Suburban Mutual Building & Loan Ass'n v. Paulus
Suburban Mutual Building & Loan Ass'n v. Paulus
Opinion of the Court
This is an action on a builder’s bond. The breaches assigned are, that the contractor failed to pay for materials used in the construction of the building; that in consequence thereof mechanic’s liens were filed against the house to secure the amounts of the unpaid claims; that judgments were rendered on the claims and enforcing the liens, and that the plaintiff as the beneficiary in a deed of trust on the property and as the holder of the bond as additional security for its debt, was compelled to pay the amounts of the judgments and the costs of suit. The bond bears date May 25,1891, the penalty is $2,500, and it was signed by the Paulus & "Williamson Architectural Company (the contractor) as principal, and by John D. Paulus, D. C. "Williamson, John M. Sellers and T. E. Hayden as sureties. Laura B. Tracy ¿s named as obligee. The conditions of the bond are "that whereas the said Paulus & "Williamson Architeo
The defendants Sellers and Hayden admitted in their separate answers that they signed the bond, and they averred that whatever work was done or materials furnished by the Paulus & Williamson Architectural Company in the construction of the house for Mrs. Tracy, “was done or were furnished under and in pursuance of the contract between said parties, which is recited and referred to in the bond.” The answer then set up various changes in the work without their knowledge and consent, and other special defenses which need not be set forth, as no assignments of error-are made concerning them.
At the trial it was undisputed that the plaintiff satisfied two judgments enforcing mechanic’s liens against the house, one for $213.35, and the other for $168.80, and that it also paid $50 attorney fees in defense of the suits. The plaintiff introduced testimony to the effect that at the time' it paid the judgments it held a deed of trust on the property to secure a debt due it from Mrs. Tracy; that it also held the bond in suit as additional security for its debt and that
Tbe liability of Sellers and Hayden is stricUssvmi jwris, and to bold them on tbe bond it devolved on tbe plaintiff t© show by competent proof tbat tbe contract of date June 8, wag in existence at tbe time tbe bond was executed, to wit, May 25, and tbat it is tbe identical contract referred to in tbe bond, and tbat it was either attached to tbe bond at tbe time, or tbat tbe sureties were advised of its existence when they signed tbe bond and knew tbat it was tbe contract referred to in tbe bond. Tbis court in tbe case of Oberbeck v. Mayer, 59 Mo. App. 289, indicated two means of identifying tb© contract in such a case, namely tbe fact tbat tbe contract was of tbe same date of tbe bond, or proof tbat it was-attached to tbe bond at tbe time tbe latter was signed.
Instruction. “The court further instructs the jury that it is incumbent upon plaintiff to prove that the contract under which said building was erected for Laura B. Tracy, was the same contract referred to in the bond signed by the defendants Sellers and Hayden, and unless you find it to be a fact that the contract dated June 8,1891, was the contract referred to in the bond of May 25, 1891, and that said contract was in existence and was executed by the parties at the time of or simultaneously with the execution of the bond by Sellers and Hayden, then you must find a verdict for defendants Sellers and Hayden.”
We therefore rule that the question of the identity of the contract was properly submitted to the jury and the finding being against the sureties, they aré bound by it.
It is urged that as Mrs. Tracy paid nothing on account of the defaults of the principal in the bond, and the plaintiff paid nothing subsequent to the absolute assignment of the bond to it, there-are no breaches of the bond for which plaintiff can sue. There are two answers to this: First, at the time the plaintiff paid the judgments it held a deed of trust on the land which was subordinate to the liens of the judgments, and it held the bond as additional security for its debt. Second, under the terms of the deed of trust the amounts so paid by plaintiff became a part of the mortgage debt. Hnder the first an independent right of action on
Tbe secretary of tbe plaintiff corporation testified that tbe plaintiff paid $50 to its attorney for defending tbe suits to enforce tbe mechanic liens. He also stated that tbe fee was reasonable. This last statement was objected to by the appellants, tbe contention being that tbe witness was not qualified to speak as to tbe reasonableness of tbe fee. Although tbe witness is not a lawyer, we are inclined to think that bis opinion was worth something. He testified that be personally managed tbe suits, and that be bad a great deal of experience in sucb litigation.
The judgment is erroneous and must be corrected either in this court or in tbe circuit court. As to tbe form of tbe judgment tbe statute is plain and mandatory. It should have been for tbe penalty of tbe bond with execution for tbe damages assessed by tbe jury. (State v. Fitzpatrick, 64 Mo. 185.) Tbe better practice is to bave tbe correction made in tbe circuit court. Tbe judgment will therefore be reversed and tbe cause remanded, with directions to tbe circuit court to enter tbe proper judgment. Notwithstanding tbe reversal tbe costs of tbe appeal will be taxed against tbe appellants. This court decided in McCord v. Railroad, 21 Mo. App. 317, that the appellant can only recover tbe costs of tbe appeal when be succeeds in having tbe judgment changed or modified to bis advantage.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.