Consolidated Indemnity & Insurance v. Fischer Lime & Cement Co.

58 S.W.2d 928, 187 Ark. 131, 1933 Ark. LEXIS 345
CourtSupreme Court of Arkansas
DecidedApril 3, 1933
Docket4-2948
StatusPublished
Cited by6 cases

This text of 58 S.W.2d 928 (Consolidated Indemnity & Insurance v. Fischer Lime & Cement Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Consolidated Indemnity & Insurance v. Fischer Lime & Cement Co., 58 S.W.2d 928, 187 Ark. 131, 1933 Ark. LEXIS 345 (Ark. 1933).

Opinion

Smith, J.

Separate suits were brought by the Fischer Lime & Cement Company and the Big Rock Stone & Material Company against the Merrill Engineering Company and the Consolidated Indemnity & Insurance Company as the surety of its codefendent, which suits were consolidated and tried together, and a decree was rendered in favor of both plaintiffs against both defendants.

The Merrill Engineering Company entered into a contract with the State Highway Commission to construct a part of a State highway, and gave bond, as required by law, for the due performance of the contract, with the Consolidated Indemnity & Insurance Company as its surety. Each plaintiff furnished the contractor with certain material used in the performance of the construction contract, upon which partial payments were made. The value of the material and the balance due thereon is not disputed, and only the surety company has appealed from the decree adjudging liability against both defendants.

The surety company defends upon two grounds, (1) that no statement of the account was filed with the secretary of the Highway Commission within thirty days after the completion of the work as required by § 53 of act 65 of the Acts of 1929 (vol. 1, Acts 1929, page 326); and (2) because no action was brought on the bond until more than six months after the date of the final estimate of the construction work given the contractor by the State Highway Commission as required by § 3 of act 368 of the Acts of 1929 (vol. 2, Acts 1929, page 1487).

As to the defense that the claim was not filed with the secretary of the Highway Commission within thirty days after the completion of the work, it may he said that it is first insisted by appellees that there was a substantial compliance with the statute in this respect. It is also insisted that this requirement appearing in act 65 was repealed by implication by act 368, and, as we have concluded that appellees are correct on this last proposition, we do not decide whether they are also correct on the first.

It is quite obvious, in fact it does not appear to be questioned, that the bond sued on was executed pursuant to the requirements of act 368. There had, prior to the enactment of this statute, been numerous suits, which finally came before this court on appeal, in which questions were raised as to the extent of the liability of the surety on contractors ’ bonds, and act 368 was made broad enough in its terms to include all items which had been previously questioned or would likely be used or employed subsequently in the performance of the construction contracts there enumerated.

Section 53 of act 65 requires a bond in an amount at least equal to the amount of the contract. Act 368 does not specify the amount of the bond. Section 53 of act 65 enumerates the items' for which, and the persons to whom, the surety shall be liable, and there follows in the same paragraph the provision that claims for the material, etc., there above-mentioned,‘‘ shall be filed with the secretary of the Highway Commission within thirty days after the completion of the work.” Act 368 includes all the items embraced in act 65, and adds materially to the liability of the surety, without imposing the condition that claims against the bond be filed with the Highway Commission, as does act 65.

Act 65 provides that the contractor’s bond shall be conditioned “as the Commission (Highway) may remfire.” whereas § 3 of act 368 provides that the bond shall specifically include liability “for the things enumerated in § 1 hereof,” and further provides that “the failure or refusal of said officer or persons to include said provisions in said bonds shall not prevent the holders or owners of claims, as provided in § 1 of this act, from collecting said claims or bringing suits and enforeing such claims against said bonds.” Immediately following is a provision regulating such suits, which does not contain the requirement that the claims be exhibited to and filed with the Highway Commission, but it is provided only “that all suits to enforce claims on bonds as provided herein shall be commenced within six months from the date of final estimate to the contractor. ’ ’

Section 53 of act 65 contains no limitation as to the time within which suits may be brought, provided the claim is filed with the secretary of the Highway Commission within thirty days after the completion of the work, or within six months from the time the work was abandoned by the contractor, if such were the case, unless the Commission should enter an order extending the time for filing such claims. Act 368 does contain a limitation upon the time within which suits shall be brought, which period of limitation runs, not from the time of filing the claim with the Highway Commission, for no such requirement is imposed, but “from the date of final estimate to the contractor.” The only condition upon the right to sue under act 368 is that the suit shall be commenced within six months from the date of final estimate to the contractor.

As a general rule, repeals by implication are not favored, and courts are reluctant to hold that there has been an implied repeal of a statute where that purpose was not expressed. This subject was thoroughly and recently considered in the case of Louisiana Oil Refining Company v. Rainwater, 183 Ark. 482, 37 S. W. (2d) 96. In the application of the rule stated, we there first held that a statute under review had not repealed a prior statute by implication, but, upon further consideration under a petition for .rehearing, we concluded that there had been an implied repeal, and, in so holding, it was said: “As stated by Mr. Justice Field in United States v. Tynen, 11 Wall. (U. S.), p. 88, and quoted with approval on rehearing in Mays v. Phillips County, 168 Ark. 829-833, 279 S. W. 366: ‘When there are two acts on the same subject, the rule is to give effect to both if possible; but if the two are repugnant in any of their'provisions, the later act, without any repealing clause, operates, to the extent of the repugnancy, as a repeal of the first, and, even where two acts are not in express terms repugnant, yet if the later act covers the whole subject of the first, and embraces new provisions, plainly showing that it was intended as a substitute for the first act, it will operate as a repeal of that act.’ And this is true, even though the old act contains ‘provisions not embraced in the new.’ Wilson v. Massie, 70 Ark. 25, 65 S. W. 942; Chicago, R. I. & P. Ry. Co. v. McElroy, 92 Ark. 600, 123 S. W. 771; Eubanks v. Futrell, 112 Ark. 437, 166 S. W. 172; Babb v. El Dorado, 170 Ark. 10, 278 S. W. 649; State v. White, 170 Ark. 880, 281 S. W. 678. The difficulty is not in stating the rule, as it appears to be one of universal application, but in applying it to a given case.”

We therefore announce our conclusion that, as act 368 is a later act and impliedly repeals the requirement as to filing claims contained in the earlier act, filing the claim with the State Highway Commission is not made a condition essential to bringing suit under the later act.

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58 S.W.2d 928, 187 Ark. 131, 1933 Ark. LEXIS 345, Counsel Stack Legal Research, https://law.counselstack.com/opinion/consolidated-indemnity-insurance-v-fischer-lime-cement-co-ark-1933.