Allis-Chalmers Mfg. Co. v. Curtis Electrical Co.

259 S.W.2d 918, 1953 Tex. App. LEXIS 1899
CourtCourt of Appeals of Texas
DecidedJune 17, 1953
Docket10149
StatusPublished
Cited by13 cases

This text of 259 S.W.2d 918 (Allis-Chalmers Mfg. Co. v. Curtis Electrical Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allis-Chalmers Mfg. Co. v. Curtis Electrical Co., 259 S.W.2d 918, 1953 Tex. App. LEXIS 1899 (Tex. Ct. App. 1953).

Opinion

HUGHES, Justice.

This suit was filed February 11, 1941, by appellant, Allis-Chalmers Manufacturing Company, against the Curtis Electrical Company and appellees, Charles E. Curtis and the American Indemnity Company.

The suit' against the Electrical Company was for payment of the balance due, $5,-886.53, on certain electrical equipment furnished such company by appellant for use in the construction of certain buildings by the Agricultural and Mechanical College of Texas on its campus at College Station, Texas.

Appellant sought to establish the joint and several liability of appellees for the account sued on by reason of a performance bond executed by the surety company and, as to Curtis, by reason of his acts, agreements and representations all as hereinafter fully set forth.

Judgment against the electrical company was rendered for $9,318.43 with 6% interest from its date, from which no appeal was taken, and a take nothing judgment was rendered in favor of appellees, from which portion of the judgment appellant appeals.

Appellant’s first point relates to the failure of the trial court to render judgment on the performance bond executed by the American Indemnity Company.

Trial was before the court on. stipulations and documentary evidence which, as they pertain to point one are: Curtis Electrical Company, through its president, ap-pellee Charles- E. Curtis, entered into a contract with the Agricultural and Mechanical College of Texas to furnish and install certain electrical wiring and equipment in buildings which were to be constructed on the campus of A & M College and to pay suppliers for equipment and material so used. ■

In connection with this contract Curtis Electrical 'Company, as principal, with ap-pellee, American Indemnity Company, as surety, furnished a bond binding themselves to the Arigcultural and Mechanical College of Texas “as well as to all persons, firms and corporations who may furnish material for, or perform labor on the work, building or improvement contemplated in a certain contract hereinafter mentioned.” The contract between Curtis Electrical Company and the Agricultural and Mechanical College of Texas was referred to and identified in the bond.

The bond further provided that it was “made for the use and benefit of all persons, firms and corporations who may furnish any material or perform any labor for or on account of said work, building or improvement, and they and each of them are hereby made obligees hereunder, the same as though their own proper names were written herein as such, and they and each of them may sue hereon, and no change of or deviation from, the time, *920 manner or amount of payments to the contractor * * * shall affect or in any manner release the liability of the surety on this bond, * * *”

The electrical equipment which Curtis Electrical Company had contracted to supply and install was to he installed in the buildings to be constructed under a contract between W. S. Bellows Construction Company and the Agricultural and Mechanical College of Texas.

The construction of these buildings was financed by revenue bonds. issued and sold pursuant to the provisions of Chapter 5, Acts of the Second Called Session of the Forty-third Legislature, Chapter 204, Acts of the Regular Session of the Forty-fourth Legislature and Chapter 459, Acts of the Second Called Session of the Forty-fourth Legislature, Vernon’s Ann.Civ.St. art. 2603c.

The sole defense of the surety company is that the bond executed by it as surety was a statutory bond given under the provisions of art. 5160, V.A.C.S., and that appellant wholly failed to comply with its mandatory provisions in that it did not file an itemized statement of its account in the-office of the County Clerk of the county where the work was done. The facts as to this failure were stipulated.

If the bond in suit was required by and given in pursuance to art. 5160 then there is no doubt that recovery cannot -be had thereon against the surety for failure to follow the procedure outlined by the statute. Fidelity & Deposit Co. of Maryland v. Big Three Welding Equipment Co., Tex., 249 S.W.2d 183.

Appellant contends that the bond was neither required by nor given under art. 5160.

As to the latter contention there is no direct evidence that the bond was or was not given to comply with art. 5160. If the bond was required by this statute then the fact that the bond was given and is apparently sufficient under such statute would constitute some evidence that the bond was given in obedience to the law which required it. At any rate the burden was on appellant to prove that the bond was not given in order to comply with the statute and in this it has wholly failed.

Appellant’s contention that the bond in suit was not required by art. 5160 is based upon the fact that the buildings constructed by A & M College were financed by the sale of revenue -bonds which created no liability of the State for their payment and the assertion that A & M College was not included within the words “this State” as used in art. 5160.

Answering the latter contention first we quote the pertinent language of art. 5160':

“Any person, or persons, firm or corporation, entering into a formal contract wtih this State or its counties or school districts or other subdivisions thereof or any municipality therein for the construction of any public building, or the prosecution and completion of any public work shall be required, before commencing such work, to execute the usual Penal Bond, with the additional obligation that such contractor shall promptly make payments to all persons supplying him or them with labor and materials in the prosecution of the work provided for in such contract.”

Appellant cites no authorities to sustain its position. This is understandable because all of the authorities which we have examined seem opposed to the position taken by it.

In Royal Indemnity Co. v. American District Steam Co., Tex.Civ.App., 88 S.W.2d 1091 (writ dism.) this Court'held that a bond given under art. 5160 authorized, under the facts of that case, a judgment against th'e surety on such bond in favor of a materialman who supplied materials used in constructing a heating distribution system on the campus of the University of Texas.

In State v. Morgan, 140 Tex. 620, 170 S.W.2d 652, 653, the court held that the State was not engaged in a proprietary enterprise “in operating through A. & M. College the experiment station” at Amelia, Texas.

*921 In Walsh v. University of Texas, Tex.Civ.App., 169 S.W.2d 993 (writ ref.) it was held that the University of Texas and its Board of Regents are institutions of the State neither having any existence independent of the State and that property belonging to the University is the property of the State.

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259 S.W.2d 918, 1953 Tex. App. LEXIS 1899, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allis-chalmers-mfg-co-v-curtis-electrical-co-texapp-1953.