Robintech, Inc. v. White & McNeil Excavating, Inc.

No. 85-175 IN THE SUPREME COURT OF THE STATE OF MONTANA 1985 ROBINTECH, INC., Plaintiff and Respondent, WHITE & McNEII, EXCAVATING, INC. , and TRANSAM.ERICA INSURANCE CO., Defendants and Appellants. APPEAL FROM: District Court of the Fourteenth Judicial District, In and for the County of Musselshell, The Honorable Roy RodQhiero, Judge presiding. COUNSEL OF RECORD: For Appellant: Landoe, Rrown, Planalp & Momrners; James M. Kommers, Eozeman, Montana For Respondent: Sardine, Stephenson, Blewett & Weaver; ~ i l l i a mD. Jacobsen, Great Falls, Montana Submitted on briefs: Aug. 15, 1985 Decided: November 6, 1985 NO!/ 6 - 985 Filed : ., . Clerk Mr. Chief Justice J. A. Turnage delivered the Opinion of the Court. Defendants, prime contractor and its surety on a public works project, appeal summary judgment in favor of plaintiff, a materialman and supplier to a subcontractor, entered in the Fourteenth Judicial District, Musselshell County, on December 28, 1984. The District Court determined that as a matter of law plaintiff was entitled to summary judgment in the amount of $47,639, pl-us interest at 6 percent and costs. We affirm. We hold that White & McNeil Excavating, Inc., as the prime contractor, was bonded by Transamerica Insurance Company to assure payment to its materialman, Robintech, under the public works bonding provisions in Part Two of Title 18, Chapter 2, MCA. We hold that White & McNeil had adequate legal notice on Robintech's claim, and Robintech was entitled to payment under the contract and under the bonding statutes. Both parties moved for summary judgment claiming that the material facts were undisputed. For its first issue on appeal, White & McNeil challenges the court's conclusion that Robintech was a supplier or a materialman to a subcontractor, alleging that Waterworks Supplies Company was a materialman and not a subcontractor. Therefore, appellant urges this Court, Robintech supplied a materialman and is not protected by the bond. For its second issue, appellant alleges error in the court's ruling that Robintech complied with $ 18-2-206, I I A by JC, mailing invoices but failing to send notice by certified mail of any claim upon the bond. The facts material to the summary judgment follow. On June 9, 1982, the City of Roundup, Montana, entered into a public works contract with White & McNeil Excavating, Inc., for the construction of water main improvements to be incor- porated into the city water system. White & McNeil, prime contractors on the project, executed a payment bond with co-defend.ant Transamerica Insurance Company as surety. The payment bond contained the following language: NOW, THEREFORE, if the PRINCIPAL shall romptly make payment - - persons, to all Firms, .& corporations furnishinq - materia.1~for or ~erforminalabor in the prosecution of - - p;ovided t