Hancock v. Oliver

154 So. 571, 228 Ala. 548, 1934 Ala. LEXIS 50
CourtSupreme Court of Alabama
DecidedMay 10, 1934
Docket1 Div. 808.
StatusPublished
Cited by3 cases

This text of 154 So. 571 (Hancock v. Oliver) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hancock v. Oliver, 154 So. 571, 228 Ala. 548, 1934 Ala. LEXIS 50 (Ala. 1934).

Opinion

GARDNER, Justice.

The suit is for the recovery of damages for breach of contract for the construction of a bridge at I-Ierron Bay Marsh, Mobile county. The cause was tried before the court without a jury, and judgment rendered for plaintiffs, from which defendants prosecute this appeal.

Plaintiffs compose the firm of Bay Construction Company, and defendants that of Hancock Company, and will be hereinafter so designated.

The Hancock Company had been awarded the contract for certain road construction work known as county improvement No. 23-A and B, Cedar Point road extension, involving many plans and specifications and a considerable sum of money. These plans called for the construction of a bridge at Heriion Bay Marsh, of a more or less temporary character. The construction of this bridge was sublet to Bay Construction Company by Hancock Company for the sum of $3,850, under contract of November 24, 1930, duly executed by the parties. The Hancock Company, however, subsequently let another build the bridge, and hence this suit for breach of contract.

For defense of the suit, the Hancock Company rested in the main upon the theory that plaintiffs were required under their contract to execute a bond as a condition precedent to the effectuation of the contract, and, as no bond had been executed, there was in fact no contract. In support of this theory of the case, counsel cite, among other authorities, Metropolitan Life Ins. Co. v. Goodman, 10 Ala. App. 446, 65 So. 449; Redman v. AEtna Ins. Co., 49 Wis. 431, 4 N. W. 591; Floyd v. Pugh, 201 Ala. 29, 77 So. 323; Hogan v. Shields, 20 Mont. 438, 52 P. 55; Symms-Powers Co. v. Kennedy, 33 S. D. 355, 146 N. W. 570; Flynn v. Dougherty, 3 Cal. Unrep. 412, 26 P. 831, each of which has been carefully considered.

But we are not persuaded this theory can be sustained under the contract here involved. Among other stipulations of the contract between these parties, and along with that for workmen’s compensation insurance, is a provision for the execution of a bond “for the faithful performance of said contract in an amount equal to the contract price.” What is a condition precedent depends, not upon technical words, but upon the plain intent of the parties. Floyd v. Pugh, supra; 12 C. J. 408. There is nothing in the language of this contract indicating any intention of the parties that the contract, which was duly signed by the parties, should not become effective as such until the bond was made, but the *551 stipulation was merely one for the better protection of the Hancock Company, and rises xto no higher dignity than the provision immediately following for the procuring of workmen’s compensation insurance, also intended for Hancock Company’s better protection. Immediately following this paragraph of the contract is the provision for payment of the contract price “when and as the party of the first part is paid for said work by the Board of Revenue and Road Commissioners of Mobile Cbunty, Alabama,” and the party of the second part agreed to complete the work “within two months from the time when said party of the second part shall be ordered by the party of the first part to start said work.”

Undisputedly there was no demand or order to start the work on the bridge, though clearly the language of the contract contemplated that the Bay Construction Company should begin work only at a time designated by the Hancock Company. The contract of Hancock Company with Mobile county discloses that the work on this project was not to begin until the approval qf the sale of the bonds, and the proof shows there was considerable delay on this account, and that in fact this temporary bridge was not completed until more than a year after the execution of the contract, the breach of which is the foundation of this suit.

It was not intended by the parties that during this waiting period the Bay Construction Company must incur the expense of a bond, though the work was not ready to be begun and no notice to begin the work had been given. Upon notice to begin the work, defendants could of right demand the bond, and a failure or refusal on plaintiffs’ part would constitute just cause for a rescission of the contract. But to demand a bond 'before the time for the work to begin or before any notice to that effect, would be premature and ineffective so far as the rights of the parties to the contract were concerned. The provision for the execution of a bond in the contract here considered cannot be construed as a condition precedent to the effectiveness of the contract. National Surety Co. v. City of Huntsville, 192 Ala. 82, 68 So. 373; 12 C. J. 408; Underhill v. Saratoga & W. R. Co., 20 Barb. (N. X.) 455.

The contract here in question makes reference to the contract existing between the Hancock Company and Mobile County, plaintiffs agreeing to construct the bridge according to the specifications outlined therein, and this latter contract is made a part thereof. It is clear the reference to the Mobile county contract with Hancock Company was for a limited purpose only, that is, as to the construction of the bridge which was sublet to the Bay Construction Company, and that contract therefore became a part of this for such limited purpose only. 13 C. J. 530. The Mobile county contract with Hancock Company involved large expenditures for road construction, with which this contract was not at all concerned, and the construction of this 'bridge formed but a minor part of the whole project. The bond required of the Hancock Company under the contract with the county was $160,000, and it was provided, among the specifications and proposals therefor, that a “failure to execute a contract and file an acceptable 'bond as provided herein within fifteen days from date of award shall be just cause for the annulment of the award.”

The contract between plaintiffs and defend ants contains no such stipulations, and it needs no argument to demonstrate that the reference in this contract to that of Hancock Company and Mobile county was limited to that part bearing upon the bridge construction, and did not embrace the above-noted stipulation as to the execution of a bond, which matter was otherwise treated in this particular contract. The reference therefore to the Mobile county contract was for a limited purpose only, and bore no relation to the matter of the bond.

But we forego further discussion. We are at the conclusion that no duty rested upon plaintiffs to execute a bond until notified when to begin work, and, no notice being given, there was no default on their part in that regard. 13 C. J. 567.

It may be further observed, however, that the contract provided that, if plaintiffs failed or refused to do the work as agreed, defendants might do so upon giving five days’ written notice.

It is without dispute defendants had the bridge constructed by some one else without notice to plaintiffs, and no notice as above provided was ever given. Hancock, testifying for defendants, does say he requested a bond, and Oliver, for plaintiffs, says it was understood with Hancock no bond was to be executed until notified when the work was to begin. We have disclosed our view that this latter testimony is in accord with the true meaning of the contract. And, as it is not contended by defendants any notice to begin work was ever given, the conflict in the testimony, as above noted, presents no matter of importance upon the result.

*552 N. P.

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

Related

Gertz v. Allen
376 So. 2d 695 (Supreme Court of Alabama, 1979)
Beasley v. Beasley
57 So. 2d 69 (Supreme Court of Alabama, 1952)
City of Birmingham v. I. E. Morris & Associates
54 So. 2d 555 (Supreme Court of Alabama, 1951)

Cite This Page — Counsel Stack

Bluebook (online)
154 So. 571, 228 Ala. 548, 1934 Ala. LEXIS 50, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hancock-v-oliver-ala-1934.