United States Fidelity & Guaranty Co. v. Yazoo County Ex Rel. Rings

110 So. 780, 145 Miss. 378, 1926 Miss. LEXIS 36
CourtMississippi Supreme Court
DecidedDecember 13, 1926
DocketNo. 25887.
StatusPublished
Cited by7 cases

This text of 110 So. 780 (United States Fidelity & Guaranty Co. v. Yazoo County Ex Rel. Rings) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States Fidelity & Guaranty Co. v. Yazoo County Ex Rel. Rings, 110 So. 780, 145 Miss. 378, 1926 Miss. LEXIS 36 (Mich. 1926).

Opinion

*383 Cook, J.,

delivered the opinion of the court.

Four separate suits in the name of Yazoo county, for the use and benefit of Henry Rings, Graham Hardware Company, 555 Tire & Service Company, and Woodruff Furniture Company, were brought in the circuit court of Yazoo county against J. R. Parker and United States Fidelity & Guaranty Company, as his surety, for the purchase price of articles sold Parker while he was building *384 the Moores Ferry public road in Yazoo county, under contract with the county. The cases, by agreement, were consolidated and tried before the circuit judge without the intervention of a jury. The items sold to Parker were shown on itemized accounts filed with the declarations, and are admitted to be correct as to items, amounts, and credits. Judgment was rendered for each claimant against Parker for the full amount, and against the surety for practically all claimed, together with attorney’s fees. Parker did not appeal, but the surety company has prosecuted an appeal from the judgments against it, and, the amounts being conceded to be correct, the only question presented for decision is the liability of the appellant.

The articles sold by appellee Rings cover wagons, leather, harness and gear, tools, automobile springs, pumps and tires, and gasoline, oil, and grease. Liability for the items of gasoline, amounting’ to ninety-seven dollars and seventy-seven cents, is conceded under the holding of this court in the case of Standard Oil Co. v. National Surety Co., 143 Miss. 841, 107 So. 559. After allowing a credit of sixty dollars on the account as the value of the wagons and harness when, the work was completed, the court gave judgment against the surety for the balance of the account.

The claim of the 555 Tire & Service Company covered automobiles tires (or casings) and inner tubes. After deducting from this claim five per cent, of the value of certain tires, on account of depreciation caused by uses other than those covered by the contract, and after also deducting fifty dollars as the value of the tires remaining when the work was completed, the court allowed the balance of this account, with fifty dollars attorney’s fee and interest.

The Graham Hardware Company’s claim covered iron stoves, tools, such as hammers, wrenches, shovels, picks, etc., bolts, nails, brick, lumber, mattresses, cooking utensils, and dishes. The defendant Parker the only witness, testified that the stoves, dishes, and cooking utensils were *385 used in the commissary, and some of them carried away and used on other work, the stoves being abandoned, and that all of these thing's were of little value when the work was completed, and that the tools were worn out on the work. The circuit judge allowed this claim in full, including interest and twenty-five dollars attorney’s fee.

The claim of the Woodruff Fhrniture Company covered iron beds, mattresses, dishes, cooking utensils, iron stoves, anvils, blankets, bedsprings, tools, nails, wire, etc. The court disallowed the items of iron beds, as Parker testified that they were not worn out, but, credits on the account being applied to the first items, the court held that they were paid for, and the balance of the claim, including twenty-five dollars as attorney’s fee, was allowed.

The defendant Parker testified, in substance, that, in order to hold his labor on the job, it was necessary-for him to maintain a camp with boarding and sleeping facilities, and that a large part of the articles for which the surety was held liable was purchased for the equipment and maintenance, of this camp, and in providing the usual standard equipment of contractors in road building; that it was purchased by him to supplement the equipment which he had when he went on the work; that it was used by him on this work, and such of it as was not worn out therein continued a part of his equipment when he left the work, but that most of it was worn out or of little value when the work was completed.

The statute under which the bond involved was executed as section 1, chapter 217 Laws of 1918, which reads, in part, as follows:

“That any person entering into a formal contract with this state, any county thereof, municipality therein or any political subdivision whatsoever therein, for the construction of any building or work or the doing of repairs, shall be required before commencing* same to execute the usual bond, with good and sufficient sureties, with the additional obligation that such contractor or contractors shall promptly make payments to all persons supplying *386 labor or material therefor; and any person who has furnished labor or materials used therein and wherefor payment has not been made, shall have the right to intervene and be made a party to any action instituted on such bond, and to have their rights adjudicated in such action and judgment rendered thereon, subject, however, to the priority of the claim and judgment of the obligee.”

It will be noted that the additional obligation which the surety is required by this statute to assume is that "the contractor shall promptly make payments to all persons supplying labor or material” for the work, and the persons who are given the right to assert a claim against the bond are those who have "furnished labor or material used” in the work, and it is the contention of the appellant that such of the articles here involved as formed a part of the usual and ordinary equipment of the contractor, even though worn out in the course of the work, are not covered by the words "materials used in the work,” since they are not such as would necessarily be consumed, either actually or theoretically, so as to be regarded as "used in” the work or "furnished in the performance of the work.”

The statute which requires the bond of a contractor for public work to be conditioned for the payment for all materials used in the work, and provides that any person furnishing materials used in such work may maintain an action on such bond, is designed for the protection of those who furnish materials which either enter into and become a permanent part of the improvement, or which are naturally and necessarily consumed in the course of the performance of the work, and it was not intended to protect those who furnish the contractor’s plant and equipment or who furnish the material necessary to keep such equipment upon an efficient basis. In determining the liability of the surety for such articles or equipment, the fact that they were partially or totally worn out, or consumed, on the particular work is not the test of the liability of the surety. If the contract is *387 sufficiently large, covering a long period, the heaviest machinery, such as steam shovels and dredging machines, costing many thousands of dollars, may he entirely worn out, but we know of no ease holding that the surety would be liable for the purchase price of such equipment.

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Cite This Page — Counsel Stack

Bluebook (online)
110 So. 780, 145 Miss. 378, 1926 Miss. LEXIS 36, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-fidelity-guaranty-co-v-yazoo-county-ex-rel-rings-miss-1926.