Continental Casualty Company v. Westinghouse Electric Supply Company

403 F.2d 761
CourtCourt of Appeals for the Fifth Circuit
DecidedOctober 21, 1968
Docket25541
StatusPublished
Cited by2 cases

This text of 403 F.2d 761 (Continental Casualty Company v. Westinghouse Electric Supply Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Continental Casualty Company v. Westinghouse Electric Supply Company, 403 F.2d 761 (5th Cir. 1968).

Opinion

PER CURIAM:

For the reasons set forth in the district court’s opinion, a copy of which is attached hereto, the judgment is Affirmed.

MEMORANDUM OPINION The Court has diversity jurisdiction over the subject matter of and the parties to this action. For brevity, the parties to this cause will be referred to herein as follows:

WESTINGHOUSE ELECTRIC SUPPLY COMPANY as “WESCO” DIPLOMAT ELECTRIC, INC. as “DIPLOMAT”

CONTINENTAL CASUALTY COMPANY as “CONTINENTAL” WESLEY CONSTRUCTION CO. as “WESLEY”

AETNA CASUALTY & INSURANCE COMPANY as “AETNA”

APGAR & MARKHAM CONSTRUCTION CO. as “MARKHAM”

FIDELITY AND DEPOSIT COMPANY OF MARYLAND as “FIDELITY”

The complaint in this case consists of two counts. In the first count, WES-CO sought recovery against DIPLOMAT, CONTINENTAL, WESLEY and AET-NA for materials which WESCO claims it provided to DIPLOMAT as subcontractor in the construction of an office *763 building for Florida Power & Light Company by WESCO.

In the second count WESCO seeks recovery for electrical materials which it claims to have provided to DIPLOMAT as subcontractor in the construction of a public school building by APGAR as general contractor.

COUNT I

For reasons which appear in the court’s Order dated May 31, 1966, the claims which WESCO asserted against WESLEY, AETNA and CONTINENTAL were dismissed.

In Count I WESCO claims that DIPLOMAT ordered from WESCO and that WESCO delivered to DIPLOMAT electrical materials which were used by DIPLOMAT as subcontractor upon the Florida Power & Light job, of the total value of $102,866.19.

In its answer DIPLOMAT admitted that WESCO delivered some materials to it, but not all of the materials which were ordered; that WESCO delivered materials which were not ordered by DIPLOMAT, and that some of the materials which WESCO delivered were defective. In addition, DIPLOMAT contended that WESCO had executed and delivered to DIPLOMAT a document which had the legal effect of releasing DIPLOMAT of and from all obligations to pay for said materials.

The issues raised by this claim and these defenses were tried to the court without a jury. With respect to the delivery by WESCO to DIPLOMAT of electrical materials the proof shows and the court finds that WESCO did deliver to DIPLOMAT materials for the Florida Power & Light job as follows:

Light fixtures which were specifically designed and made for said job, of the value of $97,934.45
Materials which were delivered to employees of DIPLOMAT at the WESCO warehouse, of the value of 2,106.06
Materials which were delivered to DIPLOMAT at said job site, of the value of 2,640.75

That the total amount which was due and unpaid from DIPLOMAT to WESCO as of the date of trial was $102,681.26, plus interest thereon.

The court finds and concludes that the document which DIPLOMAT relies upon as a release to it of legal obligation to pay for said materials does not in fact or in law release DIPLOMAT from said obligation, but rather has the limited effect of releasing the real property which constituted the Florida Power & Light job site of and from any claims of lien which WESCO may have claimed for the materials which it furnished. A careful inspection of the document discloses that its intention and purpose of releasing WESCO’s lien on the real property was clear and unambiguous, and that it did not purport to release DIPLOMAT from paying for materials which it ordered and received from WESCO; and there was no evidence produced at the trial to the contrary. Indemnity Insurance Company of North America v. DuPont, Jr., 292 F.2d 569 (5th Cir. 1961); Atlantic Coast Line Railroad Co. v. Boone, 85 So.2d 834, 57 A.L.R.2d 1186 (Fla.1956).

COUNT II

In the second count WESCO claims that it furnished electrical materials to DIPLOMAT as subcontractor for use in a public school building which was then under construction by APGAR as general contractor, and that the balance due from DIPLOMAT to WESCO for said materials was $15,541.63. The claims which WESCO makes for the recovery of this amount are made jointly and severally against DIPLOMAT and its surety CONTINENTAL and against the general contractor APGAR and its surety FIDELITY.

In defense of WESCO’s claim, DIPLOMAT contends, as it did with respect to the first count, that WESCO delivered *764 materials which were ordered by DIPLOMAT for the school job, but that DIPLOMAT ordered certain materials for that job which were not delivered, that WESCO delivered certain materials which were not ordered by DIPLOMAT, and that other materials which WESCO delivered were defective. In addition, DIPLOMAT contends that on December 4, 1964, WESCO executed and delivered to APGAR and to the Board of Public Instruction of Dade County, for whom the school had been built, a release which had the legal effect of releasing and discharging DIPLOMAT of and from any liability to WESCO for the payment of said materials. DIPLOMAT’S surety CONTINENTAL interposed the same defenses as did DIPLOMAT, and in addition thereto denied liability on the ground that the CONTINENTAL bond expressly provided that no suit could be brought upon the bond after the expiration of one year following the date upon which DIPLOMAT ceased to work on the school job as subcontractor.

APGAR and its surety FIDELITY defended WESCO’s right to recovery by claiming that WESCO executed and delivered to APGAR a release which was executed and delivered in consideration of APGAR paying to DIPLOMAT the sum of $8,000 under an express obligation on the part of DIPLOMAT to pay said sum over to WESCO, which DIPLOMAT did. APGAR and FIDELITY further defended on a basis of what they term an equitable estoppel which, more specifically stated, is the defense that APGAR paid to DIPLOMAT all the monies which were due from APGAR to DIPLOMAT upon the construction of the school only after and in reliance upon the release which WESCO had executed and delivered to APGAR.

Because of a difference in the parties, the issues and the subject matter herein, the hearing upon Count II was deferred until the hearing upon Count I had been completed. The controversy of Count II was likewise tried to the court without a jury upon the issues developed by WESCO’s claim and the various defenses thereto.

The proof shows and the court finds that DIPLOMAT ordered from WESCO and that WESCO delivered to DIPLOMAT electrical materials which were used in the construction of said school building for which DIPLOMAT owed WESCO the sum of $14,922.60 as of the date of trial, plus interest.

The evidence shows that as of December 4, 1964 when WESCO executed and delivered to APGAR said release, APGAR owed DIPLOMAT the sum of $16,859.97, but had withheld payment thereof because of the contention by WESCO that DIPLOMAT had not paid WESCO for materials which WESCO furnished for the school job. On said date, a conference was conducted at the offices of APGAR, which was attended by the presidents of APGAR and DIPLOMAT.

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Bluebook (online)
403 F.2d 761, Counsel Stack Legal Research, https://law.counselstack.com/opinion/continental-casualty-company-v-westinghouse-electric-supply-company-ca5-1968.