Hargroder v. Trinity Universal Insurance

205 So. 2d 133, 1967 La. App. LEXIS 4749
CourtLouisiana Court of Appeal
DecidedNovember 13, 1967
DocketNo. 7134
StatusPublished
Cited by2 cases

This text of 205 So. 2d 133 (Hargroder v. Trinity Universal Insurance) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hargroder v. Trinity Universal Insurance, 205 So. 2d 133, 1967 La. App. LEXIS 4749 (La. Ct. App. 1967).

Opinion

LANDRY, Judge.

Plaintiff, J. Y. Hargroder d/b/a H and H Sand and Gravel Company (H & H), brings this action ex contractu to recover money due pursuant to a subcontract for dirt hauling entered into with defendant DeWitt and Guy, Inc. (D & G), which said corporation was in turn the subcontractor of Delta Paving Company (Delta), prime contractor under an agreement with the Department of Highways, State of Louisiana (Department) to construct a segment of highway known as Port Allen-Plaquemine Highway situated in West Baton Rouge and Iberville Parishes. Named defendants herein are Trinity Universal Insurance Company (Trinity), surety on the bond of D & G in favor of the prime contractor, Delta, and United States Fidelity and Guaranty Co. (U S F & G), surety on Delta’s bond as prime contractor in favor of the Department. From a judgment in favor of plaintiff and its assignee, Louisiana National Bank (Bank), against Trinity and U S F & G, [135]*135said defendants have appealed. We find that the trial court has correctly resolved all issues presented for determination and accordingly affirm his decision.

Narration of some pertinent background information is necessary to an understanding of the questions presented on this appeal.

It is undisputed that H & H desired to obtain a subcontract to perform the fill (dirt hauling) included in the above mentioned highway construction project. Being unable to furnish the performance bond required of subcontractors, H & H prevailed upon D & G, which latter concern was not engaged in the business of hauling dirt, to secure a subcontract from Delta for this work. In turn D & G farmed out the dirt hauling to H & H on August 9, 1960. The performance bond required of D & G was executed in Delta’s behalf by Trinity as surety. The subcontract between H & H and D & G provides an override of 4‡ per cubic yard on all dirt hauled by H & H.

From the date of the contract until November 2, 1961, H & H hauled a large quantity of fill for which payment was periodically made by Delta to D & G at the price stipulated in the initial subcontract. From the amounts thus received, D & G deducted its override and paid the balance to H & H. It is conceded by all concerned that as of November 2, 1961, H & H discontinued all work on the proj ect and thereafter hauled no dirt whatsoever. Whereas numerous complaints were made by Delta to D & G concerning the failure of H & H to furnish adequate trucks to enable the job to proceed at the contract specified pace, it is acknowledged that H & H was never placed in default by either Delta or D & G. It is further admitted that commencing September 6, 1961, D & G, upon insistence of Delta, engaged other trucks to haul simultaneously with H & H which dual operation continued until H & H ceased operation on November 2, 1961, on which date all dirt hauling on the project was substantially completed.

For various reasons unnecessary to mention here, both H & H and D & G became financially involved during the course of their relationship. H & H became delinquent in the payment of bills for fuel and other expenses incident to the operation of its trucks. Before trial D & G was in bankruptcy. These unanticipated occurrences resulted in the filing of three suits, two of which were by suppliers of fuel and material to both H & H as well as the trucking concern engaged by D & G to assist H & H in performing the contract. All matters in the remaining two suits were compromised and settled leaving only the claim of H & H which is presently before the court.

Plaintiff’s petition alleges the hauling of a large quantity of dirt for which payment has not been made by either D & G or Delta. Although defendants concede H & H hauled considerable dirt for which it received no payment, nevertheless respondents contend plaintiff is not entitled to any payment therefor because plaintiff allegedly breached the contract by failing to provide adequate trucks to diligently prosecute the work thus forcing D & G to complete the project.

On this basis defendants contend plaintiff is in violation of the following contract provisions: Article II which obligates H & H to furnish at its expense all labor, materials, tools, machinery and supervision to complete the work; Article IV, pursuant to which plaintiff assumes all liability for performance of the work undertaken; Article IX, in which plaintiff acknowledges his possession of equipment sufficient to meet the performance time stipulated in the prime contract and agrees to reimburse Delta for any loss occasioned under said provision due to plaintiff’s failure to timely complete the dirt hauling; Article XVI, which stipulates in effect that if H & H failed its obligations or made a general assignment for benefit of creditors, then D & G, upon three days written notice, could take over the work and complete the project at plaintiff’s expense, and Paragraph 7 of an addenda authorizing [136]*136D & G to use its own or engage other trucks for hauling in the event H & H failed to furnish sufficient employees and trucks suitable for the work as determined by D & G.

Alternatively, defendants stipulate that if any amount is due H & H herein, the sum of $17,877.15 awarded by the trial court is correct, but that the trial court erred in failing to allow certain offsets against said sum as hereinafter noted.

We first consider defendants’ contention plaintiff is not entitled to any award whatsoever for alleged breach of contract. Although the agreement obligates plaintiff to provide adequate equipment and timely perform as suggested by defendants, it is acknowledged by defendants that plaintiff was never put in default. Moreover, as we read the contract, Article XVI and addenda Paragraph 7 clearly vest D & G with the option, in the event of plaintiff’s noncompliance, to either take over the work completely on three day written notice to plaintiff, oust plaintiff from the project and complete the job at plaintiff’s expense, or use its own or hired trucks when deemed necessary. While defendants complain bitterly that the trial court erroneously interpreted the contract, the evidence established beyond doubt that D & G elected to exercise that provision of the agreement giving it the privilege of engaging other trucks. Having opted to exercise this privilege, D & G may not be heard to complain of plaintiff’s alleged failure to perform. It is not entitled to a dual remedy. The amount awarded plaintiff below does not include payment for any fill hauled by anyone other than plaintiff. It further appears the sum paid by D & G to the other haulers engaged would have been due plaintiff had plaintiff performed this work. We conclude therefore the trial court properly held H & H entitled to payment of the sum awarded.

Appellants alternatively claim offsets against the judgment in plaintiff’s favor in the following amounts: (1) $4,487.26 expended for supervisory labor to oversee the hauling done by D & G; (2) $538.47 as employer’s contribution to social security taxes paid on supervisory labor; (3) $450.00 rental for pickup truck needed by supervisory personnel employed by D & G; (4) court costs expended in defense of the two other suits which were compromised, and (5) legal fees accrued and to be incurred in the sum of $5,040.75 in defense of this present action and the two companion suits previously settled.

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Related

Morein v. GJ Deville Lumber Co.
215 So. 2d 208 (Louisiana Court of Appeal, 1968)
Hargroder v. Trinity Universal Insurance Co.
206 So. 2d 95 (Supreme Court of Louisiana, 1968)

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Bluebook (online)
205 So. 2d 133, 1967 La. App. LEXIS 4749, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hargroder-v-trinity-universal-insurance-lactapp-1967.