Town of Mandeville v. Paquette

95 So. 391, 153 La. 33, 1922 La. LEXIS 2510
CourtSupreme Court of Louisiana
DecidedMay 29, 1922
DocketNo. 24851
StatusPublished
Cited by5 cases

This text of 95 So. 391 (Town of Mandeville v. Paquette) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Town of Mandeville v. Paquette, 95 So. 391, 153 La. 33, 1922 La. LEXIS 2510 (La. 1922).

Opinions

O’NIELL, J.

The American Surety Company has appealed from a judgment condemning the company to pay $7,500, with legal interest from judicial demand, as surety on a contractor’s bond. The contract between J. J. Paquette, contractor, and the town of Mandeville, dated the 1st of May, 1914, was for the construction of a sea wall, 7,000 feet long, in front of the town. The condition or obligation of the bond was that the contractor should indemnify the town of Mandeville for any loss or damage arising directly by reason of a failure of the cohtraetor to faithfully perform the contract, a copy of which was annexed to the bond.

The contract was originally let to a contracting firm named Kitteringham & Mongeau. Paquette took over the interest of Kitteringham, and the contract was made with Paquette & Mongeau. Thereafter, with the consent of the municipality and the surety company, Mongeau sold out to Paquette, who assumed all of the obligations of the original contractors.

The contract price of the sea wall complete was $28,860, less $1.60 for each linear foot of wall in front of private property, which sum of $1.60 per linear foot was to be collected by the contractor from each property owner and be deducted from the contract price. The contractor assumed all responsibility for the collection of the extra $1.60 per linear foot of sea wall, and was obliged to allow the deduction from the contract price of $28,860, whether he collected or failed to collect from the property owners. The town was to pay at the same rate, $1.60 per linear foot, for' the parts of the wall passing opposite the ends of public streets. Payments were to be made as follows: $10,-000 when the concrete piles would be made; $1,000 on completion of each city square, approximately 550 feet, of sea wall, less the sums to be collected by the contractor from the property owners, at $1.60 per linear foot ; and the balance of the contract price was to be paid within 10 days after completion of the work and on proof of payment of all claims for material and labor.

The work .was to be completed on or before the 1st of January, 1915. On the 17th of November, 1914, the contractor requested and was granted an extension of time -for the completion of the work, to the 1st of August, 1915, to which the surety consented in writing. On the 20th of July, 1915, the contractor asked for and was granted a further extension, to the 1st of January, 1916, to which the surety again consented in writing.

On the 1st of January, 1915, the date on which, originally, the construction of the sea wall was to be completed, the contractor had done nothing more than to mold the concrete pilings, 3,500 in number, and distribute them along the lake shore. The town then made the first payment of $10,000, according to contract. The contractor began sinking the pilings along the line of the proposed sea wall, according to the plan and specifications ; and, after extending the row of pilings about 1,600 feet, he began filling in behind the pilings with sand, by means of a suction dredge. It is,conceded that it was necessary to have a row of piling that length before commencing to fill in, because the sand would spread laterally behind the piling. Eor lack of dredging capacity, it required nearly three months to fill up to the shore grade, according to specifications, behind one city square, approximately 550 feet, of piling. In the meantime, the crew that [37]*37was setting the pilings had extended the row about 2,200 feet. It became obvious then that, at the rate of progress of the dredging crew, the contractor would take three or four years to complete the contract. The mayor of the town therefore called the contractor’s attention to the fact that, unless he made arrangements to speed up .the filling in behind the pilings, he could not complete the work within the time specified in the contract. The contractor replied that he had not the funds necessary to increase his dredging capacity, but that he 'could get the Jahncke Company to do the backfilling, if he could complete the setting of the pilings and put on the coping, so that the Jahncke Company’s dredges could work continuously. The contractor also stated that he was not financially able to complete the setting of the pilings and to put on the coping, unless the town or the property owners would advance 80 cents per linear foot when the pilings were placed and the coping put on. The mayor replied that the contractor would have to consult the property owners. On the 24th of June, 1915, the property owners signed an agreement to pay the contractor 80 cents per linear foot when the pilings would be placed and the coping put on, and, on the 5th of July, 1915, the municipal council adopted an ordinance agreeing to make similar payments for the piling and coping opposite the ends of public streets. That change in the method of payment is the main defense of the surety company in this suit. On the 29th of September, 1915, an unusually violent tropical storm came and wrecked many of the pilings that were not protected by backfilling.

■ After the storm, the contractor’s son, who had been superintending the work, began gathering up his storm-tossed equipment and material. The contractor then told the may- or that he intended to complete the work. On the 27th of October, 1915, the mayor notified the contractor and the surety company, by registered letter, that the work had not been resumed, and demanded that it be resumed. It had required all of that time for the contractor’s son to gather up his equipment, tools and materials. In the latter part of November, 1915, the mayor made another demand upon the contractor and the surety company, by registered letter, to proceed with the work. In response, the attorney for the contractor came to Mandeville and requested the municipal authorities to pay for the damage wrought by the storm. The town council requested that the work be completed, leaving the matter of the storm damage for future adjustment. A week later, the attorney for the contractor advised the municipal authorities, by letter, that the contractor had arranged with another contractor to complete the work, provided the latter could procure a satisfactory bond. About that time, several creditors of the contractor levied attachments upon his equipment and put an end to all hope of his resuming the work. As soon as the extension of the time for completing the contract had expired, the town council adopted an ordinance declaring the contractor in default, and again notified the surety company.

Thereafter the municipal authorities advertised for bids for the completion of the work, but did not receive a satisfactory bid. Then the town had another survey made, bringing one end of the sea wall 65 feet nearer the beach, so as to reduce the cost of filling behind the pilings. A contract was then let to another contractor, the Black & Laird Construction Company, to build the wall on the new line, for $20,840, with the stipulation that, if any property owner should refuse to pay his pro rata of the $1.60 per linear foot, the contractor might abandon the contract. After the Black & Laird Construction Company had constructed the wall in, front of several squares, one of the property [39]*39•owners refused to pay the $1.60 per linear foot, and the company gave up the contract. 'The sea wall has not been completed.

It was stipulated in the contract that the contractor should carry, cyclone or storm insurance on the work, but the amount of insurance was not stipulated. As a matter of fact, the contractor did not carry any insurance on the work; but the municipal authorities were not aware of his neglect in that respect.

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Bluebook (online)
95 So. 391, 153 La. 33, 1922 La. LEXIS 2510, Counsel Stack Legal Research, https://law.counselstack.com/opinion/town-of-mandeville-v-paquette-la-1922.