Southern Real Estate & Financial Co. v. Bankers Surety Co.

207 S.W. 506, 276 Mo. 183, 1918 Mo. LEXIS 113
CourtSupreme Court of Missouri
DecidedDecember 19, 1918
StatusPublished
Cited by7 cases

This text of 207 S.W. 506 (Southern Real Estate & Financial Co. v. Bankers Surety Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southern Real Estate & Financial Co. v. Bankers Surety Co., 207 S.W. 506, 276 Mo. 183, 1918 Mo. LEXIS 113 (Mo. 1918).

Opinion

WOODSON, J.

This is tbe second time tbis case has reached tbis court. Tbe opinion written on tbe former appeal is reported in tbe 184 S. W. 1030, which reversed and remanded tbe cause for another trial.

Tbe facts are practically undisputed, but tbe contest centers around two legal propositions, which will be presently stated.

When tbe mandate of tbis court reached tbe circuit court the plaintiff filed an amended petition, setting up tbe building contract entered into between tbe plaintiff and tbe E. H. Abadie Company, a contractor, whereby tbe latter undertook “to provide all of tbe [187]*187materials and perform all 'the work for the steam heating, ventilating and power plant for a hotel and theatre building being erected on the northeast corner of Seventh and Market Streets, in the city of St. Louis,” for the sum of $60,000, “to be paid in installments on the 15th day of each month of ninety per cent of the work in place during the preceding month, according to the certificate of the architect, the final payment to be made thirty days after the completion of the work included in the contract.”

Counsel for the plaintiff correctly states the case substantially in the following language:

‘ ‘ The amended petition plead the bond entered into between the E. H. Abadie Company, as principal, and defendant, as surety, and the plaintiff, as obligee, wherein defendant agreed to keep the plaintiff ‘harmless and indemnified from and against all and every claim, demand, judgments, liens and mechanic’s liens, costs and fees of every description, incurred in suits or otherwise, that might be had against it or against the building to be erected under said contract, including alterations, and to repay to the said plaintiff all sums of money which it might pay to other persons on account of work and labor done, or materials furnished’ on or for said buildings, by reason of the failure on the part of the said E. H. Abadie Company to pay to said plaintiff all damages it might sustain and all forfeitures to which it might be entitled by reason of the nonperformance or mal-performance on the part of said E. H. Abadie Company of any of the covenants, conditions, stipulations and agreements of said contract including such alterations and additions.’ The penalty of the bond is $15,000. Said bond further provided that the parties might by agreement make alterations and additions to said contract, provided the additional cost thereof did not exceed $5000. Thereafter an amendment to the bond was agreed upon by the parties whereby alterations and additions to said contract might be [188]*188made to the amount of $15,000 without any other or further consent of the surety.

“The amended petition further plead that additions were made to said contract at a cost of $8963.98, the partial performance of the contract and the abandonment thereof by the contractor, after payment by plaintiff to said contractor of $62,5^02.50, upon certificates of the architect, and that said amount constituted approximately ninety per cent of the value of the work and materials in place on said building to said time; that thereafter plaintiff paid on account of materials furnished on the order of the contractor and incorporated in the building, to various persons and corporations, the sum of $2432.50; that plaintiff paid on account of mechanics r-lien judgments against said building on account of material furnished to said contractor, the aggregate sum of $9468.21; that the cost to plaintiff to complete said contract was $5607.24; a total cost to plaintiff, over and above the contract price of $68,962.98, of $11,064.47, for which amount with interest plaintiff prayed judgment.

“Defendant answered, admitting the execution of the contract and bond and the terms thereof, and as an affirmative defense, plead a violation of the provision of the contract in that plaintiff overpaid the contractor. Other affirmative defenses were set out in said answer, but were apparently abandoned by defendant at the trial, as no evidence was offered by defendant, and no instructions were asked save on the question of overpayment to the contractor.

“The defendant offered no evidence at the trial, and that introduced by plaintiff was to the effect that the contract was breached by the contractor; that the money paid the contractor before the breach was ninety per cent or less of the value of the work in place; that all the money paid to others, including that expended to complete the contract, was paid for materials which actually went into the building in the performance of the contract.

[189]*189“Frederick C. Bonsack testified that he was the architect designated by the contract of the parties, the performance of which the bond in suit was executed to secure; that his particular duty was to see that the work was done according to plans and specifications; that in pursuance of this duty, he was on the building almost every day and had Samuel C. Black, his superintendent, representing him there all of the time. Mr. Bonsack testified to the additions and alterations made to the contract commonly known as ‘extras,’ being plaintiff’s Exhibits E-F, Exhibits Gr-H, Exhibits I-J, Exhibits K-L, Exhibits M-N, Exhibits O-P. The aggregate amount of these ‘extras’ was the $8963.98, constituting the additions to the original contract.

“He further testified as to his method of determining the amount of money to be paid to the contractor that on each month the contractor would submit a statement to his office of the amount of work he did during the month past; that he (Bonsack) had his 'superintendent and the representative of the owner on the work to check up this statement, .after which he checked it himself and determined to what extent it was correct; that in arriving at this amount he took into consideration the amount of work that had been done according to the best of his ability and that he allowed him ninety per cent of the amount thereof.

“In connection with the testimony of the architect, Bonsack, as to his manner of making this computation, plaintiff offered in evidence his certificates identified bv him as Plaintiff’s Exhibits Q, R, S, T, IT, Y, W, X, Z, AA, BB, respectively, stating that each of them represented ninety per cent or less of the work in place at the time. Each of these certificates had appended thereto an acknowledgment of receipt of the money called for therein by the contractor, said receipts being admitted by defendant to be genuine, showing payment to said contractor on account of said contract of the sum of $62,502.50.

[190]*190“He further identified the orders on the owner to pay various amounts to materialmen, same being Plaintiff’s Exhibits 00, DD, and EE, and stated that these amounts were paid and that the material they represented went into the building under the Abadie contract.

“On cross-examination he testified that the incompleted portion of the contract would not bear the same ratio to the entire work as the $5607.24 which it cost to complete would bear to the entire contract price, because it would cost more labor to take hold of a job in that condition and finish it than it would have cost the original contractor to complete it.

“Samuel 0. Black confirmed Bonsack’s statements as to his employment in connection with the Abadie contract; that the money paid direct to the materialmen after Abadie abandoned the contract covered specified articles which went into the building.

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Bluebook (online)
207 S.W. 506, 276 Mo. 183, 1918 Mo. LEXIS 113, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-real-estate-financial-co-v-bankers-surety-co-mo-1918.