Opinion
October 8, 1930.
December 27, 1930.
Pleading — Parties — Original defendants — Additional defendants — Act of April 10, 1929, P.L. 479 — Issuance of writ of scire facias against additional defendant after entry of judgment against original defendant — Affidavit of defense — Sufficiency.
An original defendant may take judgment against an additional defendant, brought in by scire facias under the Act of April 10, 1929, P.L. 479, after judgment has been entered in favor of the plaintiff and against the original defendant.
Principal and surety — Default by principal — Notice — Opportunity to complete contract.
In the absence of special provisions in a bond, a surety is not entitled to any formal notice of the breach of the contract by its principal and opportunity to complete the contract for its principal. Such right is founded on special provisions in a bond and does not attach in the absence of such provisions.
Appeal Nos. 347 and 349, October T., 1930, by additional defendant from judgments of C.P., No. 3, Philadelphia County, September T., 1928, No. 15983, and June T., 1929, No. 1405, in the cases of School District of the Borough of Eddystone to use of O.W. Ketcham and to the use of The Fields Brick Company v. S. Sidney Lewis and Maryland Casualty Company, defendants, and Continental Casualty Company, additional defendant.
Before TREXLER, P.J., KELLER, LINN, GAWTHROP, CUNNINGHAM, BALDRIGE and WHITMORE, JJ. Affirmed.
Writ of scire facias by a general contractor to join his sub-contractor's surety as an additional defendant. Before FERGUSON, P.J.
Rule for judgment against additional defendant for wan of a sufficient affidavit of defense.
The facts are stated in the opinion of the Superior Court, in School District of the Borough of Eddystone et al. v. Lewis et al., Appellants, 98 Pa. Super. 227, and in the following opinion of the court below:
Lewis was contractor for the erection of a school building and DiTomo, Mele and Neitheimer, trading as Tomo-Mele Company, were sub-contractors. Lewis, as required by law, gave to the School District a bond of the Maryland Casualty Company as surety, conditioned for the payment of the claims of all persons who supplied materials to the building. Rosenblum, subcontractor under Tomo-Mele Company, brought suit against Lewis and the Maryland Casualty Company for the amount of certain materials supplied by him to the building. Judgment was entered, which judgment was affirmed by the Superior Court. During the pendency of the proceedings, the Continental Casualty Company was brought upon the record as an additional defendant, as permitted by the Act of April 10, 1929, P.L. 479, it being alleged in the scire facias that the Continental Casualty Company was liable over to defendants, Lewis and the Maryland Casualty Company, on a bond dated September 30, 1927. An affidavit of defense was filed to the scire facias. We are of opinion the affidavit is insufficient.
The defense is to the effect that the defendant, Lewis, failed to supply Tomo-Mele Company with proper limestone and other materials he agreed to supply, as a result of which Tomo-Mele Company was ordered and directed by the architects to discontinue work. This defense is inadequate because it fails to state what stone Tomo-Mele Company could require, what was supplied and wherein there was a default.
It is also averred that defendant Lewis made default in the terms of the contract with reference to payments, without stating what amounts were due and payable when they became due, and the amounts.
It is also averred that defendant failed to pay the sum of $200 toward the cost of the bond sued on. The agreement provides that the contractor shall pay the sum of $200 toward the premium on the bond, but it fails to state to whom payment should be made. Therefore, it cannot be regarded as a defense.
The additional defendant having become surety for the performance of the contract by Tomo-Mele Company, it is obliged to pay the amount of the judgment recovered against defendants at the suit of the subcontractor under Tomo-Mele Company.
The rule is made absolute.
Error assigned, among others, was the order of the court.
Wm. W. Smithers, for appellant.
Lionel Teller Schlesinger, for appellees.
Argued October 8, 1930.
The appeals in these cases question the right of the original defendant to take judgment against an additional defendant brought in by scire facias under the Act of April 10, 1929, P.L. 479, after judgment had been entered in the action by the plaintiff against the original defendant.
The docket entries show that the actions were brought on November 14, 1929 and June 5, 1929, respectively. On June 25, 1929, a scire facias was issued in each case at the instance of the defendant, Lewis, to bring in this appellant as a party alleged to be liable over to him for the cause of action declared on, by reason of a bond given by a sub-contractor, on which the appellant was surety, which covered the materials for which the original suit was brought. This was served on the appellant on June 27, 1929. On July 11, 1929, a rule was granted on the petition of appellant, to show cause why the writ of scire facias to join appellant as an additional defendant and service thereof, as well as the suggestion of appellant's liability over to Lewis should not be stricken from the record and the proceedings stayed pending the disposition of the case of Vinnacombe v. Phila. et al., in the Supreme Court. On November 26, 1929, the rule of July 11, 1929 was discharged with leave to amend the scire facias in accordance with the decision of the Supreme Court in Vinnacombe v. Phila., handed down November 25, 1929 (see 297 Pa. 564). The amended scire facias was issued on December 20, 1929 and served on appellant's attorney of record on December 23, 1929. In the meantime judgment had been entered in the actions in favor of the several plaintiffs and against the original defendants.
Appellant contends that this prevented any further action on the scire facias proceedings to bring it in as an additional defendant, alleged to be liable over to the defendant Lewis.
The decision of the Supreme Court in First National Bank of Pittsburgh v. Baird, 300 Pa. 92, handed down since these appeals were taken, effectually disposes of this contention.
Appellant also maintains that its affidavits of defense set up sufficient facts to contitute a good and valid defense to the scire facias. The opinion of the court below, which will appear in the report of this case, sufficiently points out the inadequacy and indefiniteness of the appellant's averments, except in one respect. Appellant contends that it was released and relieved from liability as surety on the bond relied on in the scire facias because the original defendant, Lewis, dismissed the sub-contractor from the job, by reason of his default, and proceeded to do the work covered by said sub-contract, without first giving notice to appellant as surety, and affording it an opportunity to complete the contract for its principal. The answer to this contention is that it was not so provided in the bond. Many contract bonds do contain such a provision, and because of this, notice and opportunity to complete the contract are frequently given the surety even where the bond does not require it; but the right is founded on the special provision in the bond and does not attach to the bond in the absence of such a provision: Fuller Co. v. Doyle, 87 Fed. 687, 692; Board of Education v. Maryland Casualty Co., 27 Fed. (2d) 20; 9 Corpus Juris 856-7. See also M.E. Church v. Equitable Surety Co., 269 Pa. 411, 414; Young v. American Bonding Co., 228 Pa. 373; Cohn v. Maryland Casualty Co., 88 Pa. Super. 182, 185. Even where the bond contains a provision requiring notice of default to the surety it has been held that it is material only as to claims for damages for delay, which are not here involved: Board of County Commrs. v. U.S. Fidelity Guaranty Co., 150 P. 590 (Kan.); Lackland v. Renshaw, 165 S.W. 314, 319 (Mo.); Lakeside Land Co. v. Empire State Surety Co., 117 N.W. 431 (Minn.); Heffernan v. U.S. Fidelity Guaranty Co., 79 P. 1095 (Wash.).
The assignments of error are overruled and the judgments are affirmed.
No. 347, October Term, 1930 — Judgment affirmed.
No. 349, October Term, 1930 — Judgment affirmed.