Los Angeles S. Co. v. National S. Co.

VICTOR E. SHAW, J., pro tem.

A

cting under the city charter and pursuant to the provisions of the Vrooman Act, [Stats. 1885, p. 147], the board of public works of the city of Los Angeles duly entered into a contract with defendant Standard Construction

&

Development Company for the improvement of Melrose Avenue, in said city. By the terms of the contract the work was to be completed within 210 days from the date thereof, which was September 14, 1912. With the execution of the contract the contractor, as principal, and the National Surety Company, as surety, in pursuance with the provisions of section

6½

of the act under which the proceedings were had and taken (Act 3930, Gen. Laws 1915, p. 1722), executed a bond, which, after reciting that the principal therein named had entered into a contract for doing the work specified therein, obligated itself as follows: “Now, therefore, if the said principal fails to pay for any materials

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furnished for the work of improvement described in said contract, or for any work or labor done thereon of any kind, the said sureties will pay the same to an amount not exceeding said sum of $25,600. This bond shall inure to the benefit of any and all persons, companies or corporations who perform labor on or furnish materials to be used in said work of improvement.” The bond was duly approved and the contractor entered upon the performance of the work, which, under extensions duly granted by the board of public works, it, and its assignees, continued to June 11, 1913, on which day the time for completing the improvement within the extensions of the contract theretofore duly made expired. Notwithstanding such termination of the contract and the fact that by reason thereof the board of public works was divested of all power to further extend the time for completing the improvement, said board did, on June 12th, make a purported order further extending the time within which, and other like extensions made, the work of improving the street was completed in accordance with the specifications therefor.

This action was to recover upon said bond and from the surety thereof the value of labor and materials furnished by plaintiff and used in doing the work at a date subsequent to June 11, 1913, when, as stated, the time for doing the work had expired. Judgment went for plaintiff, from which the defendant National Surety Company appeals.