Martinolich v. Albert

143 So. 2d 745
CourtLouisiana Court of Appeal
DecidedApril 23, 1962
Docket5293
StatusPublished
Cited by16 cases

This text of 143 So. 2d 745 (Martinolich v. Albert) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Martinolich v. Albert, 143 So. 2d 745 (La. Ct. App. 1962).

Opinion

143 So.2d 745 (1962)

Nick MARTINOLICH, Plaintiff-Appellee,
v.
Clarence ALBERT et al., Defendants-Appellants.

No. 5293.

Court of Appeal of Louisiana, First Circuit.

April 23, 1962.

*746 Deutsch, Kerrigan & Stiles, by A. Morgan Brian, Jr., New Orleans, for appellants.

Robert D. Morvant, Thibodaux, for appellee.

Before ELLIS, HERGET and MILLER, JJ.

ELLIS, Judge.

On December 10, 1954 the city of Thibodaux and its authorized Sewerage District as "Owner" entered into a written contract with Hebert Brothers Engineers, a partnership (hereinafter referred to as "Hebert Brothers") as contractor, for the construction of new and improved sewerage facilities for the City of Thibodaux amounting to $1,308,585.00. In connection therewith, Hebert Brothers gave to the owner a payment and performance bond covering the full contract price with Fidelity and Casualty Company of New York as "Surety" thereon, which contract and attached bond were duly recorded on December 13, 1954.

Thereafter Hebert Brothers entered into a written sub-contract with Clarence Albert, hereafter referred to as "Sub-contractor", for a portion of the work provided for in the original contract amounting to $486,026.00, and this sub-contractor obtained from Employers Liability Assurance Corporation, Ltd., hereafter referred to as "Employers", a bond as surety for sub-contractor which was executed on January 6 and 7, 1955 in connection with the sub-contract agreement. This bond was a performance bond in the amount of $376,000.00, however, it was never recorded.

About February 1957 Sub-contractor was unable to meet his obligation and defaulted in his sub-contract with Hebert Brothers and in the amount or account allegedly due plaintiff in the sum of $7,562.92. There were other claims which were subsequently compromised. A lien was timely filed by plaintiff for the amount of his claim with supporting invoices, which created a purported lien against the job's retained contract funds in Owner's possession under the public works law.

Owner's formal written acceptance of Hebert Brothers entire completed job, including Sub-contractor's portion thereof, was duly recorded on September 3, 1957.

On October 23, 1957, Hebert Brothers "bonded out" the purported liens by duly recording a lien-release bond running in the Recorder's favor in sufficient amount with the American Employers Insurance Company as "surety" thereon, and therefore all purported liens were cancelled and erased from the records, the lien-release bond itself thereby becoming plaintiff's statutory security in lieu of the previously liened contract funds retained by the Owner.

Thereafter the Owner settled all issues and accounts between it and Hebert Brothers and paid all remaining contract funds *747 to the latter, and in due course commenced using the completed sewerage facilities.

Sureties on the payment and performance bonds denied all liability to plaintiff and refused to make any settlements with him, contending that his claim was solely for equipment rental charges and therefore not covered by statutory bonds on public works jobs.

Accordingly, plaintiff filed his suit herein on November 4, 1957, against five defendants, viz.: owner, Hebert Brothers and its surety, Fidelity and Casualty Company of New York, Sub-contractor and its surety, Employer's Liability Assurance Company, Ltd.

Plaintiff alleged that "in connection with the work to be performed under said original contract and said sub-contract petitioner sold, furnished and/or performed certain merchandise, machinery and labor unto the defendant, Clarence Albert, at his request all of which was consumed and/or used in the construction of said sewerage system," and that an itemized statement covering such services and charges had been annexed to the lien affidavit and same was made a part "hereof by reference the same as though fully copied herein." Plaintiff also plead alternatively for a judgment on the quantum meruit basis.

Owner and Hebert Brothers filed joint exceptions of no cause or right of action and subsequently filed joint answers. Hebert Brother's surety, Fidelity and Casualty Company of New York, and Sub-contractor's surety, Employers Liability Assurance Corporation, Ltd., filed a joint answer and subsequently exceptions of no cause or right of action. By stipulation the exceptions were referred to the merits. No answer was filed by Sub-contractor nor any other pleadings and judgment by default was rendered against him in favor of plaintiff, from which no appeal was perfected.

The case was duly tried on the merits, submitted on briefs, and the trial court, with written reasons, rendered judgment on December 8, 1959 in favor of the plaintiff and against all defendants in solido as prayed for except penalties. All defendants except the Sub-contractor have appealed to this Court.

Under the provisions of LSA-R.S. 38:2241 the Owner in the case at bar was required through its governing authority to reduce "the contract to writing and have it signed by the parties. He shall require of the contractor a bond, with good, solvent, and sufficient surety in a sum not less than fifty percent of the contract price for the faithful performance of the contract with an additional obligation for the payment by the contractor or subcontractor for all work done, labor performed, or material or supplies furnished for the construction, alteration, or repair of any public works, or for furnishing materials or supplies for use in machines used in the construction, alteration, or repair of any public works. No modifications, omissions, additions in or to the terms of the contract, in the plans or specifications or in the manner and mode of payment shall in any manner affect the obligation of the surety. * * *"

In accordance with the above quoted law the Owner required, and Hebert Brothers Engineers as the contractor, furnished, the statutory bond with Fidelity and Casualty Company of New York as Surety.

It is well-settled in our jurisprudence that the obligations of a statutory bond are limited to the exact provisions of the statute. In the Supreme Court case of Red River Const. Co. v. Pierce Petroleum Corporation, 165 La. 565, 115 So. 752, the Court stated:

"In this state laws in derogation of common right must be strictly construed and cannot be extended beyond their precise terms. Of this character are statutes of the kind under consideration here—statutes which are designed to hold the public authority having the work done responsible, under certain circumstances, for the debts of *748 the contractor, and to hold the contractor responsible for the debts of the subcontractors, and to substitute the bond required for the security which is otherwise granted a claimant under their provisions."

Also in Miller v. Bonner, 163 La. 332, 111 So. 776, the Supreme Court held:

"It is clear from these provisions that the bond required by the statute must be made in favor of the state, as the only obligee, and must be conditioned solely as to the faithful performance of the contract by the successful bidder.
"The state highway department, however, has required of the contractor in this case, not only the assumpsit of the statutory condition as to the performance of the contract, but has exacted the superadded condition that Bonner `shall pay all sums due on materials and supplies used and for wages earned by laborers and workmen employed upon the work to be done.'

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Bluebook (online)
143 So. 2d 745, Counsel Stack Legal Research, https://law.counselstack.com/opinion/martinolich-v-albert-lactapp-1962.