Lloyd Wood Construction Co. v. Con-Serv, Inc.

232 So. 2d 649, 285 Ala. 409, 1970 Ala. LEXIS 1041
CourtSupreme Court of Alabama
DecidedJanuary 22, 1970
Docket4 Div. 372
StatusPublished
Cited by10 cases

This text of 232 So. 2d 649 (Lloyd Wood Construction Co. v. Con-Serv, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lloyd Wood Construction Co. v. Con-Serv, Inc., 232 So. 2d 649, 285 Ala. 409, 1970 Ala. LEXIS 1041 (Ala. 1970).

Opinions

MADDOX, Justice.

Lloyd Wood Construction Co., Inc., one of the appellants, was the prime contractor on a sewer system project for the City of Opelika. Con-Serv, Inc., an appellee, was. the sub-contractor for the construction of three lift stations on the project. Wood executed a labor and material bond as required by Title 50, § 16, Code of Alabama 1940, with Continental Casualty Co. as surety, with condition that Wood would pay all persons supplying it with labor, materials or supplies for or in prosecution of the work provided for in the contract between Wood and the City of Opelika.

Con-Serv began work on the project, but from the very beginning, disagreements developed between Wood and Con-Serv, culminating in charges by Con-Serv and Wood that the other had breached its obligation.

Con-Serv, initially the sole plaintiff, brought this action pursuant to the provisions of § 16, Title 50, Code of Alabama, alleging a breach of the bond executed by [411]*411Wood, as principal, and Continental, as surety. The bond was made to the City of Opelika, with condition that Wood would pay all persons supplying it with labor, materials or supplies for or in prosecution of the work provided for in a contract between Wood and the City of Opelika for the construction of a sewer system. ConServ alleged that it had furnished and supplied Wood with labor, materials or supplies for or in prosecution of work on the sewer system in the sum of $43,750.60 and that Wood had failed and refused to pay for this work. Con-Serv also alleged that notice of the amount and nature of the claim had been given to Continental as surety on the bond more than 45 days before the suit was commenced. After demurrers were filed by both Wood and Continental and were overruled by the court and Wood and Continental pleaded the general issue, Con-Serv filed an amended complaint containing two additional counts. Count II-A claimed $43,-750.60 with interest for the breach of the condition of the bond, alleging that ConServ had supplied Wood with labor, materials or supplies in that amount which was unpaid. Con-Serv also claimed attorneys’ fees. Count II claimed that ConServ had furnished labor, supplies and materials to Wood in the amount of $107,-170.60, but that Wood had paid only $46,-882.12 of this amount, leaving a balance due to Con-Serv of $60,288.48.

Wood and Continental filed additional pleas to the amended complaint and alleged that Con-Serv had, prior to the commencement of the suit, transferred all of its right, title and interest in the claim sued for to the Aetna Casualty & Surety Co., and that Con-Serv had no right, title or interest in the claim.

Con-Serv then filed an amendment to the amended complaint “by adding thereto as an additional party plaintiff, the Aetna Casualty & Surety Co., a corporation.” Con-Serv also amended Counts I, II-A and III of the original complaint, as amended. Count I of the complaint, as last amended, claims $43,750.60 as damages, alleging that Con-Serv supplied Wood with labor, materials or supplies for or in prosecution of the work provided for in the sub-contract and that Wood failed to make payments for such work. Con-Serv alleged that it had executed a labor and material payment bond with Con-Serv as principal and Aetna as surety, and that prior to the filing of the action, Aetna made payments to persons who had furnished Con-Serv with materials in the total amount of $40,222.33, and that Aetna was subrogated to the rights of Con-Serv to the extent of such payments.

Count II-A, as last amended, also claimed $43,750.60 for the breach of the condition of Wood’s bond and alleged that Con-Serv supplied and furnished Wood with labor, materials or supplies for or in the prosecution of the work provided in the contract between Wood and the City of Opelika, and that “although Defendant, Continental Casualty Company, a corporation, was given notice by Plaintiff, ConServ, Inc., a corporation, more than 45 days preceding the filing of this suit of the amount and nature of said claim, to the damage of the Plaintiffs,” the sum of $43,750.60 remained due and unpaid. Count II-A also claimed that Con-Serv executed a labor and material bond with Con-Serv as principal and Aetna as surety to make payment to all persons furnishing Con-Serv with labor or materials and that Aetna, as surety, made payments to certain persons who furnished Con-Serv with materials in the total amount of $40,222.33, and that Aetna became subrogated to the rights of Con-Serv in this action to the extent and amount of such payments.

Count III of the complaint as last amended claims $60,288.48 with interest for the breach of the bond by Wood and Continental and alleges that Con-Serv supplied and furnished to Wood at Wood’s request labor, materials and supplies for or in prosecution of the work provided for in the contract between Wood and the City [412]*412of Opelika of the aggregate reasonable value of $107,170.60, and that Wood had paid to Con-Serv previously $46,882.12, but has failed to pay the balance in the amount claimed. Con-Serv further alleged that Continental, as surety, was given notice by Con-Serv more than 45 days preceding the filing of the complaint of the amount and nature of the claim. Con-Serv further alleges that Con-Serv executed a labor and material payment bond with Con-Serv as principal and Aetna as surety for the payment of all persons furnishing Con-Serv with labor or materials to be supplied to Wood, and that Aetna as surety made payments to certain persons who furnished Con-Serv with materials in the amount of $40,222.33, and that Aetna was subrogated to the rights of Con-Serv to the extent and amount of such payments.

Each count of the amended complaint claims attorneys’ fees as provided for in Title 50, § 16, if the claim is not paid within 45 days after written notice is given.

To the complaint as last amended, Wood and Continental filed objections in writing and motions to strike the complaint as last amended, assigning as grounds that such amendment worked an entire change of parties plaintiff and added a new cause of action inconsistent with and a departure from the original action and that the last amendment contained a misjoinder of parties plaintiff and contained two separate and distinct causes of action by two separate and distinct parties. Both the objections and the motion to strike were denied by the court. Demurrers filed on behalf.' of both Wood and Continental to the complaint as last amended were overruled by the court. Wood and Continental then: filed pleas alleging the general issue, payments of the debt claimed and set-off and recoupment.

After plaintiffs’ demurrers to these pleas were overruled, Con-Serv and Aetna pleaded in short by consent the general issue, and the trial of the case was had before a jury, resulting in a verdict and judgment in favor of Con-Serv and Aetna and against Wood and Continental in the sum of $40,000.

Section 16 of Title 15 requires that a claimant give written notice to the surety on the contractor’s bond of the amount claimed to be due and the nature of the claim 45 days prior to the institution of a suit. The action here was instituted on January 9, 1967. The only written notice of a claim which was given to Continental, as surety, were two letters, one dated November 8, 1966, and the other dated October 24, 1967, as follows:

“November 8, 1966
Continental Casualty Co.

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Lloyd Wood Construction Co. v. Con-Serv, Inc.
232 So. 2d 649 (Supreme Court of Alabama, 1970)

Cite This Page — Counsel Stack

Bluebook (online)
232 So. 2d 649, 285 Ala. 409, 1970 Ala. LEXIS 1041, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lloyd-wood-construction-co-v-con-serv-inc-ala-1970.