American Surety Co. v. Huey & Philp Hardware Co.

191 S.W. 617, 1916 Tex. App. LEXIS 1292
CourtCourt of Appeals of Texas
DecidedDecember 23, 1916
DocketNo. 7648.
StatusPublished
Cited by1 cases

This text of 191 S.W. 617 (American Surety Co. v. Huey & Philp Hardware 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
American Surety Co. v. Huey & Philp Hardware Co., 191 S.W. 617, 1916 Tex. App. LEXIS 1292 (Tex. Ct. App. 1916).

Opinion

RAINEY, C. J.

Appellee sued appellant tó recover on a bond executed by appellant as a surety for L. R. Wright & Co., a firm composed of L. R. Wright and O. L. Hitchcock, to Phillips county, Ark., said bond being for the faithful performance of a contract to build a courthouse and jail, entered into with Phillips county by said Wright & Co., which bond bound the makers to pay off and discharge all indebtedness contracted by said Wright & Co. for material, labor, etc., in constructing said buildings, and giving the right to all such creditors to sue on such bond. An indebtedness of $498 was due appellee Huey & Philp Hardware Company for materials furnished for said buildings. The appellant answered by plea in abatement, that the suit was prematurely brought by the terms of the contract, the nonjoinder of certain parties, -general and special demurrer, and general denial. The plea in abatement and demurrers were overruled. A trial was had without a jury, and judgment rendered in favor of appellee for the $597, claimed amount, from which this appeal is prosecuted.

The facts show that L. R. Wright & Co., a firm composed of L. R. Wright and O. L. Hitchcock, residents of Dallas county, Tex., entered into a contract to construct a court *619 house and jail building for Phillips county, state of Arkansas, to be located in the city of Helena. In accordance with the laws of Arkansas said Wright & Co. executed a bond payable to the state of Arkansas, with appellant as surety, for the faithful performance of said contract. Said bond was given for the benefit of any person or persons furnishing labor or material in the construction of said buildings, and “shall have the right to bring suits on this obligation for any and all sums that may be due them for work or material furnished in or about the same, at any time within six (6) months from the date of the completion of the said contract.” Ap-pellees furnished to Wright & Co. the material sued for, and same was used in the construction of said building. Before the said building was finally completed O. L. Hitchcock died, and L. R. Wright was adjudged a bankrupt. Appellant is incorporated under the laws of New York,.but is doing business in Texas under a permit.

The first assignment of error presented by appellant is:

“The court erred in overruling the defendant’s plea in abatement as set out in th,e first paragraph of its first amended original answer, to the effect that this suit was instituted before the completion of a contract and building referred to in plaintiff’s amended petition, and was prematurely instituted, because the law and bond as pleaded by plaintiff do not authorize the institution of such a suit before the completion of said buildings and contract.”

The proposition submitted is:

“A suit instituted before the completion of a contract for material furnished to be used in the contract building against a surety whose liability depends upon the use of the material in the building and on a contract which expressly provides that such materialman shall have the right to bring suit on said contract obligation for the sum due for the material going into the building, at any time within six months from the date of the completion of said contract, is prematurely brought, and on proper plea and proof should be dismissed.”

While the evidence shows that at the time suit was instituted the building was not completed, we are of the opinion that the language of the law and bond does not require the completion of the building before suit can be instituted. The bond was evidently made to conform to the law of Arkansas, which reads:

“That no action shall be brought on said bond after six months from the completion of said public improvement or building.”

The bond reads:

“That all persons and corporations having claims against the said contractor, or any subcontractors under them, shall have the right to bring suits on this obligation for any and all sums that may be due them for work or material furnished in or about the same, at any time within six months from the .time of the completion of said contract.”

Both the law and bond merely fix a period of limitation in which suits are to be brought, which we conclude mean that no suit can be brought on a claim “after six months from the completion of the building.” The law and bond are further silent as to when the right to sue arises; hence we overrule this assignment of error.

Appellant’s second assignment of error reads:

“The court erred in overruling the defendant’s plea-in abatement as set out in the first paragraph of said amended answer, to the effect that the law and bond pleaded by the plaintiff in said amended petition contemplate and require that the suits for the enforcement of liability under said law and under said bond shall be brought in the county where the building has been constructed, and the suit should have been instituted, if at all, in Phillips county, Ark., and its venue in this court is improperly laid.”
“Where the law and bond on which suit, is based requires that suits for enforcement of liability thereunder shall be brought in Phillips county, Ark., and the defendant pleads and urges the right to be sued on the venue required by law, it is error to overrule such plea and deny such right and compel the defendant to try the issues in another county and state.”

The bond sued on and executed by appellant to secure Phillips county, Ark., and laborers and furnishers of material for the construction of the courthouse and jail by L. R. Wright & Co. recites:

“This bond being given to secure the county of Phillips and the commissioners of public buildings of said county, and also all persons and corporations furnishing, labor or material going into the said construction of said work against any loss whatsoever, as provided by Act 446 of the General Assembly of Arkansas, approved June 2, 1911.”

The statement of facts shows the full Act 446, and nowhere therein does it provide for the venue of a suit by laborers or material-men on the bond. Nor is there any provision in said bond in reference thereto.

P. O. Thweatt testified by deposition that he had been practicing law in Arkansas since 1860; that the laws of Arkansas provide that suit shall be brought in the county in which said public improvement is to be made, or such public improvement is to be erected, when action is brought on the bond referred to in section 2 of said act. The act itself and the testimony of said Thweatt are all that show the laws of Arkansas. The trial court found, in effect, contrary to Thweatt’s depositions as to venue, which it had a right to do, especially if Thweatt was construing said Act 446, as we think the act is not subject to such construction. Banco Minero v. Ross, 106 Tex. 522, 172 S. W. 711.

Another reason why the district court of Dallas county, Tex., has jurisdiction of this cause is that the appellee, plaintiff below, and L. R. Wright & Co., had their residence in Dallas county; that appellant is a corporation chartered by the state of New York, is doing business in Texas under a permit, and filed an answer herein.

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Southern Surety Co. v. Illinois Powder Mfg. Co.
31 S.W.2d 314 (Court of Appeals of Texas, 1930)

Cite This Page — Counsel Stack

Bluebook (online)
191 S.W. 617, 1916 Tex. App. LEXIS 1292, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-surety-co-v-huey-philp-hardware-co-texapp-1916.