R. L. Snelson &. Co v. R. G. Hill &. Co, (No. 593.)

• Citation: 196 N.C. 494,146 S.E. 135
• Decision Date: 09 January 1929
• Docket Number: (No. 593.)
• Court: North Carolina Supreme Court
• Parties: R. L. SNELSON &. CO. v. R. G. HILL &. CO. et al.

146 S.E. 135
(196 N.C. 494)

R. L. SNELSON &. CO.
v.
R. G. HILL &. CO. et al.

(No. 593.)

Supreme Court of North Carolina.

Jan. 9, 1929.

[Ed. Note.—For other definitions, see Words and Phrases, Second and Third Series, Labor and Material.]

[146 S.E. 136]

Appeal from Superior Court, Swain County; J. H. Harwood, Special Judge.

Suit by R. L. Snelson & Co. against R. G. Hill & Co., the Southern Surety Company and others, in which the East Tennessee National Bank intervened. Judgment for plaintiff, and intervener and the Southern Surety Company appeal. Affirmed, as modified.

Civil action by creditors (general creditors' bill) to recover for materials furnished the contractor and labor performed in and about the construction of a highway in Swain county, and to hold the surety on the contractor's bond liable for the payment of said claims. Certain interveners also assert the right to enforce their claims against the surety on said bond. The general fact situation may be stated as follows:

(1) On June 29, 1925, R. G. Hill & Co., contractor, entered into a written agreement with the highway commission of Forney Creek township (Swain county) for the construction of a highway, known as "projects 3 and 4, " in which contract it was stipulated, among other things, that "the contractor shall and will provide and furnish all the materials, machinery, implements, appliances and tools, and perform the work and labor required to construct and complete projects 3 and 4 located in Swain county * * * according to the proposal, plans and specifications prepared by said commission, " etc.

(2) In pursuance of its duty under C. S. § 2445, as amended (Pub. Laws 1923, c. 100), and for a valuable consideration, the Forney Creek highway commission, on June 29, 1925, took from the contractor, as principal, and the Southern Surety Company, as surety, a bond in the sum of $136,252.75 for the faithful performance of said contract; the condition of the bond being "that if the above bounden principal, as contractor, shall in all respects comply with the terms of the contract and conditions of said contract, and his, their, or its obligations thereunder, including the specifications and plans there referred to and made a part thereof, and such alterations as may be made in said specifications and plans as therein provided for, and shall well and truly and in a manner satisfactory to the consulting highway engineer, complete the work contracted for, and shall save harmless the highway commission of Forney Creek road district of Swain county, North Carolina, from any expense...