Continental Ins. v. Harrison County

153 F.2d 671, 1946 U.S. App. LEXIS 1963
CourtCourt of Appeals for the Fifth Circuit
DecidedFebruary 21, 1946
DocketNo. 11389
StatusPublished
Cited by1 cases

This text of 153 F.2d 671 (Continental Ins. v. Harrison County) 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 Ins. v. Harrison County, 153 F.2d 671, 1946 U.S. App. LEXIS 1963 (5th Cir. 1946).

Opinion

WALLER, Circuit Judge.

When the President of the Board of Supervisors of Harrison County, Mississippi, on the 23rd day of June, 1939, discovered that a portion of the bridge over the Back Bay of Biloxi was rising and falling with the tide and, as he thought, in imminent danger of falling down, he procured the Colie Towing Company to place a wooden barge under the bridge, on the deck of which cribbing was placed so as to support the falling structure. On June 29 a steel barge was also placed, and on August 12 another steel barge was substituted for the wooden barge.

These steel barges, belonging to A. G. Thomas but under charter to-CoIle Towing Company, were obtained on a daily rental basis of $15 per barge, 'and it was contera-[673]*673plated that they would be used only a few days, not to exceed two weeks.

The arrangement to secure the barges was made by Mr. Nixon, President of the Board of Supervisors, without first having any meeting of the Board, without advertising for bids, and without having passed, and spread upon its minutes, any resolution or order, such as is required by law except in cases of emergency. The President of the Board considered that the situation presented an emergency that demanded prompt action to preserve the safety of the bridge and those using it.

The barges were not released within a few days as was contemplated, but in October, 1939, they were still supporting the bridge. At the regular October meeting of the Board of Supervisors [which will hereinafter be referred to as “the Board”] it adopted the resolution which, in part, is shown in the footnote below.-1

At this meeting Mr. Colle requested the return of the barges but was told by the [674]*674Board in open session that if he took them he would take them at his own risk. He testified that he would not run the risk of taking the barges from under the bridge and assuming the responsibility for what might happen.

Instead of the County releasing the barges in five or six days, as originally contemplated, it kept them until September, 1940, meanwhile paying the daily rental of $15.00 per day for each barge.

On July 12, 1940, a new Board of Supervisors, which had taken office in January, 1940, and had continued to pay the rental on the barges on the same basis, entered into a contract with C. A. Thompson [who will be referred to' hereinafter as “Thompson” or as “the Contractor”] for the repair of the bridge. In this contract, which appears to have been lawfully entered into, the County agreed to permit the Contractor to use these barges without cost to him during the demolition of the defective spans of the bridge, in that the Contractor’s proposal to the County contained a stipulation that the County would, “furnish to the contractor herein, and permit the use of, the barges now retained at the bridge for the removal of the concrete spans during the demolition thereof, without cost to the contractor, except that the contractor is to furnish the motive power for handling and moving said barges; at his cost.” It was understood that dynamite would be used by the Contractor in such demolition, for the contract mentions that the Contractor agreed not to use W. P. A. labor “in the handling or shooting of dynamite.”

This contract also provides:

“3. It is further agreed that for the same consideration the undersigned contractor shall be responsible for all loss or damages arising out of the nature of the work aforesaid, or from the action of the elements, and unforeseen obstructions or difficulties which may be encountered in the prosecution of same, and for all risks of every description connected with the work, for faithfully completing the whole work in good and workmanlike manner according to the plans and specifications approved by the Board.”

The Contractor executed a performance bond, with the United States Fidelity & Guaranty Company as surety, guaranteeing that the principal would “promptly, properly and efficiently perform said contract and * * * promptly pay all persons supplying labor and materials therefor, * *

When the Colie Towing Company learned that the County had agreed to let the Contractor use its barges, it again requested that the barges be redelivered to it, but this request was also refused. In February, 1940, the cribbing which had supported the bridge upon the barges had been removed by the County Engineer, but the barges remained under the bridge to catch it if it should settle further.

The Contractor, as contemplated, demolished the defective spans by the use of dynamite. The County Engineer warned the employee of the Contractor, as he was preparing to explode the last charge of dynamite, that the charge which he had prepared was too big, and that it was dangerous to use it. The employee disregarded the Engineer’s advice, and set off the charge under water within twelve or fourteen feet of the barges, thereby causing serious damage to both barges. At the time of this occurrence the Contractor had finished with the barges and was no longer using either of them.

Plaintiff, as an insurer of the barges, paid the owner the damage thus caused and, as subrogee of the owner, sued the County, the Contractor, and the Surety on the latter’s performance bond.

The Plaintiff contended that the County was a bailee and that the owner, in whose shoes it stood, was a bailor of the barges, and that although the County would not be liable in tort for the damage done to the barges, nevertheless, it was liable for a breach of its contract of bailment; that an emergency existed, and that a contract of bailment, in such emergency, could lawfully be made without the necessity of complying, with the statutes of the State usually governing the making of ordinary contracts by the Board; that the Contractor was guilty of negligence which damaged the barges, and that either the bailor or bailee had a right to sue the Contractor in tort or under the contract between the Contractor and the County wherein the Contractor had obligated himself to be responsible for all loss or damage arising out of the work; and that since the Contractor had agreed to be responsible for all the damages, and since the Surety Company guaranteed the faithful performance of the contract, the bailee, as well as the bailor, had a right of action against the Contractor for the breach of this contract, and also against his surety.

[675]*675The County defended on the ground that the contract for the lease of the barges to the County was void because: (1) There was no authority in President Nixon, of the Board of Supervisors, to rent the barges, and the arrangement between Colie and Nixon was void. (2) That the formal contract of October, 1939, was void, also, because: (a) there was no informal contract to be ratified; (b) the Board was without authority to ratify such an alleged contract; and (c) the Board could not make a nunc pro tunc order dating back to the action taken by its President. (3) That an agreement to “continue in force” a contract which was without legal force was also a nullity. (4) That even if there had been an emergency, an expenditure by the Board of over $500.00 without calling for bids would have been without authority of law. (5) That a member of the Board in an emergency cannot obligate the County for an expenditure of more than $100, and that the Board itself cannot, even in an emergency, obligate the County to pay more than $500.00 unless advertisement calling for bids has been given pursuant to the statute,2

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Cite This Page — Counsel Stack

Bluebook (online)
153 F.2d 671, 1946 U.S. App. LEXIS 1963, Counsel Stack Legal Research, https://law.counselstack.com/opinion/continental-ins-v-harrison-county-ca5-1946.