General Motors Truck Co. v. Phillips

254 N.W. 580, 191 Minn. 467, 1934 Minn. LEXIS 803
CourtSupreme Court of Minnesota
DecidedApril 27, 1934
DocketNo. 29,882.
StatusPublished
Cited by2 cases

This text of 254 N.W. 580 (General Motors Truck Co. v. Phillips) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
General Motors Truck Co. v. Phillips, 254 N.W. 580, 191 Minn. 467, 1934 Minn. LEXIS 803 (Mich. 1934).

Opinion

I. M. OLBKN, Justice.

Appeal by the defendants S. J. Anderson and Western Surety Company, and the intervener, the Central West Casualty Company, from an order denying their alternative motion for judgment notwithstanding the verdict, or, if that be denied, for a new trial.

Defendant S. J. Anderson was a contractor having a contract with the commissioner or department of highways for the construction of a portion of a state highway. The defendant Western Surety Company was surety on the bond given by Anderson to the highway commissioner or department under the provisions of the state statute. Anderson had sublet a part of the work to Jake Phillips, doing business as Phillips Brothers. The intervener, Central West Casualty Company, is surety on the bond given by Phillips to Anderson to secure performance of the subcontract.

The claim sued upon is for repair parts and repair work on trucks used by Phillips in part performance of his subcontract. *469 Plaintiff recovered a verdict for $394.26 against the three appellants.

The only points argued in appellants’ brief are that the repairs in question were not such minor repairs as are covered by the surety bonds, but were replacements of substantial parts of the trucks used by Phillips, and so no recovery could be had against these appellants. There is some claim, not much argued, that the cost of hiring a repair man to put these repairs on the trucks and for doing other work to keep the trucks in running order is not recoverable.

The question of what repairs come within the coverage of these statutory surety bonds has been considered in several opinions of this court. It has been and is a troublesome question.

On the question of the cost of the services of a mechanic to repair the trucks and keep them in running order little need be said. He was an employe of Phillips on this particular job. Without his services there would be delay and difficulty in keeping the work going. His work was entirely confined to and used up on the job. He was as much a workman on the job as if he had been running a truck, shoveling earth or gravel, or doing any other Avork necessary in carrying out the contract. We see no ground for holding that his work does not come within the coverage of the bonds. Maryland Cas. Co. v. Ohio River Gravel Co. (C. C. A.) 20 F. (2d) 514.

As to the repair parts, the question is more difficult. The total of the cost of the parts required for these repairs was $177.98. The balance of the claim was for the work of the mechanic. This $177.96 was for 24 separate repair parts. The most expensive parts were five axle shafts costing $16.98 each. The next highest were two sliding shafts costing $14.85 each. There was a bumper costing $9.33. There Avere tAvo steering tubes costing $6.89 each. The other parts were 14 small items costing from a few dollars down to a few cents each. The evidence does not shoAV upon how many of the trucks these repair parts Avere used. There were apparently some 16 or more trucks in use. The repairman Carlson testified that he kept all the trucks except three in running order and repair.

*470 The statute which enters into and is a part of these surety bonds is broad in its terms. It provides that the bonds shall cover the liability of the contractor to “all persons doing work or furnishing skill, tools, machinery or materials or insurance premiums or equipment or supplies for any camp maintained for the feeding or keeping of men and animals engaged under, or for the purpose of, such contract, conditioned for the payment, as they become due, of all just claims for such work, tools, machinery, skill, materials, insurance premiums, equipment and supplies, for the completion of the contract in accordance with its terms.” L. 1931, c. 229, Mason Minn. St. 1934 Supp. § 9700.

Our own cases on the question of recovery for repairs to machinery and equipment do not lay down any definite rule as to what items are or are not covered by the contractor’s statutory bond. As said in Clifton v. Norden, 178 Minn. 288, 292, 226 N. W. 940, 941, 67 A. L. R. 1227:

“No formula will do away with a margin of uncertainty where the issue will be of fact.”

In Fay v. Bankers Surety Co. 125 Minn. 211, 146 N. W. 359, Ann. Cas. 1915C, 688, an action on the bond of a ditch contractor, it was held that recovery could be had for items of coal and wood used in generating power for the ditching machinery and for labor of a cook for the men. Recovery ivas denied for the cost of new axes and saw blades and for horse feed and provisions. The statute at that time did not provide any liability “for the feeding or keeping of men and animals” engaged in the work. In Rosman v. Bankers Surety Co. 126 Minn. 435, 148 N. W. 454, it ivas held that recovery could be had for cost of the labor in dismantling, moving, reassembling and putting into condition to operate a ditching machine, which the contractor owned and which was in condition to operate but Avas at a location some distance away at the time the contract Avas made, and so had to be taken apart, moved to the place where the work Avas to be done, and there reassembled and put in condition to operate. These cases throw some light on the question here presented. Concededly the purchase and furnishing *471 of tools and machinery for the work, as distinguished from repairs to machinery in use, does not create any liability under the bond of the contractor, under our decisions. We have next the case of Johnson v. Starrett, 127 Minn. 138, 149 N. W. 6, L. R. A. 1915B, 708. But that was an action to foreclose a mechanic’s lien, and the issue was whether certain items constituted liens against the property under the statute governing mechanics’ liens. The case is distinguished as not applicable to an action on a highway contractor’s bond in Miller v. American Bonding Co. 133 Minn. 336, 158 N. W. 432, 433. In the Miller case, the court gave full effect to § 4 of the original law exacting a bond from contractors on public works, although E. L. 1905 combined § § 1 and 4 of the original law, L. 1895, c. 354, in condensed form and left out some of the words used in c. 354, § 4. The court said [133 Minn. 340]:

“It seems quite clear that the law, as it existed just prior to the taking effect of Eevised Laws 1905, did not give a cause of action on the contractor’s bond for the purchase price of a tool or a machine sold to the contractor to be used in a public work or improvement. But it was given for the repair of a tool or machine, and for the value of the use in case the contractor rents it for the job. Where the work is of such character that the use of extensive and costly machines are required, it is reasonable to consider that the wear and tear of these machines is a necessary contribution to the work, or, in other words, the reasonable value of the use of the machines contributes as much to the construction in hand as does the reasonable value of the manual labor expended thereon. So also, in the performance of every improvement or work of any magnitude, the tools become dulled and out of repair, and the machines used thereon break or wear out parts; and, in order to proceed efficiently with the work, these matters must be attended to and require labor, skill and material.”

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Bluebook (online)
254 N.W. 580, 191 Minn. 467, 1934 Minn. LEXIS 803, Counsel Stack Legal Research, https://law.counselstack.com/opinion/general-motors-truck-co-v-phillips-minn-1934.