School Dist. No. 8, Marshall Co. v. Home Lumber Co.

1923 OK 1002, 221 P. 433, 97 Okla. 72, 1923 Okla. LEXIS 907
CourtSupreme Court of Oklahoma
DecidedNovember 20, 1923
Docket12626
StatusPublished
Cited by14 cases

This text of 1923 OK 1002 (School Dist. No. 8, Marshall Co. v. Home Lumber Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
School Dist. No. 8, Marshall Co. v. Home Lumber Co., 1923 OK 1002, 221 P. 433, 97 Okla. 72, 1923 Okla. LEXIS 907 (Okla. 1923).

Opinion

Opinion by

LOGSDON, C.

Defendant pre^ sents its case in this court under three propositions. The first proposition stated in its brief reads as follows:

“The court erred in refusing to instruct the jury in substance that it was necessary for the" plaintiff to have presented to the defendant school board prior to the institution of this suit a verified claim under oath showing the separate items and the nature of each item for which it claimed an indebtedness owing to if.”

The mere statement of this proposition would seem to refute its merit, but defendant insists that this • is the proper construction to be placed upon sections 10385, 10391,, 10392, and 10393, Comp. Stat. 1921. These sections of the statute have reference to the custody and disbursement of funds of the school districts of the state' and the object of the various provisions is to require certain forms and proceedings to be observed by those intrusted with the care and disbursement of such funds before the same can be legally paid out. Defendant cites and quotes from the case of Allen et al. v. Board of Commissioners of Pittsburg County, 28 Okla. 773, 116 Pac. 175, as sustaining its contention under this proposition. These sections as construed and applied in the above ease have reference to claims for current expenses to be paid out of current funds of the municipality. In the instant case the claim is on a contract entered into by virtue of a special fund created by a vote of the people of the school district. After the lumber and material was furnished by plaintiff under the contract defendant denied liability, claiming that the sale of the material was made to Twilley and not to the district. To say that under such circumstances the filing of a claim under the above cited sections of the statute is a prerequisite to maintaining an action to establish the existence"' of the contract between the parties would be requiring of the plaintiff an act wholly futile and stultifying. This action was not an action brought to force the district’ board to allow plaintiff’s claim for disputed material furnished under an admitted contract, but is an action brought to establish the existence of the contract itself, the existence of which is disputed by the board. This case is very similar to the case of Board of Education of the City of Clinton v. Houilston et al., 51 Okla. 329, 151 Pac. 1015. in which case this court expressly held that the action was maintainable.

Defendant’s second proposition reads as follows:

*74 “The court erred in refusing to instruct the jury upon the request of the defendant that if they found that Twilley, the contractor, did not execute the statutory bond, as required of all contractors of public buildings, their verdict should be for the defendant.”

In other words, the contention of defendant is that, notwithstanding its denial of the ..existence of a contract between- plaintiff .and defendant, before plaintiff will be permitted to establish such contract by proof it must show that the defendant school district, through its district board, performed its statutory duty .by requiring a bond of the contractor. Such a contention is untenable upon the face of it. The execution of or failure to execute a bond to, protect the school district in the erection and construction of the building against the ciaims of unpaid materialmen or laborers dealing directly with the contractor could have no effect one way or the other upon the validity of the contract between plaintiff and defendant. If plaintiff made the contract with defendant the defendant would be bound by it whether the contractor was under bond or not. The cases cited and relied on by defendant under this proposition are cases where the materialmen contracted with and furnished material to the contractor, and being unpaid for the same sought to enforce liability against the municipality in the absence of a contractor’s bond. The court held in those cases that the person furnishing the material under contract with the contractor was bound to know thát under the law municipalities are required to be protected from liability by a bond and that it was the duty of such ma-terialmen before furnishing the material to the contractor to see that a proper bond had been given. Such is not the case presented by the record here.

Defendant’si third proposition reads as follows

"The alleged indebtedness to the plaintiff was incurred in violation of the Constitution and laws of this state and is therefore not a legal obligation of the school district.”

Under this proposition defendant contends, in substance, that the claim of plaintiff is in excess of the indebtedness which defendant could legally contract for the year 1920. At the time that the contract was entered into between plaintiff and defendant, defendant had approximately the entire sum of $5,600 which had been voted by the people of the district for the purpose' of erecting this building. The amount of material furnished under plaintiff’s contract was $3,880.25, so that at the time the contract was entered into, if a contract wn< made. it was within the limits of the fund voted by the people for this purpose. That this fund was afterwards dissipated and that none of it remains with which to pay plaintiff’s claim cannot militate against the legality of the alleged contract at the time it was entered into. This has been definitely-settled by the decisions of this court both before and since statehood. M. H. Johnson v. Board of County Commissioners of Pawnee County, 7 Okla. 686, 56 Pac. 701; D. F. Huddleston v. Board of Commissioners of Noble County, 8 Okla. 614, 58 Pac. 749; Buxton-Skinner Stationery Co. v. Board of Commissioners of Craig County, 53 Okla. 65. 155 Pac. 215.

As to wh.ether or not the testimony reasonably sustains the, verdict of the jury finding that the contract between plaintiff and defendant was actually entered into at or about the time alleged in plaintiff’s petition requires a brief review of the testimony introduced.

The following excerpts of the testimony are taken from the abstract contained in defendant’s brief.

L. E. Creekmore, called on behalf of plaintiff, testified on direct examination;

“I am secretary and treasurer of the plaintiff, Home Lumber Company, a corporation. the general business of which is retailing lumber and building material. The itemized statement attached to the petition shows the regular selling price of material at the time stated and is correct. The material was furnished to the defendant school district for the purpose of building a one-story school building. I met the school board consisting of T. ,7. Ballard, Dr. J. II. Logan and Sanders Keel at the residence of Sanders Keel, clerk, before any material was furnished and before they had| entered into the contract with Mi*. Twilley. I met with them after the Twil-ley contract was entered into, and at the same place, but Dr. Logan had an urgent call and went away before the meeting. The negotiations that I took up with the school board was this, that they had entered into a contract with Mr. Twilley to build this house on a cost plus basis, and I was to furnish them all the material it took ro build the building. In furtherance of. that negotiation I furnished them the material that is itemized in the account attached to the petition. That account shows all the credits they are entitled to. The unpaid balance, as shown by the account, is $1,986.09.

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Bluebook (online)
1923 OK 1002, 221 P. 433, 97 Okla. 72, 1923 Okla. LEXIS 907, Counsel Stack Legal Research, https://law.counselstack.com/opinion/school-dist-no-8-marshall-co-v-home-lumber-co-okla-1923.