Standard Asphalt & Rubber Co. v. Texas Building Co.

Citations

• 99 Kan. 567

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Railroad Building Contract — Indemnity Bond — Liability of Surety for Material Furnished — Alterations in Contract. In a building contract, the performance of which was secured by a guaranty company, provisions were included for alterations and additions and that payments should be made in a particular way as the work progressed. Because of the inability of the contractor to meet claims and obligations as they accrued upon the work, an arrangement was entered into between the contractor and the railway company by which payments were made in a different way, but as the change in the plan of payments was made in good faith and did not result in injury to the guaranty company, the change did not operate to relieve it from liability upon its bond.</p> <p>.2. .Same — Purpose of Statutory Indemnity Bond — Benefit of Laborers— Mechanics and Material Men. The bond of the guaranty company was given pursuant to the provisions of sections 7006 and 7007 of the General Statutes of 1909, and is required for the protection and benefit of laborers and mechanics and those who furnish material for railroad construction. Such claimants have rights under the bond independent of the rights of the obligee, and no acts or omissions of the obligee or of the contractor, for which the laborers, mechanics or materialmen are not responsible, will relieve the. guaranty company from or affect its liability under the bond for the claims of the laborers, mechanics and materialmen.</p>