Honey Creek Drainage Dist. of Grundy County v. Sampson

Decision Date02 April 1928
PartiesHONEY CREEK DRAINAGE DISTRICT, RESPONDENT, v. G. E. SAMPSON ET AL., DEFENDANTS; R. R. CALKINS, APPELLANT. [*]
CourtKansas Court of Appeals

Appeal from the Circuit Court of Grundy County.--Hon. L. B. Woods Judge.

AFFIRMED.

Judgment affirmed.

John A Flournoy, L. A. Warden, H. J. Bain and R. E. Kavanaugh for respondent.

Groves & Watkins for appellant.

WILLIAMS C. Frank, C., concurs. Bland and Arnold, JJ., concur. Trimble, P. J., absent.

OPINION

WILLIAMS, C.

This case comes to this court from the circuit court of Grundy county.

Defendant and interpleader, R. R. Calkins, appeals from a judgment allowing respondents, codefendants, various amounts of interpleas filed herein.

The facts about which the controversy arose are; that the Honey Creek Drainage District on November 18, 1921, entered into a contract with one G. E. Sampson, for the construction of a drainage ditch in Grundy county, Missouri. The Iowa Bonding & Casualty Company, executed the contract in conjunction with the defendant, G. E. Sampson, guaranteeing the performance thereof.

The Southern Surety Company took over the business and assets of the Iowa Bonding & Casualty Company prior to the institution of the suit. The remaining defendants are creditors of the defendant, G. E. Sampson.

The defendant and appellant, R. R. Calkins, loaned G. E. Sampson certain funds and took his note. This note was reduced to judgment in October, 1924.

The material parts of the contract as gathered from the abstract of the record furnished by the appellant and the additional abstract of the record furnished by respondent are as follows:

"Paying Laborers. The contractors further agree that they will pay for the work and labor of all laborers, teamsters, teams and wagons employed on the work, and for all machinery, tools, and material used thereon. Such payment to be a condition precedent to the right of said contractor to demand final payment on completion of contract.

"Monthly and Final Payment for Work Done. Once each month the engineer shall examine the work and if found complete according to the plans, specifications, contract and instructions, he shall issue an estimate for the work so completed showing the amount due since the last proceeding estimate, and shall certify the same to the board of supervisors, who shall pay eighty-five per cent of said monthly estimate until the amount retained is equal to $ 5000 on Honey Creek Main Ditch, and the remaining $ 5000 shall be paid as follows: $ 5000 on final completion and acceptance of Honey Creek Main Ditch.

Guarantee of Third Party. The third party to this contract hereby guarantees that the contractor will faithfully perform all the covenants and agreements hereinbefore mentioned; that said contractor will pay all bills for machinery, materials, tools, labor and appliances and further that they will hold and save harmless said drainage district from any damages or actions against it by reason of the neglect or failure of said contractor to perform all the acts herein required.

"Payment for work done under this contract will be made each month in monthly payments on estimates furnished by the engineer. Fifteen per cent of estimates to be retained up to $ 5000 until final completion and acceptance of work.

"The contractor shall save the district, its officers and agents harmless . . . from all suits and claims for labor done or material furnished in the performance of the work under these specifications.

"The contractors further agree that they will pay for the work and labor of all laborers, teamsters, teams and wagons employed on the work, and for all machinery, tools, and material used thereon. Such payment to be a condition precedent to the right of said contractor to demand final payment on completion of the contract.

"Before final payment shall be required to be made by the drainage district under this contract the contractors shall acknowledge and deliver under their hands and seals, a release and discharge of and from any and all claims and demands for, and in respect of all matters and things growing out of or connected with this contract or the subject-matter thereof, and from all claims and demands whatsoever.

"Before final payment shall be required to be made by the drainage district under this contract, the contractors shall acknowledge and deliver, under their hands and seals, an affidavit that they have paid for all labor, material and supplies used or contracted for on the work.

"The prices herein named are to cover all expenses of every kind involved in, or incidental to the completion of the contract, including all claims that may arise from any cause in the performance of the work hereunder.

"The third party to this contract hereby guarantees that the contractor will faithfully perform all the covenants and agreements hereinbefore mentioned; that said contractor will pay all bills for machinery, materials, tools, labor and appliances and further that they will hold and save harmless said drainage district from any damages or actions against it by reason of the neglect or failure of said contractors to perform all the acts herein required."

At the trial an agreement was entered into as follows:

"It is stipulated and agreed by and between interpleaders herein that the claim of A. D. Barton was reduced to judgment in the circuit court of Grundy county, Missouri, and amounts to the sum of $ 579.03; said judgment was founded on a debt due and owing by G. E. Sampson to the said A. D. Barton, on account of funds advanced by the said Barton to the said G. E Sampson for the purpose of paying labor, also money paid at the request of the said G. E. Sampson to laborers engaged in said project, in the construction of the Honey Creek Ditch, and that thereafter by oral assignment of the said G. E. Sampson, and that if the said G. E. Sampson were present in court would testify that he did by oral assignment assign a sufficient part of the funds due and owing by the Honey Creek Drainage District to the said A. D. Barton for the purpose of paying the amount due the said A. D. Barton, and that the said G. E. Sampson would further testify he told the said R. R. Calkins prior to the execution of the assignments from Sampson to Calkins of the partial assignment to the said claimant Barton; and that the said C. E. Sampson if present would further testify that at the time of making said assignment or assignments in evidence that he told R. R. Calkins that the A. D. Barton claim must first be paid out of said funds, and that the said Sampson would further testify that R. R. Calkins agreed at that time that all assignments were taken subject to the A. D. Barton claim, and that the said G. E. Sampson would testify, if present, that the consideration for all of said assignments are for the money due, after the payment of said Barton claim.

"It is agreed that the amount of the claim of the defendant Standard Oil Company is correct in the amount of $ 423.72 that the items of said claim were oil, gas and lubricating oils used by the defendant, Sampson on his machinery in...

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