Rainbo Oil Co. v. McCarthy Improvement Co.

238 N.W. 46, 212 Iowa 1186
CourtSupreme Court of Iowa
DecidedApril 10, 1931
DocketNo. 40656.
StatusPublished
Cited by4 cases

This text of 238 N.W. 46 (Rainbo Oil Co. v. McCarthy Improvement Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rainbo Oil Co. v. McCarthy Improvement Co., 238 N.W. 46, 212 Iowa 1186 (iowa 1931).

Opinion

Wagner, J.

The plaintiff is a corporation engaged in the-sale of gasoline, oil and grease, with its principal place of business at Dubuque. It maintains a distributing plant at Anamosa. The defendant, McCarthy Improvement Company, is a corporation engaged in the business of paving public highways. This latter corporation entered into a contract with the Highway Commission for the construction of a paved highway on Primary Road Number 117, in Jones County. The paving to be constructed was to connect the towns of Wyoming and Anamosa. The defendant, Southern Surety Company, executed a statutory bond as surety for the faithful performance of said contract. The defendant-Peacock was a sub-contractor engaged in what is termed “batch hauling.” In the prosecution of the work, the dry material was mixed in a batch hopper or apportioning plant' at the side of the Railroad track, where unloaded and then hauled from there out onto the highway, where the mixer was working, and there made into wet concrete and laid down as paving. Peacock had a fleet of trucks, six to fourteen in number, and the plaintiff arranged to furnish him gasoline, oil and grease for use in the construction of said highway improvement. According to this arrangement, the plaintiff located at the camp occupied by Peacock and his force, gasoline and oil supply tanks equipped with suitable pumps. In the early summer of 1929, and for the purpose of carrying out its contract, the appellant, McCarthy Improvement Company, set up its outfit on the railroad right of way at Wyoming. Peacock, to carry out his arrangement with the appellant-company, likewise located his camp, including bunk house, boarding house and trucks, on the same railroad right of way, adjoining the camp of the appellant-company. The plaintiff-company furnished Peacock at his camp in Wyoming a 550 gallon gasoline tank, which it caused to be buried in the ground *1188 and fully equipped with pump, etc., the same as found in an ordinary filling station. The plaintiff-company delivered gasoline in the buried tank and also oils and greases in containers .to Peacock at the Wyoming plant, for use in the construction of the highway improvement. When approximately half of the paving had been constructed, for its convenience, the paving company moved its outfit from Wyoming to Anamosa and there located it on the right of way of the railroad company on the .outskirts of Anamosa. Peacock, likewise, moved his outfit and located his camp on said right of way, adjoining that of the appellant-company. The plaintiff-company removed its gasoline tank from Wyoming and reinstalled the same in the same manner at Peacock’s camp at Anamosa, where its products, consisting of gasoline, oil and grease, were delivered in the buried tank and containers in the same manner as had been formerly done at Wyoming. There is no question that the amount claimed for said products thus delivered by the plaintiff-company to Peacock is the reasonable value as claimed by the plaintiff and found by the trial court.

It is conclusively shown by the record, that some of the products thus delivered by the plaintiff to Peacock were not used in "batch.hauling,” for which Peacock was employed, and were not used in the construction of the improvement; nor is it shown by the record, what portion of the same was used in the construction of the improvement. .Some of the gasoline was used in trucks coming from Iowa City and engaged in other work; some was sold by him to people driving touring cars; some was sold to other operators; some was used to fill a bus to drive to Cedar Rapids; some of said materials were used for his own pleasure ; some were used by Peacock while driving to get repairs, driving out onto the work and going to Cedar Rapids; some by his drivers in riding around in the evenings after cessation of work. No record was kept by him as to the different uses to which said materials were put.

It is also shown that a considerable quantity of the products thus supplied by the plaintiff-company to Peacock was sold by him to other sub-contractors on orders which the appellant-company gave to said sub-contractors, who, upon receiving the order, purchased the gasoline from Peacock, and these orders were presented by Peacock to the appellant-company and he received *1189 his money for the products sold, and the amount thereof was deducted from the amount due from the contractor to the subcontractor who received the material from Peacock. It is thus shown that for the amount disposed of by Peacock in this manner, he was not a sub-contractor, but himself became a material-man. It is quite apparent from the record, that a large quantity of the material for which the appellant is asking compensation was not, and could not have been, used in the construction of the improvement.

Over the objection of the appellant, that the testimony is incompetent, irrelevant and immaterial, and that the appellant is not bound by any understanding of the plaintiff, but only bound to pay for material actually used in the construction of the work, the manager and assistant manager of the plaintiff-company in rebuttal testified, in substance, that their understanding was, that the products which were to be supplied by the plaintiff to Peacock were to be used on this McCarthy Improvement Company job for highway Number 117. We will not further dwell upon the facts, as we deem the foregoing sufficient for the determination of the proposition which is before the court. The amount of the fund remaining unpaid to the contractor is more than ample to pay the amount claimed by plaintiff.

The question presented for our determination is, What is the proper construction to be placed upon Section 10305, Code, 1927 ? The instant case presents the question for the first time to this court. Before the plaintiff can recover, is it incumbent upon it to allege and prove that the gasoline, oil and grease delivered by it to Peacock were used in the construction of the highway improvement? Or, when it is shown that a considerable. quantity of the same was not used in the construction of the improvement, is it sufficient proof that the gasoline, grease and oil were delivered by it for use in the construction of the improvement? Appellee relies upon Neilson, Benton & O’Donnel v. The Iowa Eastern R. Co., 51 Iowa 184; Lee & Jameson v. Hoyt, 101 Iowa 101; The Frudden Lumber Company v. Kinnan, 117 Iowa 93; Page & Son v. Grant, 127 Iowa 249, and other similar cases in which this court has held under the Mechanics’ Lien Statute (Now Section 10271, Code, 1927) that all that the materialman needs to prove in order to be entitled to a mechanic’s *1190 lien, is that he furnished the material for the designated use, and that the actual use of the material in the construction of the building need not be shown; and argues that the purpose of Section 10305, Code, 1927, and its forerunner, Section 3102, Code, 1897, is to protect laborers, materialmen and sub-contractors, who furnish labor or material for a public improvement, in like manner as they are protected in furnishing labor or material under the Mechanic’s Lien Statute, for a structure or building erected by a private owner, and that we should apply, to the section now under consideration, the same rule which we have previously applied to the Mechanic’s Lien Statute. Section 10305, Code, 1927, formerly Section 3102, Code, 1897, is not a portion of the mechanics’ lien law. See Empire State Surety Company v.

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Bluebook (online)
238 N.W. 46, 212 Iowa 1186, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rainbo-oil-co-v-mccarthy-improvement-co-iowa-1931.