United States Ex Rel. Noland Co. v. Irwin

316 U.S. 23, 62 S. Ct. 899, 86 L. Ed. 1241, 1942 U.S. LEXIS 1053
Supreme Court of the United States·Decided May 4, 1942·No. 658·Published·Cited by 50 cases

Opinion

*24 Mr. Justice Byrnes

delivered the opinion of the Court.

By Act of February 14, 1931, 1 making appropriations for the Department of the Interior, Congress authorized the construction of a library building at Howard University in the District of Columbia. The cost was not to exceed $800,000, of which sum $400,000 was made immediately available. Only a small part of this money had been used for architects’ fees when the President, shortly after his inauguration in 1933, ordered impounded these and all other funds appropriated for construction.

Title II of the National Industrial Recovery Act of June 16, 1933, 2 created a Federal Emergency Administration of Public Works, with all of its powers vested in an Administrator. By § 202 the Administrator was directed to “prepare a comprehensive program of public works, which shall include among other things the following: . . . (c) any projects of the character heretofore constructed or carried on either directly by public authority or with public aid to serve the interests of the general public; . . .” And § 203 provided that “with a view to increasing employment quickly . . . the President is authorized and empowered through the Administrator or through such other agencies as he may designate or create, (1) to construct, finance, or aid in the construction or financing of any public works project included in the program prepared pursuant to § 202; . . .”

On August 24, 1935, Congress passed the Miller Act. 3 By the terms of this statute, “before any contract, ex *25 ceeding $2,000 in amount, for the construction, alteration, or repair of any public building or public work of the United States is awarded to any person, such person shall furnish to the United States ... a payment bond with a surety or sureties satisfactory to such officer for the protection of all persons supplying labor and material in the prosecution of the work provided for in said contract for the use of each such person.” The Act also permitted persons who supplied materials and labor to bring suit on the bond in the name of the United States.

*26 These are the statutes applicable to this dispute.

After the passage of the National Industrial Recovery Act, the Secretary of the Interior (who had been named Administrator pursuant to Title II) approved the library building at Howard University as a part of the public works program and allotted $1,120,811.58 for its construction. On December 5, 1936, the Assistant Secretary of the Interior, on behalf of the United States, entered *27 into a contract with respondent, Irwin & Leighton, for the construction of the library building. As a condition of the contract, Irwin & Leighton was required to furnish a bond to secure the laborers and materialmen, under provisions of the Miller Act. 4 Accordingly, it posted such a bond in the amount of $408,618, with respondent United States Guarantee Company as surety.

Petitioner furnished to a sub-contractor materials worth $23,649.35. Of this sum it was paid $11,146.80, leaving due $12,502.55 with interest. When payment of this amount was refused, petitioner brought this suit on the bond in the name of the United States. Respondents moved to dismiss the complaint on the ground that the construction of the library building at Howard University was not a “public work,” within the meaning of the Miller Act. The District Court overruled the motion to dismiss. The Court of Appeals allowed a special appeal and reversed, 122 F. 2d 73, on the authority of its own earlier decision in Maiatico Construction Co. v. United States, 65 App. D. C. 62, 79 F. 2d 418. The case is here on certiorari.

The question before us therefore is whether the construction of the library was a “public work” as that term is used in the Miller Act. We think that it is, that the Assistant Secretary of the Interior was consequently authorized to require respondents to post a bond securing materialmen, and that petitioner is entitled to sue on the bond in the name of the United States.

*28 No aid in ascertaining the meaning of “public works” is to be found in the Miller Act itself. But in the National Industrial Recovery Act, passed two years before the Miller Act, Congress defined it as including “any projects of the character heretofore constructed or carried on either directly by public authority or with public aid to serve the interests of the general public.” The library at Howard University was not only a project “of the character heretofore constructed or carried on . . . with public aid”; it had been directly and specifically authorized by Congress in 1931 and money had actually been appropriated for it. And it requires no discussion that Howard University, established by the authority of Congress “for the education of youth in the liberal arts and sciences,” 5 serves “the interests of the general public.”

In Maiatico Construction Co. v. United States, supra, upon which the Court of Appeals principally relied in reaching an opposite conclusion, the same court had construed a different statute, the Heard Act of August 13, 1894. 6 That Act required that “any person or persons entering into a formal contract with the United States for the construction of any public building, or the prosecution and completion of any public work, or for repairs upon any public building or public work, shall be required” to post a bond for the security of both the United States and the suppliers of labor and materials. It permitted the laborers and materialmen to enforce their claims by intervening in any suit by the United States on the bond. The plaintiffs in the Maiatico case supplied labor and materials in the construction of three dormitory buildings at Howard University, the contract for which had been let to the defendant construction company by the United States in Novem *29 ber, 1930. The Court of Appeals decided that the plaintiffs could not recover on the defendant’s bond because the dormitories were not “public buildings” and their construction was not a “public work.” It based this conclusion on the theory that “public buildings” or “public works,” within the meaning of the Heard Act, included only buildings which belonged to the United States. Since Howard University is a private institution and since it held title to the dormitories, recovery on the bond was denied to the suppliers of materials and labor. 7

Whatever may have been the validity of this narrow formula when applied to the Heard Act, we cannot approve its application to this suit under the Miller Act.

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United States Ex Rel. Noland Co. v. Irwin, 316 U.S. 23, 62 S. Ct. 899, 86 L. Ed. 1241, 1942 U.S. LEXIS 1053 (1942).

316 U.S. 23 (United States Ex Rel. Noland Co. v. Irwin) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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