Salt Lake Electric Supply Co. v. West

182 P. 215, 54 Utah 564, 1919 Utah LEXIS 78
CourtUtah Supreme Court
DecidedJune 30, 1919
DocketNo. 3346
StatusPublished
Cited by2 cases

This text of 182 P. 215 (Salt Lake Electric Supply Co. v. West) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Salt Lake Electric Supply Co. v. West, 182 P. 215, 54 Utah 564, 1919 Utah LEXIS 78 (Utah 1919).

Opinion

GIDEON, J.

On July 19, 1918, plaintiff instituted this action against the defendant West to recover judgment for certain material and labor furnished the defendant .on or about January 1, 1917. The material was used in installing an electrical system in a public school building belonging to the garnishee, Salt Lake City school board. At that time West had a contract with the school board to repair or reconstruct the building in question.

At the date of filing the complaint the necessary affidavit and undertaking were filed to entitle plaintiff to a writ of attachment. The writ was issued, and thereafter a writ of garnishment was served on the board of education of Salt Lake City, garnishee. That board filed an answer. The appellant, United States Fidelity & Guaranty Company, petitioned for and was granted permission to intervene in the garnishment proceedings. To its complaint in intervention the plaintiff demurred. The demurrer, was sustained. The intervener refused to plead further, and judgment dismissing its complaint was entered. From that judgment the in-tervener appeals, and assigns as error the sustaining of the demurrer.

It is necessary to state briefly the contents of the complaint in intervention.

It is alleged that on November 28, 1916, the garnishee school board entered into a contract with the defendant West by which West undertook to reconstruct one of the public school buildings of Salt Lake City; that at the same time, and as a part of the agreement, the defendant executed a bond to the said board of education in the sum of $10,500, with the appellant as sole surety, with the obligation, among others, that said West would “promptly make payment to all persons supplying labor and. material used in the prosecution of the work provided for in said contract. ’ ’ Copy of the [567]*567bond is set out in the complaint. It is further alleged thai as a part of the agreement for the execution of the bond West made a written agreement of indemnity by which he assigned and transferred to the guaranty company all his right, interest, etc., in the tools, plant, and equipment used in the reconstruction of the building, and also transferred and conveyed to the guaranty company all deferred payments’in the hands of the board of education. The assignment of such deferred payments should be in full force and effect as of the date of its execution if West failed or was unable to complete the work in accordance with the contract, or in the event he made default in carrying out the terms of the contract. It is also alleged that, on or about May 1, 1917, West defaulted in the completion of the contract, abandoned the same, and failed to pay certain materialmen and laborers who performed work and furnished material used in the reconstruction of said building; that one of the materialmen on or about December 1, 1917, instituted an action in the district court of Salt Lake county against defendant West and against the appellant as surety, in which action other materialmen and laborers intervened. Thereafter the intervener, appellant herein, paid claims to laborers and materialmen amounting in the aggregate to $6,943.66. It is further stated that on or about June 7, 1918, as part consideration for the payment of the claims aforesaid, the defendant West executed and delivered to the guaranty company an additional assignment of all moneys due him from the garnishee, board of education, and authorized and empowered the appellant to compromise and settle all disputes against the said defendant-West and the board of education. Copy of that assignment is set out in the complaint in intervention. Thereafter, it is alleged, about June 17, 1918, the appellant as such assignee entered into an agreement with the garnishee bokrd of education, in which it was ascertained and agreed that there was then due and owing from said board of education to the guaranty company the sum of $1,433.65. It is further claimed by reason of the payments made by the intervener and by reason pf the agreement of indemnity and the assignments afore[568]*568said that the moneys remaining in the hands of the school board at the date of the institution of this action was the property of and belonged to the interveners. The additional allegation is made upon information and belief that all the goods furnished by the plaintiff to the defendant West were furnished subsequent to the 7th day of March, 1917. The dates are material, as will appear further on in this opinion.

It is the contention of the appellant that by reason of the assignments made by West, as herein set out, the money could not be reached by garnishment proceedings instituted by materialmen.

By the provisions of section 1400s, Comp. Laws Utah 1907, subcontractors were authorized to jointly sue the contractor and the public corporation for labor and material used in the construction of a public building, and judgment could be entered against such public eorpor*ation for any amount owing and unpaid to the contractor at the date of service of summons upon such public corporation. Tt was also provided in that section that the contractor in such action could file a bond in the court in which the action was commenced, in such sum and with such sureties as the judge of the court should approve, conditioned for the payment of any judgment that might be recovered, and thereafter the liability of the public corporation should cease and the action against it be discontinued. By Laws Utah 1909, chapter 68, public corporations were required, before entering upon any contract for the construction or repair of any building, to take from the principal contractor a bond conditioned that the contractor would pa.y all materialmen and laborers, and providing further that in the event of failure upon the part of such contractor to make the payment an action might be brought by the public corporation on the bond, or if such corporation failed to bring such action the action could be instituted by any subcontractor. It is also provided in that chapter that suits should not be instituted until after the expiration of six months from the completion of the building, but must be brought within one year thereafter; that where suit was instituted by creditors only one action should be brought. [569]*569There was no express repeal or any reference whatever in chapter 68, Laws 1909, to said section 1400x.

It is the contention of appellant that the giving of the bond in this ease, as required by said chapter 68, released the fund in the hands of the board of education from any preferential claim or lien in favor of laborers or materialmen, that section 1400x does not apply, and that no suit could be instituted by virtue of said section 1400x where a bond had been given and conditioned as required by the provisions of said chapter 68. It is also further contended that section 1400x cannot be invoked in this proceeding, as it had been expressly repealed by chapter 36, Laws Utah 1917, more than a year prior to the institution of this action.

Section 1400x has been considered by this court in a number of cases, and will be found set out in its entirety in South High School District v. McMillen P. & S. S. Co., 49 Utah, 477, 164 Pac. 1041, and parts of said section are also found in the case of Baker Lumber Co. v. A. A. Clark Co., 53 Utah, 336, 178 Pac. 764.

Chapter 36, Laws Utah 1917, which became operative and in effect March 5, 1917, by express provision repeals section 1400x, amends section 1 of chapter 68, Laws 1909, re-enacts section 2 of that act, and adds three new sections.

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Bluebook (online)
182 P. 215, 54 Utah 564, 1919 Utah LEXIS 78, Counsel Stack Legal Research, https://law.counselstack.com/opinion/salt-lake-electric-supply-co-v-west-utah-1919.