Kirby & McGuire v. Board of Ed.

123 A.2d 606, 210 Md. 383, 1956 Md. LEXIS 472
CourtCourt of Appeals of Maryland
DecidedJune 18, 1956
Docket[No. 209, October Term, 1955.]
StatusPublished
Cited by6 cases

This text of 123 A.2d 606 (Kirby & McGuire v. Board of Ed.) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kirby & McGuire v. Board of Ed., 123 A.2d 606, 210 Md. 383, 1956 Md. LEXIS 472 (Md. 1956).

Opinion

Hammond, J.,

delivered the opinion of the Court.

Kirby and McGuire, Incorporated, was the general contractor for alterations and additions to the High School at North East, Maryland, ordered by the Board of Education of Cecil County. One Snyder was employed by the general contractor under sub-contract to do the brick and masonry work. Snyder purchased brick for the job from the Monumental Brick and Supply Company, performed the sub-contract and died without having paid for the bricks. Monumental, in the role of beneficiary of a bond given for the primary protection of the Board of Education of Cecil County by Kirby and McGuire, Incorporated, as principal, and Indemnity Insurance Company of North America, as surety, sued as equitable plaintiff for judgment against the obligors of the bond for the price of the bricks furnished to Snyder. The declaration, in a separate count, sought to impose liability on Kirby and McGuire, Incorporated, aside from its execution of the bond, because of its agreement, for a valid consideration, to pay Monumental for the bricks, alleged to have been made after Snyder’s death. The defendants prayed oyer of the bond and all contract documents referred to in the bond, *385 and after it had been granted, demurred to the declaration. The demurrer was overruled, the defendants indicated that they would not plead and the trial court granted summary judgment against both the general contractor, the principal on the bond, and the bonding company, the surety. We find it unnecessary to pass on the claim of agreement to pay in view of our conclusion that Monumental is entitled to recover on the bond.

The bond recited the execution of a written construction contract between Kirby and McGuire, Incorporated, the contractor and the Board of Education of Cecil County as owner, adding that said contract “is hereby referred to and made a part hereof as fully and to the same extent as if copied at length herein for the purpose of explaining but not of varying or enlarging the obligation.” The condition of the obligation was stated to be: “That if the above bounden Principal shall well and truly keep, do and perform, each and every, all and singular, the matters and things in said contract set forth and specified to be by the said Principal kept, done and performed at the time and in the manner in said contract specified * * *, then this obligation shall be void; * * *.” The contract in turn incorporated in it by reference the “General Conditions of the Contract”, the “Specifications” and the “Drawings”, stating that they, together with the basic contract itself, form the whole contract and were “as fully a part of the Contract as if hereto attached or herein repeated.” The enumeration of the Specifications and Drawings shows them to include the “Advertisement”, the “Instructions to Bidders”, the “Form of Proposal”, and “Special Conditions”. It has been settled by the decisions of this Court that a bond of the kind here involved is to be regarded and construed as any other simple written contract. Accident Co. v. Net & Twine Co., 150 Md. 40, 45; Women’s Hospital v. U. S. F. & G. Co., 177 Md. 615, 618. It is clear, too, that by virtue of the incorporation by reference of the contract into the bond and of the other documents into the contract, the bond and all of the documents are to be read and construed together, as if set forth in the bond. Lange v. Board *386 of Education, 183 Md. 255, 261; Ray v. Eurice, 201 Md. 115; Gaybis v. Palm, 201 Md. 78. Compare U. S. F. & G. Co. v. Housing Authority, 206 Md. 379, 382.

The general conditions, a part of the basic construction contract, include this provision: “Art. 9. Materials, Appliances, Employees. — Unless otherwise stipulated, the Contractor shall provide and pay for all materials, labor, water, tools, equipment, light, power, transportation and other facilities necessary for the execution and completion of the work.” The appellees say that this flat requirement of payment for all materials necessary for the completion of the job, read as part of the bond, is one of “the matters and things in said contract set forth and specified to be by said Principal kept, done and performed” guaranteed by the bond. The appellants counter by saying that the obligations imposed on the contractor by Art. 9 are only as between him and the owner, meaning that the owner thus is not required directly to furnish and pay for anything unless expressly stipulated, and that the generality of the obligation of the contractor is limited by other provisions of the contract documents, which clearly show that the contractor must pay only for such materials and labor as he directly contracts for.

The appellees say the case is controlled by two cases where the materialman was allowed to recover. One is Board of Education v. Lange, 182 Md. 132, where the obligation of the bond was that the principal should “ ‘make prompt and faithful payment to any person furnishing labor or material for said work’ * * and the other is U. S. F. & G. Co. v. Housing Authority, 206 Md. 379, supra, where the obligation was that the principal should “ ‘make payment to all persons supplying labor and materials in the prosecution of the work provided for in said contract.’ ” The appellants say that the bond before us is not to be distinguished from that in Mayor & City Council v. Maryland Casualty Co., 171 Md. 667, in which the obligation was that the- principal would “ ‘promptly settle, pay * * * all claims * * * against the [general contractor] by any and all persons * * * for all material furnished, installed, erected and incorporated in said structure or work for which the [general contractor] is liable’ ”, and *387 that in Women’s Hospital v. U. S. F. & G. Co., 177 Md. 615, where the bond obligated the principal to “ ‘pay all just debts for * * * materials incurred through sub-contract or in any other manner, by or on behalf of the principal’ * * In each of the two latter cases the Court held that the generality of the earlier words was limited and controlled by the phrase “for which the [general contractor] is liable”, in the first case, and the phrase “by or on behalf of the principal” in the second case.

We find the obligation in the case before us to be indistinguishable in meaning and effect from those in Board of Education v. Lange and U. S. F. & G. Co. v. Housing Authority. In the latter case, the language of the bond itself was held to be clear and controlling. In dismissing the argument in that case that the generality of the language of the bond was limited and cut down by the provisions of the contract documents, which were not explicitly incorporated in the bond by reference, Judge Henderson for the Court assumed without deciding that a clear limitation in the contract specifications might narrow the scope of the coverage implicit in the language of the bond, but found no such limitation. It was noted that the invitation to bidders required the successful bidder to furnish a “satisfactory” payment bond.

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Bluebook (online)
123 A.2d 606, 210 Md. 383, 1956 Md. LEXIS 472, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kirby-mcguire-v-board-of-ed-md-1956.