Equitable Surety Co. v. United States ex rel. McMillan
Equitable Surety Co. v. United States ex rel. McMillan
Opinion of the Court
This appeal was argued before the court of appeals, and submitted on November 7, 1933. Thereafter, namely, on January 7, 1914, it was certified to the Supreme Court of the United States in conformity with sec. 251 of the Judicial Code of March 3, 1911 (36 Stat. at L. 1159, chap. 231, Comp. Stat. 1913, § 1228), the certificate being as follows:
“The court of appeals of the District of Columbia certifies that the record in the above-entitled cause now pending in said court upon appeal from the supreme court of the District of Columbia discloses the following:
“The declaration of the United States to the Use of W. McMillan and Son, filed February 11, 1913, against the Equitable Surety Company, alleges:
“The conditions of the bond are that if said Howison shall perform to the satisfaction of the said commissioners the work to be done by him in accordance with the stipulations of said contract, and shall save harmless and indemnify the District of - Columbia from any and all claims, delays, suits, charges, damages, judgments, etc., on account of any accidents to persons or property after the commencement of the work and prior to completion and acceptance, and pay the same; and ‘will promptly make payments to all persons supplying him with labor and material in the prosecution of the work provided for in said contract,’ etc., the obligation shall be void; otherwise to remain in force. That hereafter said W. McMillan & Son, at the request of the Butt-Chappie Stone Company, agreed to furnish to said contractor certain stone materials to be used in the prosecution of the work provided for in said contract by the said contractor; and did furnish to said contractor materials of the kind and quality specified in his said contract to the value of $4,452.84, of which material the said contractor used in said building a quantity of the value of $3,952.84, for which he has failed to make payment. That defendant, though requested so to do, has refused to pay the same. The affidavit of the plaintiff in support of the declaration follows the requirements of rule 73.
“After the general issue, defendant filed a special plea denying liability on said bond because after the execution and delivery of the same, and without the knowledge or consent of defendant, the- commissioners of the District of Columbia and
“The affidavit of defense alleged the said change in the contract without its knowledge or consent; and that the same necessitated a material change in the grading of the land which had been previously performed by the contractor, at a considerable expenditure not contemplated in the original contract, and prejudicial to the defendant. On motion under the 73d rule of the supreme court of the District of Columbia the court entered judgment for the plaintiff for the amount of the demand ; and defendant has appealed therefrom.
“By stipulation two other cases involving the same question here presented are to abide the result of this case.
“The act of Congress, in compliance with the requirements of which the aforesaid bond was executed (30 Stat. at L. 906, chap. 218), reads as follows:
“ Tin Act Relative to the Payment of Claims for Material and Labor Eurnished for District of Columbia Buildings.
“ 'Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That hereafter any person or persons entering into a formal contract with the District of Columbia for the construction of any public building, or the prosecution and completion of any public work, or for repairs upon any public building or public work, shall be required, before commencing such work, to execute the usual
“ ‘Approved, February 28, 1899.’
“The court of appeals further certifies that the following question of law arises upon the record; that its decision is necessary to the proper disposition of the cause; and, to the end that a correct result may be reached, desires the instruction of the Supreme Court of the United States upon that question, to wit:
“Did the alteration of the terms of the contract by the District of Columbia and the contractor, without the knowledge or consent of the surety, have the effect to release the surety from the obligation of the bond %
Seth Shepard,
Chas. H. Robb,
Josiah A. Van Orsdel,
Chief Justice and Associate Justices of the Court of Appeals of the District of Columbia.
“And whereas in the present term of October in the year of our Lord, 1914, the said cause came on to be heard before the said Supreme Court on the said certificate and was argued by counsel;
On consideration whereof it is the opinion of the court that the question certified must be answered in the negative;
Whereupon it is now here ordered by this court that it be so certified to the said court of appeals.”
On October 6, 1914, the appellant entered an order in the court of appeals dismissing the appeal.
Reference
- Full Case Name
- EQUITABLE SURETY COMPANY v. UNITED STATES TO THE USE OF W. McMILLAN & SON, a Corporation
- Status
- Published
- Syllabus
- Bonds; Principal and Surety; Government Contracts. In an action by a materialman on a bond given by a contractor with the District of Columbia for the erection of a public building in the District of Columbia, conditioned upon the contractor making prompt payment to all persons supplying him with labor and materials in the prosecution of the work provided, for in his contract, as required by the act of Congress of February 28, 1899 (30 Stat. at L. 906, chap. 218), it is no defense to the surety that the District of Columbia altered the contract by requiring the building to be relocated, thereby necessitating a change of grade and additional excavating, entailing more expense to the contractor.