People Ex Rel. White v. Storm

287 P. 689, 49 Idaho 246, 1930 Ida. LEXIS 100
CourtIdaho Supreme Court
DecidedApril 22, 1930
DocketNo. 5422.
StatusPublished
Cited by12 cases

This text of 287 P. 689 (People Ex Rel. White v. Storm) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People Ex Rel. White v. Storm, 287 P. 689, 49 Idaho 246, 1930 Ida. LEXIS 100 (Idaho 1930).

Opinion

YARIAN, J.

On August 13, 1927, one W. E. Storm entered into a contract with the State of Idaho for the con *249 struction of a portion of tbe Old Oregon Trail Highway in Payette county designated as Federal Aid Project No. 27. Pursuant to the terms of said contract and C. S., sec. 7341, the defendant H. R. Neitzel deposited with the Commissioner of Public Works a cashier’s check for $4,200 in lieu of the surety bond required by said section. The work was completed and final settlement made with the contractor on or about December 13, 1927, and no suit on the contract or bond was brought within six' months thereafter, or at all, by the state. Under date of August 29, 1927, defendant Storm assigned all moneys due or to become due under said contract to IT. R. Neitzel, authorizing the state auditor to draw all warrants due thereunder payable to said Neitzel. On December 13, 1927, the said defendant H. R. Neitzel authorized the Commissioner of Public Works to pay to defendant Storm, without releasing Neitzel’s liability' under his cash bond, the retained percentage provided for in said contract and amounting to the sum of $726.07. Thereafter, pursuant to an agreement of even date therewith, on March 31, 1928, defendant IT. R. Neitzel substituted a personal bond, with defendants H. R. Neitzel, F. IT. Neitzel, J. M. Neitzel and A. J. Flack as sureties, in the penal sum of $4,200, in lieu of said cashier’s check for $4,200, and reciting all the steps theretofore taken leading up to the giving of said cashier’s check in lieu of the bond required by C. S., sec. 7341; and that—

“It is understood and agreed that this bond shall be substituted in lieu of the said cashier’s check, and that this bond shall be held for any and all purposes for which said cashier’s check has been or would be held and shall be for the protection against any contingency past or future arising out of said contract of August 13, 1927, or any failure of whatsoever nature on the part of said W. E. Storm to fully perform all of the covenants of said contract and the failure to pay all legal claims chargeable to or against.the contract price to be paid by the State of Idaho to said W. E. Storm.
*250 “Now therefore, the conditions of the above obligations is such that if the said W. E. Storm shall well and truly perform the terms and provisions of said contract and shall promptly make payments to all persons supplying him with labor and materials in the prosecution of the work provided in said contract that this obligation shall be void otherwise to remain in full force and effect, and it is specifically understood and agreed that this bond shall be liable in any event to all intent and purposes as though this bond had been originally given for the faithful performance of said contract.”

This, then, is an action by one furnishing labor and materials for a public improvement, upon the bond required to be given by said C. S., sec. 7341. The contractor, defendant Storm, owed H. E. Neitzel $1,000 on a truck he had purchased, which he agreed to pay out of the profits of this contract. Pie also agreed to pay Neitzel ten per cent of the contract price as a premium for furnishing the bond.

The relator, Eoy S. White, is engaged in the hardware business at New Plymouth, Idaho. E. G. Tuttle is a blacksmith at New Plymouth. Luce and Lewis operated the New Plymouth Garage, and the Yan Petten Lumber Company had a lumber and coal yard at the same place. The claims of these creditors were all assigned to plaintiff. Storm’s contract called for the furnishing of gravel in place by him, and he erected a plant to crush and screen the gravel necessary to fulfill his contract. This plant was at a gravel bed some three miles from the place the. gravel was to be deposited, and gasoline trucks were employed to haul the gravel from the plant to the highway. The items embraced in the accounts are made up of lumber and supplies in constructing a platform and wooden “chute” to feed the rock-crusher, certain items of labor and repairs furnished for the plant itself, coal used in the operation of the plant, oils, gasoline, repairs including labor expended upon the trücks, and a few small items like tools, cotton gloves, etc. It is conceded that all of the repairs were not wholly consumed in the present operation, some being in *251 existence after the completion of the contract. Further mention will be made of the facts established by the evidence in dealing with specific questions raised by the appeal.

Defendant W. E. Storm defaulted, and findings and decree were entered in accordance with relator’s complaint, the court further finding that defendants II. B. Neitzel and F. H. Neitzel were “estopped to deny that said labor, goods, wares, merchandise and materials, or any item thereof, were supplied in the prosecution of the work.”

The first two paragraphs of C. S., sec. 7341, read:

“Any person or persons entering into a formal contract with the state, any county, city, town, school or irrigation district, or any quasi public corporation of the state, for the construction, alteration or repair of any public building, public work, or quasi public work, the contract price of which exceeds the sum of $200, shall be required before commencing such work, to execute the usual penal bond, in a sum equaling 60 per cent at least, of the contract price, to be approved by the officer, board or body authorized to make such contract, with the additional obligation that such contractor or contractors shall promptly make payments to all persons supplying him or them with labor and materials in the prosecution of the work provided for in such contract.
“Any person, company or corporation who has furnished labor or material used in the construction, alteration or repair of any public building, public work or quasi public work, and payment for which has not been made, shall have the right to intervene and be made a party to any action instituted by the state, county, city, town, school or irrigation district, or quasi public corporation, as the case may be, on the bond of the contractor, and to have their rights and claims adjudicated in such action and judgment rendered thereon, subject, however, to the priority of the claim and” judgment of the state, county, city, town, school or irrigation district, or quasi public corporation, as the case may be.”

The statute then provides that in case no suit is brought on the bond, within six months of the completion of the *252 contract, by the state or other owner, the person furnishing labor or materials for the prosecution of the work may bring an action in the name of the state on the contractor’s bond, such action to be brought after completion and final settlement of the contract and within one year after final settlement.

The allegations of the complaint are to the effect that plaintiff sold and delivered to the contractor, “at the request of the defendants, goods, wares, merchandise and materials in the prosecution of said work,” in the first cause of action; that his assignor “performed labor and sold and delivered to the defendant W. E.

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Bluebook (online)
287 P. 689, 49 Idaho 246, 1930 Ida. LEXIS 100, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-ex-rel-white-v-storm-idaho-1930.