Smith v. Smith

142 So. 132, 174 La. 937, 1932 La. LEXIS 1755
CourtSupreme Court of Louisiana
DecidedApril 25, 1932
DocketNo. 31167.
StatusPublished

This text of 142 So. 132 (Smith v. Smith) 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
Smith v. Smith, 142 So. 132, 174 La. 937, 1932 La. LEXIS 1755 (La. 1932).

Opinion

ODOM, J.

In October, 1925, W. H. Smith, Jr., entered into a contract with the Louisiana highway commission and the parish of Calcasieu to do certain road work and to erect timber bridges at or near the Sabine river on the Vinton-Orange highway. The contract was reduced to writing, and a bond given with the IEtna Casualty & Surety Company as surety in conformity with the provisions of Act No. 224 of 1918.

The present suit is by James B. Smith against the contractor and his surety for $2,804.38, alleged to be due for lumber and timbers furnished by plaintiff and used by the contractor in the construction of the bridges.

In answer to a rule to show cause why his petition should not be dismissed for vagueness, plaintiff alleged that, under the terms of the contract which he had with the contractor, he agreed to and did purchase from various lumber companies the necessary lumber and timbers to build the bridges, and resold the same to the contractor who used it in constructing the work, but failed to pay the price.

The contractor and his surety answered, denying generally the allegations of plaintiff’s petition. There was judgment for plaintiff against the contractor and the surety company in solido for $1,774.23, with interest and attorneys’ fees. The surety company appealed. Plaintiff answered the appeal praying that the judgment be amended by increasing the amount to $2,804.38, the amoiint prayed for.

1. Plaintiff predicates his suit against the surety on the contractor’s bond upon the proposition that he furnished to the contractor material which was used in the construction of the work, which material was *939 not paid for, and that the surety is bound under the terms of- the bond. The defense urged by the surety is that plaintiff was not in fact a furnisher of materials, but that he loaned to the contractor money with which ■to' purchase the material; that the material was purchased by the contractor and paid for with the funds advanced.

This contract was entered into and the bond given pursuant to the provisions of Act No. 224 of 1918, which is an act relating to contracts for public works. It provides that, when public works are to be constructed, at a cost exceeding $500, the contract shall be reduced to writing, signed by the parties, and that the state or any subdivision thereof letting a contract for such work shall require of the contractor a bond with surety, the condition of which shall be the faithful performance of the contract, and with an additional obligation “for the payment by the contractor and by all subcontractors for all work done, labor performed, or material furnished in the construction, * * * of such * * * work or improvement.” Section 1.

The bond in the instant case was written in precise accord with the act. Therefore the only obligation assumed by the surety was to see that the contractor faithfully performed the contract and that payment was made for all work done, labor performed, or material furnished in the construction of the work.

Nothing is said in the act about the claims of those who advance money to the contractor with which to pay the laborers or for materials used in the construction of the work. So that one who advances money to a contractor with which to pay for-materials has no action against the surety on the contractor’s bond, unless the expression “materials furnished” be construed to include “money advanced.”

The expression “material furnished” does not include money advanced. It was so held in Hanson v. Liberty Const. Co., 172 La. 298, 134 So. 98. To the same effect are the cases of Young v. Barelli, 169 La. 319, 125 So. 258, and Central Lumber Co. v. Schroeder, 164 La. 759, 114 So. 644, where the same expression in similar statutes was construed.

This case therefore hinges upon the question whether plaintiff furnished material for-the construction of the work or whether he furnished the contractor money with which to buy them.

2. We find the facts to be that plaintiff was not’ a furnisher of materials. On the contrary, he advanced to the contractor the-sum of $3,000 which he used to pay for the lumber used in the construction of the bridges.

Before the completion of this contract, the contractor became embarrassed financially and called upon plaintiff for help. Plaintiff agreed to advance the necessary funds with which to purchase what lumber was necessary, provided he could be protected, and provided further that he was paid a commission or bonus of 10 per cent, on the amount of the invoices for the lumber purchased. He alleged that the scheme was that he should purchase the lumber from the mills and resell it to the contractor and thereby become a “furnisher of materials” for the work. But, instead of the lumber being purchased by plaintiff and resold to the contrac *941 tor, it was purchased by the contractor and paid for by him with funds advanced by plaintiff.

The record shows that there were four purchases of lumber made. One from PeaveyWilson on May 27, 1926, amounting to $774.-69; one from the R. W. Wier Lumber Company on July 15, 1925, amounting to $1,066.-68; and two from Lutcher & Moore, one on August 6th, amounting to $464.98, and one on August 21st, amounting to $242.57.

Mr. E. W. Thompson, assistant sales manager for the Peavey-Wilson Lumber Company, testified that he handled the order from his concern, and that the lumber was billed to W. H. Smith, Jr., the contractor, shipped with sight draft and bill of lading attached, which draft was paid through the bank of Orange, Tex. He further testified that his company had no dealings whatever with J. B. 'Smith, the plaintiff.

On September 3, 1926, more than three months after this lumber was shipped, W. H. Smith, Jr., wrote Peavey-Wilson concerning this order saying: “Will you kindly re-bill or make duplicate order to read, Sold to J. B. Smith, 3314 Tulane Avenue, New Orleans, Louisiana, notify W. H. Smith, Jr., Orange, Texas. Kindly mail this bill to J. B. Smith, Box 518, Alexandria, La.”

A subsequent or “corrected bill” was made •out and mailed as requested, and this was offered in evidence by plaintiff and is relied upon by him. Mr. Thompson said this “corrected bill” did not reflect the true status of the account, but was made at the request of W. H. Smith, Jr., the contractor.

Mr. T. P. Wier, secretary-treasurer of the R. W. Wier Lumber Company, testified that on or about July 7, 1926, W. H. Smith, Jr., placed an order with his company for lumber which was shipped and paid for by said Smith, and that his company had no dealings whatever with J. B. Smith, the plaintiff.

On September 3, 1926, two months later, W. H. Smith, Jr., wrote this company, saying:

“On July 15th, W. H. Smith, Jr., bought a car of lumber, Invoice No. 7003, car No. 20376, St. L. B. & M. box from your plant at Wiergate, Texas. There was an error made in billing this lumber and I ask that you kindly change the invoice and have the same read, Sold to J. B. Smith, 3314 Tulane Avenue, New Orleans, La., notify Texas Creasoting Company and W. H. Smith, Jr., Orange, Texas.
“If you will kindly make this correction and send me a new bill, I will certainly appreciate it very much, same to read as stated above. Kindly mail this bill to J. B.

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Related

Young v. Barelli
125 So. 258 (Supreme Court of Louisiana, 1929)
State v. Smith
119 So. 56 (Supreme Court of Louisiana, 1928)
Hanson v. Liberty Const. Co.
134 So. 98 (Supreme Court of Louisiana, 1931)
Central Lumber Co. v. Schroeder
114 So. 644 (Supreme Court of Louisiana, 1927)

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Bluebook (online)
142 So. 132, 174 La. 937, 1932 La. LEXIS 1755, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-smith-la-1932.