United States ex rel. Atkins v. Reiten

191 F. Supp. 864, 4 Fed. R. Serv. 2d 281, 1961 U.S. Dist. LEXIS 4035
CourtDistrict Court, D. Alaska
DecidedFebruary 25, 1961
DocketCiv. No. A-13071
StatusPublished
Cited by1 cases

This text of 191 F. Supp. 864 (United States ex rel. Atkins v. Reiten) is published on Counsel Stack Legal Research, covering District Court, D. Alaska primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States ex rel. Atkins v. Reiten, 191 F. Supp. 864, 4 Fed. R. Serv. 2d 281, 1961 U.S. Dist. LEXIS 4035 (D. Alaska 1961).

Opinion

HODGE, District Judge.

The use plaintiff brings this action in the name of the United States of America under the provisions of the Miller Act (Section 270b, Title 40 U.S.C.A., 49 Stat. 794) to recover equipment rentals claimed due from the Reiten & Stewart Construction Company as contractor and the Continental Casualty Company as surety upon the payment bond in connection with a government contract for the Bureau of Public Roads, an agency of the United States. The defendant surety company has moved to dismiss the third amended complaint of plaintiff for failure to state a claim against said defendant upon which relief can be granted, urging that the action was prematurely brought. A summary of the history of this litigation is first necessary for determination of this question.

The action was first brought by C. W. Atkins against the contractor by complaint filed on January 29, 1957. On January 31, 1957, plaintiff filed an amended complaint joining the surety company as defendant and alleging the execution by it of payment and performance bonds on behalf of the defendants in connection with said contract. This amended complaint sets up three principal claims against the defendants for rental of different items of equipment pursuant to written rental agreements as to two of them and an oral agreement as to the third:

(1) For rental of equipment furnished from September 28, 1956, to November 12, 1956, in the sum of $2,550;

(2) For rental of equipment furnished from October 1, 1956, to November 15, 1956, in the sum of $2,550; and

(3) For rental of equipment furnished from October 8, 1956, “to date” in the sum of $5,465, together with an allegation that the last described equipment was still in the custody and control of the defendants and asking leave to amend [865]*865to set up equipment rental to become due in the future.1

It was recited in this amended complaint that notice of claim, pursuant to the proviso set forth in Section 270b(a), had been sent to the contractor and surety company within 90 days “after completion by plaintiff C. W. Atkins of the furnishing of equipment and materials.” Such notice, attached as an exhibit to the complaint, is dated January 30, 1957, and sets forth the same dates of furnishing the equipment as above. This amended complaint was filed before the expiration of a period of 90 days after the date on which the last of the equipment was claimed to have been furnished, as to each of the three items claimed, and actually before the last date as to item (3).

The defendant casualty company filed on March 22, 1957, a motion to dismiss the amended complaint upon the grounds above stated, urging that the action was premature and that the plaintiff was not entitled to maintain it under the provisions of the Act. Plaintiff filed a reply memorandum urging “liberal construction” of the Act to protect those furnishing labor and materials to contractors on public projects. On March 29, 1957, the judge of the former District Court for the District (Territory) of Alaska by Minute Order granted this motion, but with leave granted to plaintiff to file an amended complaint.

On April 1, 1957, plaintiff filed a second amended complaint setting up the same identical claims but adding a paragraph alleging that more than 90 days had elapsed since the completion of the work and since payment became due (but still claiming continuing rental as to the third item). To this complaint the defendant surety filed an answer, raising the same defense as to failure of the complaint to state a claim.

Following the transition pursuant to the Alaska Statehood Act, 48 U.S.C.A. preceding section 21, this ease was transferred to the present United States District Court on July 11, 1960. On September 28, 1960, a pre-trial conference was had during which defendant casualty company raised the same issue as to the premature action. This Court considered that the decision of the former Court allowing the amendment should govern, but allowed the plaintiff to file a further amended complaint to correct the claim as to item (3).

On October 4, 1960, plaintiff filed a third amended complaint making the same claims but amending the claim as to item (3) to show the last date of the use of this equipment as January 30, 1957 (the day before the filing of the first complaint against the surety company.) This amended complaint recites that notice of claim was given within 90 days and that more than 90 days elapsed since the completion of the work, and adds an additional claim for damages for failure to return the equipment and damage to the equipment amounting to $2,-146.03.

On October 24th the defendant casualty company filed the same motion as to the third amended complaint, which was opposed by plaintiff upon the grounds that ample time had elapsed to date for commencement of the action. The Court denied such motion on November 25, 1960, but upon further motion of the defendant agreed to reconsider the matter upon briefs filed, upon the grounds that the amended complaint relates back to the date of filing of the original complaint and that hence the action was prematurely brought.

Subsection (a) of Section 270b, Title 40, provides in part as follows:

“(a) Every person who has furnished labor or material in the prosecution of the work provided for in such contract, in respect of which a payment bond is furnished under section 270a of this title and who has not been paid in full therefor before the expiration of a period [866]*866of ninety days after the day on which the last of the labor was done or performed by him or material was furnished or supplied by him for which such claim is made, shall have the right to sue on such payment bond for the amount, or the balance thereof, unpaid at the time of institution of such suit and to prosecute said action to final execution and judgment for the sum or sums justly due him: * * * ”

Former Section 270 of this title (33 Stat. 811) provided that if no suit should be brought by the United States within six months from the completion and final settlement of a contract with the United States for the construction or prosecution of any public work the person or persons supplying the contractor with labor and materials shall, upon compliance with certain conditions, have a right of action in the district in which the contact was to be performed against the contractor and his sureties. It is held that the six months clause was a condition precedent to instituting suit or action against the sureties and that no right of action existed until the expiration of the six months proviso, which was intended as a waiting period to give the government an opportunity to test the work and ascertain whether the contract was fulfilled or not; and that any action commenced prior to the expiration of such six months period was prematurely brought and must be dismissed. United States ex rel. Texas Portland Cement Co. v. McCord, 233 U.S. 157, 162, 34 S.Ct. 550, 58 L.Ed. 893; Stitzer v. United States, 3 Cir., 182 F. 513, 516; Morley Construction Co. v. Maryland Casualty Co., 8 Cir., 84 F.2d 522, 527. The same principle was applied to the limitation of one year after complete performance of the contract and final settlement thereof within which suit may be commenced. Baker Contract Co. v. United States, 4 Cir., 204 F. 390, 397.

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Cite This Page — Counsel Stack

Bluebook (online)
191 F. Supp. 864, 4 Fed. R. Serv. 2d 281, 1961 U.S. Dist. LEXIS 4035, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-ex-rel-atkins-v-reiten-akd-1961.