Mosaic Tile Co. v. Rusco Products of Massachusetts, Inc.

215 N.E.2d 171, 350 Mass. 433, 1966 Mass. LEXIS 753
CourtMassachusetts Supreme Judicial Court
DecidedMarch 11, 1966
StatusPublished
Cited by6 cases

This text of 215 N.E.2d 171 (Mosaic Tile Co. v. Rusco Products of Massachusetts, Inc.) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mosaic Tile Co. v. Rusco Products of Massachusetts, Inc., 215 N.E.2d 171, 350 Mass. 433, 1966 Mass. LEXIS 753 (Mass. 1966).

Opinion

Kirk, J.

By this bill in equity the plaintiff, an Ohio corporation, seeks to establish its right to payment for materials furnished by it for use in the construction of a school building in Framingham (the town). No appeal has been taken from a final decree dismissing the bill as against the town. It does not appear from the record that [435]*435the defendant trustee in bankruptcy of Structural Panel Corporation (Structural), a Connecticut corporation, has any interest in the matter now before us. We are thus concerned only with the remaining defendants, later to be identified, each of whom filed identical pleadings to the plaintiff’s bill in the form of a plea in bar and a demurrer. The judge by interlocutory decree sustained each of the pleas in bar and entered a final decree dismissing the bill. No action whatever was taken or sought on the demurrers. We cannot consider them.

The plaintiff appealed the final decree dismissing its bill. The judge allowed a bill of exceptions relating to his interlocutory decrees sustaining the pleas in bar.

No evidence was offered by any party and none was requested by any party or by the judge. There was no agreement or stipulation as to any fact. The “pleas in bar” introduce no new matter which if proved, would defeat the bill. They merely point to allegations in the bill which, they averred, when read with the invoices annexed to the bill, would preclude the relief sought by the plaintiff. The so called pleas thus are directed to the alleged inadequacies on the face of the bill. Despite the captions, the “pleas in bar,” in legal substance and effect, are demurrers and we treat them as such. Greene v. Springfield Safe Deposit & Trust Co. 295 Mass. 148, 149. Spadea v. Stewart, ante, 218, 222, and cases cited. See Becker v. Zarkin, 292 Mass. 359, 361 and Kalmus v. Kalmus, 330 Mass. 41, 42.

The only question before us is whether the bill was properly dismissed.

The bill alleges that on May 16,1962, the town contracted with the Wexler Construction Company, Inc. (Wexler) for the construction of a school building at a cost of $5,652,481. The Contract provided for payment security for all labor and materials used by subcontractors. This was to be accomplished by the town retaining a percentage of the amount owed to Wexler until completion of the work, and also by Wexler furnishing a payment security bond equal to the contract price, on which the defendant Travelers Indemnity Co. (Travelers) was surety.

[436]*436Wexler subsequently contracted with. Rusco Products of Massachusetts, Inc. (Busco) for the installation of certain. materials in the school building. The contract price was $300,000.. The payment , security provisions of the Wexler-Rusco contract resembled' those in the town-Wexler contract, with Wexler retaining part of the money due to Busco, and Busco giving a bond in the amount of $300,000 with the Providence Washington Insurance Co. (Providence) as surety for payment for labor and materials furnished in connection with Busco’s work.

Rusco thereafter subcontracted with Structural for the delivery of certain materials required by the Wexler-Busco contract, at a cost of $49,500. Structural, in turn, contracted with the plaintiff for the purchase of materials required by the Structural-Rusco contract. The price was $9,638.14. The materials were delivered to. Structural, but the bill does not specify the date. Notations on the invoices annexed to the plaintiff’s bill indicate that the plaintiff shipped the materials from its plant in Ohio to Structural, in Connecticut, on October 25 and November 14,1962.

The bill alleges that Structural was adjudicated a bankrupt in the United States District Court for the District of Connecticut on an unspecified date subsequent to March 21, 1963. Structural, however, completed its work under its contract with Busco and made delivery to Busco at the school site on or about May 13, 1963. The plaintiff has never been paid by Structural. It notified Travelers and Providence on May 24, 1963, of its intention to enforce its claim under the payment security bonds. On the same day, the plaintiff wrote Busco that it claimed a lien under G-. L. c. 254, § 31, added by St. 1961, c. 530.2 The bill alleges that [437]*437on June 4, 1963, the plaintiff filed its sworn statement of claim with the town clerk “in accordance with” Gk L. e. 149, § 29. It alleges that the bonds and the retained percentages constitute security for the satisfaction of Structural’s indebtedness to it. On this theory, the plaintiff asks that its claim be satisfied through the bonds under Gk L. c. 149, §• 29, or through funds retained by Busco in its contract with Structural under Gk L. c. 254, § 31, or through those, retained by Wexler under its contract with Busco.

So far as now relevant, Busco, Wexler, Providence, and Travelers are the defendants. Their pleas in'bar, pointing solely to the dates of shipment as appearing in the invoices annexed to the bill (October 25, 1962, and November 14, 1962) and to the date of notice to the town clerk (June 4, 1963) , ask that the bill be dismissed on the ground that Gk L. c. 149, § 29, requires that a sworn statement of- claim under a payment security bond in a public contract be filed with the town clerk “prior to the expiration of ninety days after the claimant ceases to . . . furnish . . . materials . . . for which claim is made . . ..”

The only questions are whether the bill was properly dismissed as to all the remaining defendants. Before considering these questions, however, we should untangle the various asserted rights of the plaintiff, indicate their proper origins and single out those that are properly before us. We need not, of course, consider the claims against the town since there is no appeal from the decree dismissing the bill as against it.

(1) The plaintiff asserts that under Gk L. c. 149, § 29, its claim is secured by the payment bonds provided by Wexler for the benefit of the town (the WexIér-town-Traveler s bond), and by Busco for the benefit of Wexler (the Wexler-Busco-PrOvidence bond). Section 29, however, covers only bonds given by the general contractor and does not affect a payment security bond from a subcontractor to the general contractor. Marinucci Bros. & Co. Inc. v. Semper Constr. Co. Inc. 343 Mass. 738, 740. Thus, only the Wexler-townTravelers bond may be reached by a claim under § 29.

[438]*438(2) The plaintiff asserts rights in the retainage kept by Wexler for payment security purposes under its contract with Busco. This security, created by contract, is subject neither to Gr. L. c. 149, § 29, which concerns bond security only, nor to G-. L. c. 30, § 39F, which concerns only retain-age held by an “awarding authority” which is a “public body.”

(3) Finally, the plaintiff seeks to establish a lien, under Gr. L. c. 254, § 31, added by St. 1961, c. 530 (see fn. 2), on funds allegedly held by Busco as retainage for payment security in its contract with Structural. Statute 1961, c. 530, does not apply to contracts with the Commonwealth or its political subdivisions. Whether it applies to contracts between subcontractors under a general contract for public works has not yet been decided by this court. As will appear, the present record offers no basis for a decision on the question now.

In summary, the plaintiff has the following theories of recovery: Under No.

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Cite This Page — Counsel Stack

Bluebook (online)
215 N.E.2d 171, 350 Mass. 433, 1966 Mass. LEXIS 753, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mosaic-tile-co-v-rusco-products-of-massachusetts-inc-mass-1966.