Standard Gas Power Corp. v. New England Cas. Co.

• Decision Date: 18 June 1917
• Docket Number: No. 3.,3.
• Citation: 101 A. 281,90 N.J.Law 570
• Parties: STANDARD GAS POWER CORP. v. NEW ENGLAND CASUALTY CO.
• Court: New Jersey Supreme Court

101 A. 281

90 N.J.Law 570

STANDARD GAS POWER CORP.

v. NEW ENGLAND CASUALTY CO.

No. 3.

Court of Errors and Appeals of New Jersey.

June 18, 1917.

(Syllabus by the Court.)

Appeal from Supreme Court.

Action by the Standard Gas Power Corporation against the New England Casualty Company. Judgment for defendant, and plaintiff appeals. Affirmed.

McDermott & Enright, of Jersey City, for appellant. Robert Strange, of South Orange (Stuart McNamara, of New York City, on the brief), for appellee.

TRENCHARD, J. This is an appeal from a judgment for the defendant rendered by the trial judge, sitting without a jury, at the Hudson circuit. We are of the opinion that the judgment must be affirmed.

The pertinent facts are these:

The Passaic Valley Sewerage Commissioners (a public corporation of the state of New Jersey) advertised for bids for the building of a section of the Passaic Valley sewer, with notice that the successful bidder would be required to execute a contract and bond with satisfactory surety in a certain form prescribed. The Healey Contracting Company, a corporation of New Jersey, pursuant to such call, bid in writing for such work upon the form prescribed by the commissioners. Such bid was accepted by the commissioners, and the Healey Contracting Company entered into a contract with the commissioners for the execution of such work, 'delivering to the commissioners concurrently therewith its bond in the sum of $20,000, executed by it as principal and by the New England Casualty Company as surety, both contract and bond being in the form prescribed. The bond provides that the principal and surety are "held and firmly bound unto the Passaic Valley Sewerage Commissioners in the sum of $20,000." The bond further provides that such sum is "to be paid to the Passaic Valley Sewerage Commissioners, for which payment, well and truly to be made, they bind themselves," etc. The condition of the bond is as follows:

"Now the condition of this obligation is such, that if the said principal shall well and truly keep and perform all the obligations, agreements, terms and conditions of this said contract on its part to be kept and performed and shall also pay for all labor performed and furnished and tor all materials used in carrying out of said contract, then this obligation shall be void; otherwise it shall remain in full force and virtue."

Article 13 of the contract provides that: "The contractor shall take all responsibility of the work, and take all precautions for preventing injuries to persons and property in or about the work; shall bear all losses resulting to him on account of the amount or character of the work, or because the nature of the land in or on which the work is done is different from what was estimated or expected, or on account of the weather, elements or other cause; and he shall assume the defense of, and indemnify and save harmless, the commissioners and their officers and agents, from all claims relating to labor and materials furnished for the work," etc.

Article 17 provides in effect that the commissioners might pay claims for labor and materials used in the work and call upon the contractor to repay the same, or the commissioners might retain funds in their hands due or to become due to the contractor for that purpose. The Healey Contracting Company entered into the performance of the...