Metropolitan Casualty Insurance Co. of New York v. France Limestone Co.

193 N.E. 686, 100 Ind. App. 240, 1935 Ind. App. LEXIS 21
CourtIndiana Court of Appeals
DecidedJanuary 23, 1935
DocketNo. 14,753.
StatusPublished
Cited by1 cases

This text of 193 N.E. 686 (Metropolitan Casualty Insurance Co. of New York v. France Limestone Co.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Metropolitan Casualty Insurance Co. of New York v. France Limestone Co., 193 N.E. 686, 100 Ind. App. 240, 1935 Ind. App. LEXIS 21 (Ind. Ct. App. 1935).

Opinion

Bridwell, J.

On March 9, 1927, the Highways Improvement Company, a corporation, enteréd into a contract with the Indiana State Highway Commission for the construction of a highway improvement constituting part of a highway which is designated as state road number 30; bond as required by sec. 8285, Burns 1926, was given by said Highways Improvement Company as contractor, with appellant as surety thereon. This action was brought by appellee against the appellant as surety on said bond to recover the value of material furnished by appellee to said contractor, which material was used in the construction of said highway improvement. The appellant filed its demurrer to the complaint, which was overruled, and appellant excepted. Appellant filed answer in three paragraphs, the first a general *242 denial and the second and third paragraphs affirmative in character. A reply in general denial was filed to the second and third paragraphs of answer. The cause was tried to the court, which, upon request, made a special finding of facts and stated its conclusions of law thereon. Appellant duly excepted to each conclusion of law. Judgment in favor of appellee for the total sum of $2339.31, and costs, was rendered, and this appeal thereafter perfected, appellant assigning error as follows: (1) The court erred in overruling appellant’s demurrer to the complaint; (2) the court erred in its conclusions of law and each of them.

We deem it unnecessary to set forth the complaint in full. It avers, among other alleged facts, the execution of the contract and the bond; the condition of the bond for the payment of all indebtedness incurred on account of the furnishing of any labor or material used in the construction of the improvement; the furnishing of material by appellee to the contractor which was used in the construction of the improvement of the value of $1813.42; and an agreement by the contractor to pay for said material on or about August 12, 1927, and if not then paid to pay interest at six per cent per annum from such date until paid; that said public improvement has not been completed and paid for and has not been finally accepted by said Indiana State Highway Commission, and that no final settlement has been made with said contractor; that repeated demands for payment have been made on appellant and payment refused; that on March 14, 1928, plaintiff (appellee) had filed with defendant (appellant) a statement setting out the indebtedness of said Highways Improvement Company to appellee, and that said debt was due, wholly unpaid, and owing, and that there is now due the appellee said sum of $1813.42, with interest thereon at the rate of six per cent per annum from August 12, *243 1927, making a total of $2185.12. A copy of the bond and an itemized statement of account for the material furnished are made parts of the complaint by exhibits thereto.

The second paragraph of answer admits many of the allegations of the complaint but denies that the highway improvement described therein had not been finally accepted by the Indiana State Highway Commission, and denies that no final settlement had been made thereon. It is specifically averred therein that on or about the 15th day of December, 1928, said improve* ment was duly accepted by the said Indiana State Highway Commission, and that no suit by appellee was commenced within a year after said date of acceptance and that this action was not commenced until the 27th day of January, 1931,

The third paragraph of answer alleges that the appellee wholly failed to file with the Indiana State Highway Commission within sixty days after the last item of material furnished by it to the Highways Improvement Company, or at any other time, duplicate verified statements of the amount due and owing by reason of the furnishing of said material, and failed to commence any action against this defendant (appellant) within a year after the date the statement of the amount due and owing is alleged in the complaint to have been furnished to the defendant (appellant).

The demurrer to the complaint is on the ground that said complaint fails to state facts sufficient to constitute a cause of action against the defendant (appellant). The sole memorandum to the demurrer is as follows:

“The complaint fails to allege the filing by plaintiff of duplicate verified statements of the amount due and owing with the State Highway Commission or the Director of the Indiana State Highway Commission within sixty (60) days after the last item of material was furnished or at any other time, as *244 required by Section 6122, Burns Ann. Stat. 1926, as a condition precedent to any liability of defendant on its bond.”

The court did not err in overruling the demurrer to the complaint. It is not required in' order to have a cause of action that a person furnishing materials for use in the construction of a highway improvement under a contract made between the Indiana State Highway Commission and any contractor, file with said commission or its director duplicate verified statements of the amount due and owing to the person furnishing the material. He may do so at his option, and thus impound sufficient of the construction fund to pay his claim, but the remedy provided by sec. 6122, Burns 1926, §53-202, Burns 1933, §14085, Baldwin’s 1934, is not exclusive, but cumulative only.

The sufficiency of this complaint is challenged for the sole reason of the failure to file such duplicate verified statements, and its allegations are sufficient to state a cause of action under sec. 8285, Burns 1926. See Million v. Metropolitan Casualty Insurance Company (1933), 95 Ind. App. 628, 172 N. E. 569.

Appellant contends that under the facts as found by the court the conclusions of law are erroneous, and should have been stated in its favor. This contention is made on the grounds that the court in its special finding found as facts that the highway improvement involved was accepted on December 15, 1928, and that this action was not commenced until the 27th day of January, 1931. It is asserted that since more than one year elapsed between the dates of the acceptance of said highway and the commencement of the action, recovery against appellant as surety on said bond could not be had because of such fact, and by reason of the provision of sec. 8285, Burns 1926, supra.

*245 No good purpose would be served by setting out herein the special finding of facts in its entirety. In finding number two, the court finds, among other things, that the contract was entered into between the Indiana State Highway Commission and the Highways Improvement Company on or about the 9th day of March, 1927, and sets forth a copy of such contract and the bond given at the time of its execution. One of the clauses of said contract is as follows:

“It is further mutually agreed that the plans, profiles, specifications and drawings for said improvement, and the bid and bond of second party are hereby made a part of this contract, the same as if herein fully set forth.”

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Bluebook (online)
193 N.E. 686, 100 Ind. App. 240, 1935 Ind. App. LEXIS 21, Counsel Stack Legal Research, https://law.counselstack.com/opinion/metropolitan-casualty-insurance-co-of-new-york-v-france-limestone-co-indctapp-1935.