Bagwell v. American Surety Co.

77 S.W. 327, 102 Mo. App. 707, 1903 Mo. App. LEXIS 636
CourtMissouri Court of Appeals
DecidedDecember 1, 1903
StatusPublished
Cited by2 cases

This text of 77 S.W. 327 (Bagwell v. American Surety Co.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bagwell v. American Surety Co., 77 S.W. 327, 102 Mo. App. 707, 1903 Mo. App. LEXIS 636 (Mo. Ct. App. 1903).

Opinion

GOODE, J.

The appellant, the American Surety Company, is surety for William Logan on a bond given by said Logan to William B. Bagwell, for the faithful performance of a contract between Logan and Bagwell, wherein the former agreed to build a house for the [711]*711latter. This action was brought on the bond to recover damages for certain breaches of the building contract by Logan, which put Bagwell to an expense of nearly $600 above the contract price of the house. The breaches were the failure of Logan to pay for materials and labor, discharge some liens for labor and material, and complete the house in the time stipulated.

In defense of the action appellant answered that Bagwell failed to perform his part of the. building contract, to-wit: that he unduly postponed the selection of certain articles called for in the architects’ specifications and which Bagwell had reserved the right to choose, thereby hindering the contractor’s work and preventing the expeditious completion of the house; that Bagwell did not pay Logan the installments of the contract price on the dates they were stipulated to be paid, thus hindering Logan’s work by leaving him without means to prosecute it; that the delay in payment grew out of an independent contract (to be stated later) entered into by Bagwell, Logan and J. E. Love,, from whom Bag-well borrowed the money to defray the cost of the house; that alterations were made by Bagwell as the house progressed, in contravention of the contract. Those alleged defaults are pleaded in discharge of the appellant as surety on Logan’s bond on the ground that they happened without its knowledge and enlarged the obligation for which appellant bound itself as Logan’s surety.

This case was partly tried in the circuit court, but after some evidence had been introduced, was referred to Hon. Daniel Gr. Taylor, as referee, before whom the taking of evidence, after many adjournments to accommodate the parties, was finished. While the hearing was in progress before the referee, it was suspended at the request of the appellant in order that an amended answer might be filed in the cause by leave of the circuit court; and on the nineteenth day of December, 1902, application was made to the court for leave to file the answer. The respondent objected for the reason that [712]*712the case had been pending for years, had been partly tried before the circuit court, then referred, the hearing was in progress before the referee on issues that had long been made up, and the referee was so far advanced with the cause that he expected to close it on'December 23d, four days from the date of the motion for leave to amend. The court sustained the objection and refused permission to file an amended answer; to which ruling the defendant excepted and filed a term bill of exceptions.

The amendment appellant desired to make was to insert in the answer a statement of the agreement alleged to have been made by Logan and Bagwell at the request of Love, in modification of the terms of payment to Logan provided in the original contract. The proffered amendment states that after the execution of the building contract and the bond in suit, Bagwell and Logan made a new and additional agreement in regard to payments without the knowledge and consent of the surety company, whereby Logan agreed to give plaintiff and his agent Love five days’ time to pay any installment after it fell due; that under the new agreement Love was not bound to make a payment unless the superintendents of the building drew an order on him and certified that Logan had paid for the materials and labor so used, and then was only bound to pay after five days; that those terms altered the contract for which appellant became surety.

One term of the building agreement between Bag-well and Logan provided that no alterations should be made in the work shown and described in the drawings and specifications, except on the written order of the architects and that when so made, the value of the work added or omitted should'be computed by the architects and the amount added to or deducted from the contract price. The architects who drew the plans and specifications and superintended the construction of the building were Matthews & Clarke. There was a provision of [713]*713the contract that if the house was not completed by June 20,1896, Logan should pay Bagwell three dollars a day thereafter until it was completed, as liquidated damages.

The referee found that Logan, instead of finishing the job, abandoned it after the walls were up and the roof on, but when considerable work remained undone; and that Bagwell and his architects finished it, as they had a right to do under the contract. He refused to allow the forfeiture of three dollars a day against Logan, because the delay was due, in a measure, to Bag-well’s own neglect in selecting certain materials; and Bagwell, moreover, took possession of the house with Logan’s permission, while it remained unfinished. In consideration of those circumstances the learned referee deemed it unjust to tax the surety on Logan’s bond with the penalty for delay in finishing the work. As Bag-well submitted to that ruling, it is not before us for review.

The referee found that, on account of Logan’s failure to carry out the contract, Bagwell had to pay about $560 more than the contract price to get the house finished, for which sum, with interest, he advised the circuit court to render judgment, and this was done. We have no cause to notice the items included in that total.

As to the release of the surety by Bagwell’s failure to promptly select material and the consequent delay of the work of construction, we think that circumstance could have had no effect on the surety company’s liability except the chance of burdening it with payment of the stipulated forfeiture; and as the judgment below relieved the company from the forfeiture, its contention on this point is devoid of merit. Slight negligence on Bagwell’s part in choosing tiling and other material was not a breach going to the entire consideration of the contract and so annulling it and the bond with it; but one that gave Logan' a claim for whatever loss he [714]*714sustained by the enforced delay and relieved bina from blanae for failure to finish in time, if the failure was due to respondent’s neglect. Under the facts shown, it affected the surety’s liablity only as to the stipulated forfeiture. Smith v. Crews, 2 Mo. App. 269; O’Neil v. Webb, 78 Mo. App. 1; Springfield Seed Co. v. Walt, 94 Mo. App. 76.

It is earnestly contended that the surety was released by the side-agreement orally made between Logan and Bagwell, allowing five days grace for payment of each installment of the contract price. Those installments fell due as different stages were reached in the construction of the building; one was to be paid when the first-floor joists were in; another when the second-floor joists were in; another when the roof was on, .and so on. The verbal arrangement attempted to be pleaded by way of amendment to the answer, that Love, who furnished the money, should have five days ’ notice before he had to pay an installment, and have, too, a certificate of the architects that material and labor bills had been paid, was an amendment of a vital character, offered several years after the issues were joined and in the midst of the referee’s hearing. But we are not called on to decide whether the circuit court abused its discretion in refusing to allow it.

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Cite This Page — Counsel Stack

Bluebook (online)
77 S.W. 327, 102 Mo. App. 707, 1903 Mo. App. LEXIS 636, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bagwell-v-american-surety-co-moctapp-1903.