H. H. Robertson Co. v. Globe Indemnity Co.

77 Pa. Super. 422, 1921 Pa. Super. LEXIS 285
CourtSuperior Court of Pennsylvania
DecidedOctober 17, 1921
DocketAppeals, Nos. 157 and 158
StatusPublished
Cited by17 cases

This text of 77 Pa. Super. 422 (H. H. Robertson Co. v. Globe Indemnity Co.) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
H. H. Robertson Co. v. Globe Indemnity Co., 77 Pa. Super. 422, 1921 Pa. Super. LEXIS 285 (Pa. Ct. App. 1921).

Opinion

Opinion by

Keller, J.,

By the terms of the case stated it appears that Federal Construction Company secured a contract from the commissioners of Washington County for the improvement of a county road to be constructed under the provisions of the Act of May 11, 1911, P. L. 244, and gave bond with Globe Indemnity Company, as surety, in the sum of $28,067.50, for the faithful performance thereof, as provided by section 12 of that act. The bond was drawn in favor of the “Commonwealth of Pennsylvania, for the use of the County of Washington and any other corporation or person interested”; it was conditioned not only for the faithful performance of the said contract by the contractor and that it save harmless the County of Washington from any liability for payment of wages due or material furnished said contractor, but also that the said contractor “shall well and truly pay all and every person furnishing material or performing labor in and about the construction of said roadway, all and every sum or sums of money due him, them or any of them, for such labor and materials for which the contractor is liable.” The plaintiff, H. H. Robertson Company, furnished the contractor material of the value of $1,000, of which $500 worth was used in and about the construction of said road, and the remainder was not so used because by the negligence of the contractor it had become unfit for use and was condemned. In accordance with the terms of the case stated, the court below entered judgment in favor of the plaintiff, H. H. Robertson Company, and against the surety on the bond, Globe Indemnity Company, for $500 and interest, covering the amount of material furnished and actually used in and about the construction of the road, and refused to enter judgment for the rest of the material furnished but not so used. Both parties have appealed.

I. APPEAL OP GLOBE INDEMNITY COMPANY.

Taking up the appeal of the surety company first, we are all of the opinion that it is without merit.

[425]*425The surety company invokes the principle laid down in Blymire v. Boistle, 6 Watts 182, and Adams v. Kuehn, 119 Pa. 76, and denies liability to the plaintiff under the bond, because, as is alleged, it is a stranger to the contract; and in support of its position it cites the very recent cases of First Methodist Episcopal Church v. Isenberg, 246 Pa. 221, and Board of Education v. Massachusetts Bonding and Insurance Company, 252 Pa. 505, which were decided in conformity with that well established principle. But it apparently overlooks that in both these cases the obligee in the bond was the owner for whom the building was béing erected by the obligor contractor, and while the bond was conditioned inter alia for the payment of the labor and materials used in and about said building, nevertheless the owner was by the very terms of the bond the only party interested, and it was on his account alone that the clause relating to the payment of labor and materials was inserted and he could waive it if he saw fit; in any event, the subcontractors were strangers to the contract and could not enforce the provisions of the bond. But here, by its very terms, those furnishing labor and materials used in the work are made parties to the bond; for the obligee in the bond is the Commonwealth of Pennsylvania, for the use of the County of Washington and any other corporation or person interested, and therefore the bond is not for the sole protection of the County of Washington, but also inures to the benefit of any corporation or person furnishing labor or materials in and about the construction of the roadway, which he may do relying on the condition of the bond providing for their payment.

This case may likewise be distinguished from the Frescoln cases (192 Pa. 452, and 203 Pa. 640), in that the sole obligee in that bond was the City of Lancaster,— the contractor not having complied with the provisions of the ordinance requiring a separate bond for the protection of laborers and materialmen — and the contractor’s liability on said bond had been finally adjudi[426]*426eated and determined prior to the suit by the material-men, in an action between the city, the sole obligee in the bond, and the contractor; and from the case of Commonwealth to use v. Empire State Surety Company, 50 Pa. Superior Ct. 404, in that the bond sued on in that case was contrary to the form specifically directed by statute, whereas here no statutory form was prescribed.

It has been held in a number of cases, such as Philadelphia to use v. Stewart, 195 Pa. 309; Philadelphia to use v. Neill, 211 Pa. 353; Philadelphia to use v. Nichols, 214 Pa. 265, that “a city has a right to require a municipal contractor to file a bond conditioned to secure the payment of all money which may become due for labor and materials furnished and supplied or performed in or about the work for which the contract was made; there is nothing ultra vires or contrary to public policy in such a condition; and suit may be brought on the bond to the use of the persons for whose security it was given, although nothing may be actually due to the city.” The same reasons which authorize such action by a city are sufficient to justify a similar course by a county, where the legislature has not prescribed otherwise; and the county may protect the corporations and persons furnishing labor and material to its work either by requiring a separate bond, as was done in the Philadelphia cases cited, or by making them use parties to its own bond and sharing with them its protection and benefit, as was done here.

The facts warranting suit and recovery by the material-men under this bond are stronger than those in Commonwealth to use v. National Surety Company, 253 Pa. 5, and H. H. Robertson Company v. Globe Indemnity Company, 268 Pa. 309, where recovery was permitted on similarly conditioned bonds, although the obligation was not drawn specifically for the use of “any other corporation or person interested,” because the clear legislative purpose as expressed in the act requiring the bond was the protection of persons furnishing material or per[427]*427forming labor in and about tbe construction of the highway, no less than the completion of the improvement according to specifications.

II. APPEAL OE H. H. ROBERTSON COMPANY.

Coming then to the appeal of the plaintiff, we are of opinion that the court below was right in refusing to enter judgment against the surety for the value of materials which were condemned and did not enter into the construction of the road, even though such condemnation was due to the negligence of the contractor.

It has been ruled in a number of decisions in this state that a bond conditioned for the payment of materials furnished in and about the construction of public work of this character covers only such materials as “enter into or become a part of the visible work which was directed to be done”: Phila. to use v. Malone, 214 Pa. 90, p. 97; or as stated in United States to use v. American Surety Company (No. 2), 21 Pa. Superior Ct. 159, p. 160: “The right of the private individual to recover against the surety is confined to claims for labor and materials which go into the public work.” Hence there could be no recovery under such a bond for grain and feed furnished for the contractor’s stock: Lancaster v. Frescoln, 203 Pa. 640, p. 642; nor for coal furnished to run a steam shovel: Phila. to use v. Malone, supra; nor for machinery, tools, appliances or fuel used in the work: Com. to use v. Empire State Surety Company, 50 Pa. Superior Ct.

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Bluebook (online)
77 Pa. Super. 422, 1921 Pa. Super. LEXIS 285, Counsel Stack Legal Research, https://law.counselstack.com/opinion/h-h-robertson-co-v-globe-indemnity-co-pasuperct-1921.