Ross v. Wellington Lodge No. 133
Ross v. Wellington Lodge No. 133
Opinion of the Court
The opinion of the court was delivered by
The plaintiff' was the owner of lot 23, and the Wellington Lodge of Odd Fellows was the owner of lot 24, in block 54 of the city of Wellington, and the two parties being desirous of erecting a two-story building upon these lots, in accordance with the plans and specifications adopted by them, entered into a written agreement which contained the following provision:
“Now, therefore, in consideration of the premises, it is hereby agreed and understood by and on behalf of each of the párties hereto that one-half of all of the expense of every kind and character which is to be and will be incurred in the erection and construction of said building is to be equally borne and paid by the respective parties hereto; that is to say, each of"said parties is to pay one half thereof according to a correct and itemized account of said expenditures, which is to be kept by the parties to this agreement.”
After the building was completed the plaintiff, claiming he had paid more than one-half the cost, brought this action to recover from the defendant the amount in excess thereof. The sole controversy arises over the construction of the quoted clause of the agreement.
The defendant by its answer set. up the three-year statute of limitations. The plaintiff demurred to the
The defendant’s contention is that because the written contract does not provide for either party advancing money on behalf of the other, the plaintiff’s claim is not based on the written contract, but merely on the proposition that he paid out money for the use and benefit of the lodge without a contract to do so, but under such circumstances that the law implies a contract that the lodge would reimburse him, and therefore it is said that the implied agreement is barred by the statute. It was upon this theory, as we understand it, that the court overruled the demurrer to the answer.
In our opinion, the cause of action is upon the written agreement. While it does not in so many words provide for reimbursement, in case one party should pay in the course of the ‘construction more than its share of the expense, it is unreasonable, we think, to construe the contract to mean that as payments became due for material or labor, they should be paid equally by the parties. It seems more reasonable to construe the intention of the parties to have been that one or the other should take principal charge of the construction of the building, pay the bills as they became due, and from time to time to call upon the other for contribution. Contracts of this character are to be construed in accordance with the ordinary course and usage of business men. We think the plaintiff might have paid all the bills for material and labor used in the construction, and when the building was completed might have maintained an action upon the contract against the other for its share.
To construe the writing as the defendant does would mean that each item or bill of expense was to be treated as a separate transaction and the cost thereof ascertained and divided between the parties when the payment was made. Otherwise, if one happened to pay more than one-half of any separate item, that one would
The judgment will be reversed and the cause remanded for further proceedings in accordance herewith.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.