Oregon Willamette Lumber Corp v. Lincoln County

370 P.2d 422, 232 Or. 540, 1962 Ore. LEXIS 463
CourtOregon Supreme Court
DecidedNovember 28, 1962
StatusPublished
Cited by3 cases

This text of 370 P.2d 422 (Oregon Willamette Lumber Corp v. Lincoln County) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Oregon Willamette Lumber Corp v. Lincoln County, 370 P.2d 422, 232 Or. 540, 1962 Ore. LEXIS 463 (Or. 1962).

Opinion

DENECKE, J.

(Pro tempore)

The appellant brought this action against the County and two County ‘Commissioners. Appellant sued for the price of materials it had furnished a painting contractor who had contracted with the County to paint the courthouse. Appellant contends that the defendants are liable because the individual defendants failed to require a payment bond from the painting contractor.

ORS 279.542 provides:

“If the contract is one for which a bond is required and the contractor fails to pay for labor or materials * * * and the officers of the public body * * « faü or neglect to require the person entering into the contract to execute the bond:
U* # « # $
“(2) The public body and the officers authorizing the contract shall be jointly liable for the labor and materials used in the prosecution of any work under the contract * *

The sole question is: was the contract between the County and the painting contractor one for which a [542]*542bond was required by statute? The trial court granted defendants’ motion for a nonsuit in the belief that a bond was not required.

The bond, if required, is one in which the contractor and surety thereon agree to pay all persons supplying labor or materials to the contractor.

OBS 279.502 sets forth when a bond is required. It provides:

“(1) ‘Contract for which a bond is required’ means a contract which calls for the supplying of labor or materials, or both, but does not include a contract where:
“(a) The total contract price is $500 or less; or
“ (b) The contract calls only for supplying goods sold by the contractor in the ordinary course of his business, including the delivery of such goods, or services rendered by the contractor in the repair and maintenance of public property.”

We conclude (b) of this statute was intended to read: a bond is not required “* * * where * * * the contract calls only for * * * services rendered by the contractor in the repair and maintenance of public property.”

The contract stated it was “to paint the Lincoln County Court 'building.” It required that the entire building, except the brick front, be painted. The brick front was to be treated with a water-proofing agent; the roof was to be patched and coated; the aluminum was to be coated; the iron work was to be cleaned and primed. The contract price was $4,800. The completion time was 30 days.

The contract provided that the contractor was to “furnish all necessary machinery, tools, apparatus, equipment, supplies, materials and labor.” It required the contractor to “promptly, as due, make payment of [543]*543all just debts, dues, demands and obligations incurred in tbe performance of [the] contract” and to “permit [no] lien or claim to be filed or prosecuted against the County or the County Court.” The appellant furnished the contractor paint, cleaning and coating materials and applieating devices. These materials were valued at $1,408. The contractor was paid in full by the County. The appellant was paid nothing.

The contract was for what is ordinarily considered repair and maintenance. The remaining question is: was it a contract only for “services rendered by the contractor”?

The phrase “services rendered” is used no other place in the public contract laws. The usual phrase to describe what is done by those performing public contracts is “supplying labor and materials” or “performing labor” and “supplying materials.” “Services” is used in several places in the public contract laws. For example, medical, surgical and hospital care are described as “services.”

“Services” is used in ORS 279.314, a part of the public contract laws. As used in that section, “services” was defined in Bank of Calif. Nat. Ass’n v. Scott, 159 Or 70, 78 P2d 342 (1938). The statute at that time read as follows:

“Every contract made with the state * * * shall contain a condition that the contractor shall promptly, as due, make payment to all persons supplying to such contractor labor or material * * * and that said contractor shall not permit any lien or claim to be filed or prosecuted against the state * * * on account of any labor or material furnished * * * and such contract shall contain the further clause or condition that should any such contractor fail, neglect or refuse to make prompt payment of any claim for labor or services, fur[544]*544nished by any person * * * then and in such event the proper officer or officers representing the state * * * may pay such claim. * * *” (Emphasis added.)

The court said at pages 76-77, “it seems obvious to us that the substitution of the word ‘services’ for the word ‘material’ was inadvertently made and that the legislature had no intention to distinguish between a claim for labor and a claim for materials furnished in the prosecution of the work.”

The court went on: “In its broadest sense, the word ‘services’ may mean a service performed in furnishing materials as much as a service performed in furnishing labor.”

In Meyer v. Livesley, 56 Or 383, 388, 107 P 476, 108 P 121 (1910), the court defined “services” as used in a private contract:

“Defendants also contend that the contract testified to by McNary is to pay plaintiff for his services, and therefore cannot be extended to include expenditures. But the term ‘services’ must be interpreted in the light of the request made to ‘go ahead and take care of those hops and pick them, cure and bale them, and put them in the warehouse and leave them there,’ until the case was decided; and the statement, ‘He would be paid for his services,’ necessarily refers to the things specified which could not be done by Meyer personally. He rendered no personal service, but it was all done by employes. In Tracy v. Waters, 162 Mass. 563 (39 N. E. 190), it is held that, in the assignment of a claim for money due or to become due to the defendant for services under a contract for the erection of a house, ‘the meaning of the word “services” is broad enough to include expenditures as well as labor,’ and in Somers v. Keither, 115 Mass. 165, it is said:
“ ‘The statute applies to the compensation for [545]*545services; a term which involves more than the mere labor of the person by whom they are rendered, and may include expenditures as well as labor.’ ”

Webster has many definitions of “service.” The most appropriate are: “Performance of labor for the benefit of another”; “Anything supplied for accommodation. Work, especially of supply and repair, done to meet the needs of customers.” Webster, New International Dictionary (2d ed 1961).

Webster, supra, also has many definitions for “render.” The most appropriate is: “To furnish; contribute; as, to render assistance to one.”

Courts in other jurisdictions have differed in determining what was included in the phrase “services rendered.” Nash Engineering Co. v. Marcy Realty Corp.,

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Hammagren v. Wald Construction, Inc.
545 P.2d 859 (Oregon Supreme Court, 1976)
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491 P.2d 1198 (Court of Appeals of Oregon, 1971)

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Bluebook (online)
370 P.2d 422, 232 Or. 540, 1962 Ore. LEXIS 463, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oregon-willamette-lumber-corp-v-lincoln-county-or-1962.