Massachusetts Bonding & Ins. Co. v. Davis

274 S.W. 230, 1925 Tex. App. LEXIS 588
CourtCourt of Appeals of Texas
DecidedMay 2, 1925
DocketNo. 1227.
StatusPublished
Cited by4 cases

This text of 274 S.W. 230 (Massachusetts Bonding & Ins. Co. v. Davis) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Massachusetts Bonding & Ins. Co. v. Davis, 274 S.W. 230, 1925 Tex. App. LEXIS 588 (Tex. Ct. App. 1925).

Opinion

WALKER, J.

We take the following statement of the nature and result-of this suit from appellants’ brief; the contents of the exhibits referred to, as far as necessary to an understanding of .the issues being fully given.

“John Barton Payne (substituted by James C. Davis), Agent of United States government, herein styled plaintiff, filed this suit in the district court, Sixty-First judicial district of Texas, at Houston, September 15, 1920, against the defendants W. B. Drake and H. M. Bran-num, composing the firm of Drake-Brannum Construction Company, herein styled contractors, as principals, and Massachusetts Bonding *231 & Insurance Company, herein styled surety, for the alleged breach of two construction contracts made by and between the United States government, which will herein be included in the term ‘plaintiff,’ and the contractors, and to recover against said contractors as principals and the said surety, as surety, upon two bonds; one given to secure the .performance of each of said contracts, respectively.
“By original petition, plaintiff alleged that the contractors, by written contract dated September 30,1918, with W. G. MeAdoo, Director General of Railroads, agreed to do all of the grading, clearing, and grubbing required for the construction Of a double track branch line of the Houston & Texas Central Railroad, in Dallas county, Tex., and complete the same a distance of 2.6 miles, according to provisions of said contract and specifications attached, marked Exhibit A, the work to be commenced within 10 and completed within 140 days from September 30, 1918; that the contractors .did part of the work under said contract, but, prior to its completion, wholly abandoned the same and breached the contract; that plaintiff thereupon took over the work and completed the same at an excess cost, as shown by Exhibit B attached, ‘aggregating the sum of $32,599.98’; that the said contractors, as principals, and said surety, as surety, to secure the performance of said contract, gave to plaintiff a bond, dated October 4, 1918, in the principal sum of $6,000, a copy of which is attached marked Exhibit O; that plaintiff’s damages exceeded the amount of said bond, by reasons whereof plaintiff is entitled to judgment for the full amount thereof; that by like contract, of same date, be-, tween same parties, contractors agreed to complete and do all of the grading, clearing, and grubbing, required for the construction of a single track branch of railroad of Houston & Texas Central Railroad in Dallas county, a distance of about 3.2 miles, according to copy of said contract and specifications attached, marked Exhibit D, the work to be commenced within 10 and completed within 140 days from September 30, 1918; that the contractors did part of the work, but, prior to its completion, wholly abandoned same and breached the contract; that plaintiff then took over the work, and completed the same, as shown by exhibit E attached, at a cost, .in excess of the contract price, ‘aggregating the sum of $28,425.44’; that the contractors, as principals, and said surety, as surety, to secure the performance of said contract, gave to plaintiff a bond,, dated October 4, 1918, in the principal sum of $6,000, a copy of which bond is attached, marked Exhibit E; that plaintiff’s damages under said second contract exceeded the amount of said second bond, by reason whereof plaintiff was entitled to judgment for the full amount thereof. By reason of all of which allegations plaintiff prayed judgment against contractors and surety for the aggregates of the amounts stated against each.
“By second amended original answer, filed November 29, 1923, the surety interposed to plaintiff’s petition a general demurrer and six special exceptions, general denial, and several special defenses. By like answer, filed the same date, the contractors interposed to plaintiff’s petition the same general demurrer, special exceptions, general denial, and special answers, as were interposed by the surety. The court overruled both of said general demurrers and all of said special exceptions, to which contractors and surety excepted.
“The cause was tried before a jury, December 6, 1923, and at the conclusion of the evidence,before argument, the contractors and surety requested peremptory instructions in their favor, which were refused. The court then instructed the jury to return its verdict in favor of plaintiff, against the contractors, for $55,-350.57, and against the surety for $12,000, with interest on each of said sums from September 1, 1919, at 6 per cent, per annum; verdict was so returned and judgment was rendered accordingly, to which' judgment, as well as the action of the court in overruling the contractors and surety’s general demurrers and special exceptions to plaintiff’s petition, they excepted.”

Appellants also quote as follows from the contracts -and bond: '

“In the first contract: (1) Contractors agree that they will do and complete all the grading, clearing and grubbing required for the construction of a double track road bed 2.6 miles long, and place all 84-inch concrete pipe in the roadbed, remove all track material where necessary from old roadbed, in accordance with annexed specifications; all to be done under direction and to the satisfaction of plaintiff’s' engineer. (2) Contractor to furnish at his own expense sufficient teams, tools, and laborers and all other necessary things to complete the construction. (3) Work to begin within 10 days after dates of contract and be completed within 140 working days from date thereof. (11) Eor the work plaintiff agreed to pay contractors, for clearing, $25 per acre; for' grubbing, $65 per acre; for all earth work, 25 cents per cubic yard; for placing 84-inch pipe, 85 cents per lineal foot; for dismantling track, 10 cents per lineal foot; anything not mentioned in the schedule of prices to be agreed upon.
“II. Payments to be made the 15th of each month for work done the preceding month, when certified by plaintiff’s engineer to be in accordance with contract, less 10 per cent, to be held until final completion and acceptance of work and then paid, with any balance owing, upon the certificate of said engineer that the contract had been completed as specified.
“III. (I) Contractors to prosecute work with' energy, and in workmanlike manner, with largest force of all classes of workmen that can be worked with advantage and expedition. That if during the work said engineer finds the force employed, the quantity and quality of the tools, appliances, or workmen provided, or material furnished, are not such as will insure completion of work within time stipulated, or not up to specifications, written notice will be -given contractors ‘to at once apply such increase of force, appliance, or tools,’ and improve work or materials to make same conform with agreement and specifications, and if, at the end of 15 days, contractor shall have failed to furnish and remedy the deficiencies, ‘the company may thereupon employ such labor at wages current in vicinity of work, and tools as it may deem necessary for the completion of the work “within the time stipulated,” and deduct cost of same from payments then due or thereafter falling due to contractors’; time being of the essence of the agreement, and may be extended *232 to contractors even though they fail to complete work within time limited.

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Bluebook (online)
274 S.W. 230, 1925 Tex. App. LEXIS 588, Counsel Stack Legal Research, https://law.counselstack.com/opinion/massachusetts-bonding-ins-co-v-davis-texapp-1925.