Standard Oil Co. v. Enebak

222 N.W. 573, 176 Minn. 113, 1928 Minn. LEXIS 991
Supreme Court of Minnesota·Decided December 21, 1928·No. No. 27,101.·Published·Cited by 4 cases

Opinion

Holt, J.

Plaintiff appeals from a judgment in favor of the defendant the Maryland Casualty Company.

Respondent was the surety of S. G. Enebak in a statutory bond required in the letting to him by the county of Polk, Minnesota, of a contract for the construction of Job No. 2603, State Aid Road No. 1, in said county. In such construction plaintiff furnished Enebak gasolene, lubricating oil, and greases to the amount of $1,432.64, of which $914.02 remains unpaid. Had respondent been served with the written notice prescribed by G. S. 1923, § 9705, there could be no question but that plaintiff should have had judgment. *114 The court held the notice served insufficient as to contents and found that there was no waiver. The appeal questions these conclusions. The construction job was finished and accepted by the county board October 18, 1927. The time for serving the written notice of claim did not expire sooner than the middle of January, 1928. The notice upon which plaintiff relies is a registered letter sent to the agent of defendant in charge of its business in this state on December 5, 1927, reading:

“As bondsmen for S. G. Enebak, contractor on project No. 2608, Polk County, we are herewith filing statement of our account with the above contractor amounting to $959.67, representing deliveries made to the project referred to. Mr. Enebak has received all estimates with the exception of about $600.00, the last large payment being made to him on November 5th of about $500.00, yet we have received no money on our account since August 16th and are not satisfied at all with the manner in which Mr. Enebak is handling the account. Please acknowledge receipt of this letter, advising us what you can do toward, arranging for settlement of the account, so that it will not be necessary for us to revert to legal action.”

The statement of account inclosed Avas a copy of a ledger page of figures adding nothing of value to the information conveyed by the letter, except that the account was for sales by the Standard Oil Company to Enebak. Respondent acknowledged receipt of the letter on December 8, 1927, stating that plaintiff’s claim had been referred to its local attorneys and adjusters, “and no doubt you Avill hear from them promptly.” On December 28, 1927, the attorneys Avrote plaintiff: “We are expecting to go up to Warren the first of next week to work out some plan for the disposition and payment of these claims, and Avill then advise you further in this matter.” It appears that one of the attorneys did go to Warren to investigate plaintiff’s claim, that he assumed that Avhatever account plaintiff had against Enebak Avas for oils, greases and lubricating oils, but that he did not get at that time or since any definite information as to the exact nature of the account. Neither *115 respondent nor its attorneys ever communicated with plaintiff since the letter of December 28, 1927.

We held in Ilg Elec. Ventilating Co. v. Conner, 172 Minn. 424, 215 N. W. 675, that the failure of the notice to state the date of furnishing the last item was immaterial. The notice states the amount of the claim, and the only other material matter required by the statute (§ 9705) is that the notice specify “the nature of the claim.” The notice did state that the claim was for “deliveries made to the project referred to.” The project specified in the bond and in the notice was “No. 2603, Polk County, S. G. Enebak contractor.” It Avas admitted that defendant and its attorneys assumed that the account was for “oils, greases and lubricating oils.” Indeed plaintiff’s name is indicative of the deliveries it makes to road projects.

It was not expected that such a notice of claim as provided by this statute should be framed by a lawyer. It should be sufficient if it give substantially the information prescribed, so that the contractor and surety may readily investigate and ascertain its validity. The notice here given, though somewhat informal, substantially embodied the material requirements of the statute, unless it be in specifying the “nature of the claim.” By stating that the claim or account was for deliveries made by plaintiff to the project, we think even the “nature of the claim” is sufficiently specified. James B. Clow & Sons v. A. W. Scott Co. 162 Minn. 501, 203 N. W. 410; Benson v. Barrett, 171 Minn. 305, 214 N. W. 47. In the case last cited it Avas said of a notice, scarcely more specific than the one here involved:

“The notice was sufficient to inform appellant of the default on the part of the principal in the bond, which is the only purpose of the requirement of such notice.”

This statute should not receive a stricter construction than the statute prescribing the contents of a mechanic’s lien statement. In 4 Dunnell, Minn. Dig. (2 ed.) §§ 6074-6087, are many cases cited which go far to sustain this notice as a substantial compliance with G. S. 1923, § 9705.

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Standard Oil Co. v. Enebak, 222 N.W. 573, 176 Minn. 113, 1928 Minn. LEXIS 991 (Mich. 1928).

222 N.W. 573 (Standard Oil Co. v. Enebak) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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