State ex rel. National Surety Co. v. Board of Commissioners
State ex rel. National Surety Co. v. Board of Commissioners
Opinion of the Court
— The State of Indiana, on the relation of the National Surety Company, and the National Surety Company join as plaintiffs in this action. A separate demurrer of each defendant was sustained to the complaint; judgment was rendered. Each demurrer assigns as cause that the complaint does not state facts sufficient in that, among other defects, two parties have joined as plaintiffs, whereas the relationship of the parties plaintiff to each other and to the defendants shown by the complaint does not justify such joinder.
The controversy grows out of a township gravel road
The commissioners had not, as the statute and contract. required, retained twenty per cent, of one of the estimates made by the engineer, to wit, the sum of $1,520. Had this been retained, the amount demanded of the contractors’ surety would have been only $7,885.
The National Surety Company, under protest and because of an agreement by the commissioners that payment of the full amount demanded should not prejudice the surety in recovering said $1,520, paid the full amount, and this action is to recover said $1,520.
The prayer was in substance for a judgment against the board for $1,520, and for a decree and order requiring the engineer and his surety to pay said sum to
The statute does not require the engineer to make such deduction. It is not alleged that the engineer’s bond is conditioned for the discharge of his alleged contract with the commissioners to make the deduction.. Therefore his surety is not liable herein. State, ex rel. v. Galbraith (1891), 128 Ind. 501, 28 N. E. 127.
The facts stated do not show a liability of the engineer to the National Surety Company directly. This' is admitted by appellant, but they assert that equity permits the joinder of such parties defendant as will, in one action, adjust all matters, and in this sense the engineer and his surety are proper defendants, and that, as an action on the engineer’s bond cam only be prosecuted by the state on relation, it is necessary that the state, on relation of the National Surety Company, be a party plaintiff with the National Surety Company in order to state a cause of action against the engineer’s surety on his bond, and that, unless such a joinder of plaintiffs is permitted, it will be necessary for the commissioners, after judgment against them, to sue the engineer on his bond and, if they refuse, that an action in mandate will be necessary to compel the commissioners so to do and that a multiplicity of actions will be avoided by permitting the joinder of plaintiffs herein made.
Therefore, under the rule stated, the demurrers were properly sustained. Judgment affirmed.
Note. — Reported in 121 N. E. 273.
Reference
- Full Case Name
- State of Indiana, ex rel. National Surety Company v. Board of Commissioners of Rush County
- Status
- Published