State Bank v. Pew

195 P. 852, 59 Mont. 144, 1921 Mont. LEXIS 183
CourtMontana Supreme Court
DecidedFebruary 10, 1921
DocketNo. 4,259
StatusPublished
Cited by16 cases

This text of 195 P. 852 (State Bank v. Pew) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Bank v. Pew, 195 P. 852, 59 Mont. 144, 1921 Mont. LEXIS 183 (Mo. 1921).

Opinion

MR. JUSTICE GALEN

delivered the opinion of the court.

This is an action brought by respondent against appellants to recover damages upon a bond executed by the appellants George H. Pew, as principal, and Fidelity & Deposit Company of Maryland, as surety, it being alleged that Pew entered into an agreement to build for respondent a water-tight basement or cellar under a certain bank building by him to be constructed, as contractor and builder, at the town of Darby, Ravalli county, Montana. The bond is in words an& figures as follows:

“Fidelity & Deposit Company of Maryland,
“Home Office: Baltimore, Maryland.
“Bond.
“Know all men by these presents, that we, George H. Pew, of Missoula, Montana, as principal, and Fidelity & Deposit Company of Maryland, as surety, are held and firmly bound [147]*147unto the State Bank of Darby, Darby, Montana, in the full and just sum of one thousand dollars ($1,000.09) for the payment of which sum we 'bind ourselves, our heirs, executors and administrators, successors and assigns, firmly by these presents.
“Signed, sealed and dated this 20th day of July, 1914.
“The condition of this obligation is such, that, whereas, the ab’ove-bounden principal did on the 24th day of June, 1914, enter into a contract with the said State Bank of Darby for the construction of a certain bank building on lot 1, block 7, in the town of Darby, Montana, and did guarantee therein that the basement or cellar of said building should be and remain water-tight for the period of one year from the date thereof;
“Now, therefore, if the basement or cellar’of said bank building shall be and remain water-tight (as applied to the commonly accepted meaning of the word water-tight as applied to the cellars of buildings) for the period of one year from the date hereof, then this obligation to be null and void; otherwise to remain in full force and effect. ^
“It is understood and agreed between all the parties to this bond and the condition upon which the surety executes the bond, that in event of a claim by the said bank under this bond the surety shall only be liable for actual and material damage to said bank or said building by the failure of the cellar or basement to be water-tight as aforesaid.
“ [Signed] Geo. G. Pew, “Principal.
“Fidelity & Deposit Company of Maryland, “By W. L. Berry, “Attorney in Fact.
“[Seal] Attest: W. S. McCrea,
“General Agent.”

By “rider” for a valuable consideration it was extended by the surety, as to term, to November 1, 1915.

It is alleged by respondent that “Owing to the negligent and fraudulent construction of such basement by the appellant [148]*148Pew, it was not water-tight, and by reason thereof respondent was compelled to expend $875 to have the same repaired and made water-tight, and lost $117.75 in addition thereto on account of loss of tenants.” The appellant Pew, in his separate answer, admits the execution of the bond sued upon, but denies that it was executed to secure any agreement or guaranty that the basement would remain water-tight. He admits that he constructed said basement, and alleges that in the construction thereof he fully and completely complied with all of the terms and specifications set out in his building contract. For a further defense he alleges that by the terms of his contract with the respondent he was required to perform the work according to certain specifications, and in the manner designated by respondent’s architect, and to furnish surety bond for the performance of such building contract; that he furnished the required bond ($3,000), and in every particular complied with his building contract and with the specifications therein provided, and that his completed work was accepted and the contract price paid; that he was required to follow the specifications without departure therefrom, and was not permitted to do the work in any other manner than that provided in the contract, and was absolutely precluded by the respondent from doing so. For a second separate defense, appellant Pew alleged that the bond set out in plaintiff’s complaint was without any consideration; and for a third defense that as soon as the leakage had developed in said basement he offered to stop and repair the same, but that respondent failed and refused to allow him to do so.

The.separate answer of the Fidelity & Deposit Company'admits that appellant Pew entered into a contract with the plaintiff to construct the building; that Pew constructed the basement, and that it signed the bond set out in the complaint, and denied all other allegations of the complaint. It also relies and pleads the same three, separate defenses made by appellant Pew. The only new matter contained in the replies filed by the respondent is that the specifications, which were a [149]*149part of the contract, contained the following condition: “The contractor [being the said defendant George H. Pew] ■ shall, upon receiving the final payment for this work, deliver to the owner [being the plaintiff herein] a written and signed guar-. anty that the foundation shall be water-tight for a period of one year from the date of final acceptance' and shall furnish a surety bond for $1,000 to accompany the guaranty if required. ’ ’

The case was tried before a jury, and a general verdict rendered in favor of respondent for the sum of $875. The appeal is taken from the judgment and order made by the trial court denying appellants’ motion for a new trial.

The pivotal and only material question involved in this case [1] is embraced in the first four assignments of error, which question is: Whether appellants are relieved from responsibility to answer in damages7 on the bond made the' basis of this action because of alleged compliance with the plans and specifications furnished by the architect.

The building contract bears date June 24, 1914, and the required bond for the performance thereof ($3,000) was furnished by the appellants dated July 13, 1914, wherein exception of responsibility is made of requirement “in the contract or specifications respecting guaranties of efficiency or wearing qualities or for maintenance or repairs, nor does it obligate the surety to furnish any other bond covering such provisions of the contract or specifications. ” In the specifications made a part of the building contract by reference, the bond made the basis of this suit is provided for in the following language: “Guaranty: The contractor shall, upon receiving the final payment for this work, deliver to the owner a written and signed guaranty that the foundation shall be water-tight for a period of one year from the date of final acceptance and furnish a surety bond for $1,000 to accompany the guaranty, if required.” In the building contract it is provided that The “contractor [Pew] will provide all the materials and perform all the work * * * with the following changes—lay 6" salt glazed cellar pipe 350 feet from rear of building and [150]

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Cite This Page — Counsel Stack

Bluebook (online)
195 P. 852, 59 Mont. 144, 1921 Mont. LEXIS 183, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-bank-v-pew-mont-1921.