Weis Mfg. Co. Steel Product Co. v. Jones

4 Tenn. App. 374, 1926 Tenn. App. LEXIS 191
CourtCourt of Appeals of Tennessee
DecidedNovember 12, 1926
StatusPublished

This text of 4 Tenn. App. 374 (Weis Mfg. Co. Steel Product Co. v. Jones) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Weis Mfg. Co. Steel Product Co. v. Jones, 4 Tenn. App. 374, 1926 Tenn. App. LEXIS 191 (Tenn. Ct. App. 1926).

Opinion

OWEN, J.

The Hartford Accident and Indemnity Company, a corporation has appealed from two decrees rendered in the chancery court of Shelby county. One in favor of complainant Henry Weis Manufacturing- Company, and the other in favor of the Detroit Steel Products Company. By consent these two causes were heard together as they involved the same facts and same questions of law, the only difference being as to the amount and accounts claimed by the two different complainants.

Complainants’ bills were filed to enforce a lien for material furnished J. Walter Jones in erecting or constructing a public school building for the Board of Education of Memphis City Schools, and which school building was known as the South Side or Richmond High School. As required by chapter 182, Acts of 1899, set forth in sections 3546a4 to 3546a7, Shannon’s Code, the said Board of Education, which is a body politic and corporate, created by an Act of legislature, Jones the contractor executed a bond on which the appellant herein became surety. Said contract was for the consider *375 ations of erecting this building for more than a year. His construc-$88,000. It appears that Jones the contractor continued his operations of erecting this building for more than a year. His construction of said building was under the direction of Architect Pheil. In the latter part of February, 1923, the appellant, the Surety Company, learned that Jones was not paying his laborers and his materialmen, so the appellant received the cash or fund that was due Jones on the estimate by the Architect on February 26, 1923, which amounted to $3,715. This fund was deposited in one of the Banks of Memphis, Tennessee, to the credit of the appellant. On March 10th, Jones cancelled his contract with the Board of Education and the uncompleted building was taken over and completed by the appellant under a separate new contract between it and the Board of Education. On March 19, 1923, Jones sent out letters to his creditors informing them that his contract liad been cancelled on March 10th.

It appears that after the appellant took over the completion of said building, and made its contract with the Board of Education, it retained Mr. Jones for several weeks at $50 per week, to direct the further construction and completion of said building. About the 20th of May, 1923, Jones left MJemphis and was located in Los An-geles, California, at the time his deposition was taken in this cause.

The appellant’s defense to the two bills filed in these causes is that complainants each failed to comply with section 3546a7 of Shannon’s Code, which section is as follows:

“A laborer or furnisher of materials to secure advantage of sections 3546a4 and 3546a5 shall file with the public official who has charge of the letting of any contract, an itemized statement of the amount owed by the contractor for materials and labor used within thirty days after the contract is completed.”

Appellant also insists that Jones should have had a credit of $500 on the account of the Detroit Steel Products Company. A number of depositions were taken, the Chancellor sustained both bills and rendered a decree for each complainant for the amount sued on.

The appellant excepted to said decree, prayed, and was granted an appeal in each case, perfected the same and has assigned five errors in this court.

The first error is that the Chancellor erred in holding that the notice left with Walter L. Gray by a deputy sheriff on March 6, 1923, and which notice was later delivered by Walter L. Gray to his wife Mrs. Walter L. Gray on March 18, 1923, was a filing of such statements by the respective claimants thirty days from the abandonment of the contract.

By the second assignment it is insisted that Mrs. Walter L. Gray was not the officer having in charge the letting of the contract for the building of the school building.

*376 The third and fourth assignments raise the question as to any liability of the defendant as to either complainant, and the fifth assignment insists that the Chancellor should have allowed a credit of five hundred dollars ($500) on the claim of the Detroit Steel Products Company.

It appears at the time of this legislation, and when the contract for the building of the school building in controversy was executed, the officers and members of the Board of Education were L. C. Humes, Mrs. Walter L. Gray, Morgan C. Ketehum, Mrs. S. J. Ellis, and Mrs. J. D. Browne. The President was L. C. Humes, the Yice President, Mrs. Walter L. Gray. The secretary was not a member of the school board. The contract was let by the entire school board, the five members, and no one of the five members had any special supervision of said building. No member of the school board was designated as the officer in charge of said building.

While the Chancellor held that J. Walter Jones did not abandon his contract until March 10, 1923, we are of the opinion that the appellant was in charge of the building from February 26th, when it accepted the amount of cash paid at that time by the Board of Education to Jones, and appellant began to pay certain laborers and material men out of said estimate. On February 26, 1923, both complainants delivered through a deputy sheriff to all the individual members of the Board of Education, itemized statements of the amounts owed them by Jones for material and labor furnished on the Richmond School building, but on said date Mrs, Walter L. Gray, the Vice President, was out of the City of Memphis, and she could not be reached. The Deputy Sheriff left Mrs. Gray’s notice with her husband Walter L. Gray on M|arch- 6, 1923. Mrs. Gray received these notices on March 18, 1923, from her husband with whom they had been left on March 6th. It appears that Mrs. Gray returned to Memphis, March 18th, the day she received the notices. The Chancellor held in substance that:

“1. That the procedure outlined above amounted to a filing of the itemized statements of the claims of the complainants with the Board of Education as required by section 3546a7 of Shannon’s Annotated Code, that is, that said statements were filed with said Board within thirty days after the completion of the contract.
“2. That the receipt of said notices or statements by Mrs. Walter L. Gray was, as a matter of law, a filing of the same with the official having in charge the letting of the original contract, as required by said section.
“3. That the claim of the Weis Manufacturing Company was subject to credits in the sum of $217.11, and that said Company was entitled to recover $2050.89.
*377 “4. That the claim of J. Walter Jones for a credit of $500 on the Detroit Steel Products Company claim was not proven, and that the Detroit Steel Products Company was entitled to recover $3280.
‘ ‘ On the basis of these holdings the Chancellor entered decrees against Jones and the Hartford Accident and Indemnity Company as surety in favor of the complainants for $2050.89 and $3280 respectively, with interest and costs.”

Appellant in support of its assignments of error mates the following insistence, and cites authorities in support thereof as follows:

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Bluebook (online)
4 Tenn. App. 374, 1926 Tenn. App. LEXIS 191, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weis-mfg-co-steel-product-co-v-jones-tennctapp-1926.