Standard Accident Insurance v. Basolo

1937 OK 149, 68 P.2d 804, 180 Okla. 261, 1937 Okla. LEXIS 640
Supreme Court of Oklahoma·Decided March 2, 1937·No. No. 25904.·Published·Cited by 8 cases

Opinion

PER CURIAM.

This case comes before this court on appeal from the district court of Pittsburg county by the surety company under a bond, executed to the state of Oklahoma, to cover the cost of construction *262 of a highway project in that county by the State- Highway Commission. The contract for construction of the roadway was awarded by the commission to S. O. Maxey & Company, a corporation, and in compliance with the statute for such cases provided, it executed a bond for faithful performance with the Standard Accident Insurance Company, as surety, in an amount equal to the total cost of the project.

The Maxey Company then entered into an agreement with one Massey, Lindsey & Gaasch, another corporation, whereby the latter was to furnish all of the sand to be used in the construction of the highway and to deliver it to the dock of the former company near the project. From that point it was carried to the mixing machines and then to the roadway by the Maxey Company. Massey, Lindsey & Gaasch employed certain laborers to dig the sand from its pits, wash and- deliver it to the other company’s dock, and at the end of each day it gave to each of the laborers a ticket showing the amount due him for the day’s labor. A number of these tickets were taken up by and assigned to one Tony Basolo, either for cash, or exchanged for goods, wares and merchandise, in the total amount of $1,815,-37, of which the Massey, Lindsey & Gaasch Company paid the sum of $475, leaving a balance of $1,340.37 which it failed to pay.

After purchasing these tickets Tony Basolo died and John Basolo was duly appointed the administrator of his estate and brought an action for a money judgment in the amount due under those tickets, against Massey, Lindsey & Gaasch and the Standard Accident Insurance Company, the surety under the contractor’s bond. The former did not defend the action and judgment was rendered against it for the full amount due, ’but the amount hereinbefore stated having been paid on the amount due, judgment was rendered against the surety company for the balance due thereon. From this judgment of the trial court, a jury having been waived by the parties, the defendant surety company appeals to this court.

This case must be decided strictly in accordance with the statutory provisions pertaining to the execution of a bond by the company to whom the contract was awarded for the faithful performance of its obligation and the protection of the state against all claims which might be made in construction of the project in question, and could be rather easily disposed of by a brief review of the statute in question and the language used therein, together with a review of the terms of the contract and the bond provided, if it were not for several questions raised by the plaintiff in error, the surety company, which merit consideration.

The statute in question is section 10983, of the 1931 Oklahoma Statutes, which provides that where a contract is made by a public officer of this state for any public project, the person with whom the contract is made shall provide a surety bond, “in a sum not less than the sum total in the contract, conditioned that such contractor, or contractors, shall pay all indebtedness incurred for labor or material furnished in (he construction of said public building, or in making said public improvements.”

The words “all indebtedness incurred for labor or material furnished” appear quite clear and should need no further interpretation or elaboration as to the legislative intent when the statute was enacted. They are simple and of common usage and have no double meaning, and there should be no question but that the surety company under its bond in statutory form, and there is no contention that it is not, guarantees the payment of all the costs for labor and material used in the completion of the project.

However, as stated, it raises two questions on appeal which it contends provide an exception to the wording of the statute and the intention of the Legislature in enacting it.

1. It is contended first by the surety company that the Massey, Lindsey & Gaasch Company, which furnished the sand, is not a subcontractor as defined by section 10977 of our statutes, but is a materialman, and that the relation created between S. O. Maxey & Company and Massey, Lindsey & Gaasch is only one of buyer and seller, since the sand was sold at a certain rate per square yard of pavement, and not one of contractor and subcontractor, and that such relationship is not included within the meaning of the statute.

Assuming that plaintiff in error is correct in its contention that the sand company was not a subcontractor, under one section of the statute, it is still confronted with the other horn of the dilemma in the form of the statute which says “all indebtedness incurred for labor and material furnished in the construction” must be taken into consideration. This alone would almost preclude it from asserting its contention further, but this court as well as other authorities has passed on the definition of contractor.

*263 13 Corpus Juris, page 211, under “Contractor,” says;

“Tie word, for want of a better one, bas come to be used with special reference to a person wbo, in the pursuit of an independent business, undertakes to do a specific piece of work, or job for other persons.”

The Criminal Court of Appeals, in the case of In re Unger, 1 Okla. Cr. 222, at 225, 98 P. 999, in adopting the definition laid down in Brown v. German-American Title & Trust Co., 174 Pa. 443, 34 Atl. 335, and as defined in the Century and Webster’s International Dictionary, says that a “contractor” is:

“One who contracts or covenants either with * * * a public body, or private parties, to construct works or erect building's at a certain price or rate.”

In the case of Ryndak v. Seawell, 13 Okla. 737, 76 P. 170, this court also held that a materialman under the intention of the statute in question should be considered as a subcontractor, or the purpose for which it had been passed would fail.

The definition in Re Unger, supra, was quoted with approval by the Circuit Court of Appeals in Arthur v. G. W. Parsons Co., 224 Fed. 47, 139 C. C. A. 511, and forms the basis of its definition that a “contractor” is one who contracts with another to furnish supplies, or construct works, or erect buildings, or to perform any work or service at a fixed price or rate.

The Colorado court, in the case of Stewart v. Talbott, 58 Colo. 563, 146 P. 771, at 776, defines a contractor as:

“One who, as an independent business, undertakes to do specific jobs of work without submitting iiimself to control as to petty details.”

That court, in interpreting its statute which is quite similar in content to ours, further spates that where a person, under an agreement, contracts to furnish materials, or perform any of the labor or services provided for in the statute, he would be a contractor by performing such services or labor.

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Standard Accident Insurance v. Basolo, 1937 OK 149, 68 P.2d 804, 180 Okla. 261, 1937 Okla. LEXIS 640 (Okla. 1937).

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