C. S. Luck & Sons, Inc. v. Boatwright

162 S.E. 53, 157 Va. 490, 1932 Va. LEXIS 309
CourtSupreme Court of Virginia
DecidedJanuary 14, 1932
StatusPublished
Cited by32 cases

This text of 162 S.E. 53 (C. S. Luck & Sons, Inc. v. Boatwright) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
C. S. Luck & Sons, Inc. v. Boatwright, 162 S.E. 53, 157 Va. 490, 1932 Va. LEXIS 309 (Va. 1932).

Opinions

Holt, J.,

delivered the opinion of the court.

For convenience the parties will be referred to in the position occupied by them in the court below. A. P. Heymond, defendant, acting for himself and for Luck and Sons, Inc., entered into a contract on May 31, 1928, with the State Road Commission of Maryland for the construction of a section of highway in that State and, as he was required to do, executed his bond with United States Fidelity and Guaranty Company, as surety, conditioned for its faithful performance. On June 14, 1928, he sublet to Daniel, Knighton and Company all grading, clearing and grubbing on that project. [493]*493Shortly thereafter and as a result of negotiations between Heymond, the contractor, Daniel, Knighton and Company, the subcontractor, and A. S. Boatwright, plaintiff, this subcontractor sublet to Boatwright the “hauling, delivery and distributing of the excavation” at a unit price of twenty cents a cubic yard.

After that contract had been in effect for a time it was on August 29, 1928, by consent, canceled and a new one was executed. Under it he did the same work in the same way but instead of being paid so much per cubic yard he was to be paid for services, etc., and equipment on a rental basis. He was not paid at all and has obtained a judgment against the contractor and his surety for $8,284.06, the correctness of which is challenged in this appeal. The defendant’s claim is that nothing is due while the plaintiff is claiming a larger sum and has set up that claim in a cross assignment of error.

The subcontractor is insolvent and if the plaintiff is to be paid at all he must be paid by the principal contractor and his surety.

As we have seen, A. P. Heymond was the successful bidder for the construction of a certain section of highway in Alleghany county, Maryland. His bid was received and approved by the State Road Commission of Maryland, under whose supervision contracts of this character came. Statutory provision for this is made in article 91, section 30, of the Maryland Code of 1924, and reads as follows:

“In all cases where the contract for work and materials be given out after competitive bidding, the successful bidder shall promptly execute formal contract to be approved as to its form, terms and condition by said Commission, and shall also execute and deliver to said Commission a good and sufficient bond to be approved by said Commission to the State of Maryland not less than the amount of the contract price. In no case shall any such bond be [494]*494approved or accepted unless the obligators bind themselves therein to the payment of all just debts for labor and materials incurred by the bidder in the construction and improvement of the road contracted for.”

From this it appears that the bond must contain certain minimum statutory requirements and be approved by the Commission.

The contractor did execute a bond which was approved and accepted. In it he bound himself to complete his contract “in a manner satisfactory to the State Roads Commission, complete the work contracted for, and shall save harmless the State of Maryland from any expense incurred through the failure of said contractor to complete the work as specified, or for any damages growing out of the carelessness of said contractor of his, their or its servants, or for any liability for payment of wages due or materials furnished said contractor; and shall well and truly pay all and every person furnishing material or performing labor in and about the construction of said roadway, all and every sum or sums of money due him, them or any of them for such labor and materials for which the contractor is liable.”

In the case in judgment the contractor is by statute made liable for debts “incurred” by him while in his contract he promises to pay for labor and materials for which he is “liable.” The statute and the bond are to be read together and measure the extent of his undertaking. American Fidelity Co. v. State, 128 Md. 50, 97 Atl. 12; Aetna Casualty & Surety Co. v. Earle-Lansdell Co., 142 Va. 435, 129 S. E. 263, 130 S. E. 235; Philip Carey Co. v. Maryland Casualty Co., 201 Iowa, 1063, 206 N. W. 808, 47 A. L. R. 495; Franzen v. Southern Surety Co., 35 Wyo. 15, 246 Pac. 30, 46 A. L. R. 496.

Sureties for hire are not wards of court to be shielded from heedlessness or folly. They must abide by their contracts and pay everything which by fair intendment can be [495]*495charged against them. They act, not to accommodate others, but to promote their own interests and are to be judged accordingly.

“The rule that sureties deserve the special protection and consideration of courts has no application to sureties who become such for a consideration, and their contract of suretyship should be given such a construction as will effectuate the accomplishment of the real and expressed purpose for which it is given.” Fidelity, etc., Co. v. Mason, 145 Va. 138, 133 S. E. 793, 795.

Of course if the principal contractor is not liable his surety is not, for it would be a solecism to hold that he is bound beyond his principal.

In recent years road building has developed to an unusual degree. Commonly it is done by contractors and in many instances by subcontractors also. From this a mass of litigation has come dealing with the liability of principal contractors for labor and material primarily contracted for by them and with like claims in the second degree growing out of dealings with subcontractors.

It is of course possible to frame statutes and contracts under which they work in,such manner as to make them liable for all labor performed and all supplies and materials furnished from whatever source and through whatever agency they may come. This is usually done in general terms, though they sometimes descend into particulars and make the contractor expressly liable for the dtealings of subcontractors and sometimes d’eclare them to be his agents, but always liability turns upon the statute.

We are to determine if the plaintiff, whose contract was with and who worked for the subcontractor, can enforce his claim against the principal contractor and his surety.

In Faurote v. State, 110 Ind. 463, 11 N. E. 472, 475, it appears that Faurote and Lewis L. Brown, as principals, [496]*496with. Lewis, D. M-. Brown and’ Cranor as sureties, executed their bond to the board of commissioners of Rush county, Indiana.

This bond recites that its principals had been awarded a contract for the construction of a certain road and was to be void if that road was properly completed, otherwise to remain in full force and effect. These contractors sublet this undertaking to one Cooney, and the work and labor for which recovery was sought he did.

In section 4246, Rev. St. of Ind., 1881, it is provided that the bond of a contractor for the construction of any county work shall guarantee its faithful performance, and that he “shall promptly pay all debts incurred by him in the prosecution of such work, including labor, material furnished, and for the boarding of laborers thereon.”

Section 4247 authorizes “any laborer and material man, or persons furnishing board to said contractor * * * and having a claim against such contractor therefor” to bring suit against the contractor and bondsman.

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Bluebook (online)
162 S.E. 53, 157 Va. 490, 1932 Va. LEXIS 309, Counsel Stack Legal Research, https://law.counselstack.com/opinion/c-s-luck-sons-inc-v-boatwright-va-1932.