Translate
Text Highlighter

Bookmark

PDF

Share

Report a problem
AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Attorney(S)
Judges
Are you a practicing lawyer?
Enhance your digital presence and reach by creating a Casemine profile.
Upload pleading to use the new AI search
Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Attorney(S)
Judges
Smart Summary

Terry v. Little; Terry v. Lemay — Supreme Court of Arkansas (July 1, 1929)

Factual and Procedural Background

E. L. Terry was a general contractor engaged in road construction in 1927. A. D. Little was a subcontractor who performed dirt work and day work for Terry. W. E. Lemay furnished supplies to Little and other subcontractors and received an assignment from Little of amounts due Little. Lemay and Little sued Terry and Southern Surety Company (the surety on Terry's bond) to recover sums alleged to be due for work and for the use of teams. The complaints included itemized statements of claimed amounts. Terry moved to require an itemized and verified account and moved to transfer one case to chancery; those motions were overruled. The consolidated matters were tried in Lawrence Circuit Court (Eastern District), S. M. Bone, Judge. The trial court entered judgment in favor of the plaintiffs (awarding specified sums against Terry and additional sums against Terry and the Southern Surety Company). Terry and the surety appealed. The Supreme Court of Arkansas affirmed the trial court's judgments.

Legal Issues Presented

  1. Whether the plaintiffs' statements and appended itemizations were sufficient to satisfy a defendant's motion to require an itemized and verified account.
  2. Whether the complexity of the accounts required a transfer of the action to chancery and the appointment of a master.
  3. Whether the trial court erred in allowing or adjudicating an item of $125 described as "balance yardage not paid for in June."
  4. Whether an amended complaint adding that claimed team rates included "drivers" was permissible during trial (and whether such amendment created prejudice or surprise).
  5. Whether Little, as mortgagor of teams, was a necessary party when Lemay, the mortgagee in possession, furnished the teams and was recognized as owner by the contractor.
  6. Whether the Southern Surety Company was liable under the language of its bond for amounts due for the use of teams and drivers used in constructing the highway.

Arguments of the Parties

Appellants' (Terry and Southern Surety Company) Arguments

  • The plaintiffs' statements were insufficient; the trial court should have required an itemized and verified account.
  • The account was complicated and should have been transferred to chancery with a master appointed to take the account.
  • The trial court erred in allowing an item of $125 for "balance of yardage not paid for in June."
  • In Lemay's case, there was a variance between pleadings and proof because anything due belonged to Little (the owner of the teams), so Little should have been made a party.
  • The Southern Surety Company argued it was not liable under its bond because the claim had been orally assigned (or because prior authority precluded liability for teams) and therefore judgment should not have been entered against the surety.

Appellees' (Lemay and Little) Arguments

  • The statements attached to the complaints were sufficiently specific to apprise defendants of the evidence to be offered and thus met the requirement that accounts be stated with as much particularity as the nature of the transaction admits.
  • The account was not so involved or complicated as to require equitable relief or appointment of a master; the disputed matters were essentially factual and suitable for trial.
  • Lemay, as mortgagee in possession, was the party entitled to recover for the use of the teams; it was unnecessary to join Little as a party because the contractor recognized Lemay's possession and control.
  • The amendment to allege that the team rate included "drivers" matched the nature of the transaction and did not prejudice the defendant because no request for continuance or claim of surprise was made.
  • The bond's language ("shall pay all bills for material and labor entering into the construction of said work, or used in the course of the performance of the work") was broad enough to include teams and drivers used in road construction, making the surety liable under the bond as filed with the State Highway Commission.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Brooks v. International Shoe Co., 132 Ark. 386, 200 S.W. 1027 That an "account" must be stated with as much particularity as the nature of the case admits; a bill of particulars is sufficient if it apprises the opposite party of the evidence to be offered. The court relied on Brooks to hold the plaintiffs' statements were sufficiently particular to apprise defendants and therefore the motion for an itemized and verified account was properly overruled.
Cherry v. Kirkland, 138 Ark. 33, 210 S.W. 344 Authority supporting that not all accounts require transfer to chancery and appointment of a master; used to identify when equitable relief is necessary. The court cited Cherry to support the conclusion that the accounts in these cases were not so complicated as to require a chancery transfer and appointment of a master.
McGraw, Perkins Webber Co. v. Yates, 175 Ark. 220, 298 S.W. 1001 Another authority on when an account must be taken in chancery rather than at law. The court cited this case alongside Cherry to conclude the account here did not require chancery procedure.
St. L. I. M. S. R. Co. v. Love, 74 Ark. 528, 86 S.W. 395 Construction of a statutory provision (Kirby's Digest) where ejusdem generis was applied to exclude animals (mules) from a description of "other things" in a lien statute. The majority distinguished Love on its facts and statutory language, concluding the bond language in the instant case was broader; three justices (Chief Justice, Justice Smith, and the writer) viewed Love as controlling and dissented as to surety liability.
Goode v. Aetna Casualty Surety Co., 178 Ark. 451, 13 S.W.2d 6 Addressed whether a surety on a bond was liable for feed furnished for stock used in highway work (distinguished from liability for teams and drivers). The majority distinguished Goode because it involved feed for stock; the court held Goode did not control liability for the use of teams and drivers under the different bond language here.
Klondike Lumber Co. v. Williams, 71 Ark. 334, 75 S.W. 854 Holding that a laborer's lien statute can give a lien where one used a wagon and team actually driven by the person filing the claim. The court invoked Klondike to support that labor statutes (and related concepts) have recognized claims where teams actually driven by the claimant give rise to liens or claims for labor, supporting inclusion of team-and-driver labor in the present recovery.

Court's Reasoning and Analysis

The Court first addressed case No. 1020 (Lemay and Little v. Terry and Southern Surety). It examined the complaint's statement of items (yardage, hours, overhaul, extra percentages, and team-and-wagon hours) and concluded that the statement furnished sufficient information to apprise defendants of the claim, particularly because much of the sought information was under defendants' control (citing Brooks). The court found the account was not so involved as to require chancery treatment (citing Cherry and McGraw) and observed that, although the evidence was "confused and unsatisfactory," there was little dispute about the work's amount and character. The court was unable to determine precisely which item the trial court excluded, and noted the complaint was treated as amended to conform to the proof; because there was no allegation of surprise or request for continuance, refusal to require a further itemization or to transfer to chancery did not constitute reversible error.

Turning to case No. 1019 (Lemay v. Terry and Southern Surety), the Court considered Lemay's statement that he furnished "three-up teams" for a specified number of hours at a stated rate. Applying Brooks, the Court held the statement was as particular as the circumstances allowed because Lemay relied on the foreman/time-keeper's certificate and had no better information. On the asserted variance and the necessity of joining Little, the Court found the facts undisputed: Little was the owner but had mortgaged the teams to Lemay and Lemay was mortgagee in possession who sent the teams to work and was recognized by the contractor as the owner for the transaction — thus Little's joinder was unnecessary.

Regarding amendment to include "drivers," the Court reasoned that the term "teams" and the customary meaning of "up-teams" in contract road work necessarily include drivers; alternatively, even if not inherent, the defendant suffered no prejudice because there was no claim of surprise or request for continuance. Evidence was credited showing Lemay had possession and the work was certified by the foreman/time-keeper.

The pivotal analysis concerned the Southern Surety Company's liability. The majority distinguished prior decisions (St. L. I. M. S. R. Co. v. Love and Goode v. Aetna) by focusing on differences in statutory or bond language. In Love the court applied ejusdem generis to a statute to exclude mules from "other things"; here the bond (following the Harrelson Road Law language) obligated the surety to "pay all bills for material and labor entering into the construction of said work, or used in the course of the performance of the work." The majority interpreted the word "used" broadly to include teams and drivers as instrumentalities necessary for highway construction and concluded the bond's language was broad enough to make the surety liable. The majority also noted the Harrelson Act's bond language and that the bond filed with the State Highway Commission conformed to that language. The Court referenced Klondike to show laborer's-lien concepts have recognized claims where teams actually driven by claimants were involved. The result: the majority upheld judgment against both Terry and the Southern Surety Company. A dissent (Chief Justice, Justice Smith, and the writer) maintained that Love and Goode controlled and would preclude surety liability.

Holding and Implications

Judgment affirmed.

Implications:

  • The trial court's refusal to compel a more detailed itemized and verified account, and its refusal to transfer the actions to chancery, were upheld because the statements were sufficiently particular for the nature of the transactions and the accounts were not so involved as to require equitable accounting procedures.
  • The amended pleadings (to include drivers) were permitted and did not prejudice the defendants where no request for continuance or claim of surprise was made.
  • The majority held the Southern Surety Company liable under the specific bond language filed with the State Highway Commission (following the Harrelson Road Law), concluding that the term "used" encompassed teams and drivers employed in highway construction. Three justices dissented on that point, viewing prior authorities as controlling against surety liability.
  • The decision's immediate effect is the affirmation of the trial judgments in favor of Lemay and Little and against Terry and the Southern Surety Company. The opinion reflects a divided court as to the scope of surety liability under the bond language; it does not expressly announce the creation of a broader precedent beyond the application of the bond language and the facts presented.

TERRY v. LITTLE. TERRY

1. ACCOUNT — ACTION ON — ITEMIZED STATEMENT. — In an action by a subcontractor against a road contractor and his surety, a statement of the items in the complaint, showing the amount of yardage, and number of hours of team and wagon used, etc., was sufficient as against a motion to require an itemized account, where no additional information was necessary to apprise defendants of the nature of the information sought. 2. TRIAL — JURISDICTION OF ACCOUNT. — In an action against a road contractor and his surety for work done by a subcontractor, held that the account was not so complicated as to render it necessary to transfer the cause to chancery and appoint a master. 3. APPEAL AND ERROR — ERROR NOT SHOWN. — On an assignment of error in allowing an item of $125 "for balance of yardage not paid for in June," in an action against a contractor by a subcontractor, where the evidence fails to show that the item was allowed, but shows that the court reduced plaintiff's claim by an amount exceeding $125, and allowed an aggregate sum, not itemized, held that no error was shown. 4. ACCOUNT — REQUIREMENT OF ITEMIZED ACCOUNT. — Where an account for work done was stated with as much particularity as the nature of the transaction would admit, and was sufficiently definite to apprise the defendant of the evidence to be offered, a motion to require an itemized statement was properly refused. 5. WORK AND LABOR — PARTIES. — Where teams were furnished to a road contractor by a mortgagee in possession, who was recognized as owner by the contractor, it was unnecessary, in an action against the contractor, to make the mortgagor a party. 6. ACCOUNT — AMENDMENT OF STATEMENT. — In an action against a road contractor for money due for the use of teams, it was not error to permit the complaint to be amended to show that the wages of the driver were included, in the absence of a showing of surprise or request for continuance. 7. HIGHWAYS — LIABILITY OF CONTRACTOR'S SURETY. — The surety on the bond of a road contractor held liable for the amount due to plaintiff for the use of teams, where the condition of the bond was that the surety should "pay all bills for material and labor entering into the construction of said work, or used in the course of the performance of the work."

BUTLER, J.

The cases named in the caption were consolidated in the circuit court for the purpose of trial, and, as consolidated, have been brought to this court on appeal. For convenience this court will consider first case, No. 1020, W. E. Lemay and A. D. Little v. E. L. Terry and Southern Surety Company, the defendants in the court below being the appellants here.

E. L. Terry was engaged, in the year 1927, as a general contractor, in building certain roads between Alicia, Arkansas, and Tuckerman, Arkansas. A. D. Little was employed as subcontractor on said road, and did certain dirt work in building a dump, and also did some day work on the road. The Southern Surety Company was the surety on the bond of E. L. Terry, and obligated itself, by the terms of the bond, to insure the payment of the work and material done or furnished. W. E. Lemay seems to have been engaged in furnishing supplies to the subcontractor, A. D. Little, and to other subcontractors, and in the case of Little there was an agreement between Little, Lemay and Terry that the latter was to pay to Lemay the amounts due Little, and Little executed an assignment of the amount due him to Lemay. After the completion of the work which Little had agreed to do, Lemay and Little brought suit against Terry and his surety, the Southern Surety Company, for the balance alleged to be due of $859.04, and incorporated in their complaint the following statement:

"Balance yardage not paid for in June . . . . . $125.00 Yardage held back, 2,041 yds. at 20c . . . . . 408.20 2,500 yards at 2c extra . . . . . . . . . . . . 50.00 Overhaul, 6,832 yds., at 2c . . . . . . . . . . 136.64 Ten per cent. extra for completed work . . . . 132.40 Team and wagon without driver, 30 hours . . . . 7.50 _______

Total $859.04"

The defendant Terry moved the trial court that the plaintiffs be required to file an itemized and verified account, alleging that the statement filed was insufficient in that it failed to show each separate item of work claimed to have been done or material furnished, the dates of same, et cetera. The court overruled the motion, to which action the defendant excepted. The defendant Terry then filed a demurrer to the complaint, which was overruled, and thereupon he filed his answer, and motion to transfer the case to the chancery court. The motion to transfer to chancery was overruled, and the case was submitted to the court sitting as a jury, who, after having heard the testimony, rendered judgment in favor of the plaintiff for the sum of $7.50 against the defendant Terry and for an additional sum of $560.56 against the defendants E. L. Terry and the Southern Surety Company.

The appellants, as ground for reversal, insist that the court erred in refusing to require appellees to file an itemized and verified account of the claim sued on, and also that it was error for the court to refuse to transfer the case to equity, and because the court allowed judgment for the item of $125 for "balance of yardage not paid for in June."

The court is of the opinion that the statement of the items in the complaint was sufficient, and that no additional information was necessary to apprise defendants of the nature of plaintiff's claim, especially because the very information sought was at their command (Brooks v. International Shoe Co., 132 Ark. 386, 200 S.W. 1027), and that there was no such involved or complicated account as would make a transfer to chancery and the appointment of a master necessary. Cherry v. Kirkland, 138 Ark. 33, 210 S.W. 344; McGraw, Perkins Webber Co. v. Yates, 175 Ark. 220, 298 S.W. 1001. The evidence, while confused and unsatisfactory, was sufficient to show that there was practically no dispute as to the amount and character of the work done or the price agreed upon, the question being whether the work on the Little contract was paid for; but the appellees do not challenge the sufficiency of the testimony. From the judgment rendered it is evident that the court reduced the amount of plaintiff's claim, and we are unable to determine what particular item it rejected, so that it might have been that the item of $125 for "balance yardage not paid for in June" was the item excluded. But, even if that were not the case, the complaint was treated as amended to conform to the proof, and there is no allegation of surprise or request for any continuance to meet the change in the issue, so that, in any view of the case, the appellant's third ground for reversal must be rejected. The conclusion of the court is that no reversible error was committed, and that the finding and judgment of the trial court should be and the same is hereby in all things affirmed.

We next consider case No. 1019, E. L. Terry and Southern Surety Co, v. W. E. Lemay. For his cause of action W. E. Lemay, in his original complaint, alleged that the defendant Terry was a general contractor, building State Road No. 67 between the towns of Swifton and Tuckerman, in Jackson County, Arkansas, and that the defendant employed the teams of plaintiff, known as "three-up teams," at the rate of 75 cents per hour per team for 417 hours, and that he was due for this the sum of $312.75, which was past due and unpaid. The defendant Terry moved the court to require the plaintiff to file an itemized and verified account of the claim sued on, which motion was overruled, and exceptions duly saved by the defendant.

After cases No. 1019 and 1020 were consolidated, the plaintiff Lemay in this case filed an amended complaint making the same allegations as in his original complaint, with the addition of the words "and drivers" after the words "three-up teams," and also alleged that the Southern Surety Company was bound on its bond for the payment of this item, and exhibited a copy of the bond with his amended complaint. To this amended complaint the defendant Southern Surety Company demurred, and it and the defendant Terry filed their separate answers. Upon the issues thus joined the case was submitted to the court sitting as a jury, and a judgment was rendered in favor of the plaintiff and against both defendants for the sum sued for.

It is urged on the part of the appellant Terry, first, that the court's refusal to require the appellee to file all itemized account, duly verified as required by law, was prejudicial error, and cites the case of Brooks v. International Shoe Company, 132 Ark. 386, 200 S.W. 1027, in support of his contention. The accounts in the Brooks case and in the instant case are essentially different. In the Brooks case the account was for merchandise, and contained a number of debit items, presumably for the gross amount of invoices, without setting out the different items; and in the case at bar what is called an account by the appellant is the following statement: "This is to certify that W. E. Lemay has made team time to the amount of 417 hours between October 21 and 31, inclusive, three-up teams, at 75¢ per hour. This amount is due today for work on Cat-tail road. (Signed) F. M. Eason, foreman and time-keeper." As stated in Brooks v. International Shoe Co., supra, "the word `account' is said to have no inflexible, technical meaning, and is differently construed according to the connection in which it is used. However, in mercantile transactions it is invariably used in the sense of a detailed or itemized `account.' In that case the rule in Sutherland on Code Pleadings, vol. 2, 2297, was quoted with approval and is as follows: `The items of the account furnished must be set forth with as much particularity as the nature of the case admits of. A bill of particulars is sufficiently specific if it apprises the opposite party of the evidence to be offered'."

In the instant case it is evident that Lemay had no information relative to the work done except such as was furnished him by the foreman and time-keeper, so that it was stated with as much particularity as the nature of the transaction would admit, and the party called upon to account is not subjected to the necessity of doing an impracticable thing. Inasmuch as the statement which is the basis of this suit was made by the foreman and time-keeper, it was sufficiently definite to apprise the opposite party of the evidence to be offered, so the court is of the opinion that the case cited by the appellant settles the first assignment of error against him.

Appellant Terry insists, as a second ground for reversal, that there was such a variance between the pleadings and proof as would preclude any recovery by the plaintiff; that the proof shows that Lemay had no right to maintain the action because, if anything was due, it was due to one Little, and, before recovery could be had, Little must have been made a party. The facts are undisputed. Little was the owner of the teams, and had given a mortgage to the appellee Lemay covering them, and, after having completed certain work, he became sick and could not take care of the teams. He turned them over to Lemay, who put them in his pasture and led them for sometime, when Little discovered they could be hired out, and so told Lemay. Lemay sent Little with the teams to the place where the work was to be done. They were put to work, and it was recognized by the contractor that, for the purpose of that transaction, they were Lemay's teams, for the statement is demonstrative of that fact. Lemay was the mortgagee in possession, and it was immaterial whom he sent with the teams to their place of work, whether Little or any one else, for the person so sent would be merely the agent of Lemay for that purpose. It was unnecessary to make Little a party, and the cases cited are not in point.

The third assignment of error which is pressed in the brief of appellant is that, nothing having been said in the original complaint about any drivers in charge of the teams, it was error for the trial court, over the objection and exception of the defendant, to allow the complaint to be amended during the course of the trial to show that the wages of the drivers were also included in the sum of $312.75 claimed to be due. It may be said, as a matter of common knowledge, that mules do not drive themselves, but it is necessary for some one to be present to control and direct their work, and when the expression "teams" is used and a price per hour has been charged for the use of such teams, this price includes the work of the man as well as the animals. Also the expression "up-teams," among those who do contract work, such as building roads or levees, has a well-recognized meaning, and includes the animals and the driver. But, if we should be wrong in this assumption, still appellant is in no attitude now to complain, for he does not appear to have been surprised or taken off his guard, as he made no request for a continuance of the case in order to meet the additional allegation of the amended complaint. There is competent testimony to sustain the finding of the court, for it is shown by Little's testimony that the mules were put to work, and Lemay's testimony shows that he took charge of the teams and sent Little to get a job and put them to work to help pay for their feed, and received from the foreman and time-keeper of the appellant a certificate showing that the work was actually done.

The next question presented in this case is the liability of the Southern Surety Company. It contends that there should be no judgment against it, even though the court should hold that a judgment against Terry should stand, for it claims that there was an oral assignment of the account in this case by Little to Lemay, and that, as Little was a necessary party, no judgment can go against the defendant surety company. We have sufficiently answered this question above.

The question as to whether the appellant surety company is liable under the terms of its bond for the item sued for is the serious one in this case upon which the court is divided. The appellant relies upon the case of St. L. I. M. S. R. Co. v. Love, 74 Ark. 528, 86 S.W. 395, and the case of Goode v. Aetna Casualty Surety Co., 178 Ark. 451, 13 S.W.2d 6. The majority of the court are able to distinguish between the instant case and the cases above cited. There is a difference in the verbiage of 8555 of Kirby's Digest, construed in the case of Railway v. Love, supra, and that used in the bond executed by the appellant company. In the first there is a lien declared in favor of any person who shall do or perform any work or labor, or cause to be done or performed any work or labor upon, or furnish any materials, machinery, fixtures, or other things, toward the building, et cetera, of the railroad, * * * and every person who performs any work of any kind in the construction or repair of any railroad * * * shall have a lien," et cetera. The court had in mind and construed that paragraph which reads "or furnish any material, machinery, fixtures, or other things toward the building," et cetera, and held, under the rule ejusdem generis, that mules were not included within the terms of the statute, as the words, "or other things," in the statute had reference to similar things as those denoted by the preceding words. It will be noted that the bond in the instant case is framed in different language from that of the statute supra, the condition being that the surety "shall pay all bills for material aid labor entering into the construction of said work, or used in the course of the performance of the work." This bond follows the language of 67 of act 5 of the Special Acts of 1923, known as the Harrelson Road Law. The words used in that statute regarding the bonds to be executed are as follows: "Shall contain conditions making it (the contractor) liable for material and labor used in the work."

This act was not expressly repealed by act No. 11 of the Acts of 1927, as 6 of that act, in speaking of the bonds required, used the following language: "Conditioned as the commissioners may require." As the bond in question was filed with the State Highway Commission, it is evident that the conditions it was then requiring were those stated in the Harrelson Act, and the word "used" is of much broader import than any contained in the section of the Digest mentioned. It connotes any means employed for the accomplishment of a purpose and the employment of any instrumentality fitted for its performance, so that, as teams of mules are necessary, under conditions as they now exist, for the construction of highways, the majority of the court has concluded that the language of the bond quoted is broad enough to bring the up-teams used on the highway within its conditions, and for that reason the case from 74 Ark. cited above by the appellant is not in point. The instant case may be distinguished from the case of Goode v. Aetna Casualty Surety Co., supra, for in that case the question involved was whether the surety on the bond was liable for feed furnished for the stock used in the work on the highway, while in this case the appellee seeks to recover not only for the labor of the mules, but also for that of the drivers. The laborers' lien statute, providing that "laborers who perform work and labor on any object, material, or property, shall have an absolute lien on such object," etc. (6864, C. M. Digest), has been held to give a lien on property where one used a wagon and team actually driven by the one who files the claim for labor. Klondike Lumber Co. v. Williams, 71 Ark. 334, 75 S.W. 854. It follows that the trial court was correct in its judgment, both as to the defendant Terry and the defendant Southern Surety Company, and the judgment is therefore affirmed.

As to the Southern Surety Company, the CHIEF JUSTICE, Mr. Justice SMITH and the writer think no proper distinction can be made between this case and St. L. I. M. S. R. Co. v. Love, 74 Ark. 528, 86 S.W. 395, and Goode v. Aetna Casualty Surety Co., 178 Ark. 451, 13 S.W.2d 6, by which this case should be ruled, and they therefore dissent from the majority decision.

Use AI to get other relevant cases.

Comments

TERRY v. LITTLE
(Jul 1, 1929)