Smith v. Fidelity & Deposit Co.

280 S.W. 767
CourtTexas Commission of Appeals
DecidedFebruary 10, 1926
DocketNo. 585-4407
StatusPublished
Cited by10 cases

This text of 280 S.W. 767 (Smith v. Fidelity & Deposit Co.) is published on Counsel Stack Legal Research, covering Texas Commission of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Fidelity & Deposit Co., 280 S.W. 767 (Tex. Super. Ct. 1926).

Opinion

SPEER, J.

This is a suit prosecuted by plaintiff in error against defendant in error as surety upon a bond given by W. E. Cecil to guarantee the faithful performance of his contract with W. E. Callahan Construction Company, whereby he subcontracted to perform a certain part of a parent contract between the construction company and Wichita county water improvement district No. 1 to construct certain irrigation ditches in Wichita and Archer counties. The trial court rendered judgment in favor of the plaintiff, but upon appeal by the surety company, the Court of Civil Appeals reversed thát judgment, and rendered one in favor of the appellant. 270 S. W. 1071. We think the judgment of the Court of Civil Appeals is wrong, and should itself be reversed.

The ruling of both courts turned upon their respective interpretations of defendant in error’s bond. It is as follows:

“State of Texas, County of Wichita:
“Know all men by these presents that, whereas, on the 2d day of February, A. D. 1922, W. E. Cecil, of Duncan, Okl., made and entered into a written contract with the W. E. Callahan Construction Company, wherein the said W. E. Cecil undertook the full performance of a certain contract made and entered into by the W. E. Callahan Construction Company with the Wichita county water improvement district No. 1, of Wichita county, Tex., in so far as said contract related to certain items, particularly mentioned in schedule 3, item 1, miles 15, 16, 17 of the plans, specifications, and general instructions thereto attached and marked Exhibit A, to which contract and exhibit reference is here made for a more particular description.
“And, whereas, in said contract the said W. E. Cecil contracted and agreed to execute and deliver a good and sufficient bond, payable to said Wichita county water improvement district No. 1, Wichita county, Tex., and the W. E. Callahan Construction Company in the sum of eight thousand and no/10O dollars at the city of Wichita Falls, Tex., conditioned on the full and faithful performance of said contract and the payment by the said W. E. Cecil of the sums of money due and to become due, for supplies, teams, equipment, material, and [768]*768labor used, or contracted to be used, in tbe performance of said agreement, as well as any and all other expense incurred in the performance or attempted performance thereof:
“Now, therefore, know all men by these presents, that W. E. Cecil, as- principal, and Fidelity & Deposit Company of Maryland, as surety, jointly and severally hereby acknowledge themselves and each of them jointly bound and •obligated to pay to the said Wichita county water improvement district No. 1 of Wichita county, Tex., and the said W. E. Callahan Construction Company, jointly and severally, the sum of eight thousand and no/100 dollars at the city of Wichita Falls, Tex., in good and lawful money of the United States of America.
“Now, the condition of this bond and undertaking is such that if the said W. E. Cecil shall fully and faithfully perform its said agreement, of date the 2d day of February, 1922, and said original contract executed by W. E. Callahan Construction Company with said Wichita county water improvement district No. 1, in so far as they relate to the items mentioned' in schedule 3 of exhibit A attached to each of said contracts-, to which exhibit reference is here made for a more particular description of said items, and if the said W. E. Cecil shall pay all sums of money due, and to become due, for supplies, teams, equipment, material, and labor used, or contracted to be used in the performance of said contract, as well as any and all other expense incurred in the performance or attempted performance thereof, then this bond or undertaking shall become null and void; otherwise it shall remain of full force and effect.”

The subcontract, for the performance of which the bond in suit was executed, contained the following provisions:

“Party of thé second part further contracts and agrees to forever protect and save party of the first part and its successors and assigns harmless from any and all loss, cost, or expense, including its reasonable attorneys’ fees, resulting or that may be claimed to have resulted, from the manner in which and means by which this contract is performed. * * *
“Party of second part further contracts and agrfees to perform said contract in a good and workmanlike manner, and to complete the same within the time herein mentioned, and in the manner specified in the original contract, made and entered into by party of first part with said water improvement district; and further agrees that this contract shall not be considered as having been duly performed until any and all work done thereunder has been finally accepted by said water improvement district, and the party of first part finally released and discharged from any and all liability under said original contract, in so far as it relates to the items embraced in schedule 3 hereinabove particularly mentioned.
“Party of second part further contracts and agrees that this agreement shall not take effect until the party of second part shall have executed and delivered to party of first part a good and sufficient bond in a sum equivalent to fifty per cent. (60%) of the aggregate amount to become due and payable to party of second part, hereunder, signed by good and solvent surety company, acceptable to party of first part, and payable to said water improvement district No. 1, and party of first part at Wichita Falls, Wichita county, Tex., conditioned upon the full and faithful performance of this agreement, and of said original contract, executed by party of first part, in so far as it relates to the items in schedule 3 hereinabove mentioned, and that the party of second part will pay all sums of money due, and to become due, for supplies-, teams-, equipment, material, and labor used, or contracted to be used, in the performance of this agreement, as well as any and all other expenses incurred in the performance or attempted performance thereof * * *
“It is expressly stipulated and agreed that this contract and n'o part thereof shall not be transferred, assigned, or sublet by party of second part to any person or corporation, whomsoever, without the written consent of party of first part; and that no part of any money or moneys that shall become due and payable to party of second part hereunder shall be transferred, assigned, or hypothecated without such written consent.
“It is further stipulated and agreed that this contract shall not become effective or binding upon either party hereto until the same shall have been approved by said Wichita county water improvement district No. 1, as evidenced by its written indorsement hereon.”

Plaintiff in error presents three assignments, as follows:

“(1) The Court of Civil Appeals erred in holding that the bond sued on in this cause is not s-uch a bond as is contemplated by article 6394f, Complete Statutes of Texas 1920.
“(2) The Court of Civil Appeals erred in holding that the plaintiff in error is not entitled to maintain this- suit on said bond irrespective of article 6394f, Complete Statutes of Texas 1920.

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Bluebook (online)
280 S.W. 767, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-fidelity-deposit-co-texcommnapp-1926.