Joseph F. Hughes & Co. v. District of Columbia ex rel. Noland Co.

413 F.2d 376, 134 U.S. App. D.C. 102
CourtCourt of Appeals for the D.C. Circuit
DecidedApril 18, 1969
DocketNos. 22168, 22246
StatusPublished
Cited by1 cases

This text of 413 F.2d 376 (Joseph F. Hughes & Co. v. District of Columbia ex rel. Noland Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Joseph F. Hughes & Co. v. District of Columbia ex rel. Noland Co., 413 F.2d 376, 134 U.S. App. D.C. 102 (D.C. Cir. 1969).

Opinion

FAHY, Senior Circuit Judge:

On August 10, 1964, appellant Joseph F. Hughes & Co., Inc., referred to as Hughes, entered into separate contracts with the District of Columbia for the construction of the Daniel C. Roper Junior High School and the Louis Charles Rabaut Junior High School. Hughes and appellant Reliance Insurance Company, as surety, referred to as Reliance, delivered to the District of Columbia statutory performance and payment bonds in the amounts of the contract prices. The bonds were to secure payment for labor and materials furnished to Hughes. Ap-pellees Flowers School Equipment Co. and Reading Steel Products, Inc., referred to respectively as Flowers and Reading, furnished materials and labor to Hughes. Neither has been paid in full.

Under 1 D.C.Code § 804 (1967) set forth in pertinent part in the margin,1 creditors of a general contractor, Hughes here, are permitted to bring suit on such bonds for amounts due. Noland Company, Inc., a creditor, in June 1967, did file suit on both bonds. Flowers sought to intervene in the Roper case and Reading in the Rabaut. Hughes and Reliance opposed the intervéntions on the ground the claims were filed later than a year from the date of final settlement.2 In [378]*378the Roper case the year expired December 14, 1967. Flowers filed its intervening complaint in that case December 21,1967. The one year expired in the Rabaut case January 12, 1968, followed by Reading’s intervening complaint filed February 1, 1968. The District Court allowed both Flowers and Reading to intervene and granted to each summary judgment against Hughes and Reliance in the amounts claimed. Hughes and Reliance appeal, No. 22168 in the Roper case, and No. 22246 in the Rabaut case. We affirm.

Under Section 804, note 1, swpra, in addition to such personal notice as “the court may order,” notice by publication is required, “for at least three successive weeks, the last publication to be at least three months before the time limited therefor.” The last of the three published notices in the Roper suit appeared December 4, 1967, and in the Rabaut suit December 5, 1967.3 Thus, in each case one year from the date of completion and final settlement arrived before the expiration of the three months from the last publication.4

Flowers and Reading accordingly did not receive before the year elapsed a notice which met the terms of the statutory language. It is in this light that we consider the contention of appellants that Section 804 precludes these creditors from filing their claims later than one year from the date of final settlement, though filed within the time contemplated by the notice provision.

Materialmen were to have the assistance of published notice in ascertaining whether a suit had been filed in which they could intervene.5 And the ordinary meaning of the language providing for such notice allows a creditor three months from the last publication within which to assert his claim. This meaning should be given effect unless it must be ignored because of an overriding statutory policy represented by the conflicting period of one year within which a claim may be filed. 'That limitation and the three months notice provision cannot both stand unimpaired where, as here, the claim is filed within the time given by the notice but after the expiration of the year. A similar- conflict is graphically pointed out, and deplored, by the Supreme Court in a comparable statute analyzed in United States for Use and Benefit of Alexander Bryant Company v. New York Steam Fitting Co., 235 U.S. 327, 337 et seq., 35 S.Ct. 108, 59 L.Ed. 253.

The court must seek a reasonable reconciliation of the two provisions consistent with the over-all congressional policy represented by the legislation.6 In District of Columbia v. American Excavation Co., 64 F.Supp. 19 (D.D.C.), Judge Holtz-off, for reasons not challenged in this court until now, held in 1946 that the one year limitation was not jurisdictional or a bar in all circumstances to a claimssub-sequently filed. He explicitly recognized judicial expressions to the contrary7 but considered them not to be controlling. In the case before him the creditor had filed [379]*379an independent suit, apparently unaware of one previously filed in which he sought to intervene more than a year after the date of final settlement.

We find no ease defeating a claim filed within the time allowed by a published notice but later than a year from the date of final settlement.

There are decisions, however, which characterize the notice provisions as directory only and which subordinate those provisions to the one year limitation. In these cases, however, the most important of which is New York Steam Fitting Co., supra, it was the surety which sought unsuccessfully to attach overriding importance to the notice requirement — a requirement which the Court pointed out was not for its benefit but for that of creditors. More precisely the surety contended that the time for bringing suit was cut down from a year by at least three months and three weeks so as to permit the published notice to fall entirely within the year. The Court rejected this contention, referring to Vermont Marble Co. v. National Surety Co., 213 F. 429 (3rd Cir.). There it had been held that the notice requirement was directory only, a view the Supreme Court approved when, as in Vermont Marble, the surety sought refuge in a provision intended to benefit creditors. The fact is that in Vermont Marble the creditors’ claims were filed within the year period. The court simply rejected the surety’s contention that the absence of notice to creditors defeated recovery by them.8 We take note also of United States v. Scheurman, note 5, supra. There a creditor’s action on the contractor’s bond was not commenced in sufficient time before the expiration of one year to permit the prescribed publication of notice to other creditors. In rejecting the surety’s contention that this defeated the action itself the court also pointed out that such publication was for the benefit of creditors and not the surety. The opinion does state, however, inconsistently with our position in these cases, that regardless of notice the one year limitation binds creditors who might intervene. We note also United States for Benefit of Rhode Island Covering Co. v. James Miles & Son Co., 55 F.2d 249 (D.Mass.), which relies upon New York Steam Fitting Co., supra, to the effect that the provision for publication is merely directory. There, too, however, the failure to give notice was urged by the contractor and its surety as a defense to claims which had been filed by materialmen. None of these cases is quite like ours.

United States ex rel. for Use and Benefit of Texas Portland Cement Co. v. McCord, 233 U.S. 157, 162, 34 S.Ct. 550, 58 L.Ed.

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413 F.2d 376, 134 U.S. App. D.C. 102, Counsel Stack Legal Research, https://law.counselstack.com/opinion/joseph-f-hughes-co-v-district-of-columbia-ex-rel-noland-co-cadc-1969.