Southwestern Dredging Corp. v. Chicago, R. I. & P. R. Co.

1934 OK 257, 32 P.2d 713, 168 Okla. 217, 1934 Okla. LEXIS 126
Supreme Court of Oklahoma·Decided April 24, 1934·No. 22112·Published·Cited by 3 cases

Opinion

PER CURIAM.

The plaintiff’s petition in this ease alleges, in substance, that on the 27th day of March, 1929, T. E. Wiggins, Inc., and the Chicago, Rock Island & Pacific Railway Company entered into a contract for certain construction work on the Rock Island right of way at Oklahoma City. That at the same time, and as a part of the consideration for the execution of said contract, the American Employers’ Insurance Company executed a bond guaranteeing the performance of the contract. A copy of said bond is attached to the petition and made a part thereof, marked exhibit “A.” The conditions of said bond, as recited therein, are as follows:

“Now, therefore, if said principal shall in all respects faithfully and fully perform each and all of the terms, provisions, conditions and undertakings of said contract in writing to be by it kept and performed, then this obligation shall be null and void; otherwise to remain in full force, virtue and effect.”

Plaintiff further alleges, in substance, that on the first day of September, 1929, said T. E. Wiggins, Inc., entered into a contract with the plaintiff for the rental of certain equipment to be used under said contract above referred to and to be used on the right of way of said railway company. A copy of said contract is attached to the plaintiff’s petition, marked exhibit “B” and made a part thereof. That there is due from T. E. Wiggins, Inc., a balance of $4,000 and interest; that said sum has not been paid, although demand therefor has been made, and plaintiff alleges that by reason of the execution and delivery of the above bond said surety company became liable and bound to pay all the claims for labor and material under said contract and for labor and material performed and used under said contract.

Plaintiff further alleges that under the lien law of the state of Oklahoma, its claim is by statute made a lien on the right of way, roadbed, equipment, etc., of the defendant railway company; that a statutory notice of a lien claimed was served on said railway company on March 19, 1930', a copy of said notice of lien 'is attached to the plaintiff’s petition marked exhibit “0” and made a part thereof, and the plaintiff prays judgment against T. E. Wiggins, Inc., and the American Employers’ Insurance Company in the sum of $4,000, with interest, and for judgment declaring the same to be a lien against the roadbed, right of way, etc., of the defendant railway company, and for $500 attorney’s fee.

Each of the defendants filed separate demurrers to the petition of the plaintiff on the ground that the petition did not state facts sufficient to constitute a cause of action against the defendants in favor of plaintiff.

The demurrer as to the defendant T. E. Wiggins, Inc., was by the court overruled, and at a later date the cause of action against T. E. Wiggins, Inc., was dismissed by the plaintiff without prejudice.

The lower court sustained the demurrer of each of the other defendants; plaintiff declined to plead further, gave notice of intention to appeal, etc., and this case is now before this court for review on the question of whether or not the lower court committed error in sustaining the demurrers of the defendants American Employers’ Insurance Company and the Chicago, Rock Island & Pacific Railway Company.

It will be observed that the only allegation as to the contract for construction work between T. E. Wiggins, Inc., and the Chicago, Rock Island & Pacific Railway Company is that they entered into a contract for certain construction work on the Rock Island right of way at Oklahoma City; nor is there any copy of said contract attached to the plaintiff’s petition. This being true, this court cannot hold that said contract was entered into for the use and benefit of third persons.

In the bond executed, T. E. Wiggins, Inc., was obligor and the defendant railway company was obligee, and it in effect simply guarantees the performance of the contract entered into by the Wiggins Company and *219 tlie defendant railway company, and tlie petition does not allege facts sufficient to show that there was any privity of contract between the plaintiff and the defendant American Employers’ Insurance Company, as surety, nor does the bond or any of the exhibits attached to plaintiff’s petition so show.

We are, therefore, of the opinion, and hold, that the demurrer of the American Employers’ Insurance Company to the plaintiff’s petition was properly overruled. Merchants Union Trust Co. v. New Philadelphia Graphite Co. (Del. Ch.) 83 Atl. 520; Evans v. U. S., 42 Ct. Cl. 287; Kruschke v. Quatsoe (Colo.) 112 P. 769; Sheppard v. Holt, 119 Okla. 168, 249 P. 302; Arkansas Valley Smelting Co. v. Belden Mining Co., 127 U. S. 379.

Should the demurrer of the defendant Chicago, Rock Island & Pacific Railway Company have been sustained? Plaintiff bases his right to a lien on section 7473, C. O. S. 1921, which reads as follows;

“7473. Liens Against Railroads. Every mechanic, builder, artisan, workman, laborer or other person, who shall do or perform any work or labor upon or furnish any material, machinery, fixtures or other things toward the equipment, or to facilitate the operation of any railroad, shall have a lien therefor upon the roadbed, buildings, equipments, income, franchises, and all other appurtenances of said railroad, superior and paramount, whether prior in time or not. to that of all persons interested in said railroad as managers, lessees, mortgagees, trustees, beneficiaries under trusts or owners.”

In the case of Kansas City Southern R. Co. v. Reinman, 63 Okla. 69, 162 P. 726, the plaintiff sought to recover for the hire of several spans of work mules, and the plaintiff sought to have a lien declared for the amount due against the property of the railway company, and in holding that the plaintiff was not entitled to recover against the railway company, this court, among other things, at page 70, said:

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Southwestern Dredging Corp. v. Chicago, R. I. & P. R. Co., 1934 OK 257, 32 P.2d 713, 168 Okla. 217, 1934 Okla. LEXIS 126 (Okla. 1934).

1934 OK 257 (Southwestern Dredging Corp. v. Chicago, R. I. & P. R. Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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