Peake v. United States

16 App. D.C. 415, 1900 U.S. App. LEXIS 5307
CourtCourt of Appeals for the D.C. Circuit
DecidedApril 25, 1900
DocketNo. 970
StatusPublished
Cited by1 cases

This text of 16 App. D.C. 415 (Peake v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peake v. United States, 16 App. D.C. 415, 1900 U.S. App. LEXIS 5307 (D.C. Cir. 1900).

Opinion

Mr. Justice Morris

delivered the opinion of the Court:

This is an interlocutory appeal allowed from an order of the Supreme Court of the District, which refused to strike [416]*416out a declaration and dismiss a suit on a bond because the bond was unauthorized by law, as it was alleged.

On October 22, 1897, one Frank Baldwin, who, although a party to the suit in the court below, does not appear in this appeal, and the appellant, William C. Peake, constituting a firm of Baldwin & Peake, entered into a contract with the United States, acting through the Secretary of the Interior, for the construction of four pavilion buildings at the Government Hospital for the Insane in this District, for a specified compensation therein mentioned. The contract, which was in writing; contained several stipulations and covenants, and among them one to the effect that the contractors would well and faithfully observe the requirements of the act of Congress of August 13, 1894, entitled “An act for the protection of persons furnishing material and labor for the construction of public works,” and “would promptly make payment to all persons supplying them labor and materials in the prosecution of the work provided for in the contract.” Contemporaneously with the execution of the contract, the contractors executed a bond to the United States in the penal sum of $24,000, with the appellants Rothwell and Richards as sureties, conditioned for the faithful performance of the contract. The condition of the bond is in the following terms:

“ The nature of this obligation is such, that if the said Baldwin and Peake, their heirs, executors, administrators, and assigns, or any of them, shall, and do in all things well and truly observe, perform, fulfill, accomplish, and keep all and singular the covenants, conditions, and agreements whatsoever, which, on the part of. the said Baldwin and Peake, their heirs, executors, administrators, and assigns, are, or ought to be, observed, performed, fulfilled, accomplished, and kept, comprised, or mentioned in certain articles of agreement, bearing date the 22d day of October, one thousand eight hundred and ninety-seven, between the said Baldwin and Peake and the said Cornelius N. Bliss, [417]*417Secretary of the Interior, concerning the erection of four (4) pavilion buildings at the Government Hospital for the Insane, near Washington, D. 0., according to the true intent and meaning of said articles of agreement, then the above obligation to be void; otherwise to remain in full force and virtue.”

The act of Congress of August 13, 1894 (28 Stat. 278), to which reference has been made provides as follows : “ That hereafter any person or persons entering into a formal contract with the United States for the construction of any public building, or the prosecution and completion of any public work or for repairs upon any public building or public work, shall be required before commencing such work to execute the usual penal bond, with good and sufficient sureties, with the additional obligations that such contractor or contractors shall promptly make payments to all persons supplying him or them labor and materials in the prosecution of the work provided for in such contract; and any person or persons making application therefor, and furnishing affidavit to the department under the direction of which said work is being or has been prosecuted, that labor or materials for the prosecution of such work has been supplied by him or them, and payment for which has not been made, shall be furqished with a certified copy of said contract and bond, upon which said person or persons supplying such labor and materials shall have a right of action, and shall be authorized to bring suit in the name of the United States for his or their use and benefit against said contractor or contractors and his or their sureties, and to prosecute the same to final judgment and execution: Provided, that such action and its prosecution shall involve the United States in no expense.”

Baldwin and Peake seem to have entered on the performance of their contract, and it is alleged that they became indebted to Thomas R Piley, a sub-contractor, for materials furnished by him to them of the value of $3,722.29, and by [418]*418them used in the construction of the buildings provided for by the contract, and that they failed to make payment for such materials. Thereupon Riley caused the present suit to be instituted on their bond in the name of the United States to his use. The declaration duly set forth the bond and the breach of it; and copies of the contract and bond were annexed to the declaration. It does not appear that Baldwin made any defense to the suit; but Peake, Roth well and Richards appeared by their attorneys and moved to strike out the declaration and to dismiss the cause, on the ground as claimed, that the bond was not such as was authorized and directed by the act of Congress of August 13, 1894, and that Riley had no right to sue on said bond in the name of the United States. This course of procedure is assumed to be based on the opinion of the Supreme Court of the United States, in the case of the Corporation of Washington v. Young, 10 Wheat. 406. The court below overruled the motion, with leave to the defendants to plead within twenty days. Thereupon they prayed for and were allowed the present special appeal.

The contention of the appellants is, that the bond in question was not executed in conformity with the statute, and therefore that the equitable plaintiff, Riley, had no right to sue upon it. The determination of the second part of this proposition, of course, is dependent on 'that of the first part. For it is too plain for argument, that, if the bond was executed in conformity with the statute,- any person in the category of the equitable plaintiff was, by the express words of the statute, authorized to maintain suit upon it in the name of the United States for his own use and benefit. If, on the other hand, the bond was not such as was authorized and required by the statute, .it may be conceded that persons in the situation of the equitable plaintiff could not avail themselves of it under the statute. The substantial question, therefore, on this appeal is, whether the bond in controversy is in conformity with the statute.

[419]*419The argument on this point is, in brief, that the bond in this case contains no such provision as the act of Congress prescribes for the protection of those furnishing labor and material to contractors for public works; that, while the contemporaneous contract contains such a provision, it was inserted there unlawfully and without authority, and must be regarded as a nullity; that it can not be imported from the contract into the bond; and that, whether its omission from the latter document was the result of accident or design or misunderstanding of the law, the limit of the liability of sureties is that to which they have actually obligated themselves, and they can not be held beyond the strict letter of their bond. But the plain answer to this argument is, that the provision required by the statute for the protection of laborers and materialmen subordinate to contractors for public works is contained in the bond in controversj', and is fully and completely contained therein, and it is unnecessary to go outside of the letter of the bond to find it.

The bond embraces the contract; the latter is in express terms made an integral part of the bond.

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

Related

Gill v. Paysee
226 P. 302 (Nevada Supreme Court, 1924)

Cite This Page — Counsel Stack

Bluebook (online)
16 App. D.C. 415, 1900 U.S. App. LEXIS 5307, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peake-v-united-states-cadc-1900.