Sparks Construction, Inc. v. Newman Brothers, Inc.

288 So. 2d 749, 51 Ala. App. 690, 1974 Ala. Civ. App. LEXIS 447
CourtCourt of Civil Appeals of Alabama
DecidedJanuary 16, 1974
DocketCiv. 171
StatusPublished
Cited by7 cases

This text of 288 So. 2d 749 (Sparks Construction, Inc. v. Newman Brothers, Inc.) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sparks Construction, Inc. v. Newman Brothers, Inc., 288 So. 2d 749, 51 Ala. App. 690, 1974 Ala. Civ. App. LEXIS 447 (Ala. Ct. App. 1974).

Opinion

HOLMES, Judge.

From the Circuit Court of Morgan County, Alabama, defendant-appellant Sparks Construction Company, Inc., appeals from a judgment of $4,268. The plaintiff-appellee, Newman Brothers, Inc., brought suit in the lower court against appellant and Aetna Casualty & Surety Company under a bond provided in compliance with Ala.Code, Tit. 50, § 16 (1940). Appellee sued for alleged payments due for certain materials supplied. By agreement of the parties, Aetna Casualty & Surety Company was dismissed as a party defendant.

The case was tried before a jury and at the conclusion of the evidence, the trial court, on its own motion, granted the affirmative charge without hypothesis and directed the jury to find for the plaintiff. Thereafter, the jury rendered a verdict of $4,268 and a judgment was rendered thereon.

The appellant’s basic dispositive contention as raised by appropriate assignments of error is that a materialman supplying material to another materialman does not have a cause of action under Ala.Code, Tit. 50, § 16 (1940), and that the trial court erred in determining the appellee was entitled to the benefits of the aforementioned Code section.

*692 Ala.Code, Tit. 50, § 16, provides in pertinent part as follows:

“§ 16. Bonds required; suits thereon, etc. — Any person, firm or corporation entering into a contract with the state or any county or municipal corporation or subdivision thereof in this state for the repair, construction or prosecution of any public buildings or public work, highways or bridges, shall be required, before commencing such work, to execute a performance bond, with penalty equal to fifty percent of the amount of the contract price, and in addition thereto, another bond with good and sufficient surety, payable to the state, county or municipal corporation or subdivision, letting the contract, in an amount not less than fifty percent of the contract price, with the obligation that such contractor or contractors shall promptly make payments to all persons supplying him or them with labor, materials, feedstuffs or supplies for or in the prosecution of the work provided for in such contract, and for the payment of reasonable attorneys’ fees, incurred by successful claimants or plaintiffs in suits on said bond; and any person, firm or corporation that has furnished labor, materials, feed-stuffs or supplies for or in the prosecution or repair of any public building or public work, highways or bridges, and payment for which has not been made, shall be authorized to institute an action upon said bond in his or their name or names and to have their rights and claims adjudicated in such action and judgment rendered thereon;

The facts as revealed by the stipulation of the parties and testimony indicate the following:

Sparks Construction, Inc. (hereinafter referred to as Sparks) with Aetna Casualty as surety furnished a bond in compliance with Ala.Code, Tit. 50, § 16 (1940), for the construction of an elementary school in Russellville, Alabama. The Russellville City Board of Education entered into a contract with Sparks for the construction of the school for $826,032.

Sparks entered into an agreement with B & H Steel Company which contained language as follows:

“Furnish all Structural Steel, mise, and Ornamental Iron in sufficient quantities to complete the Russellville Elementary School, Russellville, Ala. in strict accord with plans, specifications Addenda # 1 thru # 6 and Drawings R-5, R-6 and R-7, all as prepared by Barr & Tune, Architects, Alternate # 1 and # 2 have been accepted.
“Shop drawings to be submitted immediately for Architect’s Approval.”
The amount involved was $57,598.

B & H Steel Company ordered from Newman Brothers, Inc., $4,268 worth of rails. Newman Brothers shipped the rails to B & H Steel, c/o Russellville Elementary School, Russellville, Alabama, and sent B & H Steel an invoice for $4,268. B & H then sent an invoice to Sparks for the rails for $4,958.72.

Sparks issued checks to B & H which fully covered the amount due. Newman Brothers did not receive payment for the rails which it shipped and, thereafter, brought this action.

The appellant Sparks contends that the lower court erred in finding for the appellee, Newman. In support of this contention, the appellant urges that B & H and Newman were materialmen and, therefore, that Newman, a materialman of a materialman (B & H), cannot receive the benefit of the bond provided in Ala.Code, Tit. 50, § 16 (1940).

At the outset, we note that Ala.Code, Tit. 50, § 16 (1940), is to be liberally construed to effect the purpose of the statute. See Lloyd Wood Const. Co. v. Con-Serv, Inc., 285 Ala. 409, 232 So.2d 649; State v. Southern Surety Co., 221 Ala. 113, 127 So. 805.

*693 We also note there can be no question but that under the law of Alabama, one furnishing material to a subcontractor has the benefit of Ala.Code, Tit. 50, § 16 (1940). See American Employers’ Ins. Co. v. Lee & Kincaid Coal Co., 226 Ala. 262, 146 So. 408; United States Fidelity & Guaranty Co. v. Benson Hardware Co., 222 Ala. 429, 132 So. 622.

In order to determine whether B & H was a subcontractor or a materialman, we must define the term “subcontractor” as we are applying it in this instance. The United States Supreme Court in Clifford F. MacEvoy Co. v. United States, 322 U.S. 102, 64 S.Ct. 890, 88 L.Ed. 1163, analyzes the term in dealing with The Miller Act, which is the federal statute comparable to our state statute dealing with bonds for public works. The court states as follows:

“Whether the word includes laborers and materialmen is not subject to easy solution, for the word has no single, exact meaning. In a broad, generic sense a subcontractor includes anyone who has a contract to furnish labor or material to the prime contractor. . . . But under the more technical meaning, as established by usage in the building trades, a subcontractor is one who performs for and takes from the prime contractor a specific part of the labor or material requirements of the original contract, thus excluding ordinary laborers and materialmen. * * * ” (322 U.S. at 108, 64 S.Ct. at 894)

See also J. W. Cooper Const. Co. v. Public Housing Administration, 390 F.2d 175 (10th Cir. 1968); Elmer v. United States Fidelity & Guaranty Co., 275 F.2d 89 (5th Cir. 1960).

The Supreme Court of California looked at this same question in Theisen v. County of Los Angeles, 54 Cal.2d 170, 183, 5 Cal. Rptr. 161, 169, 352 P.2d 529, 537, whereby the court stated:

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288 So. 2d 749, 51 Ala. App. 690, 1974 Ala. Civ. App. LEXIS 447, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sparks-construction-inc-v-newman-brothers-inc-alacivapp-1974.