Friedman v. County of Hampden

90 N.E. 851, 204 Mass. 494, 1910 Mass. LEXIS 942
Massachusetts Supreme Judicial Court·Decided January 27, 1910·Published·Cited by 38 cases

Opinion

Hammond, J.

There were two contracts between the Fosburgh Company and the county of Hampden.* The work called for by each has been completed, and the object of these [499] proceedings is to ascertain among whom and in what manner shall be distributed the balances due from the county. The Chapin National Bank, hereinafter called the bank, asserts, by virtue of an assignment from the Fosburgh Company, an interest in the balance due upon the first contract. The other claimants furnished labor and materials and assert that by virtue of St. 1904, c. 349, they have liens upon these balances for the sums respectively due to them.

It will be convenient to consider first whether and to what extent these claims for liens are valid. The statute above named upon which the lienors rely is entitled “An Act to provide for the protection of persons furnishing materials and labor for public works,” and reads as follows: “ Officers or agents who contract in behalf of any county, city or town for the construction or repair of public buildings or other public works shall obtain sufficient security, by bond or otherwise, for payment by the contractor and subcontractors for labor performed or furnished and for materials used in such construction or repair; but in order to obtain the benefit of such security the claimant shall file with such officers or agents a sworn statement of his claim within sixty days after the completion of the work.”

It is not denied by any of the parties that each of the two contracts between the Fosburgh Company and the county called for the construction of a public work within the meaning of that term as used in the statute, nor, so far as we understand, that the various claimants of liens filed their respective notices as required by the statute.

1. One of the contentions of the bank is that no part of the money now in the hands of the county commissioners is security for third parties within the meaning of the statute. It appears by the master’s report that each of the two contracts was an “ ordinary building contract of a standard form,” and that in each one are the following clauses, “ said clauses being in different parts of the contract ”:

“ If at any time there shall be evidence of any lien or claim for which, if established, the owner or said premises might become liable, and which is chargeable to the contractor, the owner shall have the right to retain out of any payment then due, or thereafter to become due, an amount sufficient to completely in[500] demnify it against such lien or claim. Should there prove to he any such claim after all payments are made, the contractor shall refund to the owner all moneys that the latter may be compelled to pay in discharging any lien on said premises made obligatory in consequence of the contractor’s default.”

“ The party of the first part hereby agrees, in consideration of the full and faithful performance of the said several covenants and agreements of the party of the second part, to make payments on or before the tenth day of every month to the party of the second part, not exceeding in the aggregate the sum of eighty-five per cent of the cost of the work and materials during the preceding month, in lawful money of the United States of America; but no such payment shall be made except on the production and delivery to the party of the first part of a certificate in writing signed by the said architects, that this contract has been well and faithfully performed up to the date of such certificates, and that the value of the work, labor and materials theretofore rendered and employed in and upon the said building is at least fifteen per cent in excess of the payments called for by the party of the second part, to the extent and amount above described. But, on the full and final completion of the said building, the party of the first part is to pay, upon the certificate of the said architects that the same is due, the balance then unpaid of the full cost price of the said completed building, reckoning the cost of the said building at One Hundred and Eighteen Thousand, one hundred and eighty Dollars.

“ The contract is applicable to and binding upon the executors, administrators, and assigns and successors, respectively of the parties hereto; but it is not assignable by the party of the second part, except with the written consent of the party of the first part.”

In Burr v. Massachusetts School for the Feeble-Minded, 197 Mass. 357, it was adjudged that a clause identical with the first clause above named was to be regarded as the security required by the statute. In the course of the opinion delivered by Knowlton, C. J., it was said that under the statute it was the duty of the Commonwealth “ in making the contract, to obtain security for the payment of these claimants. . . . The parties must be presumed to have known of this statute when they [501] made the contract before us.” It is suggested by the bank that there is a material difference between that case and this. It is urged that the presumption upon which rested the decision in that case is one of fact only and so may be rebutted by evidence. And following out that idea, the bank at the hearing before the master offered to show that the county commissioners in office in 1905 did not know of the existence of this statute until some time in the year 1907. The rejection of this evidence by the master forms the basis of one of the bank’s exceptions to his report.

We are of opinion that the legal meaning of the contract, so far at least as respects the rights of third parties, is to be determined by its phraseology read in the light of the then existing statutes. If in a matter as to which third parties have the right to be secured, the contracting parties, upon each of whom rests a duty, the one to furnish security and the other to see that it is furnished, use language the only sensible interpretation of which, when read in the light of the then existing law, is that it is a provision for such security, they must be bound by that interpretation. The presumption as to the meaning of the language is one not of fact but of law, so far as respects the rights of third parties. Any other rule of interpretation would make two contracts precisely alike in phraseology mean, the one that security is provided and the other that it is not provided.' And this difference of meaning would be based upon a state of things not only not known but which could not be known with certainty by any third party interested in the security. It follows that the exception to the rejection by the master of the evidence offered should be overruled; and also that the motion that the report be recommitted for the purpose of taking evidence of a like ignorance of the statute on the part of the Fosburgh Company, and that the matter of security in any form to workmen or material men was riot mentioned between the two contracting parties, nor was intended, was rightly overruled.

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

Friedman v. County of Hampden, 90 N.E. 851, 204 Mass. 494, 1910 Mass. LEXIS 942 (Mass. 1910).

90 N.E. 851 (Friedman v. County of Hampden) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Interstate Electrical Services Corp. v. Cummings Properties, LLC
825 N.E.2d 1059 (Massachusetts Appeals Court, 2005)
G.M. Builders, Inc. v. Town of Barnstable
469 N.E.2d 1281 (Massachusetts Appeals Court, 1984)
Peters v. Hartford Accident & Indemnity Co.
389 N.E.2d 63 (Massachusetts Supreme Judicial Court, 1979)
AMERICAN AIR FILTER CO. INC. v. Innamorati Bros. Inc.
260 N.E.2d 718 (Massachusetts Supreme Judicial Court, 1970)
Kinney Electrical Mfg. Co. v. Modern Electric Co.
149 N.W.2d 69 (North Dakota Supreme Court, 1967)
Town of Somerset v. Dighton Water District
200 N.E.2d 237 (Massachusetts Supreme Judicial Court, 1964)
Manpower, Inc. v. Phillips
173 Ohio St. (N.S.) 45 (Ohio Supreme Court, 1962)
Massachusetts Gas & Electric Light Supply Co. v. Rugo Construction Co.
71 N.E.2d 408 (Massachusetts Supreme Judicial Court, 1947)
Holt & Bugbee Co. v. City of Melrose
41 N.E.2d 562 (Massachusetts Supreme Judicial Court, 1942)
Metropolitan Pipe & Supply Co. v. D'Amore Construction Co.
35 N.E.2d 211 (Massachusetts Supreme Judicial Court, 1941)
Broga v. Leo
4 N.E.2d 295 (Massachusetts Supreme Judicial Court, 1936)
Walsh Holyoke Steam Boiler Works, Inc. v. McCue
289 Mass. 291 (Massachusetts Supreme Judicial Court, 1935)
Huddleston v. Nislar
72 S.W.2d 959 (Court of Appeals of Texas, 1934)
Peerless Unit Ventilation Co. v. D'Amore Construction Co.
186 N.E. 280 (Massachusetts Supreme Judicial Court, 1933)
Board of Public Education v. Aetna Casualty & Surety Co.
159 A. 367 (Superior Court of Delaware, 1932)
Town of Newbury v. Lincoln
177 N.E. 614 (Massachusetts Supreme Judicial Court, 1931)
Dolben v. Duncan Construction Co.
177 N.E. 105 (Massachusetts Supreme Judicial Court, 1931)
American Casting Co. v. Commonwealth
174 N.E. 174 (Massachusetts Supreme Judicial Court, 1931)
Boulia-Gorrell Lumber Co. v. East Coast Realty Co.
148 A. 28 (Supreme Court of New Hampshire, 1929)
Pelton & King, Inc. v. Town of Bethlehem
147 A. 144 (Supreme Court of Connecticut, 1929)