Fidelity & Deposit Co. v. Hardman

61 So. 559, 132 La. 525, 1913 La. LEXIS 1906
CourtSupreme Court of Louisiana
DecidedMarch 17, 1913
DocketNo. 19,768
StatusPublished
Cited by6 cases

This text of 61 So. 559 (Fidelity & Deposit Co. v. Hardman) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fidelity & Deposit Co. v. Hardman, 61 So. 559, 132 La. 525, 1913 La. LEXIS 1906 (La. 1913).

Opinion

LAND, J.

This suit is a sequel to that of Bain v. Arthur et al., reported in 129 La. 143, 55 South. 743, in which the judgment of the Court of Appeal against the Fidelity & Deposit Company of Maryland, as surety for Arthur, contractor, was affirmed. In that case the company called in warranty C. C. Hardman, W. E. Hamilton, and Mack Well-man, as sureties on an indemnity bond. The said indemnitors excepted that the call was premature because no loss or damages had been incurred. This exception was sustained, and the indemnitors dismissed from the suit. On the trial of the case on the merits judgment was rendered against the company for the amount sued for with interest and costs. The Court of Appeal affirmed the judgment, and the decree of the Court of Appeal was affirmed by the Supreme Court.

Subsequently the Fidelity & Deposit Company of Maryland (hereinafter called the Fidelity Company) sued C. C. Hardman, W. E. Hamilton, and Mack Wellman, as indemnitors, to recover the amount of the said judgment, with interest, costs, and attorney’s fees, and also costs and attorney’s fees in a similar litigation decided in favor of the Fidelity Company. Defendants for answer, after pleading the general issue, admitted that they were parties to the indemnity contract, but denied liability on the ground that the claim of W. H. Bain against John Arthur was prescribed at the date of the institution of the suit of Bain v. Arthur et al., supra. Whereupon the Fidelity Company pleaded the judgment in the Bain suit as res judicata, and further that the defendants were estopped by their failure and refusal [528]*528to contest the claim of the said Bain in said litigation.

The case was tried, evidence adduced on the merits, and judgment was rendered in favor of the Fidelity Company and against the défendant in solido as prayed for, and the latter appealed to the Court of Appeal, which affirmed the judgment.

The Fidelity Company became the surety of John Arthur, a contractor, for the construction of a public schoolhouse at Winnfield, La.; and Hardman, Hamilton, and Wellman signed a contract of indemnity by which they bound themselves in solido to hold and keep harmless the Fidelity Company from and against any and all loss, damages, counsel fees, charges, and expenses of whatever nature and kind, which the said company should or might incur, sustain, or be .put to, for or by reason or in consequence of the company having become surety on said contractor’s bond, or in prosecuting or defending any action, suit, or other proceeding, which might be commenced or prosecuted against said contractor, or against said company upon the said bond.

The Fidelity Company defeated the suit of John B. Heard, claiming to be a material-man. The Fidelity Company unsuccessfully defended the Bain suit, and paid the judgment therein rendered, principal, interest, and costs, and also paid or incurred attorney’s fees in both suits.

The Court of Appeal held that the judgment in the Bain suit was conclusive against the three defendants herein, who had notice and full opportunity to defend, and cited a number of authorities to sustain its ruling.

The relators thereupon applied to this court for a writ of review, which was granted.

The relators complain that the Court of Appeal erred in maintaining the plea of res judicata, because the relators were not and could not have been made parties to the suit, as is shown by the decision of the Supreme Court in the case of Bain v. Arthur et al.. supra; and that res judicata does not apply unless the demand be between the same parties, and formed by them against each other in the same qualities.

The Fidelity Company not only pleaded res judicata, but also estoppel by the terms of the contract of indemnity, by notice of the Bain suit, and opportunity to contest his claim, and by the participation of defendants in the proceedings. The Court of Appeal said:

“It is a plain proposition that as defendants were bound to pay any judgment that might be rendered against the present plaintiff in the Bain and Arthur suit, as they were notified of the suit and really asked to defend the suits as warrantors, and two of them were witnesses in the suit and were represented by counsel, said judgment should be conclusive on them. When sued in the suit, the time for them to have spoken was when this suit was on trial, and it is now too late for them to contest the judgment. By their silence they have lost their opportunity. They were directly interested with defendant company in that suit and had full opportunity to make any defenses that they had at that time.”

In the Bain suit the defense was the prescription of 45 days provided by section 4, Act No. 65, p. 79, of 190S, which commences to run from and after the completion of the work. The issue presented a question of fact, as to the date of the completion of the building, and the district court and the Court of Appeal held that the Bain suit had been instituted within the limitation of 45 days, and the judgment was affirmed by the Supreme Court. 123 La. 143, 55 South. 743.

In the present action the defendants in the district court denied liability for the reasons:

“First. Because the claim sued upon by H. H. Bain v. John Arthur for whom said indemnity was given was prescribed at the date of the institution of the suit.
“Second. Because the building was completed in July, 1909, and accepted about July 3, 1909.”

The judgment of the district court was rendered on the merits of the case. The judgment of the Court of Appeal seems to [530]*530have been based on the plea of estoppel and evidence showing that plaintiff had paid the Bain judgment, with interest and costs, and had paid or incurred other costs and fees in that and another suit.

The relators were not technically parties to the Bain judgment, as they were dismissed on their own exception. But being interested in the result, they might have intervened in said suit and joined the defendants. Counsel for the Fidelity Company testified as follows:

“I, as attorney of the Fidelity & Deposit Company in the Bain Case, requested the attorneys for Hardman, Wellman, and Hamilton, the defendants in this suit, to assist me in defending the Bain Case, and I remember that Mr. Jack, the attorney for Mr. Hardman, and Mr. Lichtenstein, attorney for Mr. Wellman, examined some of the witnesses in the Bain Case at the trial.”

The same counsel further testified as follows :

“I was present during the trial of that case, and Wellman and Hardman, defendants in that suit, were present as witnesses and testified in that case on the only point in the case which was the question of prescription, and were represented by counsel in that case.”

Counsel for Mr. Wellman testified as follows :

“I appeared representing Mack Wellman, one of the indemnitors; but my appearance was solely to assist Mr. Land in the matter. Of course, I felt this way about it, that ultimately they would bring suit against the indemnitors. I was there to protect Mr. Wellman’s interest as far as I could by assisting Mr. Land.”

On the trial of the case in the district court, the defendants offered to prove by two absent witnesses, John Arthur and Alex E.

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Cite This Page — Counsel Stack

Bluebook (online)
61 So. 559, 132 La. 525, 1913 La. LEXIS 1906, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fidelity-deposit-co-v-hardman-la-1913.