Montgomery County Board of Education Ex Rel. Carrier Corp. v. Glassman Construction Co.

225 A.2d 448, 245 Md. 192
CourtCourt of Appeals of Maryland
DecidedFebruary 9, 1967
Docket[No. 8, September Term, 1966.]
StatusPublished
Cited by32 cases

This text of 225 A.2d 448 (Montgomery County Board of Education Ex Rel. Carrier Corp. v. Glassman Construction Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Montgomery County Board of Education Ex Rel. Carrier Corp. v. Glassman Construction Co., 225 A.2d 448, 245 Md. 192 (Md. 1967).

Opinion

Oppenheimer, J.,

delivered the opinion of the Court.

A sub-subcontractor for the furnishing and installation of an air conditioning machine in the erection of a public junior high *195 school in Montgomery County brought suit, through the Montgomery County Board of Education, against the contractor and the surety on its bond, for repairs to the machine which, after its installation, had been damaged by mud and water in a flood. At the conclusion of the sub-subcontractor’s case in the Circuit Court for Montgomery County before Judge Mathias, sitting without a jury, the judge granted the defendant-appellees’ motion to dismiss. The questions presented in this appeal are whether there was sufficient evidence to go to the trier of the facts that the sub-subcontractor had performed any repair work for which it was claiming compensation within 90 days prior to giving notice of its claim, as required by the statute; whether the notice was timely; and whether the work in question was performed in the prosecution of the work provided for in the contract within the meaning of the statute.

On March 19, 1962, the appellee, Glassman Construction Company, Inc. (Glassman) and the Montgomery County Board of Education (the Board) entered into a general construction contract whereby, for a consideration of $1,742,600.00, Glass-man agreed to furnish all labor and materials necessary for the construction of the Randolph Junior High School in Rockville, Maryland. On the same date, in accordance with Code (1957), Article 90, Section 11 (the statute), Glassman, as principal, and the appellee, Home Indemnity Company (Home Indemnity), as surety, executed a labor and materials payment bond in favor of the Board as obligee in the sum of $1,742,600.00. Thereafter, Glassman entered into a subcontract with one John T. Lane (Lane) whereby Lane agreed to perform the heating, electrical and air conditioning work involved in the project. Lane entered into a contract with the beneficial appellant, Carrier Corporation (Carrier), whereby, for a consideration of $103,750.00, subsequently reduced to $102,000.00, Carrier agreed to install certain air conditioning equipment, including a centrifugal refrigeration machine.

Carrier brought suit under the statute and bond. Its action was in two counts. The first sought to recover $22,637.98 as the balance due Carrier on its original contract with Lane. As to this count, a judgment by consent was entered in favor of Carrier and satisfied by Glassman. In the second count, Car *196 rier demanded judgment for $18,921.50 for labor and materials allegedly performed and furnished by Carrier under a later and separate contract with Lane for the repair of the centrifugal refrigeration machine which had been damaged, after installation, by mud and water which flooded the basement of the building as a result of causes not brought about by fault on Carrier’s part.

The bond was conditioned upon the prompt payment by Glassman to all claimants for all labor and material used or reasonably required for use in the performance of the contract for the construction of Randolph Junior High School. “Claimants” were defined to include persons having a direct contract with a subcontractor of the principal.

The bond further provided as follows:

“3. No suit or action shall be commenced hereunder by any claimant,
a. Unless claimant, other than one having a direct contract with the Principal, shall have given written notice to any two of the following: the Principal, the Owner, or the Surety above named, within ninety (90) days after such claimant did or performed the last of the work or labor, or furnished the last of the materials for which said claim is made, stating with substantial accuracy the amount claimed and the name of the party to whom the materials were furnished, or for whom the work or labor was done or performed. Such notice shall be served by mailing the same by registered mail or certified mail, postage prepaid, in an envelope addressed to the Principal, Owner or Surety, at any place where an office is regularly maintained for the transaction of business,'or served in any manner in which legal process may be served in the state in which the aforesaid project is located, save that such service need not be made by a public officer.”

The quoted terms of the bond embody the relevant terms of the statute.

At the trial, Ferdinand Rossiter testified for Carrier. He is Service Supervisor for the Washington, D. C. area in which *197 Montgomery County is included. Rossiter stated that the centrifugal refrigeration machine was delivered to the high school in 1962, but the work of installation was performed by Carrier, for the most part, in 1963. In the fall of 1962, Carrier found that the electrical equipment of the machine, consisting of the console, the starter and compressor, had been submerged in water which contained much contamination such as mud. On December 12, 1962, Carrier notified Lane that the machine had been damaged and would have to be repaired; the labor and material cost of the necessary repairs was estimated at $10,500 in a letter dated December 17, 1962. On January 16, 1963, Lane authorized Carrier to make the repairs. There was testimony, not relevant in this appeal, as to why the repair bill was in the final amount of almost $19,000.

A major part of the alleged repair work consisted of the dehumidification of the centrifugal refrigeration machine. Rossiter testified that normally only about 40 hours of dehydration are required for this type of machine, but that, because of the amount of water in the machine and other conditions caused by the flood, the dehydration of this particular machine took approximately 300 hours. The dehydration process was started in the week ending May 29, 1963, according to Rossiter, and was completed on July 28. Several time tickets of an employee of Carrier were introduced in evidence; the one for the week ending July 30, 1963 shows that the last work on the machine was done on July 28.

In a letter dated, on its face, October 25, 1963, addressed to Home Indemnity, with copies to the Board and Glassman, Carrier referred to its earlier letter of September 5, in which it claimed some $33,000 in connection with its original work for the high school, and stated that it amended its claim to include $18,921.50 for services rendered to make necessary repairs to the centrifugal air conditioning machine which was damaged by flood. The letter was sent by certified mail. The Postoffice receipts show that Glassman and the Board received their copies of the letter on October 28, which was a Monday. October 25 was a Friday. The last day of the 90 day period from July 28 was Saturday, October 26.

In granting the appellees’ motion to dismiss, Judge Mathias *198 found that Carrier had not met the burden of showing that the work done on July 28, 1963 was actually repair work as opposed to work done under the original contract. He found also that there was not sufficient proof the letter dated October 25 was mailed within the 90 day period, but held that, in any case, the meaning of the statute is that actual notice must be received by the contractor within the 90 day period.

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

Related

Pritchett Control, Inc. v. Hartford Accident & Indem. Co.
361 F. Supp. 3d 530 (D. Maryland, 2019)
C & B Constr., Inc. v. Dashiell
190 A.3d 271 (Court of Appeals of Maryland, 2018)
Immanuel v. Comptroller of Maryland
141 A.3d 181 (Court of Appeals of Maryland, 2016)
Fioretti v. Maryland State Board of Dental Examiners
716 A.2d 258 (Court of Appeals of Maryland, 1998)
Hadick v. Hadick
603 A.2d 915 (Court of Special Appeals of Maryland, 1992)
Mardirossian Family Enterprises v. Clearail, Inc.
596 A.2d 1018 (Court of Appeals of Maryland, 1991)
Atlantic Sea-Con, Ltd. v. Robert Dann Co.
582 A.2d 981 (Court of Appeals of Maryland, 1990)
Clearail, Inc. v. Mardirossian Family Enterprises
581 A.2d 36 (Court of Special Appeals of Maryland, 1990)
DMH Joint Venture v. Hahner
562 A.2d 772 (Court of Special Appeals of Maryland, 1989)
Atlantic Sea-Con. Ltd. v. Robert Dann Co.
560 A.2d 592 (Court of Special Appeals of Maryland, 1989)
Allied Building Products Corp. v. United Pacific Insurance
549 A.2d 1163 (Court of Special Appeals of Maryland, 1988)
In re Inca Materials, Inc.
81 B.R. 728 (D. Georgia, 1988)
Faulk v. STATE'S ATTORNEY FOR HARFORD CTY.
474 A.2d 880 (Court of Appeals of Maryland, 1984)
General Federal Construction, Inc. v. D. R. Thomas, Inc.
451 A.2d 1250 (Court of Special Appeals of Maryland, 1982)
Riley v. Abrams
412 A.2d 996 (Court of Appeals of Maryland, 1980)
Mayor of Baltimore v. Fidelity & Deposit Co.
386 A.2d 749 (Court of Appeals of Maryland, 1978)
Montgomery County v. Maryland Soft Drink Ass'n
377 A.2d 486 (Court of Appeals of Maryland, 1977)
State Highway Administration v. Transamerica Insurance
367 A.2d 509 (Court of Appeals of Maryland, 1976)

Cite This Page — Counsel Stack

Bluebook (online)
225 A.2d 448, 245 Md. 192, Counsel Stack Legal Research, https://law.counselstack.com/opinion/montgomery-county-board-of-education-ex-rel-carrier-corp-v-glassman-md-1967.