Colorado Builders' Supply Co. v. National Fire Insurance Co.

423 P.2d 79, 1967 Wyo. LEXIS 134
CourtWyoming Supreme Court
DecidedFebruary 1, 1967
Docket3541
StatusPublished
Cited by2 cases

This text of 423 P.2d 79 (Colorado Builders' Supply Co. v. National Fire Insurance Co.) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Colorado Builders' Supply Co. v. National Fire Insurance Co., 423 P.2d 79, 1967 Wyo. LEXIS 134 (Wyo. 1967).

Opinion

Mr. Justice McINTYRE

delivered the opinion of the court.

The Colorado Builders’ Supply Co., claiming to have furnished materials for highway contractor Donald J. Kelley, in connection with a road contract at Lucerne, Wyoming, brought suit against Kelley and his bonding company, National Union Fire Insurance Company, for an unpaid bill. Kelley, being a nonresident of Wyoming, was not served with process and suit proceeded against the bonding company only.

There is no material dispute as to the facts in the case, but there is substantial disagreement as to what inferences may be drawn from those facts. The trial court construed the facts favorable to defendant-bonding company and 'gave judgment for the defendant. The plaintiff, Colorado Builders’, has appealed. Its claim is that the bonding company is liable for the items furnished to Kelley, by operation of Wyoming’s bonding statute.

Ch. 173, § 1, S.L. of Wyoming, 1963 (§ 9-674, W.S.1957, 1965 Cum.Supp.) provides in pertinent part as follows :

“Whenever any contract shall be entered into with the state * * * for any public work or improvement and the contract price exceeds the sum of five hundred dollars ($500.00), the contractors, shall be required before beginning work under said contract to execute a bond to the state, * * * for the use and benefit of all persons who may perform any work or labor or furnish any material or goods of any kind which were totally or partially used or expended in the execution of such contract, conditioned * * to pay as they become due all just claims for work or labor performed and materials furnished * *

Appellants contend the language of this statute is broader in its scope than the statutes of other states; and that the bond written for Kelley by National Union covered the materials furnished to Kelley because such materials were “partially used” in the execution of Kelley’s contract on the Lucerne project.

It is undisputed that Kelley had two contracts with the State of Wyoming. One was for the Lucerne project. The other was for a project at Moorcroft, Wyoming. National Union bonded Kelley for both projects. The Moorcroft project was finished first, but plaintiff did not commence its action within the required one year after the first publication of notice of final payment of the Moorcroft contract. Therefore, the plaintiff’s right of action on the Moorcroft bond was barred by limitations, under the provisions of § 9-677, W.S.1957.

This leaves for our decision the question of whether plaintiff as a matter of law is entitled to recover for the materials furnished, from Kelley’s Lucerne project bond, where its action was timely, under the following state of facts:

When Kelley entered into his two contracts with the state and obtained his bonds *81 from defendant-National Union, he had a used rock crusher. This crusher was moved onto the Lucerne project and there used for some time. Plaintiff claims the crusher became in need of repairs on the Lucerne job. It admits, however, that use of the crusher at Lucerne was discontinued for the additional reason that freezing conditions at the crushing site made it difficult to work on the project.

The crusher, after its use was discontinued at Lucerne, was moved to the yard of an equipment company in Casper, Wyoming, where extensive repairs were made. It was then taken to Moorcroft and used on the Moorcroft project. Additional repairs were also made while the crusher was on the Moorcroft job. Materials for the repairs in Casper and at Moorcroft were furnished by plaintiff and such materials are the subject matter of plaintiff’s action.

The primary basis for such action is the fact that following completion of the Moor-croft job the crusher was again returned to Lucerne and used in the completion of the job there. Thus, the crusher was actually used for both of Kelley’s projects, after repairs were made with materials furnished by the plaintiff.

Appellant takes the position that recent amendments to our bonding statute in Wyoming have done away with the “substantial consumption” test for determining whether items are covered by bonds, and under Ch. 173, items are covered by a bond if such items are “partially used” in the execution of a contract. Under this theory, it could be said the materials for repairs were partially used on each of the two projects we have mentioned. And by the same token, it could be said such materials were partially used on every other project where Kelley used his crusher after the repairs were made.

We deem the question of whether materials are “partially used or expended” in execution of a contract, within the intent of Ch. 173, one for the trier of fact. We have already indicated there is no material conflict as to what actually happened, but in addition to a finding of facts, the trial court has the responsibility of determining what inferences are reasonably to be drawn from those facts. It is, of course, incumbent upon us to give the evidence in the case every reasonable inference which can be drawn in favor of the successful party below. Frontier Refining Company v. Kunkel’s, Inc., Wyo., 407 P.2d 880, 881.

When are materials which go into repairs “partially used or expended” in execution of a contract, within the meaning of Ch. 173? That was the question confronting the trial judge as trier of the facts. It is true Kelley’s crusher was used both at Moorcroft and at Lucerne after materials were furnished by plaintiff for repairs, but such use was at Moorcroft first and at Lu-cerne second. It is reasonable to believe the crusher has also been used on many more projects as well, or at least that it was. repaired for use on many projects.

We find much authority for the general proposition that labor and materials to repair a contractor’s machinery are within the coverage of the contractor’s bond, where' the repairs are reasonable and necessary to-keep the equipment in operating condition in order to perform the contract for which the bond has been issued.

However, as recognized in Franzen v. Southern Surety Co., 35 Wyo. 15, 246 P.30, 34, 46 A.L.R. 496, there must be some-limit to the liability of a surety company. One of the limitations recognized in the-Franzen case, and generally in other cases brought to our attention, is that a bonding-company is not to be liable for the purchase price of machinery or other material which constitutes part of the plant or outfit of a contractor. See State ex rel. Modern Motor Co. v. H & K Construction Company, 75 Idaho 492, 274 P.2d 1002, 1003.

Other cases indicate not even necessary-repairs ought to come under the coverage of the bond, unless such repairs are of an incidental and comparatively inexpensive character, representing only ordinary wear and tear or equivalents thereof. Western: *82 Material Co. v. Enke, 56 S.D. 302, 228 N.W. 385, 388. See also General Motors Truck Co. v. Phillips, 191 Minn. 467, 254 N.W. 580, 581-583.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Vaughn Excavating & Construction, Inc. v. P.S. Cook Co.
981 P.2d 485 (Wyoming Supreme Court, 1999)
Rainbow Oil Co. v. Christmann
656 P.2d 538 (Wyoming Supreme Court, 1982)

Cite This Page — Counsel Stack

Bluebook (online)
423 P.2d 79, 1967 Wyo. LEXIS 134, Counsel Stack Legal Research, https://law.counselstack.com/opinion/colorado-builders-supply-co-v-national-fire-insurance-co-wyo-1967.