George H. Sampson Co. v. Commonwealth

88 N.E. 911, 202 Mass. 326, 1909 Mass. LEXIS 852
Massachusetts Supreme Judicial Court·Decided May 22, 1909·Published·Cited by 45 cases

Opinion

Knowlton, C. J.

The first of these suits is brought against the firm of Shanahan, Casparis and Company, the Commonwealth of Massachusetts and the United States Fidelity and Guaranty Company, to recover for materials furnished to the above mentioned firm in the construction of parts of an aqueduct for the supply of the city of Boston and its suburbs with water, which parts of the aqueduct the firm agreed to build under contracts entered into with the metropolitan water and sewerage board, under the provisions of the St. 1901, c. 168. The Pub. Sts. c. 16, § 64, which were in force when these contracts were made, required the officers or agents contracting in behalf of the Commonwealth for the construction or repair of public buildings or other public works, upon which liens might attach for labor or materials as against private owners, to “obtain sufficient security, by bond or otherwise, for payment by the contractor and by all sub-contractors for all labor performed or furnished and for all materials used in such construction or repair.” Bonds were given to the Commonwealth by this firm, to secure the proper performance of these contracts and also payment for all labor performed or furnished and for all materials used in the carrying out of the contracts, which several bonds the United States Fidelity and Guaranty Company executed as a surety. The plaintiff furnished á large amount of gunpowder, which was used in the prosecution of the work, in excavating the rock by blasting for the trench, as required by the contracts. The greater part of this material so excavated was used in the construction of the aqueduct. The plaintiff seeks, by this suit, to obtain an enforcement of the liability of the surety on the bonds for the payment of the debt.

[332] The first question is whether a remedy can be given by the court upon such a bond. The decision in Nash v. Commonwealth, 174 Mass. 335, goes far towards answering this question. See also Kennedy v. Commonwealth, 182 Mass. 480. Burr v. Massachusetts School for Feeble-Minded, 197 Mass. 357. The only difference between that case and the present one, in this particular, is that the payment in that case was enforced against the money due from the Commonwealth upon the contract. It was held that the various sections of c. 195 of the Public Statutes, taken in connection with the broad and comprehensive language of the St. 1887, c. 246, subject the Commonwealth to proceedings in its own courts, “ for the determination of claims of the character which civilized governments have always recognized,” even though satisfaction of them has usually been obtained only by a direct appeal to the sovereign, or, in our form of government, to the Legislature. See Murdoch Parlor Grate Co. v. Commonwealth, 152 Mass. 28, 31. In the same decision it was held that the statute makes the Commonwealth a trustee for persons-having claims for labor and materials, and that this trust may be enforced by a court upon the fund due from the Commonwealth under the original contract.

The reasoning on which the decision rests is equally applicable to the enforcement of the security furnished by a bond. By the terms of the statute, this security is for the benefit of those having claims for labor and materials. The statute implies the existence of a right, on the part of these persons, to an enforcement of the bond to obtain payment for their debts. No mode of enforcement is prescribed. The courts are left to take proper action upon the application of those seeking relief. A petition in equity, like that in Nash v. Commonwealth, ubi supra, in which orders and decrees can be made, protecting the rights of all parties, is a proper proceeding in a case like the present. In many cases of this kind there would be numerous persons entitled to share in the security, some of whom might not be known when the suit was brought, and a proceeding in equity would be the only adequate mode of adjusting the rights of the parties. Statutory rights of beneficiaries, under contracts to which they are not direct parties, have often been recognized and enforced by the courts. Harris v. First Parish in Dor[333] Chester, 23 Pick. 112, 114. Stephenson v. Monmouth Mining Co. 54 C. C. A. 499; 84 Fed. Rep. 114. See also Ward v. Lewis, 4 Pick. 518 ; New England Bank v. Lewis, 8 Pick. 113; Frost v. Gage, 1 Allen, 262; Andrews v. Tuttle-Smith Co. 191 Mass. 461. Poland v. Beal, 192 Mass. 559. Burlew v. Hillman, 1 C. E. Green, 23, 25. The present case differs materially from those in which it is held that, ordinarily, an action at law cannot be maintained in his own name by one who is not a party to a contract given to another person for his benefit. The right to compel the surety upon the bonds to make payment for the benefit of this plaintiff may well be enforced in this suit. ■

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George H. Sampson Co. v. Commonwealth, 88 N.E. 911, 202 Mass. 326, 1909 Mass. LEXIS 852 (Mass. 1909).

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