State v. Bob Eldridge Construction Co.

397 S.W.2d 7, 1965 Mo. App. LEXIS 559
CourtMissouri Court of Appeals
DecidedOctober 4, 1965
DocketNo. 24281
StatusPublished

This text of 397 S.W.2d 7 (State v. Bob Eldridge Construction Co.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Bob Eldridge Construction Co., 397 S.W.2d 7, 1965 Mo. App. LEXIS 559 (Mo. Ct. App. 1965).

Opinion

SPERRY, Commissioner.

This action was instituted by the George J. Shaw Hauling Company, a corporation, referred to hereafter as plaintiff. Bob Eldridge Construction Company, Inc., hereafter referred to as Eldridge, and Central Surety and Insurance Corporation, referred to as Surety, were defendants. Plaintiff sought recovery of the sum of $1,736.42, on a statutory bond required of public bodies to secure payment to the suppliers of materials, labor, and various supplies used or consumed in the construction of a public building in the State of Kansas. The Statutes and Court decisions of the State of Kansas will govern and control the decision in this case. From an adverse judgment, plaintiff prosecutes this appeal.

This cause is before us on an agreed statement of facts. Eldridge made and entered into a general contract with Shawnee-Mission High School District, Merriam, Kansas, to erect a junior high school building. Under the terms of the contract Eld-ridge agreed to furnish all labor and materials and perform all work as required by the specifications contained and incorporated into the contract. Eldridge, as principal, and Surety, as surety, executed and delivered their joint and several bond, number 310927, to Shawnee Mission High School District for the purpose of complying with Section 60-1413, G.S.Kansas, which provided as follows:

“That whenever any public official shall, under the laws of the state, enter into contract in any sum exceeding $100 with any person or persons for the purpose of making any public improvements, or constructing any public building or making repairs on the same, such officer shall take, from the party contracted with, a bond with good and sufficient sureties to the state of Kansas in the sum not less than the sum total in the contract, conditioned that such contractor or contractors or the subcontractor or subcontractors of said contractor or contractors shall pay all indebtedness incurred for supplies, materials or labor furnished, used or consumed in connection with or in or about the construction of said public building or making such public improvements, including gasoline, lubricating oils, fuel oils, greases, coal and similar items used or consumed directly in furtherance of such improvements.” (Emphasis ours.)

Section 60-1414 provides, in part, as follows :

“ * * * When such bond is so approved and filed, no lien shall attach under this article, and if when such bond is filed liens have already been filed, such liens shall be discharged. Any person to whom there is due any sum for labor or material furnished, as stated in the proceeding section, or his assigns, may bring an action on said bond for the recovery of said indebtedness * * *.” (Emphasis ours.)

Eldridge, as general contractor, entered into a contract with one Stanley C. Dugan doing business as Dugan Excavating Company, hereafter referred to as Dugan, to perform the excavation work at the Broad-moor School Project. Dugan, subcontractor, undertook the performance of the work required by his contract and in so doing entered into an oral agreement with Shaw to furnish and supply power equipment, gas, oil and labor to operate said equipment for the performance,, of said work and appellant did, at the sole request of Dugan, furnish power equipment, oil, gas and labor to operate said power equipment in performing the work required of Dugan in the performance of his contract with Eldridge. The laborers operating said equipment were employees of Shaw and all wages paid to said employees were paid by Shaw. The charges for equipment, oil, gas and labor made by Shaw are the amounts agreed upon by Dugan and appellant. In the performance of the work, the equipment was operated by Shaw’s employees at the direction of Dugan. The excavation work that was [9]*9requested and directed at the instance of Dugan in connection with the Broadmoor School Project was required under the subcontract of Dugan and Eldridge.

The contract made with Eldridge and the School District, executed on August 4th, 1958, contains the following provisions:

“Article 1. Scope of the Work. The contractor shall furnish all of the materials and perform all of the work shown on the Drawings and described in the Specifications entitled Broadmoor Junior High School, 83rd and Broadmoor, Johnson County, Kansas * *
“Article 5. Acceptance and Final Payment— * * * Before issuance of final certificate the Contractor shall submit evidence satisfactory to the Architect that all payrolls, material bills, and other indebtedness connected with the work have been paid * *

The contract was performed.

The bond in question executed August 4th, 1958, expressly incorporates the aforesaid contract and provides as follows:

“THE CONDITION OF THIS OBLIGATION IS SUCH, That whereas the said Bob Eldridge Construction Company, Inc., has entered into a written contract with the Shawnee-Mission High Schools, District No. 6, Johnson County, Kansas, for the construction of Broadmoor Junior High School, Johnson County, Kansas, according to the contract and specifications attached hereto and made a part hereof, NOW, THEREFORE, if said Bob Eldridge Construction Company, Inc., Contractor, or sub-contractor, shall pay all indebtedness incurred for supplies, materials, or labor furnished, used or consumed in connection with or in or about the construction of said public building or making such improvements, including gasoline, lubricating oils, fuel oils, greases, coal and similar items used or consumed directly in furtherance of such improvements, then this obligation shall be null and void, otherwise shall remain in full force and effect”. (Emphasis ours.)

Defendants admit that there is due and owing to Shaw for its work, performed on the Broadmoor School, the sum of $1,736.42. It is further admitted that Dugan was adjudicated bankrupt in the United States District Court for the Western District of Missouri and that the bankruptcy dividend paid on Shaw’s claim in Dugan’s bankruptcy estate has been credited on the amount owing to Shaw.

Of course, if the claim in this case comes within the coverage provided by the Statutes under the provisions of which the bond was issued, there can be no question of plaintiff’s right to recover. That proposition is not denied by defendant. Plaintiff is also entitled to recover on the bond if coverage provided therein is broad enough to embrace plaintiff’s claim based on the use of its equipment. Shannon v. Abrams, 98 Kan. 26, 157 P. 449, 452; Leidigh & Havens Lumber Company v. Bollinger (November 1964), 193 Kan. 600, 396 P.2d 320; Thompson Transport Company v. Middlestates Construction Company (December 1964), 194 Kan. 52, 59, 397 P.2d 368. The court, in the latter case, stated that the surety company’s obligation is not to pay the mere statutory liens for labor and materials but is governed by the terms of its contract.

Comparison of the pertinent language used in Sections 60-1413 and 60-1414, with that used in the bond in this case, demonstrates that the coverage given in the bond is no broader than that mentioned in the statute. The language used in the bond is identical with that used in the statute.

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Related

Thompson Transport Co. v. Middlestates Construction Co.
397 P.2d 368 (Supreme Court of Kansas, 1964)
Leidigh & Havens Lumber Co. v. Bollinger
396 P.2d 320 (Supreme Court of Kansas, 1964)
Gilbert Hunt Co v. Parry
110 P. 541 (Washington Supreme Court, 1910)
Griffith v. Stucker
136 P. 937 (Supreme Court of Kansas, 1913)
Shannon v. Abrams
157 P. 449 (Supreme Court of Kansas, 1916)
Union Traction Co. v. Standard Brick Co.
213 P. 169 (Supreme Court of Kansas, 1923)
Road Supply & Metal Co. v. Bechtelheimer
240 P. 846 (Supreme Court of Kansas, 1925)

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Bluebook (online)
397 S.W.2d 7, 1965 Mo. App. LEXIS 559, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-bob-eldridge-construction-co-moctapp-1965.