Rockwell Bros. & Co. v. Keatley
Citation | 152 P. 449,51 Okla. 783,1915 OK 830 |
Decision Date | 19 October 1915 |
Docket Number | 5263. |
Parties | ROCKWELL BROS. & CO. v. KEATLEY ET AL. |
Court | Oklahoma Supreme Court |
Syllabus by the Court.
A person, loaning money to a contractor to pay for labor and material furnished to such contractor, is not protected by the provisions of a bond conditioned that the contractor shall pay all indebtedness incurred for labor and material furnished in the construction of a public building.
Commissioners' Opinion, Division No. 3. Error from District Court, Bryan County; Summers Hardy, Judge.
Action by Rockwell Bros. & Co., a corporation, against J. S. Keatley and another. Judgment for defendants, and plaintiff brings error. Affirmed.
Kyle & Newman and Hatchett & Semple, all of Durant, for plaintiff in error.
V. B Hayes and W. E. Utterback, both of Durant, and John T. Suggs of Denison, Tex., for defendants in error.
J. S Keatley entered into a contract with school district No. 5 of Bryan county, Okl., to provide material and labor for the erection and completion of a high school building in said district, and in pursuance of such contract executed a bond signed by the Southwestern Surety Insurance Company, as surety, running to the state of Oklahoma, whereby the parties thereto bound themselves in the penal sum of $19,444.44 conditioned that if the said J. S. Keatley should pay all indebtedness incurred for labor and material furnished in the erection of said building in accordance with the contract, then the obligation should become null and void, otherwise to remain in full force and effect. This action was instituted for the purpose of recovering $2,660.65 money advanced to J. S. Keatley for the payment of labor and material used in the construction of said building. It is admitted that J. S. Keatley had performed a part of his contract and became financially embarrassed, and thereupon entered into an oral contract with the plaintiff by which the plaintiff was to furnish the money to pay for labor and material. The auditor and general manager of the plaintiff corporation for Oklahoma testified that he entered into a contract, as follows:
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