Geranios v. Annex Investments

• Decision Date: 30 August 1954
• Docket Number: No. 32727
• Citation: Geranios v. Annex Investments, 273 P.2d 793, 45 Wn.2d 233 (Wash. 1954)
• Court: Washington Supreme Court
• Parties: GERANIOS et ux. v. ANNEX INVESTMENTS, Inc.

Page 233

45 Wn.2d 233

273 P.2d 793

GERANIOS et ux. v.ANNEX INVESTMENTS, Inc.

No. 32727.

Supreme Court of Washington, Department 2.

Aug. 30, 1954.

Rehearing Denied Nov. 4, 1954.

Christ D. Lillions, Seattle, for appellants.

Ferguson & Burdell, W. Wesselhoeft, Seattle, for respondent.

HILL, Justice.

After sifting down and through the various complexities of pleadings, proof, and legal theories, we find here an action to recover $5,000 on the theory of unjust enrichment.It was tried to the court without a jury and was dismissed at the conclusion of the plaintiff's case because the action, whatever its theory, was barred by the three-year statute of limitations.

We shall, throughout this opinion, refer to the plaintiff-appellants as Geranios and to the defendant-respondent as Annex.

July 2, 1945, Annex and Geranios entered into a written contract whereby the former agreed to sell and the latter agreed to buy, for $15,000, certain land and the building thereon, which we will refer to as the Geranios property.Geranios assumed 'all hazards of damage to or destruction of any improvements,' and also agreed to keep the premises insured against loss or damage by fire 'for the seller's benefit as interest may appear.'Geranios also took out earthquake insurance, which he was not obligated to do, which insurance was in the form of a rider to the fire insurance policy and had no separate loss-payable clause.

April 13, 1949, the building was badly damaged by an earthquake.At that time $7,000 was still due on the contract, and of that amount $2,500 was past due.The insurance company's check for $10,000, covering earthquake damage, was made payable jointly to Geranios and Annex.

Annex, through its president, J. T. Sheffield, refused to permit Geranios to collect the entire $10,000.It was finally agreed that $5,000 of the insurance proceeds would be paid to Geranios and $5,000 would be retained by Annex.Geranios and Sheffield differ as to the status of the latter $5,000, but it is agreed that Geranios retained an interest in it.Not having the risk of loss of the property, the only interest Annex could have had in the proceeds of the insurance procured by Geranios would be as security for payment of the purchase price, for which Geranios remained bound under the contract.Gillingham v. Phelps, 1940, 5 Wash.2d 410, 105 P.2d 825.

By November, 1949, Geranios' delinquency under the contract of July 2, 1945, totaled more than $3,500, but the entire purchase price was not due.Both parties agree that Annex gave Geranios notice of forfeiture of the contract prior to November 16, 1949, on which date a forfeiture action was commenced; and that on November 6, 1950, a judgment and decree was entered in the forfeiture proceeding divesting Geranios of all interest in or claims to the tract to which we have referred as the Geranios property, and vesting title thereto 'absolutely' in Annex.

When a vendor has given a...