F. Miller & Sons, Inc. v. Travelers Indemnity Co.

161 So. 2d 349, 1964 La. App. LEXIS 1378
CourtLouisiana Court of Appeal
DecidedFebruary 18, 1964
DocketNo. 1047
StatusPublished
Cited by6 cases

This text of 161 So. 2d 349 (F. Miller & Sons, Inc. v. Travelers Indemnity Co.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
F. Miller & Sons, Inc. v. Travelers Indemnity Co., 161 So. 2d 349, 1964 La. App. LEXIS 1378 (La. Ct. App. 1964).

Opinions

TATE, Judge.

The plaintiff (“Miller”) sues in Calcasieu Parish to recover overpayments of some fifteen thousand dollars made by it to the defendant (“Newman”). Joined as code-fendant is Newman’s surety on an indemnity bond (“Travelers”). From adverse judgment, Travelers alone appeals.

Before this court, Travelers principally contends that the trial court erred: (1) in failing to sustain an exception to this suit based upon its allegedly improper venue in Calcasieu Parish; (2) in failing to sustain an exception of res judicata based upon a summary judgment obtained in Tangipahoa Parish; and (3) in holding that Travelers was liable under its surety bond to make [351]*351good overpayments received by Newman, its principal.

Newman’s obligation to repay the over-payments arose in connection with a contract by Miller with the state highway department to construct highway improvements in Calcasieu Parish. In connection with this main contract, Miller and Newman entered into a subcontract, whereby Newman agreed to haul borrow pit dirt for Miller at a certain price per cubic yard. Travelers issued to Newman a contractor’s indemnity bond to protect Miller against any loss resulting from Newman’s failure to faithfully perform the contract.

In the course of Newman’s performance of this subcontract, Miller made monthly payments based upon the number of yards which the state engineers formally estimated were hauled during the period, which was the same basis upon which Miller was paid for the work by the state under the main contract. All of these interim payments were made subject to the final determination by the state highway department of the actual amount of dirt hauled.

When the state made its final determination of the actual number of cubic yards hauled, it was found that the state had overpaid Miller and Miller had likewise overpaid Newman, because the actual amount of dirt hauled was less than that for which interim payments had been made per monthly estimates. The state deducted these over-payments from the final sums due Miller, and Miller likewise demanded reimbursement from Newman of the overpayment made to it. On Newman’s failure to pay (this corporation had in the meantime liquidated its assets), this suit was instituted against Newman, with Travelers joined as codefendant, as Newman’s surety on the subcontract bond.

For purposes of this appeal, there is no longer any issue as to Newman’s liability to Miller for this amount of overpayment, since Newman itself did not appeal from adverse judgment. Travelers’s appeal concerns only its only liability to pay this amount as surety on Newman’s bond.

1. Exception to venue.

Travelers contends that Calcasieu Parish is an improper venue for this suit, since neither defendant, Newman nor Travelers itself, were domiciled there. LSA-C.C.P. Art. 42.

Applicable here, however, is the exception to domiciliary venue provided by LSA-C.C.P. Art. 76, which provides: “ * * * An action on any other type of insurance policy may be brought in the parish where the loss occurred * * * (The preceding sentences in the code provision set forth the venue for actions on, respectively, “life insurance” and “health and accident insurance” policies.)

The contractor’s indemnity bond issued by Travelers to Newman is an “insurance policy” within the meaning of the Code of Civil Procedure. LSA-C.C.P. Art. 5251 defines such term as including all policies included within such definition by LSA-R.S. 22:5, which latter provision defines “insurance” as “a contract whereby one undertakes to indemnify another or pay a specified amount upon determinable contingencies.” See Francis v. Texas & Pacific, etc., La.App. 3 Cir., 148 So.2d 118.

Likewise, the sued-for “loss” occurred in Calcasieu Parish. The Newman subcontract concerned work performed by it in Calcasieu Parish. Newman was overpaid for this work in Calcasieu Parish by checks drawn upon Calcasieu Parish banks.

Under the quoted provision of LSA-C.C.P. Art. 76, Calcasieu Parish was a proper venue for this suit. The trial court correctly overruled the defendant’s exception.

2. Exception of res judicata.

Travelers’s exception of res judicata is based upon the following circumstance r

When the defendants filed an exception to venue in the present Calcasieu Parish suit, [352]*352the plaintiff Miller filed an identical suit in Tangipahoa Parish, the place of Newman’s domicile, as a precautionary measure. When the exception to venue was overruled in the present case (the Calcasieu suit), the defendant Travelers then filed identical motions to dismiss in both the Calcasieu and Tangipahoa Parish suits.

These motions to dismiss were essentially based upon the allegation that Miller’s suit contained “no allegation of failure to perform, or failure to perform free of labor material liens”, so as to make said insurer liable under its contract bond.

The plaintiff thereupon amended his Cal-casieu suit only, so as to supply this missing allegation by the additional averment that “petitioner’s loss, complained of herein, was due solely to Newman’s failure to ‘faithfully perform’ the said contracf’, see Art. 7, as amended.

(Thereupon the motion for summary judgment in the Calcasieu Parish suit was heard, and it was thereafter overruled in October, 1962.)

In the meanwhile, an identical motion for summary judgment filed in the Tangipahoa Parish suit was set by the defendant insurer for rehearing on November 26, 1962. The petition in this suit had not been amended so as to cure its defect of failing to contain •allegations indicating liability of the surety through the failure of Newman, its principal, to faithfully perform the contract.

Travelers’s motion for summary judgment 'in the Tangipahoa suit was then tried on the face of the pleadings.1 Summary judgment was rendered in Travelers’s favor, which judgment is now definitive, since Miller did not appeal from it. It is this judgment which is now pleaded as a bar to the present action.

The Tangipahoa judgment, however, is not res judicata as to the present suit. Such judgment was based on the absence from the pleadings of any allegation that Newman had failed to perform his subcontract. In the absence of such allegation, it was contended that there was no material issue of fact as to Travelers’s liability under its surety bond, since liability thereupon was conditioned upon default by Newman in performance of the subcontract.

The present, or Calcasieu Parish suit, was amended so as to contain such additional allegation.

The Tangipahoa judgment therefore is not a bar to the present action containing these additional allegations. A judgment dismissing a suit merely because of an insufficiency of allegations is not res judicata — it is in effect a dismissal as of nonsuit, which does not bar another action in which the petition supplies the essential allegations. Callender v. Marks, 185 La. 948, 171 So. 86; McMahon, The Exception of No Cause of Action in Louisiana, 9 Tul. L.Rev. 16, 48, et seq. (1934). Further, the plea of res judicata is strictly construed, and any doubt as to the identity of the causes of action in the two suits must be resolved in favor of the plaintiff. Bullis v. Town of Jackson, 203 La. 289, 14 So.2d 1; Hope v. Madison, 194 La. 337, 193 So. 666.

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

Related

Metro Builders Hardware v. Burko Const.
633 So. 2d 838 (Louisiana Court of Appeal, 1994)
Highlands Insurance Co. v. Boyd
519 So. 2d 182 (Louisiana Court of Appeal, 1987)
Pittman Construction Co. v. Meadows
337 So. 2d 892 (Louisiana Court of Appeal, 1976)
Prestigiacomo v. Phoenix Insurance Co. of Hartford
231 So. 2d 431 (Louisiana Court of Appeal, 1970)
Simon v. Broussard
216 So. 2d 668 (Louisiana Court of Appeal, 1968)
Miller v. Newman Trucking Service Co.
163 So. 2d 359 (Supreme Court of Louisiana, 1964)

Cite This Page — Counsel Stack

Bluebook (online)
161 So. 2d 349, 1964 La. App. LEXIS 1378, Counsel Stack Legal Research, https://law.counselstack.com/opinion/f-miller-sons-inc-v-travelers-indemnity-co-lactapp-1964.