General Bonding & Casualty Ins. Co. v. Waples Lumber Co.

176 S.W. 651, 1915 Tex. App. LEXIS 540
CourtCourt of Appeals of Texas
DecidedApril 19, 1915
DocketNo. 6806.
StatusPublished
Cited by29 cases

This text of 176 S.W. 651 (General Bonding & Casualty Ins. Co. v. Waples Lumber Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
General Bonding & Casualty Ins. Co. v. Waples Lumber Co., 176 S.W. 651, 1915 Tex. App. LEXIS 540 (Tex. Ct. App. 1915).

Opinion

McMEANS, J.

The statement of the nature and result of the suit made by appellant in its brief, and agreed by appellees to be correct, is adopted.

Plaintiff Waples Lumber Company filed this suit on the 5th day of September, 1913, and, by its amended petition against W. T. Butler, W. F. Breath and wife, Lucy P. Breath, and General Bonding & Casualty Insurance Company, alleged, in substance, that the defendant Butler had contracted to build for defendants Breath and wife, and had furnished a bond for the faithful performance of his contract with the defendant General Bonding & Casualty Insurance Company, as surety, and that said bond, a copy of which *652 is attached to the pleading, guaranteed the payment of all material and labor claims on the building, and that, relying upon this provision of the bond, plaintiff lumber company and other materialmen, whose claims had been assigned to plaintiff lumber company, had furnished material to said contractor Butler, and had filed their material-men’s liens therefor, and that the owners, Breath and wife, in requiring and accepting the bond in question, payable to themselves, acted as trustees for materialmen on the building, and that it was their duty to collect enough money on the bond to pay plaintiff’s debt, which is alleged to aggregate $1,050.98 and interest, and plaintiff asks that it have judgment either upon the bond direct, or that the defendant Breath and wife recover judgment on the bond, as trustees for the use and benefit of plaintiff.

The defendants Breath and wife answered, denying all material allegations, except those alleged in their answer, and specially denying that mechanic’s liens had been fixed as alleged, and pleading that the property upon which the building was erected was their homestead, and that the contract for the construction of the building was not acknowledged by either Breath or wife, and hence that no mechanic’s or materialman’s lien attached to the property, or could be enforced against them; that, under the terms of the bond in question, the surety company became liable for plaintiff’s debt, as alleged by plaintiff, and that defendants Breath and wife were entitled to recover for the use and benefit of plaintiff the sum of $996.76, less $475.-50, the unpaid portion of the contract price remaining in the hands of the owners, and which was deposited in the registry of the court, and that these defendants were entitled to recover of said surety the sum of $521.26 for the use and benefit of plaintiff.

The answer of the defendant W. T. Butler operated as a general denial of all material allegations of the plaintiff’s petition, and of the answer and cross-bill of defendants Breath and wife, except that he admitted the execution of the contract and bond, the fact that the contract was not privily acknowledged by Breath’s wife, and was for improvements on the homestead, and denied that the bond was intended for the protection of materialmen, or that they relied thereon.

The defendant casualty company answered by general and special demurrers, and, in conformity with the rules, in effect denied all the allegations of plaintiff’s petition and of defendants Breath and wife’s cross-bill, except that it admitted the execution of the bond sued on, but denied that the legal effect or intent of said bond was as alleged by plaintiff or by the defendants Breath and wife, and alleged that the plain import and Intent of said bond was to indemnify the defendants Breath and wife only, and did not inure to the benefit of materialmen in any respect.

The case was tried before the court without a jury and resulted in a judgment for plaintiff Waples Lumber Company against defendant Butler for the sum of $994.76, and for the sum of $475.50 paid into the registry of the court by defendants Breath and wife, to be credited upon the judgment against Butler, and that plaintiff take nothing by its suit against the casualty company or upon its suit for debt and foreclosure against Breath and wife, and further that defendant Breath and wife recover of the defendant Butler and appellant General Bonding & Casualty Insurance Company the sum of $519.26 for the use and benefit of plaintiff Waples Lumber Company, to be credited upon its judgment for $994.76, against defendant Butler, and that the lot of land upon which the house was constructed and the improvements thereon be declared free and unincumbered by the materialmen’s lien claimed by plaintiff, and that appellant General Bonding & Casualty Insurance Company have judgment over against its codefendant Butler for the sum of $519.26 and costs. From the judgment against it, the General Bonding & Casualty Insurance Company has appealed.

There are no statement of facts or bills of exception in the record, but the contract between Breath and wife and Butler, and the bond executed by Butler to them, with the bonding company as surety, are attached to and form a part of the pleadings in the case.

Appellant’s first assignment of error, which is submitted as a proposition, is as follows:

“The court erred in rendering judgment herein against appellant surety company, for the reason that the pleadings of the plaintiff Wap-les Lumber Company- and the pleadings,of the defendants Breath and wife, for the use and benefit of plaintiff Waples Lumber Company, both affirmatively show that the only cause of action claimed herein against appellant surety company was under and by virtue of the terms of a written bond, whereby appellant surety company obligated itself to indemnify and hold harmless the defendants Breath and wife against the breach of a written- contract by the defendant W. T. Butler, and further affirmatively show that the defendants Breath and wife have sustained no injury and suffered no damage by reason of any breach of said contract, and further affirmatively show that there is no privity of contract whatsoever between the plaintiff and defendant surety company, and that the terms of the bond in question did not inure to the benefit of the plaintiff or other ma-terialmen, and that neither the plaintiff nor the defendants Breath and wife, as trustees for the plaintiff, was a party or a privy to said bond; and the error of the court in rendering a judgment herein, not supported by the pleadings, is a fundamental error, apparent of record, requiring a reversal of the judgment.”

The issues as between the plaintiff and Breath and wife on the one hand and the bonding company on the other as made by the plaintiff’s pleadings are substantially that Breath and wife made a contract with Butler to furnish all the labor and materials *653 and. to erect certain improvements on a lot of land in tlie city of Galveston, owned and occupied by Breath and wife as their homestead ; that the building had been completed and all material and’labor contracted for had been furnished by Butler, and that there still remained in the hands of Breath and wife a part of the contract price agreed to be paid by them to Butler; that the plaintiff Waples Lumber Company, and those whose rights it had acquired, had furnished materials to Butler which were used in the construction of the improvements, and for which Butler had -not paid.

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Bluebook (online)
176 S.W. 651, 1915 Tex. App. LEXIS 540, Counsel Stack Legal Research, https://law.counselstack.com/opinion/general-bonding-casualty-ins-co-v-waples-lumber-co-texapp-1915.