Solite Masonry Units Corp. v. Piland Construction Co.

232 S.E.2d 759, 217 Va. 727, 1977 Va. LEXIS 229
CourtSupreme Court of Virginia
DecidedMarch 4, 1977
DocketRecord 760272
StatusPublished
Cited by12 cases

This text of 232 S.E.2d 759 (Solite Masonry Units Corp. v. Piland Construction Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Solite Masonry Units Corp. v. Piland Construction Co., 232 S.E.2d 759, 217 Va. 727, 1977 Va. LEXIS 229 (Va. 1977).

Opinion

Harrison, J.,

delivered the opinion of the court.

Solite Masonry Units Corporation instituted an action at law against Piland Construction Co., Inc., United States Fidelity and Guaranty Company, surety on Piland’s statutory performance and payment bond, and Roger Story, t/a Superior Construction Company, to recover the sum of $5,311.65, with interest from February 1, 1975, evidenced by an account for certain masonry block which Solite furnished to Story, a subcontractor of Piland. The court rendered judgment in favor of Solite against Piland and U.S.F. & G. Co. in the amount of $2,447.99. Proper service of process was never obtained on Story. The sole question involved *728 on appeal is whether the trial court erred in holding that Solite is entitled to recover for only that material it supplied the subcontractor which was actually used in the building constructed by Piland.

On July 12, 1974, Piland entered into a contract with the City of Hampton for the construction of the Hampton City Garage. Piland was employed as the general contractor on the job and, pursuant to Code § 11-23, executed and delivered to the city its performance and payment bond with the U.S.F. & G. Co. as surety thereon.

Thereafter Piland entered into a contract with Roger Story, t/a Superior Construction Company, whereby Story agreed to perform the masonry portion of Piland’s contract with the city. Between September 19,1974 and January 8,1975, Solite received from Story orders for masonry blocks for use in the construction of the garage. Pursuant to Story’s order Solite made 18 deliveries of block to the job site. The invoice tickets, which were duly receipted, reflect the number of blocks delivered, identify the- customer or purchaser as Superior Construction Company and the job site as “Hampton City Garage”. A copy of the invoices accompanied the blocks to the job, and a copy was mailed to Story. At the time of trial the unpaid balance due Solite by Story for the blocks so delivered was $5,311.65, and the account had been past due since February 1,1975.

It was testified that sometime subsequent to January 8,1975, some of the blocks that had been delivered to the garage site by Solite were removed by Roger Story. This fact was brought to the attention of Piland, for whom Story was performing two or three other jobs at the time. When told that the materials were being moved “back and forth”, R. Stanley Piland, president of Piland, said: “They are not my materials. I have nothing to do with it.”

Henry Hancock, superintendent for Piland, testified that he brought the matter of the block removals to the attention of Charlie Graves, Solite’s representative, “about the time the manager or the owner [Story] of Superior took off out of town, left town”. Graves testified that he was present on one occasion when Story removed “about ten or fifteen blocks” from the job site and that this apparently occurred after a substantial portion of the blocks had been delivered. Graves said that he had no *729 conversation with any other representative of Solite with reference to the removal of the blocks for the reason that “the block did not belong to us at that time. It was Mr. Story’s block”.

Subsequent to default being made by Story in the payment of his account with Solite, Piland caused a count to be made of the actual number of blocks used in the construction of the Hampton garage. Although the trial judge concluded that the blocks alleged to have been delivered to the job site were so delivered, he awarded Solite judgment based upon the amount due Solite for the block actually used in the construction of the garage rather than the amount represented by the blocks delivered by Solite to Story at the garage site.

The disposition of this case involves the construction of Code § 11-23. Appellees contend that a supplier of materials to a subcontractor is entitled to recover against the general contractor and the surety on his bond only to the extent that the materials are actually used on the job. Appellant says that a supplier need only in good faith furnish materials in the prosecution of the work in order to be afforded the protection of Code § 11-23 and that their actual incorporation into the structure, or use in the process of constructing the building, is not necessary.

Code § 11-23 concerns “Bonds on public contracts to which county, city, town, school board, or agency thereof, is party; conditions of such bonds.” The section provides, in pertinent part, that when a city enters into a construction contract in excess of $2,500 the general contractor shall execute certain bonds, with surety, including:

“(b) A payment bond conditioned upon the payment of all persons who have, and fulfill, contracts which are directly with the contractor for performing labor or furnishing materials in the prosecution of the work provided for in said contract.”

Code § 11-23 further provides that the general contractor shall require a corresponding bond from his subcontractor, conditioned upon payment of the latter’s laborers and materialmen, and that:

“In the event a contractor fails to require from a subcontractor the bond provided for herein, any person who *730 has and fulfills contracts directly with such subcontractor for performing labor and furnishing materials in the prosecution of the work provided for in the subcontract shall have a direct right of action against the obligors and sureties on the payment bond required of the contractor under subparagraph (b) above.”

The section is remedial in character, its language is broad and inclusive, and it was enacted to afford protection to materialmen and subcontractors who cannot avail themselves of the provisions of Code §§ 43-7 and 43-9, since mechanic’s liens cannot be perfected against public buildings. That the section must be liberally construed in favor of materialmen and subcontractors was made clear in Thomas Somerville Co. v. Broyhill, 200 Va. 358, 363, 105 S.E.2d 824, 828 (1958), where we said:

“It is made manifest by this language that the intent of the statute is to protect those who furnish supplies, material and labor in and about the construction of the public buildings and improvements mentioned in the act, whether they be furnished to the principal contractor or to a subcontractor; of this a general contractor and his surety must take cognizance. They may readily protect themselves against the shortcomings of subcontractors by requiring bonds of the latter. C. S. Luck & Sons v. Boatwright, 157 Va. 490, 162 S.E. 53.”

The phrase, “furnishing materials in the prosecution of the work”, parallels the language used in the Miller Act, 40 USC § 270b, to wit:

“(a) Every person who has furnished labor or material in the prosecution of the work provided for in such contract. . ..”

In Vulcan Materials Co. v. Betts, 315 F.Supp. 1049, 1052 (W.D. Va.

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Bluebook (online)
232 S.E.2d 759, 217 Va. 727, 1977 Va. LEXIS 229, Counsel Stack Legal Research, https://law.counselstack.com/opinion/solite-masonry-units-corp-v-piland-construction-co-va-1977.