Maryland Casualty Co. v. Clark's Creek Drainage Dist. 6

4 Tenn. App. 380, 1926 Tenn. App. LEXIS 192
CourtCourt of Appeals of Tennessee
DecidedNovember 12, 1926
StatusPublished
Cited by2 cases

This text of 4 Tenn. App. 380 (Maryland Casualty Co. v. Clark's Creek Drainage Dist. 6) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Maryland Casualty Co. v. Clark's Creek Drainage Dist. 6, 4 Tenn. App. 380, 1926 Tenn. App. LEXIS 192 (Tenn. Ct. App. 1926).

Opinion

OWEN, J.

The complainant, Maryland Casualty Company, has appealed from a decree rendered against it in favor of the cross-complainants, who were creditors of one John R. Thrasher. The bill was filed to enjoin defendants and cross-complainants from bringing suits in the various courts of Madison and Chester counties against complainant, as surety on a certain bond.

In its bill, the complainant alleged, among other things, that, on or about July 8, 1919, the defendant, John R. Thrasher was awarded and entered in a contract with the defendant, Clark’s Creek Drainage District No. 6, whereby said Thrasher agreed that, in consideration of- the sum of $16,000 to be paid to him as provided in said contract, he would furnish all necessary labor and materials and do all work necessary to complete a drainage ditch along Clark’s Creek in Chester county, Tenn., in accordance with certain prepared plans and specifications; that said Thrasher, as principal, and complainant, as surety, executed a bond in the penalty of $4,000 to the State of Tennessee, for the use and benefit of said drainage district, conditioned for the faithful performance by said Thrasher of all of the covenants and agreements on his part contained in said contract and for the payment by said Thrasher for all labor and materials used in the performance thereof; and that said contract between said Thrasher and said drainage district, provided, among other things:

“It is further agreed that the contractor shall be paid the sum of $2500 in cash when his dredge boat is set up ready for operation and the Avork; and the Board of Directors will pay upon monthly estimates the sum of $800 or not exceeding this amount until such time as the sum of $2500 advanced is worked out or refunded, after which time the work will be paid for on the basis of 80 per cent of the completed and accepted work.”

And also:

*383 “The Contractor further agrees that he will,indemnify and save harmless said drainage district of labor done and materials furnished under this contract and shall furnish satisfactory evidence when called for by the board, that all.persons who have done work, or furnished tools, machinery, etc., under this contract for which the district may become liable and all claims from corporations or individuals, for damages caused by an act, omission or neglect of the contractor, or his employees during the construction of said work, have been fully paid or satisfactorily secured and, in ease such evidence is not furnished, an amount necessary and sufficient to meet the claims aforesaid will be held by the board, until the foregoing provisions have been complied with. ’ ’

Complainant alleged in its bill that the foregoing provisions of the contract were some of the main inducements that caused it to sign the bond and guarantee the performance of said contract by said Thrasher.

Complainant alleged that it was not liable to any of the defendants, but if it was liable to the defendants who were making claims for labor and material, then complainant should have a judgment over against the drainage district and the directors thereof for the difference between the amount for which it might be held liable and the amount due Thrasher; that the directors of the drainage district claimed that Thrasher had failed to construct what was known as the Johnson lateral and that the directors had constructed this lateral and deducted the cost of the construction of the lateral from what was due Thrasher.

The Chancellor sustained the contention of the cross-complainants, and ordered a reference to ascertain the amount due the various cross-complainants. The complainant moved for a new trial. This was overruled. It prayed an appeal, but the appeal was disallowed until the coming in of the report of the Clerk and Master on the order of reference.

The Clerk and Master duly reported as to the claims due the various cross-complainants, amounting to, as a total $-He also reported that the drainage district was due Thrasher $1800. This amount was ordered to be prorated among* the various creditors, whose claims were allowed.

Complainant was given a decree against Thrasher for the aggregate amount of the various claims. The report of the Clerk and Master was excepted to by the complainant. The exceptions were overruled, the report confirmed and a decree pronounced thereon.

Complainant again moved for a new trial, which motion was overruled. It tendered a bill of exceptions, prayed and was granted an appeal, perfected the same, and has filed twenty-five assignments of error. Most of the errors go to the individual claims ranging from *384 $20.74 to much, larger amounts, but reduced to their final analysis the assignments of error raise the following propositions:

(1) That the Chancellor erred in not perpetually enjoining suits by each and all of the claimants who filed claims in this cause against complainant.

(2) The Chancellor erred in not holding that the bond executed by John R. Thrasher, as principal, and the Maryland Casualty Co., as surety, to the State of Tennessee for the use of Clérk’s Creek Drainage District No. 6, was, and is, a statutory bond insofar as it protects laborers and materialmen.

(3) The Chancellor erred in not passing upon the question whether the bond as made and executed by John R. Thrasher as principal and complainant as surety, is a common law or statutory bond.

(4) The Chancellor erred in holding that complainant was liable to any of the claimants, petitioners, or cross-complainants in any sum and in rendering decrees in their favor and against complainant for any sum whatever.

The rest of the assignments go to the individual claims.

Counsel for appellees insist that the appellants have failed to furnish a proper bill of exceptions. It is insisted that the cause was tried in the lower court on July 23, 1925; that it was heard by the Chancellor on oral testimony at the October term, 1924, and that the bill of exceptions should have been made up and filed within thirty days after the hearing at the October term, 1924.

Counsel for appellees rely upon the case of Railroad v. Fort, 4 Cates, 432; Rhineheart v. State, 14 Cates, 698; Dun v. State, 19 Cates, 267; Muse v. State, 106 Tenn., 181.

The final decree as found on page 354 of the Transcript recites that this cause was heal’d at the October term, 1924 of the chancery court of Chester county upon the pleadings and oral testimony of witnesses, who were, by the consent of the parties, examined in open court. The argument of solicitors for the respective parties, and after which hearing the cause was taken by the court under advisement and held under advisement until this date, July 23, 1925. The Chancellor then proceeded to pronounce his decree, holding complainant liable on the bond executed by John R. Thrasher as principal, and complainant, as surety, to laborers and materialmen.

The decree further shoivs that complainant excepted, prayed for an appeal, which appeal, at that time, was disallowed. Complainant, at that time, tendered an appeal bond for the purpose of perfecting said appeal. This application the court overruled and disallowed.

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

Related

Wal-Board Supply Co., Inc. v. Daniels
629 S.W.2d 686 (Court of Appeals of Tennessee, 1981)
Bales v. Bales
188 S.W.2d 601 (Tennessee Supreme Court, 1945)

Cite This Page — Counsel Stack

Bluebook (online)
4 Tenn. App. 380, 1926 Tenn. App. LEXIS 192, Counsel Stack Legal Research, https://law.counselstack.com/opinion/maryland-casualty-co-v-clarks-creek-drainage-dist-6-tennctapp-1926.