Schisel v. Marvill

198 Iowa 725
CourtSupreme Court of Iowa
DecidedMarch 13, 1924
StatusPublished
Cited by27 cases

This text of 198 Iowa 725 (Schisel v. Marvill) 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
Schisel v. Marvill, 198 Iowa 725 (iowa 1924).

Opinion

Evans, J.

— I. It appears from the petition that the defendant Marvill entered into a contract with the supervisors of Winnebago County for the graveling of certain highways. The consideration of the contract was $24,508. Pursuant to the statute, a contractor’s bond for such. exact amount was given tor the lull performance of the contract. The defendants Larson and Dray were employees of the contractor, and the other defendants were sureties on the contractor’s bond. The petition avers that the employees Larson and Dray were engaged in hauling gravel over the highway, in performance of the contract ; that Dray was driving easterly, and that Larson, some distance away, was driving westerly; that both were driving at an excessive rate of speed, and in excess of thirty miles an hour; that the plaintiff was proceeding easterly over the same highway, and that he overtook said Dray; that he undertook to pass the said Dray on the highway, but was unable to do so because of Dray’s excessive speed; that, while so proceeding alongside of Dray and on his left side, he met Larson with his truck, coming from the east; that he was unable to turn to the right and escape contact with Larson, because of the presence of Dray’s truck; that a collision resulted, at the point of meeting with Larson; that such collision was wholly the result of the negligence of Larson and Dray; and that the plaintiff was damaged thereby in the sum of $10,000. The question presented is whether the surety on the contractor’s bond is liable to the [728]*728plaintiff for these damages. The question as presented divides itself into three phases:

(1) May liability be predicated upon terms and conditions of a statutory bond which are beyond the requirements' of the statute ? ■

(2) Does the statute by its terms contemplate a liability of the surety on a contractor’s bond for such damages as are claimed herein?

(3) Does the statutory bond given herein by its. terms contemplate such liability?

The bond under consideration, without any doubt, is and purports to be a statutory bond. Whether a statutory bond may be voluntarily enlarged so as to include other binding conditions and penalties not provided by statute is a question upon which the great body of authority is in hopeless conflict. Many authorities hold that such additional obligations may be enforced as common-law obligations, voluntarily assumed. The weight of authority, however, in our judgment, is that a statutory bond is a creature of the statute, and that common-law obligations cannot be added to it. There are many cogent reasons for this holding, but we shall not take the time or space to enumerate them. As in this case; statutory bonds are usually taken pursuant to statute by public bodies whose duties in relation thereto are defined by the statute, and whose powers in relation thereto do not extend beyond the terms of the statute.

The question at this point received our careful consideration in United States Fid. & Guar. Co. v. Iowa Tel. Co., 174 Iowa 476. In that case, we aligned ourselves with'what we deemed to be the weight of authority and reason. The following excerpt from the opinion of Weaver, J., in that ease will be sufficient indication of our holding and the reasons therefor:

“In no case cited to us, and in none falling under our observation, where a statute provides for the giving1 of a bond and prescribes its conditions, and the bond in the decided case contains all the statutory conditions, has it been held that theqq inclusion in such bond of other or nonstatutory conditions has the effect to convert it into a common-law obligation. Indeed, the entire trend of the cases is to the contrary. In the first [729]*729place, where the bond is given as a statutory obligation, the court will construe it, so far as it properly may, to sustain the statutory purpose; and even though it be informal or contain terms which, considered alone, might indicate an absolute, rather than' a contingent, liability, yet, if it be clear that the intention was to comply with the statute, it will be so treated and enforced. This was the distinct holding in Field v. Schricher, supra [14 Iowa 119]. It is, indeed, thoroughly well settled that in such, if the added or nonstatutory conditions are separable from those required by the statute, they will be treated as surplusage, and of no effect. [Citing many authorities.] To quote the language of this court in the Field case: ‘When, from the language used, a legitimate statutory object and purpose can be seen to have been intended, it will not be presumed that the parties voluntarily made a bond good only at common law.’ And it would be an anomalous holding to say that a bond may be enforced as a statutory obligation and also as an obligation at common law.”

The effect of this holding is that the liability of a surety under a statutory bond is measured and defined by the statute; and that a construction of the statute is a construction of the bond: In- such a ease, the statute becomes a guide to the surety as to the extent of the obligation assumed. Manifestly, if a bond required by statute for purposes defined by statute and in an amount fixed by the statute may be extended voluntarily to, cover other obligations than those required by the statute, such extraneous obligations might of themselves absorb the full penalty of the bond and defeat the statutory purpose for which the bond was required. If it be found, therefore, that the purported obligation of the bond by its terms extends beyond the limits fixed by the statute, such excess provisions will be deemed surplusage, and the bond will be enforced in accord with the statute. The authorities are fully reviewed in the cited ease, and we shall not repeat them.

II. Does the statute by its terms contemplate a liability of the surety on a contractor’s bond for such damages as are claimed herein? In setting forth herein the pertinent sections of the statute, we shall cite them under the numbered sections [730]*730of the Compiled Code. This is not strictly a proper course, and we resort to it only from the pressure of present convenience, as conforming to the course largely adopted in the briefs of counsel. Section 8427, Compiled Code, 1919 (Section 1, Chapter 347, Acts of the Thirty-eighth General Assembly), is as follows!

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Bluebook (online)
198 Iowa 725, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schisel-v-marvill-iowa-1924.