * page A.2d at 779.” encouraged. McShane Quillin, 542, 547-548, pages at is It the conclusion of this court 554, page 277 P. at 559. e., that the (i. issue role played of fact the “ ‘ * * * It not necessary is in Andora Villa officers in having Butler or- der obligation apply to create an obligations to resti- compensate, moneys paid by tution or to party is ma Springs) enriched terial should this action. Should have been guilty Springs prevail tortious or resolution of fraudulent act. this issue question he, trial, at The a a is: Did basis would be to the detri- established else, ment of the trial something employ powers someone court to its equity obtain of value to in application unjust which he was the doctrine of en not entitled? 99, See 46 Restitution, richment. Restatement Restitution and Un- § Am.Jur. just supra. Enrichment. For this reason it is the con Enrichment. ignation for the contracts.” “unjust enrichment” [******] ‘ * * * the terms See “Quasi older doctrine of also, are contracts” are not 66 C.J. “restitution” modern des- Unjust “quasi versed and the cause remanded for further proceedings. judgment. clusion of erred The in granting Costs to court of the trial the motion for appellants. trial court summary is re- true obligations contracts but are created

by the law when or property has and McQUADE, DONALDSON JJ., placed person’s possession, been in one concur.

under such in equity circumstances that BAKES, (concurring part good conscience, ought he not to re- Justice dissenting in part) : tain Royal Indemnity it. Co. v. Sol Ct., [Inc.], City Lustbader 26 N.Y.S.2d I dissent from majority’s conclusion 328; also, Phrases, see 35 Words and plaintiff that the has shown a claim for re- Perm.Ed., page Thus, 621. the sub- lief for unjust enrichment the de- stance an action unjust However, enrich- fendant Andora Villa. I do con- promise, ment law, lies in implied a cur that the matter be remanded contested, permit plaintiff Although court in trial order to there was attempt complaint allege to amend his to the effect that the offi- some evidence upon theory prevailed a claim for of tortious relief on cers of Andora Villa interference with advances from contract. reasons Brothers to seek Inc., representing that are as follows: pay Warm the funds would be used to Regarding the issue of enrich- bills, using money to and then ment, majority opinion while the does not remand, pay the bills of Andora On Villa. point out, the defendant Andora Villa opportuni- plaintiff given should be also victim of the failure of Butler complaint attempt ty to amend his to al- relating Brothers to of the bills all lege relief, such a claim for and then have its all of projects, construction when theory tested a'new motion for complete, the construction the defend- summary judgment, or in a if trial only ant Andora full disputed. facts are materially price tract but addi- pay approximately tion had to SHEPARD, Chief (dissenting): Justice more in order to cover the costs of materi- opinion I concur in the of Mr. Justice prevent als and labor furnished in order to plaintiffs BAKES to the extent that have liens being property. filed on its Un- not shown a claim for relief for en- circumstances, der these how then can it be however, disagree, richment. I his with *5 stated that the defendant Andora conclusion plaintiffs might be able to unjustly enriched? establish a claim for relief on based tor- is not the The test enrichment tious interference with contract. Under by plaintiff, extent of but loss any theory I believe the record sustains the been amount which the defendant has action of the trial in entering sum- Forest unjustly enriched. Continental mary judgment for the defendant. Products, Co., Supply Inc. v. Chandler Under case, the facts of this since the defendant

actually an en- sustained a loss rather than dealings richment as a with result of un- no cause of action for just enrichment would lie

plaintiff P.2d argue To have Villa would al., Dean POLLARD et Plaintiffs- conduct, inequitable lost but for its more Respondents, enriched, has and therefore was been the basis successful claims never WEST, al., INC., corporation, LAND et a I have been enrichment that Defendants-Appellants. discover, majority cites no able to and the No. 11357. authority proposition. for this The trial Supreme Court of Idaho. granting summary court was correct Sept. 27, 1974. on issue. for the defendant

However, allegations in there are certain plaintiff’s alleged set complaint, facts plaintiff which in the affidavits

out es- able to suggest plaintiff might be against Andora a cause action tablish with con- interference Villa for tortious Har- v. International Barlow tract. See Co., P.2d vester

Case Details

Case Name: Warm Springs Properties, Inc. v. Andora Villa, Inc.
Court Name: Idaho Supreme Court
Date Published: Sep 26, 1974
Citation: 526 P.2d 1106
Docket Number: 11444
Court Abbreviation: Idaho
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