Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

UNITED STATES v. KALADY CONSTRUCTION COMPANY

March 24, 1964

UNITED STATES OF AMERICA, F/U/O EDWARD HINES LUMBER COMPANY, A CORPORATION, AND F/U/O JAMES HEALY AND DONALD HEALY, A PARTNERSHIP D/B/A HEALY TILE COMPANY, AND F/U/O JAMES WOODSON, JAMES KRUG, MICHAEL KOBAN AND JOHN KAFLIN A/K/A JOHN KARIOFILI A/K/A YANI KARIOFILI, PLAINTIFFS,
v.
KALADY CONSTRUCTION COMPANY, INC., AN ILLINOIS CORPORATION, FIREMEN'S INSURANCE COMPANY OF NEWARK, NEW JERSEY, A NEW JERSEY CORPORATION, AND JOSEPH KALADY, INDIVIDUALLY, DEFENDANTS.



The opinion of the court was delivered by: Robson, District Judge.

Defendant Firemen's Insurance Company of Newark, New Jersey's Motion to Dismiss Count II of the Complaint of James Woodson, et al., is predicated on the assertion that recovery is sought on a "performance" bond to the United States, whereas recovery for compensation may be had solely from the "payment" bond to the United States, irrespective of the fact that the fund provided for the payment of wages by the "payment" bond is insufficient to meet the obligations incurred.

Movant's brief cites the fact that the obligee in the "performance" bond is solely the United States, to which plaintiffs respond, so also is the obligee in the "payment" bond. This reply is answered with the showing that the "payment" bond specifically is conditioned to cover compensation of workers. Legislative history is cited for the enactment, 40 U.S.C. § 270a, 270b, which made provision of the two bonds in place of the one bond theretofore required, as indicative of the Congressional desire to separate the rights of the United States and the rights of the materialmen and laborers. The decisions cited in support of the motion would seem to uphold that construction of the respective sections.

On the other hand, the annotations to the statutes reveal a uniform intention of the courts to grant a liberal construction to the statutes.

By the circuitous route of "reference by incorporation" the "performance bond" could be deemed to cover the obligation to pay salaries. The performance bond provided:

    "The Condition of this obligation is such, that
  whereas the principal [Kalady Construction Co.]
  entered into a certain contract with the Government *
  * * if the principal shall well and truly perform
  and fulfill all the undertakings, covenants, terms,
  conditions, and agreements of said contract * * *
  this obligation * * * [shall] be void." (Emphasis
  ours.)

The "construction contract" provided, inter alia, that the United States and the contractor "mutually agree to perform this contract in strict accordance with the General Provisions (Standard Form 23-A), Labor Standards Provisions Applicable to Contracts in Excess of $2,000. * * *"

The "Labor Standards Provisions" provides in part, pursuant to statute, that:

    "In the event it is found by the Contracting
  Officer that any laborer or mechanic employed by the
  Contractor or any subcontractor directly on the site
  of the work covered by this contract has been or is
  being paid at a rate of wages less than the rate of
  wages required by paragraph (a) of this clause, the
  Contracting Officer may * * * (b) by written notice
  to the Government Prime Contractor terminate his
  right to proceed with the work, or such part of the
  work as to which there has been a failure to pay said
  required wages. * * *
    "There may be withheld from the Contractor so much
  of the accrued payments or advances as may be
  considered necessary to pay laborers and mechanics
  employed by the Contractor or any subcontractor the
  full amount of wages required by this contract. In
  the event of failure to pay any laborer or mechanic
  all or part of the wages required by this contract,
  the Contracting Officer may take such action as may
  be necessary to cause the suspension, until such
  violations have ceased, of any further payment,
  advance, or guarantee of funds to or for the
  Government Prime Contractor. * * *
    "The Contractor agrees to insert [above provisions]
  * * * in all subcontracts. * * *" (Emphasis ours.)

Letters from the District Public Works Office, Ninth Naval District appended to the complaint, to the respective plaintiffs state, in part:

    "A review of the contractor's compliance with the
  Federal labor standards provisions of his contract
  appears to indicate that restitution wages are due
  you for work. * *" (Emphasis ours.)

The complaint states that the right to restitution arises because of violations of the Fair Labor Standards Act. The letters from the Naval District Office indicate ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.