New York Casualty Co. of New York v. Wallace & Tiernan, Inc.

1935 OK 43, 50 P.2d 176, 174 Okla. 278, 1935 Okla. LEXIS 1441
CourtSupreme Court of Oklahoma
DecidedJanuary 22, 1935
DocketNo. 22766.
StatusPublished
Cited by17 cases

This text of 1935 OK 43 (New York Casualty Co. of New York v. Wallace & Tiernan, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New York Casualty Co. of New York v. Wallace & Tiernan, Inc., 1935 OK 43, 50 P.2d 176, 174 Okla. 278, 1935 Okla. LEXIS 1441 (Okla. 1935).

Opinion

PER CURIAM.

This is an appeal from a judgment of the district court of Oklahoma county. The parties will be referred to in this case as they appeared in the trial court, the defendant in error as plaintiff, and the plaintiff in error as defendant.

The plaintiff instituted suit against the defendant for the recovery of $715' for certain equipment furnished to the J. D. Mann Construction Company at New Cordell, Okla., used in the construction of a sewer disposal plant for said city. The said J. D. Mann Construction Company had a written contract with the city to do the work and furnish the material required for the construction of the sewer disposal plant. The defendant, as surety, joined with the J. D. Mann Construction Company in executing a bond entitled “Statutory Lien Bond,” which bond is in the following words and figunes, to wit:

“New York Casualty Company of New York, N. Y.
“Statutory Lien Bond.
“Know All Men By These Presents:
“That we, J. D. Mann Construction Company of Oklahoma City, Okla., as principal, and New York Casualty Company of New York, a corporation, organized and existing under and by virtue of the laws of the state of New York, duly authorized to transact business in the state of Oklahoma, as surety, are held and firmly bound unto the state of Oklahoma as obligee, for the use and benefits of all persons in whose favor liens might accrue under and by virtue of the mechanic’s lien laws of the state of Oklahoma, in the penal sum of thirty-four thousand eight hundred three and 27-100 dollars, good and lawful money of the United States of America, for the payment of which well and truly to be made, we bind ourselves, our heirs, executors, administrators. successors, and assigns, firmly by these presents.
“Whereas, the principal entered into a written contract, dated September 23, 1930, with the city of New Cordell, Okla., to do the work and furnish all materials required for the construction of the sewer and disposal plant extensions, for the city of New Cordell, Okla., as shown on the plans, to be in strict accordance with the plans and specifications and advertisement for same, as approved by the mayor and city council of the city of New Cordell, Okla,. a copy of which contract is hereto annexed.
“Now, therefore, the co¡ndition of this obligation is such, that if the said principal shall well and truly pay all indebtedness Incurred for labor and material used or furnished in the carrying out of said contract, which might be the basis of liens against said property, as aforesaid, and the real estate on which it is situated, then this obligation shall become null and void, otherwise shall remain in full force and effect.
“Signed and sealed this 23rd day of September, *1930.
“J. D. Mann Construction Company, “By J. D. Mann.
“New York Casualty Company, N. Y.
“By Arthur Burkett, Attorney-in-fact.
“(Seal)
“ (Indorsements)
“Cordell Sewer Extension Bond
“Riled Oct. 8, 1930
“Myrtle Taylor, Court Clerk
“Eva M. Penn, Deputy.”

Suit was instituted against the defendant" only. The defendant demurred to the petition on the ground that the petition did not state a cause of action. The demurrer was overruled. The defendant elected to stand upon its demurrer and declined to plead further. Thereupon judgment was rendered for the plaintiff on its petition, to which was attached a properly verified account.

The defendant prosecutes this appeal, asking for reversal. The two grounds upon which defendant depends may be summarized as follows, to wit:

(1) That there was no liability on the bond for the reason that it contained the following language:

“are held .and firmly bound unto the state of Oklahoma, as obligee, for the use and benefits of all persons in whose favor liens might accrue under and by virtue of the mechanic’s lien laws of the state of Oklahoma”

*280 —and similar expression in another paragraph of the bond.

(2) That the petition does not sufficiently allege that the material was used or consumed in the construction ofl the sewer system.

The defendant cites and depends upon the cases of Smith v. Bowman, 32 Utah, 33, 88 P. 687; Hutchinson v. Krueger, 34 Okla. 23, 124 P. 591, and American Sash & Door Co. v. McGregor, 129 Okla. 261, 264 P. 602. We cannot agree with defendant that these cases are controlling in the case at bar.

A study of the case of Smith v. Bowman, supra, discloses that at the time the bond in question in that ease was given, there was a statute in Utah requiring a contractor for the construction of public improvements to give a bond; the .bond iu that case contained an enforceable obligation in favor of the Utah State Agricultural College, the obligee therein. It cpntained other material. However, the bond was not a nullity.

The case of Hutchinson v. Krueger, supra, is not controlling, for the reason that the bond in that case was given pursuant to section 6162, Compiled Laws of Oklahoma of 1909. providing that the contractor or owner might execute a bond to be filed in the office of the clerk of the district court, in a sufficient amount and with sufficient sureties, and when said bond was approved by the clerk of the district court no liens for labor or material would attach to the building being constructed, or if they had attached, they would be discharged. The bond in question in the Hutchinson v. Krueger Case showed that it was written in compliance with the said section of the statute. No effort was made to write it in compliance with the sections which are now 10983 and 10984, O. S. 1931, providing for the giving of bonds by contractors constructing public improvements. Section 6163, Compiled Laws of Oklahoma of 1909, was repealed more than 20 years ago. Therefore, it .was not in existence when the bond in the case at bar was written.

The ease of American Sash & Door Co. v. McGregor, supra, is not in point- for the reason that in that case the bond was an ordinary contractor’s bond.

The case at bar is more akin to the cases of Klein v. Beers, 95 Okla. 80, 218 P. 1087, and United States Fidelity & Guaranty Co. v. Cook et al., 105 Okla. 185, 231 P. 495. We think these two cases are decisive of the case at bar.

Section 10983, O. S. 1931, reads as follows:

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

Related

Opinion No. (1995)
Oklahoma Attorney General Reports, 1995
In re Sooner Transportation Services, Inc.
128 B.R. 301 (W.D. Oklahoma, 1989)
Reeves v. Agee
769 P.2d 745 (Supreme Court of Oklahoma, 1989)
Opinion No. 75-142 (1975) Ag
Oklahoma Attorney General Reports, 1975
American Casualty Company v. Town of Shattuck, Okl.
228 F. Supp. 834 (W.D. Oklahoma, 1964)
Western Surety Company v. Childers
372 P.2d 214 (Supreme Court of Oklahoma, 1962)
Steele v. Maynard
1940 OK 449 (Supreme Court of Oklahoma, 1940)
Dungan v. Independent School Dist. No. 39.
1938 OK 221 (Supreme Court of Oklahoma, 1938)
Hartford Accident & Indemnity Co. v. Woodruff
1938 OK 33 (Supreme Court of Oklahoma, 1938)
Strong v. Incorporated Town of Beaver
1937 OK 416 (Supreme Court of Oklahoma, 1937)
W. S. Dickey Clay Mfc. Co. v. New York Casualty Co.
1935 OK 1030 (Supreme Court of Oklahoma, 1935)
Enid Concrete Pipe & Stone Co. v. Mann
1935 OK 1008 (Supreme Court of Oklahoma, 1935)

Cite This Page — Counsel Stack

Bluebook (online)
1935 OK 43, 50 P.2d 176, 174 Okla. 278, 1935 Okla. LEXIS 1441, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-york-casualty-co-of-new-york-v-wallace-tiernan-inc-okla-1935.