Humboldt County v. Ward Bros.

145 N.W. 49, 163 Iowa 510
CourtSupreme Court of Iowa
DecidedJanuary 27, 1914
StatusPublished
Cited by12 cases

This text of 145 N.W. 49 (Humboldt County v. Ward Bros.) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Humboldt County v. Ward Bros., 145 N.W. 49, 163 Iowa 510 (iowa 1914).

Opinion

Gaynor, J.

In April, 1905, the board of supervisors of Humboldt county established a drainage district, and ordered the construction of certain open ditches and tile drains in certain townships. The district as established was known as Drainage District No. 4. The contract for the construction of the ditch was let to the defendants Ward Bros, on the 10th day of June, 1905. The contract, so far as material to this controversy provides:

First. That Ward Bros, shall furnish all material and labor necessary to construct and fully complete the open ditch and tileworb, according to the maps, profiles, and specifications therefor.

Second. That they shall commence the work within a rea[514]*514sonable time alter the board of supervisors of the county procures the money with which to make the payments provided for in the contract, and have the work fully completed on or before December 1, 1906. It was, however, especially understood and agreed in the contract that Ward Bros, should have an extension of time in which to complete the v'ork equal to the time consumed by the board of supervisors in securing the money with which to make the payments therein provided; the extension to cover sufficient time during the working season.

Third. The contract further provided that, in consideration of the faithful performance of the covenants and agreements made by Ward Bros., the other party agrees to pay the following prices for open and tile drain, to wit:

Open ditch ..........................11‡ per cubic yard.

18" tile ...............................'...$8.75 per rod.

16" tile.................................. 6.75 “ “

12" tile .................................. 4.75 “ “

Payments to be made as follows: On the 1st day of each month during the progress of the work, the engineer in charge shall furnish the first party with an estimate, showing the value of all material and labor furnished by Ward Bros, during the preceding month, 80 per cent, of said estimate shall be due and payable at once, and the auditor of Humboldt county shall issue to the first party a warrant on the drainage fund of said county in payment thereof; said warrant to be issued not later than the 5th day of each month.

Fourth. Upon the completion of the work, the retained 20 per cent, shall become due and payable.

On the 6th day of July, 1906, Ward Bros., as principal, and the United States Fidelity Guaranty Company, of Baltimore, as surety, duly made and executed and delivered to said county, a bond in the penal sum of' $7,500, conditioned as follows: “The condition of the above obligation is such [515]*515that, if the said Ward Bros, shall wholly and truly perform all the terms and conditions of a certain contract, made and entered into on the 10th day of June, 1905, by and between themselves and Humboldt county, acting for drainage district No. 4, then this obligation is to be null and void; otherwise to remain in full force and effect.”

On September 6, 1906, the county received from the sale of bonds issued on said drainage district the sum of $19,000; that in addition to this sum, it had collected from landowners, on assessments made, the sum of $8,000; that $27,000 was in thb possession of the proper officers of the county for the use and benefit of the district on said date. In November, 1906, Ward Bros, commenced work on the improvement. The contract price of all the work required of Ward Bros, under the contract, amounted to approximately $26,967.05. During the progress of the work, estimates were made, as required by the contract, and 80 per cent, of the amount shown by each estimate was paid as therein required, except the sum of $222.45, which sum never appears to have been called for by Ward Bros. It appears that Ward Bros, had received in this way, prior to the institution of this suit, the sum of $16,525.17, which sum was either paid to Ward Bros, or to the receiver appointed by the court.

On or about the 19th day of October, 1908, the' defendant F. A. Littell was duly appointed by the district court of Audubon county, receiver for Ward Bros., and was by the court authorized and empowered to continue the business of Ward Bros., and directed to proceed to carry out and complete the various contracts, including the one in question, according to the terms and conditions thereof, and thereafter did continue to represent Ward Bros., under the direction of the court, in the matter now in question. In November, 1909, Ward Bros, had not completed the contract, and the work had not been accepted by the board of supervisors. Thereupon the board of supervisors served notice upon Ward Bros, and the receiver to terminate the contract, and brought suit [516]*516upon the bond November 10, 1909, which suit was afterwards dismissed. Thereafter, on the 6th day of April, 1911, this suit was commenced, in which it was claimed that there was a breach of the bond given by Ward Bros, in that they had failed to comply with the requirements of the contract, in that they had failed to complete it at the time specified in the contract, or within a reasonable time thereafter. It appears that after the forfeiture, the board of supervisors relet the work, and the same was constructed and completed under another contract, and this action is brought to recover the difference between what it would have cost the county had Ward Bros, completed the work according to the terms of their contract, and what it did actually cost to complete the work. The cause was tried in equity without a jury, and a judgment and decree entered for the plaintiff, and from this defendants all appeal.

As to the facts involved in this suit, the trial court made the following finding:

First. That the open ditch and tile drains were nots completed within the time mentioned in the contract. Second. That the work of construction was not pressed to completion, as provided in the contract, and that reasonable effort was not put forth by the contractors and the receiver to complete the work. Third. That the work was practically abandoned by the contractors, and no reasonable effort made to complete the system. Fourth. That there was no reasonable effort of the contractors and the receiver to respond to the demand of the board of supervisors that they hasten the completion of the contract. Fifth. That the open work and tile drains, so far as completed by the contractors and the receiver, were not done according to the contract and specifications, but that they failed so to do in divers particulars, to wit: (a) The ditch was not completed to the grade line as designated; (b) the ditch was not constructed with banks of the proper slope as contemplated by the contract; (c) the spoil or waste banks were not removed a sufficient distance from the ditch to leave a clear and unobstructed berm six feet in width, but, on the contrary, in many places the earth was [517]

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Bluebook (online)
145 N.W. 49, 163 Iowa 510, Counsel Stack Legal Research, https://law.counselstack.com/opinion/humboldt-county-v-ward-bros-iowa-1914.