Haakinson & Beaty Co. v. McPherson
Haakinson & Beaty Co. v. McPherson
Opinion of the Court
The original petition alleges that a contract was made by the county and the defendant principal contractor, and that such contract is found in Exhibit A, attached to and made part of the petition. Exhibit A recites that the parties entered into contract on the 6th day of April, 1915; that payment shall be made “as set forth in specifications therefor,” and that plans and specifications on file with the *479 county auditor, by true copy, “are a part of and the basis of this contract.” It is expressly stated that “this contract shall include the 1915 state specifications of the State Highway Commission, the specific contract, the contract- or’s bond, and the general and detailed plans.” It is further alleged that the completed contract ivas initiated by a written notice to contractors. In an amendment to the petition, the 1915 state specifications of the State Highway Commission, referred to in Exhibit A, are set out, and one of the provisions of these specifications is that “the suc■cessful bidder shall be required to furnish a bond, issued by responsible surety, approved by the board; and drawn to protect the county arid any subcontractorIt is a further provision of said State Highway Commission, specifications that “this contract shall include the proposal, the instructions to bidders, these specifications, the specific contract, the contractor’s bond, and the general and detailed plans.” The instructions to bidders referred to were in writing. They exact once more that “the successful bidder will be required to furnish a bond for 50% of contract price issued by responsible surety, approved by the board, and drawn to protect the county and any subcontractor.” In this amendment to petition, it is further set out that, when this instruction to bidders was submitted to the contractor, he wrote thereupon that he had carefully examined the plans and specifications, and thereupon submits this bid, and that he agrees to furnish a bond acceptable to the board. We are not concerned with the rule that, where the specifications and the bond conflict, the bond controls, because it contains the last expression of the parties as to their rights and liabilities; and that specification’s do not control as to provisions in the contract which are not covered by the specifications. Aetna Co. v. Indianapolis Mortar & Fuel Co., 178 Ind. 70 (98 N. E. 706) . There is no inconsistency anywhere; and the contract, instead of having a pro *480 vision relied upon by the appellant which is not covered by the specifications, throughout makes the specifications a part and the basis of the contract. In fewer words, when a contract recites that specifications are a part and basis thereof, and those specifications provide that a bond given shall protect the county and any subcontractor, further provides for monthly proximate payments, and .that the county can require the contractor to furnish a list of all persons furnishing labor' or materials, “with evidence that such persons have been paid in full,” there is a contract that the contractor shall pay the subcontractor in full. It may be conceded that, though this requirement be made, that, if the bond negatived responsibility for breach of such requirement, that, whatever the remedy of the subcontractor might be, it would not be a suit on the bond. That is to say, the fact that a bond should cover a specified breach of contract will not avail to obtain a recovery on the bond which, though it should have done so, does not contain such a guarantee. The question is academic, because the bond at bar excepts no provision in the contract. Whenever it is settled what the parties named in the contract agreed to do, it is settled what the sureties undertook to indemnify against. The language of the bond is not one of exception or negation. Its relevant part is that the bond shall remain in force unless the principal “shall in all respects fulfill his said contract according to the terms and tenor thereof, and shall faithfully discharge the diities and obligations therein assumed.” One of the obligations which the principal assumed was that, as part of his contract, he was bound to pay the subcontractor, and to get a bond that would protect ■ him. The sureties made a bond agreeing that they would pay what was lost if this provision was breached. In one respect, it was not breached. The contract to give a proper bond was fulfilled. It is an irresistible implication there was a contract promise and bond covenant that *481 the subcontractor shall be held harmless. It is not a naked agreement to give a bond to protect him though he had no rights under the contract. If no duty was owing him, there was no occasion to provide a bond to save him harmless. The only reasonable construction of the entire agreement is, first, that the subcontractor shall be paid; second, that a bond agreeing to save him harmless if not paid should be executed; third, that, if he Avas not paid, the bondsmen should respond. The bond has been furnished; the demurrer confesses the bondsmen have not paid the loss the subcontractor has sustained. It avhs, therefore, error to rule, by sustaining this demurrer, that they need not pay.
The order and judgment appealed from must be re versed. — Reversed and remanded.
Reference
- Full Case Name
- Haakinson & Beaty Company, Appellant, v. W. T. McPherson Et Al., Appellees
- Cited By
- 10 cases
- Status
- Published