Stuart v. Carter

90 S.E. 537, 79 W. Va. 92, 1916 W. Va. LEXIS 12
CourtWest Virginia Supreme Court
DecidedOctober 24, 1916
StatusPublished
Cited by22 cases

This text of 90 S.E. 537 (Stuart v. Carter) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stuart v. Carter, 90 S.E. 537, 79 W. Va. 92, 1916 W. Va. LEXIS 12 (W. Va. 1916).

Opinion

Poffenbarger, Judge:

The Judgment complained of on this writ of error, was recovered by motion made under sec. 6, ch. 121, of the Code, upon a joint and several bond given to insure performance of the covenants, conditions and agreements set forth in a certain building contract, and due and prompt payment and discharge of all indebtedness that should be incurred by the contractors in carrying out the same. The owners of the property and obligees in the bond were Hale and Stuart. The contractors were Carter Bros, and Bird. E. E. Carter, the defendant, was the surety in the bond. .

After one continuance at the instance of the defendant and denial of another for which he moved, he challenged the sufficiency of the notice for judgment, by a motion to quash the same, which the court overruled. Thereupon he tendered three special pleas two of which, Nos. 1 and 3, the court permitted him to file, but rejected No. 2. To special plea No. 3, the plaintiffs filed a special replication and to the other one, replied generally. The defendant also entered a plea of nil debet and issue was joined' on it. The casé was.submitted to a jury and a verdict rendered in favor of the plaintiffs, in the sum of $892.97, by direction of the court, on their motion.

The character of the instrument upon which the proceeding is founded, a bond with collateral condition, is not made the basis of any of the numerous' objections taken and made. [95]*95A claim for mere damages for the breach of a contract is not -within'the statute under which the'proceeding was instituted. Wilson v. Dawson, 96 Va. 687. The demand must be for money due upon a contract, as contradistinguished from damages arising from the breach of a contract. The remedy extends, however, to all cases in which a person is entitled to recover money by action on contract. Long v. Pence, 93 Va. 584. As a bond with collateral condition is proper subject matter of an action of. debt or covenant, Supervisors of Jackson County v. Leonard, 16 W. Va. 470, it is a contract upon which money may sometimes, but not always, be recovered, wherefore, upon a proper showing, the remedy by motion under the statute is available. A demand for payment of money on it falls within the express terms of the statute. The mere form of the contract is immaterial. Not a word in the statute indicates purpose to limit the remedy by the form of the contract. It suffices that the money demanded is due on one.

It is urged, however, in support of the motion to quash the notice, that it does not show any right to a money recovery. After having set forth the substance of the bond and made the same a part of it by reference, the notice charges, by way of breach of the condition thereof, the acquisition of a mechanics lien on the property of the obligees, by the Welch Lumber Company, a corporation, for materials furnished by it to the contractors, for use in the construction of the building, and used by them in the construction thereof; but it fails to show payment of the amount due the Welch Lumber Co., by the plaintiffs, or the discharge of the lien in any way. In fact, it has not been paid. Notwithstanding the lack of an averment of payment, the defendants in error insist that the facts set forth in the notice constitute a breach of the condition of the bond, entitling them .to a judgment for the amount of the lien.

The inquiry raised by the exception involves consideration of a distinction and principle not extensively discussed or applied, if at all, in the decisions of this court, but often adverted to and made effective in cases arising in other jurisdictions, namely, the distinction between a bond or other con[96]*96tract binding the obligated parties to do particular things; for prevention of injury and damage to the obligee, and a, contract of meré indemnity, binding the obligors to make good an injury or damage, or compensate for it, after occurrence thereof. In the former case, the obligee or coven-antee may sue for and recover the money the obligors or cov-enantors bound themselves to pay, by way of indemnity against liability, without having paid the same. In the latter case, he must have paid the money and so suffered actual loss, before he can sue for the breach of the contract. As has been stated, the distinction turns upon the form of the condition or covenant. In Lathrop v. Atwood, 21 Conn. 117, 124, the rule is stated as follows: "When a condition was to discharge or acquit the plaintiff from a bond or other particular thing, non-damnificatus was not a good plea, but the defendant should set forth affirmatively the special matter of performance ; but if the condition be to acquit from damage merely, such a plea is good.” The following clear exposition of the doctrine is found in Ex parte Negus, 7 Wend. 499: "Whether an action lies or not, depends upon the true intent and meaning of the covenant; if it is simply to indemnify, and nothing more, then damage must be shewn before the plaintiff can recover; but if there is an affirmative covenant to do' a certain act, or pay certain sums of money, then it is no defense, in such an action, to say, that the plaintiff has not been damnified, * * * * * Where indemnity alone is expressed, it has always been held, that damage must be sustained before a recovery can be had; but where there is a positive agreement to do the act which is to prevent damage' to the plaintiff; then action lies, if the defendant neglects, or refuses to do such act.” Decisions interpreting contracts, as providing for more than mere iridemnity against damage, are numerous, and, in all of them, the intent, meaning and' effect were discovered and demonstrated by the test or principle above stated. Holmes v. Rhodes, 1 Bos. & Pul. 638; Sheriffs v. Bradshaw, Cor. Eliz. 63; Loosemore v. Radford,. 9 M. & W. 657; Warwick v. Richardson, 10 M. & W. 284;. Lynn v. Yates, 8 Mod. 31; Mewburn v. Mackelcan, 19 Ont.. App. 729; Bank v. Goodman, 29 U. C. 574; Railway Co. v. [97]*97Pope, 30 U. C. C. P. 633; Churchill v. Hunt, 3 Denio. (N. Y.) 321; Thomas v. Alien, 1 Hill (N. Y.) 145; Chase, Administrator, v. Hinman, 8 Wend. (N. Y.) 452; Belloni v. Freeborn, 63 N. Y. 383; Kohler v. Matlage, 72 N. Y. 259; Bank v. Zigler, 83 N. Y. 51; Conner v. Reeves, 103 N. Y. 527; Bank v. Cumings, 149 N. Y. 360; Port v. Jackson, 17 Johns. 239; Blaisdale v. Babcock, 1 Johns. Rep. 518; Kipp v. Brigham, 6 Johnson’s Rep. 158; Hamilton v. Cutt, 4 Mass. 349; Booth v. Starr, 1 Conn. Rep. 244; Bender v. Fromberger, 4 Dall. 436; Ward v. Henry, 5 Conn. 595; Hotchkiss v. Downs, 2 Conn. 136; Crippen v. Thompson, 6 Barb. 532; Smith v. Railway Co., 18 Wis. 1.

Mere inspection of this contract reveals an obligation on the part of the principals, Carter Bros. & Bird, to do things for the protection of the obligees, for prevention of injury to them, not one merely for compensation for the injuries after the occurrence thereof. They bound themselves in the penal sum of $2,500.00, formally agreeing that that sum • should become due and payable, if they did not do certain things for the protection of the obligees from injury.

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Bluebook (online)
90 S.E. 537, 79 W. Va. 92, 1916 W. Va. LEXIS 12, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stuart-v-carter-wva-1916.