Wagner-Smith Co. v. Dyson Electric Co.

472 N.E.2d 54, 14 Ohio App. 3d 447, 14 Ohio B. 566, 1984 Ohio App. LEXIS 11933
CourtOhio Court of Appeals
DecidedMarch 23, 1984
Docket8359
StatusPublished
Cited by1 cases

This text of 472 N.E.2d 54 (Wagner-Smith Co. v. Dyson Electric Co.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wagner-Smith Co. v. Dyson Electric Co., 472 N.E.2d 54, 14 Ohio App. 3d 447, 14 Ohio B. 566, 1984 Ohio App. LEXIS 11933 (Ohio Ct. App. 1984).

Opinion

Weber, J.

This appeal results from a judgment of the Montgomery County Common Pleas Court wherein plaintiffs complaint was dismissed with prejudice and summary judgment was entered in favor of the defendants, Booker T. Rutledge and Son and the Ohio Casualty Insurance Company. Plaintiff, Wagner-Smith Company, has appealed this determination.

The facts in this case are not in dispute. On September 3, 1980, Booker T. Rutledge and Son contracted with the city of Dayton to perform street improvements on the Courthouse Square project. Pursuant to R.C. 153.54, Booker T. Rutledge and Son obtained a performance bond from the Ohio Casualty Insurance Company in the principal amount of $39,000. This bond was filed with the city of Dayton.

Booker T. Rutledge and Son subcontracted a portion of its work on the Courthouse Square project to Dyson Electric Company. Dyson Electric Company in turn contracted with the plaintiff, Wagner-Smith Company, for the performance of the electrical construction work at the job site. Wagner-Smith Company performed work in the amount of $11,762.48 for which it has not received any compensation.

The construction work of Booker T. Rutledge and Son was completed on May 13,1981. On or about July 31,1981, Wagner-Smith furnished the Ohio Casualty Insurance Company a statement for materials furnished and ser *448 vices rendered. The Ohio Casualty Insurance Company denied liability for payment and refused to pay any amount owing the plaintiff.

The trial court, adopting the report of the common pleas referee, dismissed plaintiff’s complaint with prejudice as to the defendants, Booker T. Rutledge and Son and the Ohio Casualty Insurance Company. A prior judgment rendered in favor of the Wagner-Smith Company and against Dyson Electric Company remains unsatisfied and has not been appealed.

Appellant brings before this court two assignments of error, both of which concern the trial court’s application of R.C. 153.54 to 153.571. As such, we will address both of appellant’s assigned errors together. Appellant contends:

“I. In overruling plaintiff’s motion for summary judgment, and thereafter approving the report granting summary judgment to the defendants, the trial court erred in its interpretation of Ohio Rev. Code Ann. Sections 153.54-153.571 (Page 1982, Supp.).

“II. In overruling plaintiff’s motion for summary judgment, and thereafter approving the referee’s report granting summary judgment to defendants, the trial court erred in its interpretation of the Ohio Supreme Court’s decision in Weybrecht [sic] Co., v. The Hartford Accident and Indemnity Co. 161 Ohio St. 436 [53 O.O. 345] (1954).”

In essence, appellant contends that although it does not have a direct contract with the general contractor, Booker T. Rutledge and Son, it is nevertheless within the class of creditors who are given a right to recover against the general contractor and the general contractor’s bond. Appellant submits that this right of recovery is provided to it by R.C. 153.54 to 153.571.

R.C. 153.54(C) states in pertinent part:

“If the bidder enters into the contract, the bidder shall, at the time he enters into the contract, file a bond for the amount of the contract to indemnify the state, political subdivision, district, institution, or agency against all damage suffered by failure to perform the contract according to its provisions and in accordance with the plans, details, specifications, and bills of material therefor and to pay all lawful claims of subcontractors, materialmen, and laborers for labor performed or material furnished in carrying forward, performing, or completing the contract; and agree and assent that this undertaking shall be for the benefit of any subcontractor, materialman, or laborer having a just claim, as well as for the state, political subdivision, district, institution, or agency.”

In order to determine whether or not the appellant is entitled to recover the cost of its services from the general contractor’s bond, it is necessary to determine Wagner-Smith’s status in relation to the general contractor, Booker T. Rutledge and Son. The facts establish that Booker T. Rutledge and Son, the general contractors of the Courthouse Square project, subcontracted a portion of the project to Dyson Electric Company. Dyson Electric Company in turn subcontracted a portion of the electrical construction work to Wagner-Smith Company. The result of this sequence of events was to make Wagner-Smith Company, as a subcontractor of Dyson Electric Company, a subcontractor of a subcontractor. The issue before us therefore is whether a subcontractor of a subcontractor is entitled to recover under the general contractor’s performance bond filed pursuant to R.C. 153.54 to 153.571.

The trial court concluded that the Wagner-Smith Company, as a subcontractor of a subcontractor, was not entitled to recovery under a general contractor’s bond filed pursuant to R.C. 153.54. The court based this conclusion *449 upon the Supreme Court’s decision in J. T. Weybrecht’s Sons Co. v. Hartford Acc. & Indemn. Co. (1954), 161 Ohio St. 436 [53 O.O. 345],

In Weybrecht, a general contractor, erecting a school building for the Youngstown Board of Education, contracted with the Carver-Behan Company to purchase materials, part of which were furnished to the Carver-Behan Company from the plaintiff J. T. Weybrecht’s Sons Company. The Carver-Behan Company went into bankruptcy, owing the plaintiff for materials supplied which were used by the general contractor in construction of the school. The plaintiff sued on a bond given by the defendant insurance company to the board of education pursuant to G.C. 2365-1 to 2365-4 (R.C. 153.54 to 153.571). The trial court rendered judgment in favor of the plaintiff.

The Supreme Court, in affirming the trial court’s decision, concluded that the plaintiff, J. T. Weybrecht’s Sons Company, was a materialman of a materialman of the general contractor, and as such was entitled to recover against the general contractor’s bond filed pursuant to R.C. 153.54 to 153.571. In making this determination, the Supreme Court distinguished a ma-terialman of a materialman from a subcontractor of a subcontractor and determined that only the former was entitled to recover against a general contractor’s bond.

In Weybrecht, the court at 443 addressed the meaning of the word “subcontractor” as used in R.C. 153.54 to 153.571:

“Although, as hereinbefore pointed out, the definition of ‘subcontractor’ in the mechanics’ lien statutes is limited to such an extent as to exclude a material-man, the definition of that word in those statutes in other respects is expanded to include some who would not be included within the ordinary meaning of the word ‘subcontractor.’ Thus, giving the ordinary meaning to the word ‘subcontractor,’ that word would include one who has contracted with the contractor, but not one who has merely contracted with someone else who has contracted with the contractor, i.e., a subcontractor of a subcontractor.”

Based upon this definition of a “subcontractor,” the court further concluded at 445:

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Bluebook (online)
472 N.E.2d 54, 14 Ohio App. 3d 447, 14 Ohio B. 566, 1984 Ohio App. LEXIS 11933, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wagner-smith-co-v-dyson-electric-co-ohioctapp-1984.