Hardware Dealers Mutual Insurance v. R. H. Hidey, Inc.

84 N.W.2d 795, 349 Mich. 490
CourtMichigan Supreme Court
DecidedSeptember 4, 1957
DocketDocket 7, Calendar 46,685
StatusPublished
Cited by20 cases

This text of 84 N.W.2d 795 (Hardware Dealers Mutual Insurance v. R. H. Hidey, Inc.) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hardware Dealers Mutual Insurance v. R. H. Hidey, Inc., 84 N.W.2d 795, 349 Mich. 490 (Mich. 1957).

Opinions

Edwards, J.

(dissenting). At issue in the pages which follow is a long debated procedural reform. To replace multiple pleadings and. multiple trials, the bar has long advocated liberal joinder rules where the causes of action possessed by a number of plaintiffs (as here) arose out of the same occurrence or occurrences and the defendant or defendants were the same. The Federal courts followed English precedent and pioneered with signal success in this field and with the overwhelming approval of the bar. This opinion suggests that Michigan follow the example set (which in nowise controls us) by reasonable interpretation of the statute on join-der obviously passed by the Michigan legislature with the view of accomplishing the same objective of “the convenient administration of justice.”

The defendant the R. H. Hidey, Inc., was the successful bidder and entered into a contract with the city of Detroit for the construction of the Blue Hill pumping station for Detroit’s storm-sewer system. One of the requirements for bidders on this job was [494]*494the filing of a performance bond, and the defendant United States Fidelity & Guaranty Company executed the bond in this instance as follows:

“Performance Bond
“Know all men by these presents, that we R. H. Hidey, Inc., 260 Manchester ave., Detroit 3, Michigan, hereinafter called the principal, and United States Fidelity & Guaranty a corporation, organized and existing under the laws of the State of Maryland, and duly authorized to transact business in the State of Michigan, surety, hereinafter called ‘surety,’ are held and firmly bound unto the city of Detroit, a municipal corporation, through the dept, of public works as obligee, and hereinafter called ‘obligee,’ in the sum of $930,000 to be paid to the said obligee, to which payment well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.
“Sealed with our seals, and dated this 8th day of July, A. D. 1947.
“The condition of this obligation is such that, Whereas, the above principal has entered into a contract, Contract No PW169B, with said obligee, dated the 30 day of June, 1947, for construction of Blue Hill pumping station, which contract is herein referred to and made a part hereof as fully and to the same extent as if the same were entirely written herein, and
“Whereas, it was one of the conditions of the award of the said obligee, pursuant to which said contract was entered into, that these presents should be executed.
“And the said surety, for value received, hereby stipulates and agrees that no change, extension of time for the performance of the contract, alteration or addition to the terms of the contract or to the work to be performed thereunder or the specifications accompanying the same, or any other forbear-[495]*495anee on the part of either obligee or the principal shall in anywise affect its obligations on this -bond, and it does hereby waive notice of any such change, extension of time for the performance of the contract, alteration or addition to the terms of the contract, or to the work or to the specifications or any other forbearance on the part of either the obligee or principal.
“Now, therefore, if the above principal shall in all respects comply with the terms and conditions of said contract, and his (their or its) obligations thereunder, including the specifications therein referred to and made a part thereof, and such alteration as may be made in such specifications, as herein and therein provided for,- then this obligation is void, or otherwise to remain in full force, effect, and virtue.
“R. H. Hidey, Inc. (Principal)
“By: /s/ R. H. Hidey, Pres. (Title) (Seal)
“United States Fidelity & (Surety) Guaranty
“By James Fenwick, Its Atty. in fact
(Title)
“Signed, sealed and delivered in the presence of:
“/s/ B. H. Axtall (Seal)”

As indicated above, by this bond United States. Fidelity & Guaranty undertook to guarantee Hidey’s performance under its contract and the bond itself adopted the provisions of the contract.

One of the provisions of the Hidey-City of Detroit contract guaranteed to the city of Detroit that the contractor would hold the city of Detroit harmless from any claims arising out of damages to abutting property owners to this work:

[496]*496“The contractor shall continuously maintain adequate protection of all his work from damage and shall protect all city property and private abutting property from injury or loss arising in connection with this contract. He shall without delay make good any such damage, injury or loss, and shall defend and save the city harmless from all such damages or injuries occurring because of his work.”

According to plaintiffs’ pleadings, during the course of the execution' of this contract various claims arose from abutting property owners alleging damage to their houses occasioned by caisson blasting operations. In all except 1 instance these claims were the subject of payments by insurance companies which paid the property owners’ damage and became the property owners’ subrogees in this suit. In 1 instance a property owner (Michael) is suing for his own uninsured damage.

In the instant suit plaintiffs seek jointly to sue the general contractor and the United States Fidelity & Guaranty Company on the claims listed above. The suit is filed in assumpsit, plaintiffs claiming that they are third-party beneficiaries under the contract clause quoted. United States Fidelity & Guaranty filed a motion to dismiss as to themselves only on 2 counts:

“1. That the causes of action asserted by the several plaintiffs herein are not joint, therefore, the causes of action and parties plaintiff are not properly joined in 1 action.
' “2. That the declaration does not state a cause of action against defendant United States Fidelity & Guaranty Company by reason of the provisions of * * * (CL 1948, §§ 691.541-691.545 [Stat Ann 1953 Rev §§ 26.1231-26.1235]).”

Thus said defendant claims misjoinder of the parties' plaintiff; and, second, claims that no cause of action is stated by plaintiffs as to the United States [497]*497Fidelity & Guaranty Company under the third-party beneficiary statute.

On hearing of this motion before Wayne Circuit Judge George B. Murphy, United States Fidelity & Guaranty Company’s motion to dismiss as to itself only was granted without any reasons being assigned by the trial judge, and plaintiffs have taken an appeal.

In this appeal where no tidal has been had we, of course, assume as true all well-pleaded facts in plaintiffs’ declaration. Gilmer v. Miller, 319 Mich 136; Doyle v. Kammeraad, 310 Mich 233; American State Bank of Detroit v. Aaron, 271 Mich 147 (100 ALR 1266).

We will discuss first the second of the issues listed.

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Hardware Dealers Mutual Insurance v. R. H. Hidey, Inc.
84 N.W.2d 795 (Michigan Supreme Court, 1957)

Cite This Page — Counsel Stack

Bluebook (online)
84 N.W.2d 795, 349 Mich. 490, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hardware-dealers-mutual-insurance-v-r-h-hidey-inc-mich-1957.