Standard Accident Ins. Co. v. Commonwealth

• Decision Date: 30 January 1931
• Citation: 237 Ky. 170
• Court: United States State Supreme Court — District of Kentucky
• Parties: Standard Accident Insurance Company v. Commonwealth, for Use of Leonard & Smith.

237 Ky. 170

Standard Accident Insurance Company v. Commonwealth, for Use of Leonard & Smith.

Court of Appeals of Kentucky.

Decided January 30, 1931.

Highways. — Subcontractor's claim for work done and materials furnished in constructing highway held not within terms of contractor's bond securing performance of contract.

Bond was conditioned on contractor's performing "all of the terms and conditions" of contract for improving a certain highway and required surety to indemnify the commonwealth on contractor's default. Contract, expressly referred to in bond, required contractor to furnish and deliver all materials and perform all work and labor required in improvement of a certain highway in accordance with plans and specifications attached.

Appeal from Graves Circuit Court.

EATON & BOYD for appellant.

WHEELER & HUGHES for appellees.

OPINION OF THE COURT BY HOBSON, COMMISSIONER.

Reversing.

On March 22, 1926, Eli and Marye entered into a contract with the state highway commission for improving a section of the Mayfield-Paducah road in Graves county, about fourteen miles long, and gave bond with the Standard Accident Insurance Company as its surety. The condition of the bond is in these words:

"The condition of this obligation is such that if the said principal, Eli & Marye, of Dawson Springs, Kentucky, shall well and truly keep and perform all of the conditions of a certain contract made and entered into on the 22nd day of March, 1926, by and between the Commonwealth of Kentucky, by and through its State Highway Commission, and the said Eli & Marye, principal, for improving a certain section of Mayfield-Paducah road beginning at North Corporate Limits of Mayfield, Station 0/00 and extending thence Northwardly to McCracken County line, Station 729/46 a distance of 13.815 miles, being officially known as State Project No. 9, Section A, Federal Aid Project No. 144, Section A, in Graves County, on their part to be kept and performed and shall indemnify the said Commonwealth of Kentucky as therein stipulated, then this obligation shall have no effect, otherwise it shall remain in full force and virtue."

The contract referred to in the bond contains these provisions:

"That the party of the second part, for and in consideration of the payment or payments hereinafter specified, hereby agrees under penalty expressed in the bond hereunto attached to furnish and deliver all materials and do and perform all the work and labor required in the...