Coating Specialists, Inc. v. Pat Caffey Contractor, Inc.

194 So. 2d 380, 1967 La. App. LEXIS 5721
CourtLouisiana Court of Appeal
DecidedJanuary 9, 1967
DocketNo. 2433
StatusPublished
Cited by8 cases

This text of 194 So. 2d 380 (Coating Specialists, Inc. v. Pat Caffey Contractor, Inc.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coating Specialists, Inc. v. Pat Caffey Contractor, Inc., 194 So. 2d 380, 1967 La. App. LEXIS 5721 (La. Ct. App. 1967).

Opinion

CHASEZ, Judge.

Coating Specialists, Inc. sued Pat Caffey Contractor, Inc. for the sum of $4,260.00, allegedly owed to the plaintiff for services performed in sandblasting and coating various pipeline fittings. This suit was filed on May 27, 1964.

On September 3, 1964, the plaintiff filed an amended petition whereby Royal Indemnity Corporation was j oined as a co-defendant liable under its surety bond in favor of the Housing Authority of Jefferson Parish covering claims of materialmen, labor and services performed under a contract between the Housing Authority and the Jefferson Construction Company, contractor.

By a second amended petition filed November 13, 1966, the plaintiff prayed for 10% attorney’s fees. Both defendants answered and issue was joined. After a trial on the merits, the District Court rendered judgment for the plaintiff and against the defendants, in solido, to the full amount of plaintiff’s claim, plus 10% attorneys’ fees, together with legal interest.

The defendants appealed, and argue here that the Court erred in allowing Coating Specialists, Inc. to recover from the surety on the statutory public works bond because the plaintiff is not within the classes of creditors designated by the public works statute (LSA-R.S. 38:2241 et seq.). It is also argued that there was error in holding Royal Indemnity Company and Pat Caffey Contractor, Inc. liable in solido because the liability of the surety, if any, is statutory, and that of the subcontractor is conventional in nature; and that there was error in allowing recovery for attorneys’ fees against the surety and the subcontractor because there was no timely notice of claim to both the surety and the prime contractor insofar as the surety’s liability is concerned, and because Caffey cannot be held for the penalty since he is not liable under the statutory bond, but only conventionally pursuant to private agreement. Finally, the appellants contend that the award itself was excessive, since there was no agreement for a fixed unit price and the evidence showed that a reasonable price would be much less.

The facts pertinent to most of the issues raised are not disputed and can be summarized in simple fashion. The Housing Authority of Jefferson Parish contracted with Jefferson Construction Company, the prime contractor, for the construction of a public housing project in Marrero, Louisiana. Royal Indemnity Company was the surety under bond for the performance of this project. Pat Caffey Contractor,. Inc. was to construct sewerage, drainage and water systems for the prime contractor under a subcontract between them. Certain pipe fittings to go into this subcontracted-for work had to be coated with primer as per certain municipal specifications. These fittings were supplied in a. state which was not in accordance with the above-mentioned specifications by a supplier not a party to this suit. Pat Caf-fey Contractor, Inc. then arranged for the coating work to be done by Coating Specialists, Inc., who performed the job of sandblasting the fittings to remove the factory coat and re-coating them with the required materials. All of this work was done at Coating Specialists, Inc.’s own shop. The fittings were then picked up and delivered to the housing project job-site where they were ultimately installed-[384]*384Coating Specialists, Inc. was never paid for the services which it performed and a lien was recorded in the mortgage office.

The first question to be decided is one of first impression under Louisiana’s Public Works Statute, and must necessarily involve an interpretation of that law which is found in LSA-R.S. 38:2241 through 38:2248.

Counsel for appellants argues that the plaintiff is not entitled to recover against the surety, because Section 2241, as interpreted by the courts, does not contemplate this type of creditor as one with a lienable claim. That section provides in pertinent part that when a public work construction is undertaken, a bond with solvent and sufficient surety will be required by the governing authority of the contractor, which bond shall be recorded in the mortgage office, and which shall be “for the faithful performance of the contract with an additional obligation for the payment by the contractor or subcontractor for all work done, labor performed, or material or supplies furnished for the construction, alteration, or repair of any public works * * *.”

The language of Section 2242 is similar. “Any person to whom money is due for doing work, performing labor, or furnishing materials or supplies for the construction, alteration, or repair of any public works, * * * ” is authorized to file a sworn statement of claim with the governing authority and have it recorded.

Counsel for appellants interprets the language to require that the “work done” (which term entails supervisory work according to counsel) or “labor performed” must be at the job site itself.

It is also urged that Coating Specialists, Inc. was not a furnisher of material since that company did not sell the pipe fittings to anyone.

The public works statute is to be strictly construed and the liability of the surety should not be expanded beyond the statute. Rester v. Moody & Stewart, 172 La. 510, 134 So. 690 (1931). Jesse F. Heard & Sons v. Southwest Steel Products, 124 So.2d 211 (La.App.1960).

This court concedes, arguendo, that the categories of laborer or furnisher of materials is not legally descriptive of the plaintiff’s position in this case. But it is of the opinion that the plaintiff does clearly come within the “work done” classification as a subcontractor, “work done” being a classification differentiated from “labor performed” as containing a more comprehensive meaning than the word “labor”, and involving all forms of exertion, mental or physical or both. Silver v. Harriss et al, 165 La. 83, 115 So. 376 (1927), citing State v. Rose, 125 La. 462, 51 So. 496 (1910). Pyburn v. Popich Marine Construction, Inc., 186 So.2d 674 (La.App.1966).

What we have, then, is a subcontractor, (Coating Specialists, Inc.) of a subcontractor (Pat Caffey Contractor, Inc.). Subcontractors of subcontractors can be lien claimants under the statute where the work they performed goes into the construction, alteration, or repairs of the public work as they are creditors of the subcontractors for whom the bond affords coverage. Pyburn v. Popich Marine Construction, Inc., supra. The obligation of the surety is “for payment by the contractor or subcontractor” to the specified classes of creditors.

The problem arises in this case that the work done, while eventually used in the job site, was not performed at the job site, and the appellant maintains that this is the key feature of the issue. We disagree, because of the broad language of the statute itself, and because the significant factor is whether the work done went into the project itself or not. The mere accidental performance of the work at one physical location rather than another can not operate to deprive the plaintiff of [385]*385its lien remedy in our view, when the substantial result is the same. The work done was an integral part in the construction of the project. The principle of strict construction of this public works law would not require an interpretation in derogation of the plain and literal meaning of its words, so as to negate a lien claim clearly within its terms. This, after all, would be contrary to the principle of strict construction, as would too liberal an interpretation. The statute simply says “work done,” without regard to location.

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Bluebook (online)
194 So. 2d 380, 1967 La. App. LEXIS 5721, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coating-specialists-inc-v-pat-caffey-contractor-inc-lactapp-1967.