Clatsop County v. Fidelity & Deposit Co.

189 P. 207, 96 Or. 2, 1920 Ore. LEXIS 139
CourtOregon Supreme Court
DecidedApril 6, 1920
StatusPublished
Cited by9 cases

This text of 189 P. 207 (Clatsop County v. Fidelity & Deposit Co.) 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 v. Fidelity & Deposit Co., 189 P. 207, 96 Or. 2, 1920 Ore. LEXIS 139 (Or. 1920).

Opinion

BEAN, J.

It is the contention of the plaintiff that food used in a necessary boarding-house for laborers employed in the prosecution of public work provided for in a contract secured by a bond given pursuant to Section 6266, L. O. L., as amended, is included within the terms “labor and materials,” and protected by the statutory bond.

It appears that upon the trial of the case the theory of the respondents was to the contrary. There is some contention upon the part of the respondents that the trial court did not find that the board of the men engaged in the labor was necessary “for any prosecution of the work.” We do not so understand the findings. In any event, the undisputed testimony in the case is that the board of the men furnished by the subcontractor near the work was absolutely necessary [7]*7in order to retain the laborers and obtain their assistance in the prosecution of the work.

1. Section 6266, L. O. L. as amended, was enacted to protect all persons supplying a contractor performing public work, labor or materials for any prosecution of the work provided for in the contract. The law was intended for the benefit Of the individual assisting in the furtherance of the undertaking, and also for the benefit of the public. It should be given a liberal construction in order to carry out the legislative intent: School Dist. No. 30 v. Alameda Const. Co., 87 Or. 132 (169 Pac. 507, 788); Columbia County v. Consolidated Const. Co., 83 Or. 251, 260, 268 (163 Pac. 438); Multnomah Co. v. United States Fidelity & Guaranty Co., 87 Or. 198, 207 (170 Pac. 525, L. R. A. 1918C, 685); Philadelphia v. Stewart, 195 Pa. St. 309 (45 Atl. 1056).

2. Our statute is practically a counterpart of the federal act of August 13, 1894, from which it was derived. Since this case was tried in the Circuit Court, a parallel case has been determined by the Supreme Court of the United States: Brogan v. National Surety Co., 246 U. S. 257 (62 L. Ed. 703, L. R. A. 1918D, 776, 38 Sup. Ct. Rep. 250). The facts in that case were these: The Standard Contracting Company undertook to deepen the channel of St. Mary’s Eiver, Michigan, located “in a comparative wilderness at some distance from any settlement. There were no hotels or boarding-houses,” and the contractor “was compelled to provide board and lodging for its laborers.” Groceries and provisions of the value of $4,613.87 furnished it by Brogan were used by the contractor in its boarding-house, and were supplied “in the prosecution of the work provided for in the contract and the bond upon which the suit is based. They were necessary to and wholly consumed in such work.” The [8]*8number of men employed averaged eighty. They were “boarded” by the contractor under an arrangement by which the contractor was to board them and deduct therefor $22.50 per month from their wag’es. The contract and the bond executed by the National Surety Company bound the contractor to “make full payment to all persons supplying him with labor or materials in the prosecution of the work provided for in” the contract.

It was held that groceries and provisions furnished the contractor, and so consumed by the laborers, were materials used “in the prosecution” of the work within the meaning of the federal act and the bond given to secure the contract.

Without taking into consideration the extra statutory words contained in the bond in suit in the present case, those things which are necessary in the prosecution of the work provided for in the contract are protected as “labor and materials,” although such supplies a're not physically incorporated into the work. Such materials are embraced within the provisions of Section 6266, L. O. L. as amended, and are included in the bond given pursuant thereto: Brogan v. National Surety Co., 246 U. S. 257 (62 L. Ed. 703, L. R. A. 1918D, 776, 38 Sup. Ct. Rep. 250); Portland v. New England Casualty Co., 78 Or. 195, 201, 202 (152 Pac. 253); Baker City Mercantile Co. v. Idaho Cement Pipe Co., 67 Or. 372, 377, 379 (136 Pac. 23); Illinois Surety Co. v. John Davis Co., 244 U. S. 376 (61 L. Ed. 1206, 37 Sup. Ct. Rep. 614); Title Guaranty & Trust Co. v. Puget Sound Engineering Works, 163 Fed. 168, 178, 179 (89 C. C. A. 618); City Trust, Safe Deposit & Surety Co., v. United States to Use of Bryant, 147 Fed. 155, 158 (77 C. C. A. 397); United States for the Use of Standard Furniture Co. v. Aetna Indemnity Co., 40 [9]*9Wash. 87, 91, 92 (82 Pac. 172); Pittsburg Coal Co. v. Southern Asphalt & Construction Co., 138 Tenn. 154 (196 S. W. 490, 491); City of Pendleton v. Jeffery & Bufton, 95 Or. 447 (188 Pac. 176).

Our statute is fully as broad as the federal act. If there is any difference, the Oregon act is garnished with the stronger words where provision is made for security for the payment of “labor or materials for any prosecution of the work provided for in such contracts.”

Hess & Skinner Eng. Co. v. Turney (Tex. Civ. App.), 207 S. W. 171, was an act on a contractor’s bond required by a statute like ours. The syllabus reads thus:

“Where a contractor, in constructing a bridge, in order to facilitate work, had laborers take their meals in camp instead of going into town for them, the labor in cooking such meals was labor performed in the prosecution of the work, and for such the contractor’s surety would be liable.”

It is stated in the opinion at page 175 of 207 S. W.:

“Food was essential to the laborers, and it was necessary that it be cooked. It facilitated the work to have laborers take their meals in the camp, instead of going to town for them.”

In Pacific Wood & Coal Co. v. Oswald, 179 Cal. 712 (178 Pac. 854), it was held that items furnished a subcontractor, consisting of hay and feed for horses and mules used in doing road work, are covered by a bond requiring a public contractor under such a statute to pay for materials furnished for or in doing the work, irrespective of the presence or absence of the word ‘ ‘ supplies. ’ ’ The opinion was to the same effect in the case of United States v. Lowrance, 252 Fed. 122 (164 C. C. A. 234). It is there stated:

[10]*10“The act of Congress ‘and the surety bonds given according to its provisions should be liberally, not narrowly, construed. The typical lien laws of the states and the decisions of the courts upon them should, for the most part, be put aside.”

The following have been held nominated in such a bond: Trucking from a steamer landing on an island where the work was to be done to the particular locality of the work: American Surety Co. v. Lawrenceville Cement Co. (C. C.), 110 Fed. 717; coal supplied to a contractor and used to operate hoisting and pumping engines employed in the performance of a contract for the construction of a drydock: City etc. Trust Co. v. United States, 147 Fed. 155 (77 C. C. A.

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Bluebook (online)
189 P. 207, 96 Or. 2, 1920 Ore. LEXIS 139, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clatsop-county-v-fidelity-deposit-co-or-1920.