County of Lake v. Southern Surety Co.

265 Ill. App. 286, 1932 Ill. App. LEXIS 776
CourtAppellate Court of Illinois
DecidedFebruary 23, 1932
DocketGen. No. 35,049
StatusPublished

This text of 265 Ill. App. 286 (County of Lake v. Southern Surety Co.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
County of Lake v. Southern Surety Co., 265 Ill. App. 286, 1932 Ill. App. LEXIS 776 (Ill. Ct. App. 1932).

Opinion

Mr. Justice Scanlan

delivered the opinion of the court.

This is an action in debt brought for the use of F. H. Dickson, upon the bond of a road contractor who contracted to build a section of road in Lake county, Illinois. The claim of Dickson, hereafter called the plaintiff, is for $1,825.04 due him from the contractor for groceries and meats furnished to the latter. In a trial by the court there was a finding that the defendant, Southern Surety Company, a corporation, owes the plaintiff, in debt, $112,438.44, and the plaintiff’s damages were assessed at $1,825.04. The defendant has appealed. By stipulation the court in the same hearing also tried the case of The County of Lake, State of Illinois, for use of F. H. Dickson v. Massachusetts Bonding and Insurance Company, as surety upon a bond relating to another section of the same road. The two cases involve similar bonds and facts, and the same questions of law. A judgment was entered against the defendant in the second case, from which it prosecutes a separate appeal (265 Ill. App. 600 [abst.]). Here the two cases have been considered together.

The principal question presented is whether groceries and meats furnished to a road contractor engaged in the construction of a public highway in Illinois, and which were used and consumed in a cook house and mess hall maintained by the contractor for the boarding of laborers employed on the road, were covered by a statutory contractor’s bond furnished by the defendant. The pertinent provisions of the bond are: “. . . Fred C. Nelson ... as principal, and The Southern Surety Company, as surety, are held . . . unto the County of Lake. . . . The condition of the foregoing obligation is such that whereas said principal has been awarded the contract . . . for the construction of a State road in Lake County . . . whereby said principal has promised ... to pay all sums of money due for any labor, material, apparatus, fixtures or machinery furnished to such contractor for the purpose of such construction or improvement, . . . and has further agreed that this bond shall inure to the benefit of any person to whom any money may be due for any such labor, material, ... so furnished and suit may be maintained on such bond by any such person for the recovery of any such money. ... If said Fred C. Nelson . . . shall pay all sums of money due for any labor, material, apparatus, fixtures or machinery furnished to him .for the purpose of such construction or improvement . . . then this obligation to be void, otherwise to remain in force and effect.”

Plaintiff’s statement of claim alleges {inter alia) that it was necessary for the contractor to maintain á commissary for the boarding of his laborers; that the region where the work was done was sparsely populated and the communities in the vicinity were not equipped with hotel, restaurant or boarding accommodations of a nature suited to furnish meals to the laborers employed in the work and that it was imperative for the contractor to make his own arrangements for furnishing meals in order to obtain laborers to do the work required by the contract and the bond, and that the groceries and meats were used in a cook house and mess hall and were wholly consumed by laborers engaged in the prosecution of the work; that the contractor employed the laborers through employment agencies and had an agreement with the agencies and the laborers to furnish the latter board and lodging, and for which he was to deduct a dollar per day from each laborer’s wages; that had the contractor not conducted the commissary it would have been impossible for the laborers to obtain food and, consequently, it would have been impossible for the contractor to obtain laborers to do the work required by the contract, and that the boarding camp was not maintained for profit or as an independent enterprise. Plaintiff contends that his evidence supports these allegations, and further contends that groceries and meats furnished to the contractor under such' a state of facts are “materials” within the meaning of the statute and the bond.

The defendant contends that the bond does not cover provisions and supplies such as groceries and meats, or materials of any kind that are not for the purpose of the improvement itself; that supplies which are used in the process of construction as a means for assisting in the doing of the work and that do not go into and become a part of the completed improvement, are not within the “scope” of such a bond; that the bond is statutory and the words used therein 1 ‘ are the essence of the undertaking as to the rights of third party materialmen, ’ ’ and that groceries and meats do not become an integral part of a concrete road; that the element of alleged necessity, if any existed, of boarding the laborers, is wholly immaterial and is not the test of liability upon the bond, but that even if the said element can be given consideration where special circumstances exist, “there is not on the facts and law in this case such degree of indispensability to the purpose of the improvement as to give rise to the kind of necessity that is contemplated by the authorities . . . upon which the plaintiff seeks to rely.” The parties agree that the precise question before us has not been passed upon by the Supreme Court nor the Appellate Courts of this State.

In 1921 and. 1922 the county of,Lake awarded contracts for the improvement óf State Aid Route No. 8 (now State Highway No. 60), which extends from the south county line in a northwesterly direction through the villages of Lake Zurich and Wauconda, and from thence to Volo. The road was divided into three sections, designated, respectively, as Section S-15d, Section T-15d and Section 0-15d. Section S extended from the south county line to the main corners of Lake Zurich; Section T between Lake Zurich and Wauconda, and Section 0 between Wauconda and Volo. There was a separate contract as to each section but all were awarded to Nelson, a road contractor. The provisions of the contracts are not contained in the record. Nelson furnished a separate contractor’s bond as to each section. Massachusetts Bonding & Insurance Company was the surety bn the bond for Section S, Iowa Bond'ing & Casualty Company for Section 0, and the instant defendant for Section T. Each bond was on a printed form prescribed by the Department of Public Works and Buildings and made in compliance with section 26 (6), of “An Act to Revise the Law in Relation to Roads and Bridges, ’ ’ approved June 27, 1913; in force July 1, 1913. Cahill’s St. ch. 121, 1f 30.

The plaintiff concedes that his statement of claim is drafted to accord with the well known case of Brogan v. National Surety Co., 246 U. S. 257, and he contends that case applies to the instant question and is decisive of it. The defendant contends that case does not apply to any case under the Illinois statute, but that even if it did, it would not aid the plaintiff because he has failed to prove facts which would bring" his claim within the rule laid down in that case. The Brogan case was an action upon a bond given under the federal statute relating to the construction of public works. The contract and the bond bound the contractor to “make full payment to all persons supplying him with labor or materials in the prosecution of the work provided for in” the bond.

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Bluebook (online)
265 Ill. App. 286, 1932 Ill. App. LEXIS 776, Counsel Stack Legal Research, https://law.counselstack.com/opinion/county-of-lake-v-southern-surety-co-illappct-1932.