Viscount Construction Co. v. Dorman Electric Supply Co.

511 A.2d 1102, 68 Md. App. 362, 1986 Md. App. LEXIS 372
CourtCourt of Special Appeals of Maryland
DecidedJuly 14, 1986
Docket1550, September Term, 1985
StatusPublished
Cited by5 cases

This text of 511 A.2d 1102 (Viscount Construction Co. v. Dorman Electric Supply Co.) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Viscount Construction Co. v. Dorman Electric Supply Co., 511 A.2d 1102, 68 Md. App. 362, 1986 Md. App. LEXIS 372 (Md. Ct. App. 1986).

Opinion

GILBERT, Chief Justice.

The principal issue presented by this appeal is whether notice to a contractor by a materialman of nonpayment by a subcontractor was timely under Md.Ann.Code art. 21, § 3-501, the “Little Miller Act.” 1

The contractor, Viscount Construction Co., Inc. (Viscount), and its surety, Travelers Indemnity Co. (Travelers), contend that the materialman, Dorman Electric Supply Co., Inc. (Dorman), is precluded from asserting a claim upon the Viscount-Traveler bond because Dorman failed to mail a notice of claim to Viscount within ninety days of the last shipment of materials to Viscount’s subcontractor, Coastline Electric Co. (Coastline). Judge Robert F. Fischer,' in the Circuit Court for Howard County, ruled that the notice given by Dorman did comply with the “Little Miller Act” and that, consequently, Dorman was not barred from recovery on the bond. Possessed of a different view and patently dissatisfied with the decision of the circuit court, Viscount and Travelers appealed.

The Facts

Viscount, a general contractor, entered into a construction contract with Howard County, Maryland, for the erection of a senior citizen activity center.

The “Little Miller Act” 2 requires the posting of a payment bond as a precondition to the awarding of a construc *364 tion contract by the State, or subdivision, if the amount of the contract exceeds $50,000. Since the contract in the instant case exceeded that sum, Travelers, at Viscount’s request, furnished the labor and material payment bond. Coastline entered into a subcontract with Viscount whereby the former agreed to perform the electrical work on the senior center. Coastline purchased electrical supplies from Dorman in a sum totalling more than $26,000. Included among those materials was a central inverter 3 which was delivered to Coastline in July, 1982. After the delivery and installation of the inverter, it was discovered that the device did not have an Underwriter’s Laboratory (U.L.) label of approval. Viscount immediately notified Coastline that the inverter could not be accepted without U.L. certification. Under the terms of Viscount’s contract with Howard County, all electrical materials had to “be listed for the intended application in the U.L. Electrical Construction material list____” Coastline promptly informed Dorman about the missing U.L. label and suggested that in lieu of the label, Dorman obtain and supply a U.L. certificate of compliance, *365 an acceptable alternative. Dorman procured the certification from the manufacturer of the inverter and forwarded it to Coastline in November, 1982. Dorman put Viscount on notice on November 29, 1982, that Coastline had defaulted on its obligation to pay Dorman for materials. Payment not having been received by April, 1983, Dorman filed suit to recover on the bond.

The Law

The “Little Miller Act” provides, in pertinent part:

“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 or other security is furnished under this section and who has not been paid in full therefor before the expiration of a period of 90 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 the payment bond ... for the amount ... unpaid at the time of institution of such suit and to prosecute said action to final judgment ...; provided, however, that any person having direct contractual relationship with a subcontractor of the contractor ... but no contractual relationship express or implied with the contractor furnishing said payment bond ... shall have a right of action upon the payment bond or ... upon giving written notice to the contractor within 90 days from the date on which such person did, or performed the last of the labor or furnished or supplied the last of the material for which such claim is made____” (Emphasis supplied.)

Viscount and Travelers assert that the last delivery of material by Dorman occurred on July 15, 1982, when it delivered the inverter to Coastline. It is contended that the U.L. certification was furnished merely to correct an “oversight ... [in] leaving off the U.L. label,” and that delivery of the certification did not change the last delivery from July to November. Dorman’s position, on the other hand, is *366 that the delivery of the “last of the materials” under the original contract was made in November, 1982, when it furnished the necessary U.L. certification.

The threshold question to be resolved is whether the U.L. certification is material supplied as part of the original contract. Case law in Maryland does not appear to have addressed this particular point, but there are several federal decisions construing the provisions of the Miller Act, 40 U.S.C. § 270b(a), which involve circumstances that are analogous to the case at bar. Although those cases are not controlling, they provide, nevertheless, some guidance in interpreting the State’s “Little Miller Act.” See General Federal Construction, Inc. v. D.R. Thomas, Inc., 52 Md.App. 700, 709, 451 A.2d 1250, 1255 (1982).

Viscount and Travelers refer us to several cases construing the Miller Act, 40 U.S.C. § 270b(a), in a manner that supports the argument that the certification was not material furnished or delivered. See, e.g., United States ex rel. Noland Co. v. Andrews, 406 F.2d 790 (4th Cir.1969); United States ex rel. Light and Power Utilities Corp. v. Liles Construction Co., Inc., 440 F.2d 474 (5th Cir.1971). Those cases hold that materials furnished for the purpose of correcting or repairing defects do not extend the notification period under the Miller Act. Particular reliance is placed by Viscount and Travelers on United States ex rel. Light and Power Utilities Corp. v. Liles Construction Co., Inc., 440 F.2d 474 (5th Cir.1971). There it was held that when no replacements were supplied, the return of certain fixtures which failed to meet contractual specifications did not extend the notification period under the Miller Act. We think Liles is factually inapposite.

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511 A.2d 1102, 68 Md. App. 362, 1986 Md. App. LEXIS 372, Counsel Stack Legal Research, https://law.counselstack.com/opinion/viscount-construction-co-v-dorman-electric-supply-co-mdctspecapp-1986.