Clatsop County ex rel. Hildebrand v. Feldschau

199 P. 953, 101 Or. 369, 18 A.L.R. 1221, 1921 Ore. LEXIS 170
CourtOregon Supreme Court
DecidedJuly 30, 1921
StatusPublished
Cited by23 cases

This text of 199 P. 953 (Clatsop County ex rel. Hildebrand v. Feldschau) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clatsop County ex rel. Hildebrand v. Feldschau, 199 P. 953, 101 Or. 369, 18 A.L.R. 1221, 1921 Ore. LEXIS 170 (Or. 1921).

Opinion

BEAN, J.

Section 2991, Or. L., requires a contractor on public work entering into a formal contract with a county, to execute the usual penal bond with good and sufficient sureties with the additional obligations “that such contractor or contractors shall promptly make payments to all persons supplying him or them labor or materials for any prosecution of the work provided for in such contracts”; and pro[372]*372vides that persons furnishing such labor and materials shall have a right of action against the contractor and his sureties.

It will be noticed that in addition to the requirements of the statute prescribing the conditions of the bond, the instrument in question contains the provision for the payment of “all just debts, dues and demands incurred in the performance of such work.” Pursuant to the contract, Feldschau, about March 15, 1917, entered into the performance of the work, and conducted the same until the latter part of September, 1917. The road, which by the terms of the contract was to be improved, was not situated near any town or village, and in order that he could carry on the work it was necessary to maintain suitable living quarters and accommodations for a large number of laborers who were employed on the work. In order to furnish the necessary quarters and provisions, the contractor was required to establish and maintain a camp where the necessities of life for the employees could be obtained and the men could be housed.

The question involved is stated in the brief of counsel for appellant, as follows:

“The bond has a dual aspect, i. e., for the faithful performance of the work and the payment for labor and material, but there is involved here only the statutory provision that the contractor ‘ shall promptly make payments to all persons supplying him or them labor or materials for any prosecution of the work provided for in such contracts.’ The bond is broad in its terms, but is of course to be construed in the light of the statute, pursuant to which it was exacted.. * *
“The Surety Company which is appellant here, does not question the correctness of any of the charges, or that these mercantile houses made the [373]*373sales claimed. It rests its case solely upon the fact that the articles for which claim is asserted are not in any proper sense comprehended under the term ‘materials’ used in the statute.”

In other words, the contention of the appellant is that the part of the bond which is in addition to the one compelled by the statute is of no force, and that the county was not authorized to require such an additional stipulation in the bond. We are not aware that this question, under our present statute, has been passed upon by this court. The materials and supplies which were furnished by Hildebrand & Company consisted of camp equipment and utensils such as were used in a camp in construction work of this kind, which were only meant to be used and to last during the period of improvement.

The material and supplies furnished by Judd Brothers consisted of men’s wearing apparel, bedding, overalls, underwear and socks, which were purchased by Feldschau and furnished to his employees, and the price for the same deducted from their daily wages.

The trial court found that a number of items furnished by the relator to Feldschau consisted of knives, forks, cooking utensils, and dishes, amounting to $85.75, which were not used up in the prosecution of the work, should be deducted from the claim. The trial court, among other things, found:

“That during the prosecution of said work and between the first day of March, A. D. 1917, and the first day of June, A. D. 1917, the relator, August Hildebrand, at the request of F. C. Feldschau, sold and delivered to such defendant a large quantity of supplies and camp equipment which were reasonably worth the sum of $428.92, and for which the said defendant, [374]*374F. C. Feldschau, agreed to pay to the relator, August Hildebrand, the sum of $428.92. * *
“Regarding relator’s further and second cause of action against defendants the Court finds that during the prosecution of said work and between the twelfth day of March, A. D. 1917, and the fourth day of July, A. D. 1917, that Edw. C. Judd and Geo. F. Judd, co-partners doing business under the firm name and style of Judd Brothers bargained, sold and delivered to defendant, F. C. Feldschau, goods, wares and merchandise consisting of men’s wearing apparel, overalls, gloves, mittens, blankets, comforters and other things gecessary for working men, at the agreed and stipulated price of $179.45, and that said goods, wares and merchandise so sold and delivered by the said Judd Brothers to the said F. C. Feldschau were used by the said F. C. Feldschau in carrying on the work of said contract and were' exchanged by the said F. C. Feldschau with his laborers for wages.”

As we understand the record, it is not questioned but that the amounts in controversy were just debts and demands incurred in the performance of the work. Many of the supplies would not be considered as “labor or materials” within the strict letter of the statute. If the additional provision referred to contained in the bond is invalid, plaintiff cannot recover for the same in this action.

1-3. It is unquestioned that Feldschau voluntarily entered into a contract with Clatsop County. The county was authorized to make such contract. The surety company in the ordinary course of business, and it may be fairly assumed, for compensation, voluntarily obligated itself as sponsor for Feldschau in the faithful performance of the contract, and the performance of all of the conditions incorporated in the-bond. The parties were competent to enter into the undertaking. The boud was not repugnant to the let[375]*375ter or policy of the law, but was strictly iu accordance with the policy of the law in this state to provide for the payment of labor and supplies and expenses in the construction of public works. Although the statute did not require all of the conditions to be enumerated in the bond, the county authorities were under a moral duty to protect persons with whom the contractor incurred such indebtedness in the performance of the work. The award of the contract for the improvement was a sufficient consideration for the promise of the contractor and his surety to pay such indebtedness. It is generally held that those furnishing supplies or extending credit for whose benefit such a bond is given may sue upon the bond on the principle that the third person for whose benefit a contract is made by another may maintain an action thereon, although the consideration does not directly move from such third person: See 1 Elliott on Eoads and Streets (3 ed.), § 646. As in regard to most questions the authorities are not all one way.

It is stated in 9 C. J., page 29, Section 45, thus:

“A bond, whether required by statute or order of court or not, is good at common law if it is entered into voluntarily by competent parties for a valid consideration, and is not repugnant to the letter or policy of the law; and such a bond, other than an official bond, is enforceable according to its conditions, although they are more onerous than would have been required if a statutory bond had been given for the same purpose. This rule has been applied to bonds given to the United States.”

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Bluebook (online)
199 P. 953, 101 Or. 369, 18 A.L.R. 1221, 1921 Ore. LEXIS 170, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clatsop-county-ex-rel-hildebrand-v-feldschau-or-1921.