Harper v. Home Indemnity Company

140 So. 2d 653
CourtLouisiana Court of Appeal
DecidedApril 4, 1962
Docket9688
StatusPublished
Cited by16 cases

This text of 140 So. 2d 653 (Harper v. Home Indemnity Company) 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
Harper v. Home Indemnity Company, 140 So. 2d 653 (La. Ct. App. 1962).

Opinion

140 So.2d 653 (1962)

J. A. HARPER, Plaintiff-Appellee,
v.
The HOME INDEMNITY COMPANY, Defendant-Appellant,
CONCRETE STRUCTURES, INC., Third-Party Defendant-Appellant.

No. 9688.

Court of Appeal of Louisiana, Second Circuit.

April 4, 1962.
Rehearings Denied May 9, 1962.

*655 Gist, Murchison & Gist, Alexandria, for Home Indemnity Co., defendant-appellant.

Stafford & Pitts, Alexandria, for Concrete Structures, Inc., third-party-defendant-appellant.

Thompson, Thompson & Sparks, Monroe, for appellee.

Before HARDY, GLADNEY and AYRES, JJ.

AYRES, Judge.

This is an action by plaintiff, J. A. Harper, a general contractor, against the defendant, The Home Indemnity Company, as surety upon a performance bond executed on behalf of Concrete Structures, Inc., a subcontractor, for reimbursement for loss and damages allegedly sustained by reason of the default, or failure, of the subcontractor to perform the work and render the services constituting the subject matter of a contract entered into by and between plaintiff and the subcontractor. At the instance of the defendant, the subcontractor, Concrete Structures, Inc., was made a third-party defendant against which the defendant sought judgment for such amount as it might be condemned to pay plaintiff. It was also stipulated that defendant recover judgment against the subcontractor, in any event, for the sum of $467.87 as attorney's fees and expenses incurred in the defense of this action.

The principal defense urged to plaintiff's action is twofold: (1) that the contract between Harper and Concrete Structures, Inc., had been dissolved by a resolutory condition, and (2) that the surety had been released from its obligation by extension of the term of the contract through a mutual agreement of the contractor and subcontractor without its knowledge or consent.

There was judgment below in favor of plaintiff against defendant surety for the sum of $2,163.00 with legal interest thereon from judicial demand until paid, together with 10% additional on principal and interest as attorney's fees. A judgment for an identical sum, together with the *656 aforesaid stipulated amount, was rendered in favor of the defendant against the third-party defendant.

The principal sum of the judgment represents the difference between the price for which the subcontractor had agreed to do the work and the amount plaintiff was compelled to pay to a new subcontractor for performance of the same work. Plaintiff's claim for the further sum of $2,606.37 as additional damages for loss and expenses allegedly occasioned by the failure of the subcontractor to perform its contract was rejected. From the judgment thus rendered, the defendant and third-party defendant appealed. Through an answer to this appeal, plaintiff prays that the judgment be amended to include the remainder of his claim.

A decisive issue presented for resolution is whether the contract between plaintiff and the subcontractor continued in effect after November 15, 1958, and until the latter was placed in default. This is largely a factual question, and must be determined by the language of the contract and of the documents referred to or made a part thereof.

The facts deemed material for a consideration of the questions thus presented for resolution may be briefly reviewed. Under date of October 31, 1957, a contract was entered into by and between the Department of Public Works of the State of Louisiana and plaintiff, J. A. Harper, whereby the latter agreed and bound himself, for a recited consideration, to furnish all labor, materials, and equipment, and to do and perform all work required for repairs to Allen Dam on Saline Bayou in Natchitoches and Winn Parishes, Louisiana, in conformity with designated plans and specifications and to the complete and entire satisfaction of the Department of Public Works.

Under date of September 15, 1958, Harper entered into a subcontract with Concrete Structures, Inc., wherein the latter agreed to do a certain specified portion of the work contracted by Harper from the Department of Public Works, described as the gunite repairs to the dam, defined as pneumatically-applied concrete. The execution of this contract was preceded by the issuance of a work order by the Department of Public Works, dated August 19, 1958. Defendant's bond was executed October 21, 1958.

At the time this subcontract was entered into and at the time of the issuance of the work order, or notice to proceed, the jobsite was still under water and continued to be so inundated or flooded due to exceedingly heavy rainfall and flood waters until August, 1959. During this period, the work order was held in suspension by the Department of Public Works, and commencement of the work was prohibited by the Department pursuant to provisions of its contract with Harper.

In support of their contention that the subcontract had terminated by a resolutory condition, defendants rely upon this provision of the subcontract:

"The Subcontractor agrees that the work under this contract is to be begun and provided for immediately, and carried on promptly; and the Subcontractor agrees to complete the work covered by his contract in such time and in such manner that the Contractor may complete all of the work included in its contract with the Owner on or before 15th day of November, 1958. * * *." (Emphasis supplied.)

It is noted that no provision was made in the subcontract for payment of liquidated damages for failure to complete said work in accordance with the aforesaid provision of the contract.

For a continuance of the contract in effect beyond the date specified, as aforesaid, plaintiff relies upon the principal contract between him and the Department of Public Works, which contract, he contends, by the language employed in the subcontract, was effectively made a part of the *657 subcontract. It may, therefore, be pointed out that Article II of the subcontract contains this provision:

"The Subcontractor agrees to be bound to the Contractor by the terms of the Agreement, Surety Bond, General Conditions, Drawings and Specifications for the entire work (which he has examined and read) insofar as they relate in any part or in any way to the work undertaken herein, and to assume towards the Contractor, in connection with the work covered by this contract, all of the obligations and responsibilities which the Contractor by those documents assumes towards the Owners or anyone else. The Subcontractor further agrees not to sublet, assign or transfer this contract or any part thereof without the written consent of the Contractor."

The defendants also rely upon Article XVII of the subcontract for support of their position that the subcontract as written constituted the entire contract. This provision, rather than supporting defendants' position, supports the contention of plaintiff. It reads:

"It is distinctly understood and agreed that there are no agreements or promises made that are not covered by this contract and that this written contract, together with the documents referred to herein, covers all matters pertaining to this particular work." (Emphasis supplied.)

Thus, we conclude that all the provisions of the initial contract have been incorporated into and form a part and portion of the subcontract just as effectively as if fully written and incorporated therein.

Reference may now be made to pertinent provisions of the general contract or of the plans and specifications. The contract contains this provision:

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Bluebook (online)
140 So. 2d 653, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harper-v-home-indemnity-company-lactapp-1962.