National Surety Co. v. Coates

117 S.W. 555, 89 Ark. 542, 1909 Ark. LEXIS 125
CourtSupreme Court of Arkansas
DecidedFebruary 22, 1909
StatusPublished
Cited by1 cases

This text of 117 S.W. 555 (National Surety Co. v. Coates) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Surety Co. v. Coates, 117 S.W. 555, 89 Ark. 542, 1909 Ark. LEXIS 125 (Ark. 1909).

Opinion

Hart, J.

The present suit was commenced on the 23d day , of April, 1906, by James Coates to recover for a breach of a condition of a bond executed in his favor by the National Surety Company as surety for one Bishop. The Surety Company answered, and later amended its answer by interposing a plea of res judicata, to which a demurrer was sustained. This court held that the judgment sustaining the demurrer was erroneous and remanded the cause for a new trial. The opinion is reported in 83 Ark. 545, in which it was held that “according to the allegations of this amendment (referring to the answer as amended) the question of defendant’s liability on the contract of surety-ship sued on was determined in the former action adversely to the plaintiff’s contention in this case, and therefore barred a recovery.”

. On the new trial in the circuit court, the only defense offered was a plea of res judicata. The evidence relied upon to sustain it is the record of a former suit between the same parties, which shows the following state of facts:

On the 4th day of April, 1902, James Coates and J. W. Bishop entered into a written contract whereby the latter obligated himself for the period of four years from and after July 1, 1902, to furnish the teams and messengers to perform the screen wagon mail service on a certain route in the city of Little Rock for the consideration of $158.33 per month. The National Surety Company became his surety in the sum of one thousand dollars for the faithful performance of the contract.

On March 24, 1903, Coates 'brought suit in the Pulaski Circuit Court against Bishop and the National Surety Company on their contract and bond, alleging their failure to perform said contract since October 1, 1902, and that he was compelled thereby to hire other men and horses, etc., to perform the same, and to pay them therefor $183.33.

The answer of the defendant Bishop was filed on April 14, * 1903,. and is in words and figures following, to-wit:

“For answer to the complaint the defendant, Joseph W. Bishop, admits the execution of the contract of April 4, 1902, but he says that he was induced to make said contract by certain false and fraudulent representations made by the plaintiff and his agent, who represented and stated to the defendant that it would be necessary to make only eighteen trips per day, and that three horses would be all that would be necessary to do the work, when in fact the number of trips on this route was twenty-four, and it was essential to have six horses to do the work, and this defendant contracted to make eighteen trips per day.
“The defendant Bishop lived about twenty miles in the country, and had little knowledge of the work, and, on the contrary, the plaintiff and his agent, one Catching, were perfectly familiar with the routes and what was required in the way of horses and the number of trips, and the plaintiff and his agent, in making the statements above mentioned, knew that these statements were false, whereas the defendant Bishop relied upon them to state to him the facts, and they knew that the defendant Bishop relied upon them as to these facts.
“The defendant Bishop, supposing that only three horses would be needed to do the work, and that there were not more than eighteen trips, made his bid and entered into the contract sued on with reference to the expenses and labor which this would entail in making eighteen trips per day, and the compensation which the contract sued on specified was not enough to pay the expenses and leave him any renumeration for his labor and services, and if the defendant Bishop had known the facts and the number of horses it would require, and the number of trips to be made, he would not' have entered into the contract, and the plaintiff further knew this when the contract was made.
“For a further defense, this defendant, reiterating all the allegations in the foregoing paragraph, says that after the contract had been made and its excution entered into, to-wit, on or about the......day of September, 1902, this defendant, having learned by actual experience that the statements made to him, and which induced him to enter into the contract, were false, made complaint to the plaintiff and his agent, and it was then and there agreed between this defendant and the plaintiff that, instead of $158.00 per month, the plaintiff should pay the defendant $166.66 per month, and that this amount should be taken as the true amount from the first day the work was undertaken, to-wit, on the 1st day of July, 1902, and under this agreement this defendant proceeded to carry out the contract and to perform the work and furnish the teams required, and the plaintiff paid him the sum of $166.66 for each month from the 1st day of July, 1902.
. “And afterwards, to-wit, the...... day of October, 1902, it was further agreed by and between the plaintiff and this defendant that the amount of $166.66 was not enough to pay for the services required at the hands of this defendant under said contract, and, as extra trips had been added, the plaintiff and this defendant then and there rescinded the contract sued on, and the plaintiff then and there agreed with this defendant that, if the defendant would do the work required, he would pay the defendant the sum' of $183.00 per month, and it was further agreed between the plaintiff and this defendant that one Peters should become a partner of this defendant, and that thereafter the work should be done by this defendant and Peters as partners, and that each of them should furnish the same number of horses and perform the same amount of services, and that the compensation should be divided equally between them, and 'from that time on they, as partners, performed the services for the plaintiff, and the plaintiff paid them $183.00 per month, and they continued to carry the mails and carry out the contract until on or about December 26, 1902, at which time it was mutually agreed by and between the plaintiff and this defendant and Peters that the contract which had been existing between the plaintiff and this defendant and Peters up to that time should be rescinded, and that the partnership between this defendant and Peters should be dissolved, and that Coates should make a new contract with Peters and one Gray, which he did then and there make, and by which contract Peters and Gray agreed that they would carry the mail and perform all the work that this defendant had originally undertaken to do, and that plaintiff should pay Peters and Gray the sum of $183.00 per month, and this defendant should thereby -and thereafter be released from any further obligation to carry the mail, and from any and all liability under said contract.
“And the said Peters and Gray, in pursuance of this contract so made on December 26, proceeded on January 1, 1903, to carry the mails on said route No. 447,002, and they have ever since continued to do so, and therefore this defendant says that he is not liable to the plaintiff in any sum whatever.
“The defendant denies that he broke his contract with the plaintiff on October 1, 1902, or at any other time, but states that the changes made.in the said contract were made by mutual agreement of all parties concerned.

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Bluebook (online)
117 S.W. 555, 89 Ark. 542, 1909 Ark. LEXIS 125, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-surety-co-v-coates-ark-1909.