Roland v. American Casualty Co.

80 So. 2d 387, 227 La. 727, 1955 La. LEXIS 1288
CourtSupreme Court of Louisiana
DecidedApril 25, 1955
DocketNo. 40010
StatusPublished
Cited by3 cases

This text of 80 So. 2d 387 (Roland v. American Casualty Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Roland v. American Casualty Co., 80 So. 2d 387, 227 La. 727, 1955 La. LEXIS 1288 (La. 1955).

Opinion

HAMITER, Justice.

These consolidated appeals were taken from judgments in two separate suits which arose out of the same facts and circumstances and in connection with the same contractual undertaking.

In one cause (No. 36,293 on the docket of the district court) William D. Roland and R. L. Roland, doing a general contracting business under the trade name of Ro[730]*730land Construction Company and referred to hereinafter as the Rolands, sued Roland G. Martin, conducting business as the Martin Electric Company, and also his surety, the American Casualty Company, to recover the amount expended 'by them ($2,-566.54) to complete an electrical subcontract on which Martin had allegedly defaulted. In the other suit (No. 37,781 on the docket of the district court) Martin seeks judgment against the Rolands in the sum of $2,222.30, being the balance allegedly due him on the electrical subcontract (it was for $6,517) plus some extras agreed on by the parties, he averring that he endeavored to complete his contract with due diligence and in a workmanlike manner but was arbitrarily prevented by the Rolands from doing so.

The trial court dismissed the suit of the Rolands (No. 36,293) ; it condemned them to pay unto Martin in the other suit (No. 37,781) the sum of $1,501.76; and it cast them for all costs. The Rolands are appealing.

In a written contract, dated November 5, 1946, the Rolands agreed to construct for the Louisiana State University and A & M College a complete experimental agricultural station at Chambers in Rapides Parish, Louisiana. To be provided were numerous structures appropriate to such a project, including dairy, poultry, swine and farm shop buildings, a 'beef-cattle barn, silos, a superintendent’s residence and five houses for instructors. There was no specific completion time limit set forth, the contract providing that: “The work to be performed under this contract shall be commenced within ten calendar days after written notification by the Owner to the Contractor that the work shall start and shall be fully completed without unnecessary delays and as expeditiously as possible.”

On January 7, 1947, the Rolands entered into a written subcontract with Martin whereby the latter agreed to furnish, at a price of $6,517, all labor and materials in the installation of specified electrical wiring and appliances in certain described buildings. Therein it was stipulated that: “This work to be completed in accordance with the time specified in the original contract and is subject to all of the conditions in the original contract entered into by and between the contractor and owner.” The surety for the faithful performance of this subcontract was the American Casualty Company. Martin’s work on the project commenced early in 1947.

On January 14, 1948, believing that Martin had fallen behind in his work in relation to the general contract, the Rolands addressed to him the following letter:

“Your failure to prosecute the electrical work at the Louisiana State University School of Vocational Agriculture places your contract with us in default.

“Under the terms of your contract [and] the specifications you are hereby notified that unless this condition is remedied with[732]*732'in ten days, it is our intention to formally place the contract in default and call upon your Surety to complete the work.” (Brackets ours.)

According to the Rolands no substantial work was performed by Martin subsequent to that communication, and on February 19, 1948, they wrote to his surety (sending a copy of the letter to Martin which, along with the previous notification, the Rolands contend constituted a putting in default) as follows:

“Reference is made to our contract with the above [Martin] on which you are Surety, copy of our letter of January 14, 1948 and telephone conversation with your Mr. Ray Bradford this date.

“As we agreed in our telephone conversation, it has become necessary to employ another Electrical Contractor to complete the work which the subject has under subcontract with us at the Louisiana State University School of Vocational Agriculture, Chambers Spur, Alexandria, La., which is in default.

“If it meets with your approval, we shall employ E. Levy and Company, Electrical Contractors, of this City to complete the contract.” (Brackets ours.)

Thereafter, the Rolands obtained and used the services of E. Levy and Company in completing the electrical work, operating under what amounted to a “cost-plus” agreement; and when employees of Martin came to the experimental station they were denied admittance. For such completion the Rolands paid $4,750.

It is the contention of the Rolands in these causes that the total of the respective amounts paid to E. Levy and Company and to Martin exceeded by $2,566.54 the price agreed upon in the latter’s subcontract, and for that excess they should be reimbursed by Martin.

The subcontractor, on the other hand, insists that he did his work in a diligent and workmanlike manner, was not in arrears with respect to the general contract, and was never actually in default. He shows .that his failure to proceed any faster was due to delays caused by the contractor and by bad weather conditions. Alternatively, he contends that he has never been formally placed in default, which was necessary since there was no specified time limit for the completion of the subcontract, arguing that the letters above referred to did not have that effect. And Martin maintains that when his workmen were arbitrarily prevented from completing the job his subcontract was breached by the Rolands, and that he is now entitled to recover from them the full contract price, plus certain agreed on extras, less the amount already paid.

First to be determined herein, obviously, is whether Martin was actually in default; that is, whether he was unreasonably in arrears on his electrical subcontract in relation to the work already performed under the general contract. No letters could [734]*734have had the effect of placing him in default if in fact he was not.

In proof of a default on the part of Martin the Rolands rely on the testimony of Dr. Clifford Mondart (who was in charge of the vocational school), on that of themselves, and on that of a brother, James W. Roland, who worked on the project. They also direct attention to the cost to them for completing the electrical work, asserting that the large sum paid to E. Levy and Company is indicative of how little work had been done by Martin.

Dr. Mondart did testify that in January, 1948, none of the buildings was completely wired. But he also testified that none was otherwise completed. In fact he said that as of December, 1947 and January, 1948, the dairy barn had not yet been erected. He did not say that no electrical work had been done on any of them; rather he simply stated that the electrical work in all of them was unfinished. While he testified that he was continually after the Rolands to get on with the job, it is apparent from his testimony as a whole that he was attempting to rush all phases, of which the electrical work was only one among many.

The testimony of the Rolands .is not impressive, it being too general. Both testified that the electrical subcontract had been in arrears from the latter part of 1947, but neither could give details as to the progress of Martin’s work on any particular structure.

James W.

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Bluebook (online)
80 So. 2d 387, 227 La. 727, 1955 La. LEXIS 1288, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roland-v-american-casualty-co-la-1955.