Mississippi Road Supply Co. v. Western Casualty & Surety Co.

150 So. 2d 847, 246 Miss. 510, 1963 Miss. LEXIS 472
CourtMississippi Supreme Court
DecidedMarch 18, 1963
Docket42593
StatusPublished
Cited by3 cases

This text of 150 So. 2d 847 (Mississippi Road Supply Co. v. Western Casualty & Surety Co.) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mississippi Road Supply Co. v. Western Casualty & Surety Co., 150 So. 2d 847, 246 Miss. 510, 1963 Miss. LEXIS 472 (Mich. 1963).

Opinion

*512 McElroy, J.

This suit is from the Chancery Court, Hinds County, on assignment of error that the court erred in sustaining the demurrer of the defendants.

*513 Suit was filed for a claim in the principal amount of $1,465.89 plus interest thereon, and 25% attorneys’ fees of the total of such amount, which expense and cost and attorneys’ fees are incurred in the enforcement of the complainant’s rights, etc., i.e., under the bond given in this matter. The court sustained the demurrer to the original bill, and the amended bill of complaint states that the material, labor and supplies which are set forth and itemized in Exhibit C were furnished by complainants to L. W. and Ray D. Smith for and were used by them in performance of the work called for in the contract, Exhibit A, on the Federal Aid Secondary Project No. S-0153(3)A, Contract I. In the performance of the work called for in the contract, it was necessary that certain equipment he utilized; for instance, drag-lines, motor graders, tractors, dragline buckets, and similar equipment. L. W. Smith and R. D. Smith utilized such equipment in the performance of the work, and the material, labor and supplies furnished by the complainant and itemized in Exhibit C were necessary to the maintenance and operation of the equipment in the performance of the work and were furnished by complainant to L. W. and R. D. Smith for the work in the performance of the contract.

On July 31, 1959 Newsome Brothers entered into a contract with the State Highway Commission for construction of a certain highway in Wilkinson County, Mississippi, known as Federal Aid Secondary Project, No. S-0153(3)A, Contract I. By-virtue thereof, the said contractor agreed to furnish all labor, material and equipment and to execute all the work called for in the contract for construction of the highway. On the date of the contract, the Newsome Brothers, Principal, and the Western Casualty & Surety Company, Surety, executed a performance bond in payment of $479,681.70, conditioned upon faithful performance of the contract, etc.

*514 The Newsome Brothers contracted by subcontract to Monroe Allen, Contractor.

Monroe Allen, Contractor, subcontracted to L. W. Smith and Ray D. Smith of Carthage, Mississippi.

While L. W. Smith and Ray D. Smith were abont the performance of the work called for in the contract, at the site working on the road, the Mississippi Road Supply Company furnished to L. W. Smith and Ray D. Smith their special requests for supplies, labor and material for use in carrying out the work called for in the contract, which were necessary in carrying out the work, and which were used in carrying out the work.

The contract was fully performed and completed. Pinal settlement was made, and notice duly published. The State Highway Commission made full payment to New-some Brothers. However, the amount of $1,465.89, which was owed to the Mississippi Road Supply Company for the material, labor and supplies furnished by it, was not paid, and demand was made of the contractor and sureties, and the demand was refused.

The question presented in the case is whether laborers and materialmen who perform services for supplying materials directly to a subcontractor who is carrying out the work called for in a state public works contract, are denied the right set forth in section 8041 et seq. and section 9014 et seq., Mississippi Code of 1942 simply because such laborers and materialmen did not deal directly with the prime contractor or a first subcontractor.

Section 8041, Miss. Code 1942 provides as follows:

. . Bonds shall be required in,every instance of the successful bidder in an amount equal to fifty per cent (50%) of the contract price; ... all bonds to be payable to the State of Mississippi and to be. conditioned for the prompt, faithful and efficient- performance. of, the contract according to plans and specification, and for the prompt payment ■ of. all persons furnishing labor, ma- *515 teriál, equipment and'supplies therefor; . ; (emphasis' supplied).
Section 9014, Code of 1942 states': • •
“Any person entering into a formal contract with this state, any county thereof, municipálity therein, or any political subdivision whatsoever,' therein, for the construction of any building or work or the doing of repairs, shall be required before commencing same to execute'the usual bond, . . . with the additional obligation that such contractor ■ of contractors shall promptly make'payments to all persons supplying labor or material therefor; and any person Aho has furnished labor or materials used therein and wherefor payment has not been made, shall have the right to intervene and be made a party to any action instituted on such bond, and to have their rights adjudicated in such action . . . . If the full amount of liability of the surety- thereof is insufficient to-'pay the full amount of said claims and demands; then, after paying the full amount due the obligee, the remainder shall be - distributed, ■'pro rata among said intervenors.” ’

The Court held in Alabama Marble Co. v. United States Fidelity & Guaranty Co. et al., 146 Miss. 414, 111 So. 573 (1927): “To put it in different words, the bond here, which the law provides may be given to take the place of the old mechanic’s lien, or -materialman’s lien, was intended to guarantee payment only to the-contractor or' materialman who deals directly with the principal contractor.”

Also the Court stated: “We think’there 'is quite a difference between the two statutes (chapter 217, Laws of 1918, and chapter 128, Laws of 1918), (now Sec. 9014, Miss. Code 1942) and that thé bondof the contractor under chapter 217,- Laws'of 1918, requires that all laborers and materialmen must be' paid for the labor- and materials that go into the construction; of the public-buildings, regardless-of whether they"''are' • rebrote -m-a- *516 terialmen, or whether they have furnished the materials directly to the principal contractor; ...”

In Shuptrine et al. v. Jackson Equip. & Service Co., 168 Miss. 464, 150 So. 795 (1933), a subcontractor, in carrying out highway construction work, rented a crane with dragline equipment from the plaintiff, who sued the prime contractor and its surety for the unpaid rentals thereof. The defendants took the position that the prime contractor’s bond was not liable for the equipment furnished to a subcontractor, since the contract between the prime contractor and the subcontractor is a private, rather than a public contract. This Court rejected that argument and affirmed the lower court’s overruling of the defendant’s demurrer. See H. F. Vann Nieuwenhuyze & Sons Construction Co. v. Ray Irby et al., 232 Miss. 474, 99 So. 2d 651 (1958).

In Arkansas Fuel Oil Co. v. Trinidad Asphalt Mfg. Co., 189 Miss. 366, 198 So. 41 (1940), this Court held that the statutes relating to the bond for highway work . . .

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Bluebook (online)
150 So. 2d 847, 246 Miss. 510, 1963 Miss. LEXIS 472, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mississippi-road-supply-co-v-western-casualty-surety-co-miss-1963.