Aetna Casualty & Surety Co. v. Kimball

222 N.W. 31, 206 Iowa 1251
CourtSupreme Court of Iowa
DecidedNovember 20, 1928
StatusPublished
Cited by6 cases

This text of 222 N.W. 31 (Aetna Casualty & Surety Co. v. Kimball) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aetna Casualty & Surety Co. v. Kimball, 222 N.W. 31, 206 Iowa 1251 (iowa 1928).

Opinion

Kindig, J.

L. O. Kimball, defendant, on the 20th day of July, 1926, entered into a contract with Floyd County for the construction of Items 2 to 10, inclusive, of a certain road improvement'therein, known ás Federal Aid Project 279. In compliance with Section 10300 of the 1924 Code, L. O. Kimball, tlie contractor, furnished the county a bond, which was executed, as surety, by the Aetna Casualty & Surety Company, of Hartford, Connecticut, plaintiff and appellee. On July 20, 1927, the contract was completely performed, and the work accepted by the county.

At that time, there was in the hands of Floyd County a sum of money in excess of $5,000,- due L. O. Kimball, the contractor before mentioned. Many subcontractors filed claims with the county auditor for materials and supplies furnished -the said L. O. Kimball in connection with the original improvement agreement,- Among those so doing was the Standard Oil Company, *1253 defendant and appellant. Accordingly, the appellee commenced this..action, as contemplated by Section .10313 of the 1924 Code, which reads:.....

“ * * * the surety on any bond given for the performance of the contract, may, at any time after the expiration of thirty day's, and not later than six months, following 'the completion and final acceptance of said improvement, bring action in equity in. the county where the. improvement is located to adjudicate all rights to said fund', or to enforce liability on said bond. ’ ’

The goods and merchandise for which the appellant demanded recovery by cross-petition in the court below are gasoline, $822.88, lubricating oils, greases, and barrels, $996.66, and kerosene, $3.60,. -

After a trial on those issues, that tribunal declared the $822.88 for the gasoline a proper item to be paid from the said 10 per . cent-of the public fund. But at. the same time, the accounts for oils, greases, kerosene, and barrels were held not suitable for payment therefrom. Hence, appellant argues that there should he a reversal.

It.appears that the materials for which appellee is liable are co-extensive with and determined by the definition of the word “material,” as contained in Section 10299 of the 1924 Code. As to what goods, wares, and merchandise are included within that statutory term, the parties here disagree.

Appellant’s basis for its theory is founded: First,-on the changing and steadily liberalizing tendencies of the lawmakers, as evidenced by statutory amendments, to become modern, and consistent with the recognized operation of present-day inventions-and machines used in the accomplishment of public improvements; second, on the fact that the relief here sought is not under a mechanic’s lien, but rathej, a system providing for priority of payment, and because there is no “lien,” in the stricter sense of the word, the reason for narrow construction disappears; and third, on the phraseology of Section 10299, supra. While appellee, on the other hand, urges : First, that, even if Chapter 452 of the 1924 Code, containing the statutory provisions herein mentioned, does not give rise to a mechanic’s lien, yet it furnishes a priority of payment in many respects similar thereto, and accordingly both have always been construed *1254 alike in this state, so far as strictness is concerned; second, that the statutory amendments before indicated, rather than amounting to a policy of liberality in this regard, are mere limited additions to the former strictly construed statute,- and, in turn, must also receive a narrow construction; and third, that the statutory definition contained in Section 10299, supra, implies limitation, rather than expansion.

A solution", then, for the problem presented can most easily be found by first recognizing the" limitations; if any, placed upon that word “material” before the enlarging amendments were supplied, and then following this with an analysis of the new legislation's effect thereon.

I. Section 3102 of the 1897 Code, before amended, contained no definition for the word “materials.” Throughout the history of the judicial interpretation of that statute, the policy was to .construe strictly, rather than liberally. During this process, many times, the right of prior payment given by that legislation was referred to as a remedy akin to the mechanic’s lien law of the state. Empire State Sur. Co. v. City of Des Moines, 152 Iowa 531; Standard Oil Co. v. Marvill, 201 Iowa 614; Teget v. Polk County Dr. Ditch, 202 Iowa 747; Monona County v. O’Connor, 205 Iowa 1119. Standard Oil Co. v. Marvill, supra, aptly says:

“This class of liens [right of priority of payment for material furnished the contractor on public improvements] is purely statutory, and in the absence of a provision making the thing in question lienable, it may be said that, if the thing is only remotely connected with the construction of the public improvement, then no lien exists. ’•’

II. Under the legislation contained in Section 3102 of the 1897 Code, supra, “material,” by judicial interpretation, is confined to such goods, wares, and merchandise as may be furnished for and intended to enter into, and become, directly or indirectly, a part of the completed improvement. " Empire State Sur. Co. v. City of Des Moines, supra; Standard Oil Co. v. Marvill, supra; Teget v. Polk County Dr. Bitch, supra; Monona County v. O’Connor, supra.

Monona County v. O’Connor, supra, expresses the thought in this phraseology;

*1255 “As already stated, none of the claims are for material furnished or labor performed upon the improvement, and do not, therefore, come within the provisions of the statute in force and controlling as to claims of the class stated.”

To the same effect is the quotation from Standard Oil Co. v. Marvill, supra, previously set’forth. Before the O’Connor case, however, it was decided, in Teget v. Polk County Dr. Ditch, supra, in harmony with the above and foregoing doctrine, that:

“Material furnished for the lubrication of, or as fuel for the operation of, the machinery and equipment used in the construction of a drainage improvement * * * does not .come within the provisions of the statute.”

III. Next in the order of legislative development was the enactment of Section 1, Chapter 347, Acts of the Thirty-eighth General Assembly, wherein “material,” for the purposes of the Code, included fuel. Force was given to this change in Standard Oil Co. v. Marvill, supra, wherein it is declared :

“The lien statute-specifically includes fuel, and it must be presumed that the legislature, in the enactment of this statute, intended to enlarge the application of the earlier statute, and not to limit the lien liability only to materials that áre furnished and used in the construction of a'public road, in the sense that such material becomes a part of it.

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222 N.W. 31, 206 Iowa 1251, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aetna-casualty-surety-co-v-kimball-iowa-1928.