J. T. Weybrecht's Sons Co. v. Hartford Accident & Indemnity Co.

161 Ohio St. (N.S.) 436
CourtOhio Supreme Court
DecidedMay 19, 1954
DocketNo. 33781
StatusPublished

This text of 161 Ohio St. (N.S.) 436 (J. T. Weybrecht's Sons Co. v. Hartford Accident & Indemnity Co.) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
J. T. Weybrecht's Sons Co. v. Hartford Accident & Indemnity Co., 161 Ohio St. (N.S.) 436 (Ohio 1954).

Opinion

Taft, J.

If the tests applied by this court under the mechanics’ lien law are applicable, Carver-Behan Company was a materialman of the general contractor and not a subcontractor, and plaintiff was a material-man of Carver-Behan Company. It is apparent therefore that, if those tests are applicable, the plaintiff was a materialman of a materialman of the general contractor.

Thus, the question to be determined is whether one who, under the tests applied under the mechanics’ lien law in distinguishing between a subcontractor and a materialman, is a materialman of a materialman of a general contractor may recover on a performance bond executed pursuant to the provisions of Sections 2365-1 to 2365-4, inclusive, General Code.

Except for the decision rendered by this court 27 years ago in American Guaranty Co. v. Cincinnati Iron & Steel Co., 115 Ohio St.., 626, 155 N. E., 389, the majority of this court might well hold that there could be no such recovery. As stated in paragraph four of the syllabus in Royal Indemnity Co. v. Day & Maddock Co., 114 Ohio St., 58, 150 N. E., 426, 44 A. L. R., 374:

[440]*440“There is such an analogy between Sections 2365-1, 2365-2 and 2365-4, General Code, and Sections 8310 and 8311, General Code, that it is apparent that, in the enactment of Sections 2365-1, 2365-2 and 2365-4, the Legislature intended to require the surety upon the bond required to be furnished by the contractor for the construction of a public building to be liable for such labor and material furnished for the construction of a public building as would be the subject of a lien under the mechanic’s lien law were the building privately owned.”

If a private building were involved, it is doubtful whether plaintiff, as a materialman of a materialman of the general contractor, could acquire a lien under the mechanics’ lien statutes. See DeWitt’s Ohio Mechanics’ Liens (with 1950 Supplement by Holmes), 11, Section 34; Demann’s Ohio Mechanic’s Lien Law (2 Ed.), 53, Section 3.5.

However, it is fair to assume that many performance bonds are now outstanding which were executed in reliance on the decision made in the American Guaranty Co. case, that surety companies and contractors have based their charges on the obligations which that case indicates will be imposed upon them by execution of performance bonds similar to that involved in the instant case, and that many who have or may have claims under such bonds have acted and their lawyers have advised them in reasonable reliance on the belief that this court would, as the Common Pleas Court and the Court of Appeals in the instant case did, follow that decision. Unlike the General Assembly, this court cannot, when it overrules such a decision, avoid the retroactive effect which such a step will necessarily involve. See 37 Harvard Law Review, 409, 426. We believe therefore that, if there is any reasonable basis for the decision rendered in the American Guaranty Co. case, this court should follow that decision and [441]*441leave it to the General Assembly to effect any change in the law for the future.

As appears from its syllabus, the American Guaranty Co. case allowed recovery on a performance bond “by a party who furnished to a materialman * * * material * * * which went directly * * * into the construction. ’ ’ The word ‘ ‘ materialman ’ ’ was used in the syllabus only to refer to a materialman of the general contractor. The facts of the case indicate that that materialman had contracted with the general contractor to furnish the material involved to the general contractor.

The ordinary meaning of the word “subcontractor” will include such a materialman who contracts to furnish material to a contractor for use in performing his contract.

Thus, in Ryndak v. Seawell, 13 Okla., 737, 76 P., 170, 173, it is said:

“In this case, Matkin had a contract for the construction of the entire building, which included the furnishing of all the material to be used therein. Sea-well contracted with Matkin to furnish the material for the building. In doing so, he agreed to perform a part of the contract which Matkin had obligated himself to perform. Why, under such circumstances, should not Seawell be held to be a subcontractor * # *.”

In Clifford F. MacEvoy Co. v. United States, 322 U. S., 102, 108, 88 L. Ed., 1163, 1168, 64 S. Ct., 890, 894, it is said:

“In a broad, generic sense a subcontractor includes anyone who has a contract to furnish labor or material to the prime contractor. In that sense Miller [a materialman] was a subcontractor.”

See also United States v. Clifford F. MacEvoy Co., 137 F. (2d), 565, 568; Holt & Bugbee Co. v. City of Melrose, 311 Mass., 424, 41 N. E. (2d), 562, 141 A. L. R., 319.

[442]*442Under our mechanics’ lien statutes, the word “subcontractor” is held not to include such a materialman only because of the specific definitions in those statutes of the words “subcontractor” and “materialman.” See Section 8323-9, General Code.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Hihn-Hammond Lumber Co. v. Elsom
154 P. 12 (California Supreme Court, 1915)
Baker & Conrad, Inc. v. Chicago Heights Construction Co.
4 N.E.2d 953 (Illinois Supreme Court, 1936)
Royal Indemnity Co. v. Day & Maddock Co.
150 N.E. 426 (Ohio Supreme Court, 1926)
American Guaranty Co. v. Cincinnati Iron & Steel Co.
155 N.E. 389 (Ohio Supreme Court, 1927)
Ryndak v. Seawell
1904 OK 42 (Supreme Court of Oklahoma, 1904)
Vandenberg v. P. T. Walton Lumber Co.
1907 OK 137 (Supreme Court of Oklahoma, 1907)
Holt & Bugbee Co. v. City of Melrose
41 N.E.2d 562 (Massachusetts Supreme Judicial Court, 1942)

Cite This Page — Counsel Stack

Bluebook (online)
161 Ohio St. (N.S.) 436, Counsel Stack Legal Research, https://law.counselstack.com/opinion/j-t-weybrechts-sons-co-v-hartford-accident-indemnity-co-ohio-1954.