J. F. Anderson Lumber Co. v. National Surety Co.

207 N.W. 53, 49 S.D. 235, 1926 S.D. LEXIS 9
CourtSouth Dakota Supreme Court
DecidedJanuary 23, 1926
DocketFile No. 5437
StatusPublished
Cited by21 cases

This text of 207 N.W. 53 (J. F. Anderson Lumber Co. v. National Surety Co.) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
J. F. Anderson Lumber Co. v. National Surety Co., 207 N.W. 53, 49 S.D. 235, 1926 S.D. LEXIS 9 (S.D. 1926).

Opinion

CAMPBELL, J.

In May, 1921, the Northwestern Bridge & Iron Company, of Milwaukee, Wis., a corporation, hereinafter spoken of as the contractor, having submitted to- the state highway commission of South Dakota its bid and proposal therefor, was awarded a contract for. the construction of a steel bridge over the Cheyenne river on a portion of a state trunk highway in this state. The contract so awarded was executed by the contractor and by the state of South Dakota, by its highway commission, and provided in substance as follows:

“Witnesseth, that the said contractor has agreed, and by these presents. does agree, for and in consideration of the covenants herein contained and payments to be made as 'hereinafter provided, to furnish all materials, appliances, tools, and labor of every kind, and to construct in- the most substantial and workmanlike manner, and in accordance with the plans and specifications therefor, the various items of work awarded the said contractor on the 14th day of May 1921, and located on a portion of a state trunk highway in Haakon and Ziebach counties, South: Dakota, known as. the Ft. Plerre-Midland-Eagle Butte road, beginning on the north bank of the Cheyenne river, section 32 — 9—24, and ending on the south bank of the Cheyenne river, section 32 — 9—24. The following is a description and location of the work: Seven (7) one hundred and fifty (150) feet riveted steel spans on concrete piers and abutments to be constructed over the Cheyenne river, 22 miles south of Eagle Butte, in section 32 — 9—24, Haakon and Ziebach counties, South Dakota.
“The said work shall be performed in accordance with the true intent and meaning of the plans and specifications therefor, including the special provisions, which plans and specifications, including the special provisions, are hereby referred to and made an essential part of this contract as fully and to the same effect as if the same had been set forth and shown at length in the body of this contract. The party of the first part, however, reserves the right to- make such alterations, additions, or deductions as are [238]*238in said specifications provided for, and this contract shall in no way be invalidated thereby.
“It is mutually agreed, by and between the parties to this contract, that the notice to contractors, the foregoing proposal, and the contract bond shall be bound herewith and-are hereby made a part of this contract.
“The said contractor further agrees to pay all just claims for materials, supplies, tools, appliances, and labor, and all other just claims incurred by him or any of his subcontractors in carrying out the provisions of this contract, and1 further agrees that the contract bond shall be held to cover all such claims.
“It is further understood and agreed, by and' between the parties to this contract, that the work embraced under this contract shall be completed on or before the 15th day of November, 1921, unless such date of completion he set at a later date, as is specifically provided for in the specifications, and1 that the time of completion of said work is of the essence of this contract.
“In consideration of the faithful performance of the work embraced under this contract, according to the terms hereof, and to the satisfaction of the party of the first part, said party of the first part agrees to pay the contractor such unit or lump sum prices for the work actually done as are set forth in the proposal accompanying this contract, and in the manner and subject to the' conditions as set forth in the said specifications.”

And in connection with said contract the contractor furnished to and filed with the highway commissoin its contract bond, executed by the contractor as principal and by defendant herein as surety, in the penal sum of $92,429.15, which was in form1 an absolute obligation, subject to defeasance upon the following terms and conditions, and not otherwise:

“Whereas, said principal has entered into a certain written contract, bearing d'ate on the 16th day of May, A. D. 1921, with the state of South Dakota, for the construction of a bridge on a portion of a state trunk highway in Haakon- and Ziebach counties, South Dakota, kno-wn as the Ft. Pierre-M'idland-Eagle Butte road, beginning on the. north- bank of the Cheyenne river in section 32- — 9—24, and ending on the south bank of the Cheyenne river in section 32 — 9—24:
[239]*239“Now, therefore, the condition of the foregoing obligation is such that, if the said principal shall, well, truly, and faithfully comply with and perform all the terms, covenants, and conditions of said contract on his part to be kept and performed, according to the terms and tenor of said contract, and shall protect the said' State of South Dakota against and pay any excess of costs as provided in said contract, and all amounts', damages, costs, judgments, which may be recovered against said state, or its officers or agents, or which the said state of South Dakota may be called upon to pay to any person or corporation by reason of any damages arising or growing out of the doing- of said work or the repair thereof, or the manner of doing same, or the neglect of said principal or his agents or servants, or the improper performance of the said work by the said' principal or his servants or agents or from any other cause growing out of the said contract, and if the above bounden principal, his heirs, executors, administrators, or assigns, shall and do well and truly pay or cause to be paid the wages stipulated and agreed to be paid to each and every?laborer employed by the said principal or his agent, and all claims for materials' furnished, then this obligation is null and void; otherwise, to remain in full force and virtue.
“And the said surety hereby stipulates and agrees that no change, extension, alteration, deduction, or addition in or to the terms of said contract, or the plans or the specifications accoampanying the same, shall in any wise affect the obligation of said surety on this bond.”

The bridge site was some 30 miles from Dantry, S. D., some 27 miles from Eagle Butte, S. D., and some 38 miles from Dupree, S. D., these being the nearest towns to the work, and all of them being small towns. The contractor commenced work in August, 1921, and continued on the work until some time in October, 1921, when it went into bankruptcy and a trustee was appointed. The contractor employed some 40 men on the work, and constructed at the site some temporary buildings, including one building which served as a cement shed and bunk-house combined, one which was- a kitchen and dining room combined, and one which was used for tool house and office and living quarters for the engineers and foremen in charge, and the employees were housed and fed “on the job.” There was no place nearer than [240]*240Dupree where food and shelter could have been provided. Shortly after the contractor went into bankruptcy, its trustee in bankruptcy formalfy abandoned all claims and liabilities in connection with the contract in question, and requested defendant surety company to- take over the contract and1 complete the work, which, defendant accordingly did, subletting the same to the.

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Cite This Page — Counsel Stack

Bluebook (online)
207 N.W. 53, 49 S.D. 235, 1926 S.D. LEXIS 9, Counsel Stack Legal Research, https://law.counselstack.com/opinion/j-f-anderson-lumber-co-v-national-surety-co-sd-1926.