Wunderlich v. National Surety Corp.

24 F. Supp. 640, 1938 U.S. Dist. LEXIS 1719
CourtDistrict Court, D. Minnesota
DecidedSeptember 13, 1938
DocketNo. 2875
StatusPublished
Cited by2 cases

This text of 24 F. Supp. 640 (Wunderlich v. National Surety Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wunderlich v. National Surety Corp., 24 F. Supp. 640, 1938 U.S. Dist. LEXIS 1719 (mnd 1938).

Opinion

SULLIVAN, District Judge.

On December 30, 1933, the State of Alabama let a certain contract to the Hardaway Contracting Company (hereinafter called the general contractor) for the construction of a certain road in said State, and by the terms of said contract the general contractor agreed to furnish and deliver all materials and do and perform all work and labor required to be furnished and delivered, done and performed, in the improvement and construction of said highway, in strict conformity with the notice to the contractor and proposal, and the plans and specifications prepared by the highway director.

On December 28, 1933, as a condition precedent to the execution of the contract, and in accordance with the laws of the State of Alabama, the said general contractor as principal, and the defendant herein as surety, executed a bond running to the State of Alabama as obligee, for the benefit, however, not only of said obligee, but also of all persons supplying said principal with labor, material, feed-stuffs or supplies, in the execution of the work provided for in the contract hereinbefore referred to, and the bond being conditioned, among other things, for the prompt payment to all of said persons of all sums due or payable on account for the furnishing of said items. Thereafter, the said general contractor and the defendant herein on the one hand, and the State of Alabama on the other hand, entered into and agreed to be bound by a certain supplemental agreement relative to certain items and prices covered by the contract hereinbefore referred to, and said supplemental agreement being made a part of said original contract, and said original contract remaining in full force and effect, except insofar as it might be modified by said supplemental agreement.

At or about the time the said general contract was made and entered into, the said general contractor and the plaintiff herein entered into a certain subcontract wherein and whereby plaintiff agreed to do and perform a certain portion of the work, including stripping and unclassified excavation, and the furnishing of certain pipes or culverts in connection with said road project, and in connection with said general contract, and to furnish materials and supplies in connection with the performance of said subcontract.

The general contract between the State of Alabama and the general contractor has been in all things performed and completed, and on or about April 15, 1935, a final settlement was made between the general contractor and the State; and likewise the [643]*643subcontract between the general contractor and this plaintiff has in all things by the plaintiff been duly performed and completed.

This suit was commenced on April 14, 1936, and is brought by the subcontractor against the surety on the general contractor’s bond for the purpose of recovering the balance due on the agreed price for certain stripping and so-called unclassified excavacavation, leaving a balance of 480 yards of stripping excavation, and 13,219 yards of unclassified excavation for which he claims he has not been paid by the general contractor.

By stipulation entered into on the taking of certain depositions herein, and read into evidence at the trial of the case, and under the pleadings and the proof, the issue on the merits is set out in the following table:

Claimed by Plaintiff (Cubic Yds.) Paid Plaintiff By Hardaway Difference Sued For Unit Price Amount

Unclassified Excavation 90,685 77,466 13,219 35^ $4,626.65

Stripping Excavation 4,670 4,190 480 45‡ 216.00

15 Inch C. M. Pipe $30.80 $24.64 88 ft. 7‡ 6.16

$4,848.81

tion, and for the furnishing of certain pipe, there being no apparent objection to the allowance of this last item, which amounts to the sum of $6.16. The so-called unclassified excavation consists of common excavation, cutting grades in existing road, and hauling material onto a new road. The plaintiff, prior to the commencement of the suit, was paid by the said contractor for 4,190 yards of stripping excavation and for 77,466 yards of unclassified excavation. The plaintiff claims, however, that he is entitled to a total of 4,670 yards of stripping excavation, and a total of 90,685 yards of unclassified ex-

The plaintiff has duly furnished the State an affidavit that labor, material and supplies on such general contract had been furnished by him and that payment for all of the same had not been made, and that more than forty-five days prior to the commencement of this action, plaintiff duly notified the defendant in writing of the amount claimed to be due on account of the subcontract hereinbefore referred to, and of the nature of his claims.

(1) At the outset, the jurisdiction of this Court is challenged by the defendant upon the ground that the statute1 pursuant [644]*644to which the bond in this case was executed requires that any suit on a bond shall be instituted in the County where the work is done (DeKalb County, Alabama), or in any county where the contractor does business by an agent, or, if the provisions of the 1935 Act2 (pertinent portions thereof are quoted in the footnote below) are applicable, then [645]*645suit should be brought in the county “in which the work provided for in said contract is to be performed, or in any county where the contractor or his surety does business.” The objection to the jurisdiction of this Court does not raise the question of jurisdiction of the Federal courts as such, but does raise the question of jurisdiction of any court outside of Alabama.

It appears to be the well established rule that the jurisdiction of the District Courts of the United States depends upon the acts passed by Congress pursuant to the power conferred upon it by the Constitution of the United States, and that such jurisdiction “cannot be enlarged or abridged by any statute of a state.” Goldey v. Morning News, 156 U.S. 518, 523, 15 S.Ct. 559, 561, 39 L.Ed. 517.

Section 41, subd. 1, Title 28, U.S. C.A. (Judicial Code, § 24, subd. 1 amended, as amended August 21, 1937, c. 726, § 1, 50 Stat. 738), provides, among other things, that the District Courts shall have original jurisdiction of all suits of a civil nature where the matter 'in controversy exceeds, exclusive of interest and costs, the sum of $3,000, and is between citizens of different States. In this case, both of these requisites for jurisdiction on the part of this Court are present. The amount exceeds $3,000, the plaintiff is a citizen of Minnesota, and the defendant is a citizen of the State of New York and was, at the time of the institution of this action, doing business in Minnesota. Under the statute referred to above, the District Court of the United States for Minnesota has jurisdiction of this case, unless the Alabama statutes hereinbefore referred to are construed to require that suit may only be brought within the territorial limits of Alabama, in either the Federal or State court of that District .and State. To give the statute such a construction would be to establish the doctrine that it is competent for a State legislature to pass a law which would oust a court of the United States of a jurisdiction which the acts of Congress and the Constitution of the United States had conferred upon it, but such a construction cannot be countenanced.

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Cite This Page — Counsel Stack

Bluebook (online)
24 F. Supp. 640, 1938 U.S. Dist. LEXIS 1719, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wunderlich-v-national-surety-corp-mnd-1938.