Spokane Merchants' Ass'n v. Pacific Sur. Co.

• Decision Date: 04 August 1915
• Docket Number: 12709.
• Citation: Spokane Merchants' Ass'n v. Pacific Sur. Co., 150 P. 1054, 86 Wash. 489 (Wash. 1915)
• Court: Washington Supreme Court
• Parties: SPOKANE MERCHANTS' ASS'N v. PACIFIC SURETY CO.

150 P. 1054

86 Wash. 489

SPOKANE MERCHANTS' ASS'N v. PACIFIC SURETY CO.

No. 12709.

Supreme Court of Washington

August 4, 1915

Department 1. Appeal from Superior Court, Spokane County; E. H Sullivan, Judge.

Action by the Spokane Merchants' Association against the Pacific Surety Company. From a judgment for defendant, plaintiff appeals. Affirmed.

J. B. Campbell and J. D. Campbell, both of Spokane, for appellant.

Charles E. Swan, of Spokane, for respondent.

PARKER J.

This is an action upon a bond executed by Nick Mandic, as principal and Pacific Surety Company, as surety, to secure performance by him of work upon State Aid Road No. 71, with Ilse &amp Elliott, who had the principal contract with the state for the construction thereof. Trial before the court without a jury resulted in findings and judgment in favor of the defendant from which the plaintiff has appealed.

In June, 1910, Ilse & Elliott entered into a contract with the state of Washington for the construction by them of State Aid Road No. 71. At the same time, in compliance with the provisions of section 1159, Rem. & Bal. Code, they executed a bond to the state of Washington with a surety company as surety, conditioned that:

They 'shall pay all laborers, mechanics, subcontractors and materialmen and all persons who shall supply such laborers, mechanics or subcontractors with materials, supplies or provisions for carrying on such work, and all just debts, dues and demands incurred in the performance of such work.'

These are conditions of bonds as required by that section. Thereafter, on August 24, 1910, Nick Mandic entered into a subcontract with Ilse & Elliott for the doing of work upon the road. Thereafter, on September 10, 1910, Nick Mandic executed to Ilse & Elliott a bond with respondent, Pacific Surety Company, as surety, in pursuance of his subcontract conditioned in part substantially as the above-quoted conditions in the bond given to the state of Washington by Ilse & Elliott, the original contractors. Thereafter Nick Mandic incurred indebtedness in the performance of his subcontract for supplies, furnished him by several persons, who thereafter assigned their claims to appellant, Spokane Merchants' Association. It thereupon commenced this action to recover such indebtedness from the Pacific Surety Company upon the bond executed by it, as surety, and by Nick Mandic, as principal, to Ilse & Elliott.

The trial court...