Lee San v. Hume Packing Co.
Synopsis
Contract for Labor—Payments to be Made to Sureties—Trust— Assignment by Released Sureties—Notice—Action by Assignee.— An action to recover the balance due under a written contract, for labor, brought by an assignee of a firm of sureties upon a. bond given to secure its performance by the party bound thereunder to furnish the labor, cannot be sustained, although payments for the labor furnished were to be made to such sureties, under the terms of the contract, if the court finds upon sufficient evidence that such payments were to be made to. them as trustees for such party to the contract and for their protection as his sureties on the bond, and that they had been fully released from their bond prior to the assignment, and, at' the time thereof, had no interest in the balance due under the-contract, and that the assignment was made to the plaintiff without the consent of the party entitled to the money, and; with notice of his rights.
THE COURT. judgment went in the court below for The defendants, and plaintiff appeals from an order denying his motion for a new trial.
The defendants are some associated corporations, who may be designated for convenience as the Hume Packing Company. [284]On the twenty-ninth day of January, 1891, one John Quinn, as party of the first part, and the defendants, as parties of the second part, entered into a certain written contract by which Quinn agreed to employ a large number of Chinamen and pro-need from San Francisco to Alaska and engage for defendants in the business of packing salmon, and for the work done the defendants were to pay certain sums of money. There were many details in the contract which are not important here and need not be mentioned. It was stipulated that Quinn was to give a bond in the sum of seven thousand five hundred dollarss for the faithful fulfillment of his part of the contract, and also that the money to become due under it should be paid to Sun Wah Hing & Co. Quinn and the defendants were the parties to the contract; but at the bottom of the instrument, after the signatures of said parties was the following: “We accept the terms and conditions of the foregoing contract.” (Signed, Sun Wah Hing & Co.) At the same time a bond in the sum of seven thousand five hundred dollars was given by said Sun Wah Hing & Co., conditioned for the fulfillment by Quinn of his covenants in said contract, and the contract is referred to in the bond as one made by the defendants “with John Quinn, bearing date herewith.” After the return of Quinn and the Chinamen at the end of the packing season to San Francisco, it appeared that there was a balance owing by defendant on the contract of fourteen thousand eight hundred and one dollars and sixty-one cents. Defendants claimed, however, that certain work on some of the cans, such as labeling, et cetera, had not been done, and they held back fifteen hundred dollars for the payment of laborers to finish the work. Colonel Bee, the Chinese vice-counsel, was present for the purpose of protecting the interests of the Chinese laborers, and a check for thirteen thousand three hundred and one dollars and sixty-one cents was drawn by the defendants, payable to Sun Wah Hing & Co., which was immediately indorsed by the latter and delivered to Colonel Bee. A number of Chinamen were then employed to complete the unfinished work on the cans. Afterward Sun Wah Hing & Co. made an assignment of the fifteen hundred dollars due on the contract to the plaintiff in this case, Lee San; and this action is brought upon said assignment to recover of the defendants
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