Dennis v. Grand River Drainage Dist.

• Decision Date: 11 June 1934
• Docket Number: No. 17945.,17945.
• Parties: DENNIS v. GRAND RIVER DRAINAGE DIST. OF LIVINGSTON AND LINN COUNTIES et al.
• Court: Missouri Court of Appeals

74 S.W.2d 58

DENNIS v. GRAND RIVER DRAINAGE DIST. OF LIVINGSTON AND LINN COUNTIES et al.

No. 17945.

Kansas City Court of Appeals. Missouri.

June 11, 1934.

Rehearing Denied July 16, 1934.

Appeal from Circuit Court, Livingston County; Ira D. Beals, Judge.

"Not to be published in State Reports."

Action by F. L. Dennis against the Grand River Drainage District of Livingston and Linn Counties, Mo., wherein the Farmers' & Merchants' Bank of Chillicothe, Mo., interpleaded. Judgment for interpleader, and plaintiff appeals.

Affirmed.

F. L. Arthaud, of Chillicothe, for appellant.

John H. Taylor, of Chillicothe, for respondent.

TRIMBLE, Judge.

The interplea involved herein grew out of an action brought by plaintiff, Dennis, against Grand River Drainage District of Livingston and Linn Counties to recover $300 claimed to be due from the drainage district to F. L. Arthaud under a contract with him to deepen and enlarge a channel known as cut-off No. 29; it being a part of the drainage project. The cause of action sought against said drainage district grew out of a note for $300 given by Arthaud to the Farmers' & Merchants' Bank of Chillicothe, dated March 8, 1930, due 3 months after date, with 8 per cent. interest compounded annually; and attached to said note was an assignment, as collateral security of $300 money due Arthaud from said drainage district under said contract as it became due for the accepted work done, and on completion of the entire work, and the acceptance, he was to be paid the balance due him on said contract. Said assignment of $300 due said Arthaud from said district was made by plaintiff F. L. Dennis, and it recited therein that the $300 assigned was that amount "of the proceeds resulting from a certain contract between F. L. Arthaud and the Grand River Drainage District of Livingston and Linn Counties, Mo., wherein F. L. Arthaud for the consideration of Eleven Hundred Seventy Four Dollars (1174.00) has agreed to deepen and widen cut off in said District known as cut off No. 29, that there has been drawn against said $1174.00 only $180.00 or said three hundred dollars hereby assigned may be deducted from a certain certified check by the above bank in the sum of $587.00 now held by said district.

"The said Three Hundred dollars may be applied as agreed upon by said F. L. Arthaud and the above Bank."

Under Arthaud's contract with the drainage district he was to receive $1,174 for the work; and he was to execute a bond for that amount conditioned for the faithful performance of the work. Being unable to furnish said bond, said Dennis advanced to Arthaud $587 with which the latter obtained a certified check for that amount (being one-half of the amount of bond required), which certified check was deposited by Arthaud with the district, under an agreement that it would retain the other half ($587) of the contract price until contract was performed and the work accepted by the district, and would also hold the certified check of $587 for the first half of the bond and return it to Arthaud when the work was completed and accepted. (This arrangement was agreed upon by Arthaud and the district in lieu of Arthaud's promised bond of $1,174.)

To secure and compensate said F. L. Dennis for supplying the cash, $587, to obtain the certified check deposited, and for advancing the funds with which to pay for the labor in the construction of the work contracted for, Arthaud assigned to Dennis, on January 30, 1930, "all sums of money payable and due F. L. Arthaud, or to become due, under and by virtue of said Contract."

On November 24, 1930, Dennis directed the district to pay the Agricultural Bond & Credit Corporation of Kansas City $300 "out of the funds and proceeds due F. L. Arthaud upon the completion of the enlargement of the channel known as Cut-off No. 29 in said Drainage District, which is now under contract."

June 13, 1931, Dennis assigned to the Bank of Meadville, Meadville, Mo., $180 out of the proceeds due Arthaud under his contract with the drainage district, which assignment was duly filed with the district.

Under the contract with the district and pursuant to F. L. Dennis' assignment from Arthaud dated January 29, 1930, the district paid $55 October 29, 1929; $150 on July 10, 1930; $125 September 24, 1930; and $64 paid February 11, 1932, aggregating $394. This, together with the amounts assigned out of the proceeds due Arthaud on his contract, to wit, $300 to the Credit Corporation, $180 to the Meadville Bank, and the assignment of Arthaud to the Farmers' & Merchants' Bank of $300 as security for his note, makes the full amount of $1,174, the sum due from the district on the Arthaud contract.

Between January 14 and February 11, 1932, Arthaud's contract was completed, and on the acceptance of the work by the district the latter returned to Arthaud his certified check of $587 put up as security for the work as hereinbefore related. At...