Williams v. Pacific Coast Casualty Co.

Citations

• 79 Wash. 164
• 140 P. 74
• 1914 Wash. LEXIS 1168

Syllabus

<p>Principal and Surety — Discharge of Surety- — Overpayments—■ Advances — Waiver. A compensated surety is not discharged by over-payments to the principal, a subcontractor, where, after notice of such overpayments, the surety, instead of denying liability, executed a written consent to the continuance of payments upon a different basis than that stipulated in the contract, and after the full contract price had been paid', consented to further payments for the purpose of completing the contract up to the limit of the penalty provided in the bond.</p> <p>Same — Street Improvements — Liens—Construction of Contract —Liability of Surety. Under Rem. & Bal. Code, § 1131, providing that any person doing work at the request of the owner of real property on any street or road in front of or adjoining the same, has a lien upon such real property for the labor performed, work done to improve a street under a private contract with the owners of the abutting property would be subject-matter for a valid lien upon the property; hence is covered' by a bond given to secure the performance of the contract, in which it was agreed that liability under the bond should include liability for labor claims paid which “are valid liens against said property.”</p> <p>■Same — Liability of Surety — Actions—Time to Sue — -Waiver of Limitation. An action on a subcontractor’s bond to secure the performance of a street contract is commenced within the six months after breach of the contract limited in the bond, where the first breach was waived and the subcontractor allowed to complete the contract, and the action was commenced! within six months thereafter and immediately after the termination of litigation which was necessary to determine the exact amount due, in which the surety had opportunity to defend and protect its interests.</p>