Crane Co. v. Wichita Union Terminal Railway Co.

Citations

• 98 Kan. 336
• 158 P. 59
• 1916 Kan. LEXIS 80

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>Terminal Railway Station — Materialmen’s Lien — Payments to Subcontractor — Application of Payments made by Subcontractor — Liability of Surety on Indemnity Bond. A contractor who contracted to erect a union station for a union terminal railway company gave bond to pay materialmen, pursuant to section 7006 of the General Statutes of 1909. The bond was signed by the contractor and by a surety company. The contractor sublet the plumbing and the plaintiff sold plumbing material to the subcontractor. While the union station was building the plaintiff furnished other material to the subcontractor for use at other places, separate accounts being kept for each piece of work. The contractor would notify the plaintiff when it made payments to the subcontractor and the subcontractor would then make payments to the plaintiff. The subcontractor paid the plaintiff by his own checks drawn on his own bank account, and in each instance directed the account or accounts to which the check should , apply. In an action on the bond for a balance due from the subcontractor on the union station account the court instructed the jury that the subcontractor had a right to direct how his payments to the plaintiff should be applied and that if he had done so the jury should observe that application. Held, the plaintiff was not required to ascertain from the contractor how much money the subcontractor had received and that the instructions were correct.</p>