United States ex rel. Larkin v. Maryland Casualty Co.

45 F. Supp. 286, 1942 U.S. Dist. LEXIS 2766
District Court, D. Massachusetts·Decided May 20, 1942·No. Civ. A. No. 1215·Published·Cited by 6 cases

Opinion

SWEENEY, District Judge.

In April, 1941, the plaintiff subcontractor, who will hereinafter be called the use plaintiff, brought this action under the Miller Act, 40 U.S.C.A. §§ 270a to 270d, against the Maryland Casualty Company as sole defendant. The complaint alleges that the J. Slotnik Company, hereinafter referred to as Slotnik, entered into a contract with the United States for the construction of one 500 men barracks at Fort Devens, Massachusetts, in connection with which it executed a bond as required by law, with the defendant Maryland Casualty Company as surety, binding it as principal and the defendant as surety to make prompt payment to all persons supplying labor and materials in the prosecution of the work provided in the contract. It further alleges that the .use plaintiff entered into a written contract with Slotnik to install the plumbing and gas fixtures for a consideration of $24,250, and that the use plaintiff not only performed its obligations under the contract in full, but in addition thereto performed work and supplied materials amounting to $990.35, in excess of the requirements stipulated in the original contract.

An account identified as “Exhibit B” attached to the complaint sets forth what the use plaintiff claims to be all the payments made by Slotnik as well as the items claimed as additional work and materials. This complaint and account, as amended, alleges that there is a balance due to the use plaintiff of $2,108.70. The defendant answered admitting the contract and bond set forth in the complaint, but pleaded full performance and payment on behalf of Slotnik.

In September, 1941, the defendant filed a motion to stay the proceedings on the ground that an action was pending in the Suffolk Superior Court of the Commonwealth of Massachusetts, brought by Slotnik against the use plaintiff in this action, and that a final disposition of that action would be conclusive as to all the issues of this case. This motion was allowed.

On February 24, 1942, Slotnik filed a motion to intervene as a defendant which was allowed on March 2, 1942. Subsequently, the defendant Maryland Casualty Company was allowed to amend its answer, and Slotnik answered as intervenor, both answers setting up as a defense the action in the state court in which final judgment was entered on February 16, 1942

The matter is before the court at this time on defendants’ motions for summary judgment under Rule 56 of the Federal Rules of Civil Procedure, 28 U.S.C.A. following section 723c. Both sides have filed affidavits, the defendants stating that all the issues of this case were heard and determined in the action concluded in the state court, and, therefore, there remains no genuine issue of fact to be determined here. On the other hand, the use plaintiff contends that the evidence in the state court introduced by him went solely to defeat the claim of the plaintiff in that action (the defendant Slotnik here) which was one for defective work, and that the issues arising from the pleadings in this case have never been adjudicated.

Findings of Fact

From the pleadings, papers, records and affidavits before the court in this case the following facts appear:

Slotnik commenced an action in the state Municipal Court against Henry J. Larkin by writ dated June 5, 1941, which was two months after Larkin had commenced this action. Larkin had the case removed to the Superior Court and demanded a jury trial. The declaration in that action, as amended, sets up the contract which is the basis of the suit here, alleging an oral modification thereof, full payment to the' defendant for all work performed and materials furnished thereunder, and claiming damages in the sum of $115.34 resulting from the defendant’s failure to furnish materials of proper quality. The defendant’s answer denies the allegations in the declaration with regard to defective materials, and expressly limits the defense to that question, stating that a suit is pending in the United States District Court for money due under the contract, and that the allegations in the declaration of oral modi[288] fication of this contract and payments made thereunder are immaterial. The plaintiff in the state court action moved to have the matter referred to an auditor, which motion was granted over the objection of the defendant there. At the hearing before an auditor the defendant obj ected to the introduction of any evidence of payments being made or credits given to the defendant by the plaintiff on account of their contract. The auditor overruled Larkin on this point, and made his report taking into consideration all payments made, credits given, the oral modification of the written contract, back charges, as well as the claim for defective materials. After adjusting all these items, he found that there was a balance due Slotnik from Larkin of $72.30. It does not appear, however, that the auditor in any way considered the claim of the use plaintiff in this action for extras supplied to Slotnik in excess of the requirements of the' contract. There is no indication in the auditor’s report that the plaintiff in that action brought them to his attention, and the following statement in his report clearly shows that the defendant there did not do so: “The defendant’s counsel had ample opportunity to present evidence with reference to any payment made or credit given to the defendant by the plaintiff, or back charges made by the plaintiff to defendant, or the oral modification of the written contract, or extras, but declined to do so, claiming that the only issue was for defective work and that evidence on any other issues raised in' the plaintiff’s Substitute Declaration should not be admitted.”

The case was tried in the Superior Court before a jury beginning on January 9, 1942. The auditor’s report was introduced in evidence, and -the jury returned a verdict for the plaintiff Slotnik for $72.30, the. exact amount found by the auditor in his report. .As to the evidence'introduced at the trial beyond the auditor’s report, the opposing affidavits are contradictory. If a determination of that question is material to the complete estoppel of the use plaintiff’s action here, there would be a genuine issue of fact to be settled, which would constitute sufficient grounds for denying defendants’ motions for summary judgment. Thus, the question to be considered is to what .extent, if at all, the facts related above pertaining to the state court action constitute res judicata in the present action before this court.

Discussion

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United States ex rel. Larkin v. Maryland Casualty Co., 45 F. Supp. 286, 1942 U.S. Dist. LEXIS 2766 (D. Mass. 1942).

45 F. Supp. 286 (United States ex rel. Larkin v. Maryland Casualty Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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