Folz v. Amweg
Folz v. Amweg
Opinion of the Court
Opinion by
The bond in suit was not a bond for the 'mere payment of money. The obligation of the Merchants’ Trust Company was not an obligation to paj' to the plaintiff the $20,000 of money in the event that Amweg the principal did not pay it. On the contrary, the express terms of the condition of the obligation were that “ if the above-named Frederick J. Amweg, his heirs, executors, administrators, and assigns shall, as soon as he shall receive from the board of public education of the city of Philadelphia the sum of $37,807.42, being the second payment to be made by the said board of public education to him on account of the contract entered into between the said Frederick J. Am
After the completion of the building by the surety company a warrant was drawn by the board of public education in favor of “ F. J. Amweg or bearer,” for the sum of 137,807.42. A check to pay this warrant was drawn by the city controller dated July 3, 1896, to the order of his assistant, J. Hampton Moore, who indorsed it “ Pay to the order of the Tradesmen’s Trust and Saving Fund Company.” The warrant and the check were handed to the trust company and that company received the money. No part of it was ever paid to Amweg, nor was any of it due to him. The circumstance that the warrant was made payable to Amweg or bearer is of no account whatever. As the contract was made in his name there was sufficient reason for drawing the warrant in his name to identify the payment with the contract. In point of fact Amweg had nothing to do with the warrant. He never received it, and his indorsement of it was not needed and was not made, because it was payable to bearer. He never received the warrant or the check, and he had no right to receive either. It follows that the condition of the bond in suit was never broken and hence there could be no recovery on it by the obligee in the bond. It was abundantly proved by the oral testimony that Amweg defaulted on his contract and quit the work; that the surety company was duly called upon by
Judgment affirmed.
Reference
- Full Case Name
- Leon H. Folz v. Frederick J. Amweg and Merchants' Trust Company
- Cited By
- 2 cases
- Status
- Published
- Syllabus
- Principal and surety—Contract—Municipal contract. A municipal contract provided that if the contractor made default the city should have the right to complete the building at his expense. The contractor borrowed from plaintiff a sum of money to be used in the performance of the contract, and gave him a bond with a surety conditioned that if the contactor should, as soon as he received a certain designated payment from the city, pay back to the plaintiff the sum borrowed, then the bond was to be void. The contractor subsequently defaulted on the building contract, and the city permitted the surety in the building contract to complete the building. After it was completed á warrant was drawn in favor of the contactor, naming him, “ or bearer,” and a check to pay the warrant was given to the surety in the building contract. The contractor never received the warrant, nor was any payment made to him after his default. Held, (1) that the surety on the bond given to plaintiff was not liable; and (2) that the fact that the warrant was drawn to the contractor “ or bearer” was immaterial.