Brown v. German-American Title & Trust Co.

Citations

• 174 Pa. 443
• 34 A. 335
• 1896 Pa. LEXIS 906

Syllabus

<p>Contract — Assignment of building contract — Principal and agent — Master and servant — Wages.</p> <p>A contractor agreed in writing on June 3,1893, to give his surety a “ full assignment ” of a building contract, to be held by the surety as collateral security for moneys loaned and to be loaned to him by the surety. It was also specified that the moneys advanced and moneys paid on account of the contract should be deposited with the surety to be paid out only on account of notes specified in a list furnished to the surety, and “in payment of sums advanced on account of bills outstanding for materials and work and labor done ” under the contract, and “ in payment of bills and claims contracted for, or that may be contracted for, materials furnished or to be furnished and work done or to be done in or about each and every of said contracts, including the weekly pay-roll of said contractor and $50-00 weekly to cover his living expenses.” It was further specified that the funds deposited should be and remain a trust fund, and that the contractor should have no property therein until his outstanding indebtedness and the expense of completing the contract, and the advances should be paid. The contractor received but one payment from the owners after the date of this agreement, and this he deposited with the surety. About a month afterwards he made an absolute assignment of the contract to the surety, and bound himself to supervise the work without charge. Subsequently he made a general assignment for the benefit of his creditors. The owners refused to recognize the absolute assignment of the surety, but permitted the surety, as surety, to carry on the work. In an action of assumpsit against the surety for wages for work done from June 3, 1893, until July 18, 1893, it appeared that plaintiff had no knowledge of the agreement of June 3, 1893. Held, (1) that the facts of the case did not fix upon the surety as an undisclosed principal in the prosecution of the work subse