American Indemnity Co. v. Board of Trustees

233 S.W. 878, 1921 Tex. App. LEXIS 953
CourtCourt of Appeals of Texas
DecidedMay 26, 1921
DocketNo. 5914.
StatusPublished

This text of 233 S.W. 878 (American Indemnity Co. v. Board of Trustees) 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
American Indemnity Co. v. Board of Trustees, 233 S.W. 878, 1921 Tex. App. LEXIS 953 (Tex. Ct. App. 1921).

Opinion

*879 SMITH, X

In an opinion delivered by this courti on May 26, 1921, we reversed the judgment of the trial court, and here rendered judgment for appellant, the American Indemnity Company. Upon further consideration, however, we have concluded to withdraw that opinion, set aside the judgment, and substitute in lieu thereof the following:

The trustees of the Robstown Independent School District employed one Patterson to construct a school building at Robstown, to which end the parties entered into a written contract, to which were attached - certain plans and specifications, and Patterson gave a bond for the faithful performance of his obligations. The American Indemnity Company became a surety on the bond. Patterson defaulted. The trustees sued him and his surety, and obtained judgment, from which the latter appealed bo this court. The judgment of the court below in favor of the trustees was reversed, and here rendered for the surety company. 200 S. W. 592. On writ of error from the Supreme Court, this judgment was reversed by the Commission of Appeals, and remanded to this court for further consideration and disposition. 228 S. W. 105.

The contract in question provided, in effect, that Patterson should complete the building within six months from January 8, 1914, hut that this period might be extended under certain conditions to be noted later. It was also provided that, in event Patterson defaulted in this and other specifically mentioned obligations, the trustees should give written notice of such default bo the surety company within 30 days after notice thereof had come to the trustees. The 6 months period mentioned ended on July 8, 1914, but written notice was not given the surety company until October 1, 1914, or 84 days after the default.

Provisions were made in both the contract and the specifications for delays which would operate to extend the period within which the building should be completed, and such extension would in turn automatically extend the time within which the notice to the surety company should be given. If the delays contemplated in those provisions, when tacked onto the 6 months period, were sufficient to extend that period to within 30 days of October 1st, then the notice called for in the contract was given in due time; but if these delays were not sufficient for that purpose, then the notice was not given in time. The specifications contained this provision for delays:

“The contractor shall be entitled to' one day in addition to said stipulated time, for each day’s delay resulting from additional work or changes in work required from time to time, or for specific delays from other- causes as may be approved by the architects or owners which additional time must be stated by the contractor in writing within eight days of such delay, giving dates and causes, which if correct, shall be certified by the architect or owner. Should the contractor neglect to ask for additional time, within the time specified above, it is mutually agreed that no just claim exists, or shall exist, for an extension of time.”

Section 9 of the contract contained the following provision for excusable delays:

“It is further agreed and understood by and between the parties hereto that the contractor shall not be held responsible for any delay in the completion of said school building beyond the time as specified in paragraph 1 hereof, by reason of fires, acts of Providence and other acts beyond the control of the said contractor.”

The contract provided, as has been shown, that the building should be completed within a period of 6 months from January 8, and ending on July 8, but that this period should be automatically extended so as to embrace delays in the construction due to uncontrollable causes; That is to say, if, for example, the uncontrollable delays aggregated one month’s time, then under the terms of the contract the contractor had until August 8 in which to complete the work, and before default occurred. The bond provided that the trustees should in writing give the surety notice of default within 30 days after notice of such default had come to the trustees; or, in other words, this 30-day period, within which the trustees were required to notify the surety, was not set in operation until the trustees themselves had obtained or received notice of the contractor’s default. So that, if in the given case the trustees had no notice of the default until 30 days after it occurred, or until September 1, they would have until October 1 in which to give the written notice to the surety.

The, record does not show that the trial court found when the default as contemplated in the contract occurred, nor when notice of such default came to the trustees. That court did find, in its tiwehty-fourth finding of fact, that as soon as the trustees ascertained that the contractor abandoned the building, and within 30 days after such abandonment, they gave written notice thereof to the surety, and the Commission of Appeals have held that the trial court thereby intended to find:

“The time excluded on account of delays brought the 6 months period allowed in which to complete the building- to within 30 days of the written notice of abandonment.”

The Commission of Appeals have also held that there are no allegations of any delay contemplated in the provisions of the specifications — that is, delays due to the acts of the parties — and that there were no statements in writing of such delays ever made and presented by the contractor to the trustees, as provided in the specifications. We understand the effect of these holdings to be that delays, if any, occasioned by the acts of the parties as contradistinguished from, uncontrollable delays, must be eliminated from consideration here, and that the only question remaining is: Would the delays due *880 to uncontrollable causes (sucb as are provided for in section 9 of the contract), when added to the original 6 months period, project the time allowed for the completion of the building to a date within 30 days of the giving of the written notice to the surety? Or, to reduce the question to its most concrete form: As the original 6 months period expired on July 8, and notice was given on October 1, 84 days later, leaving a hiatus of 54 days, was the aggregate of the time lost on account of uncontrollable delays sufficient to cover a period of 54 days? We take it that this is the principal, the controlling, question which the Commission of Appeals has relegated to this court for determination.

[1-3] We have very carefully considered all the evidence pointed out to us by both parties, and, going beyond that, have searched the record for all evidence bearing upon this question. There is evidence of delays, some of which may, or may not, have been occasioned by providential or other uncontrollable causes, while some of them are properly chargeable to such causes. There does not seem to have been any evidence, introduced for Che purpose of classifying these delays with reference to controllable or uncontrollable causes. Some were due to rains and inclement weather, but there was no sort of showing as to how much time was lost on account of either such delay, or all of them, and no facte were given by which such time might be computed even by inference.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

American Indemnity Co. v. Board of Trustees
200 S.W. 592 (Court of Appeals of Texas, 1918)

Cite This Page — Counsel Stack

Bluebook (online)
233 S.W. 878, 1921 Tex. App. LEXIS 953, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-indemnity-co-v-board-of-trustees-texapp-1921.