Globe Indemnity Co. v. Barnes

• Decision Date: 24 February 1926
• Docket Number: (No. 2615.)
• Citation: 281 S.W. 215
• Parties: GLOBE INDEMNITY CO. v. BARNES et al.<SMALL><SUP>*</SUP></SMALL>
• Court: Texas Court of Appeals

281 S.W. 215

GLOBE INDEMNITY CO. v. BARNES et al.^*

(No. 2615.)

Court of Civil Appeals of Texas. Amarillo.

February 24, 1926.

Rehearing Denied March 17, 1926.

Error from District Court, Donley County; R. L. Templeton, Judge.

Suit by William Cameron & Co. against E. O. Barnes and J. H. Watters, composing the firm of Barnes & Watters, the Gloge Indemnity Company, and others. Judgment for plaintiff, and defendant Globe Indemnity Company brings error. Affirmed.

See, also, 280 S. W. 275.

Thompson, Knight, Baker & Harris and Adair Rembert, all of Dallas, for plaintiff in error.

Cole & Simpson, of Clarendon, and Sleeper, Boynton & Kendall, of Waco, for defendants in error.

RANDOLPH, J.

Defendant in error William Cameron & Co. filed this suit against defendants in error E. O. Barnes and J. H. Watters, composing the firm of Barnes & Watters, building contractors, the trustees of the Wheeler independent school district, the school district, and the Globe Indemnity Company, a corporation. Other creditors intervened. A general demurrer was presented to the plaintiff's petition by the school district, which was sustained by the trial court, and the said district and trustees were dismissed from the case. No question arises upon the action of the court upon such demurrer.

The Globe Indemnity Company in its first amended original answer presented a general exception, special exceptions, general denial, and several special defenses, which will be passed on by the decision of the questions in the appeal.

The case was tried before the trial court without the intervention of a jury. At the conclusion of the trial the court made his findings of fact and entered judgment thereon in favor of the plaintiff and several interveners against E. O. Barnes, J. H. Watters, and the Globe Indemnity Company, for the respective amounts prayed for by them, and appeal has been taken from that judgment by the Globe Indemnity Company.

The suit is based upon the alleged liability of Barnes & Watters and the Globe Indemnity Company, their surety, upon the specifications, contract, and bond given in the matter of the building of a schoolhouse. The paramount question for our decision is appellant's contention that the fifth paragraph of the bond provides only for the indemnification of the school district against loss, and expressly providing that no cause of action exists in favor of third parties. It will be observed that the bond is conditioned that —

"If the principal shall indemnify the obligee against loss or damage directly caused by the failure of the principal to faithfully perform said contract, then this obligation shall be void; otherwise to remain in full force and effect."

And that said fifth paragraph...