General Insulation Co. v. Eckman ConstructionGeneral Insulation Co. v. Eckman Construction
The petitioner, General Insulation Company, appeals from an order of the Superior Court
(Abramson,
J.) granting the motions to dismiss filed by respondents Eckman Construction (Eckman), Northern Peabody LLC (Northern Peabody), North American Specialty Insurance Company (North American), Youngblood Co., Inc. (Youngblood) and International Fidelity Insurance Company (International Fidelity) (collectively, the moving respondents). The trial court dismissed the petitioner’s petitions to enforce statutory performance bonds because the petitioner failed to provide the respondents with copies of the petitions within one year of filing its claims as required by
The record evidences the following facts. The petitioner claims that the respondents did not pay for insulation and related materials it supplied to respondent R & H Enterprisеs d/b/a Advanced Insulation (Advanced Insulation) for a bonded project known as “Bedford Middle/High School Project” in Bedford. Eckman was the general contractor on the project. Northern Peabody and Youngblood were subcontractors to Eckman; Advanced Insulation was a subcontractor to Northern Peabody and Youngblood. According to the petitioner, North American was the surety on the statutory performance bond issued to Northern Peabody, and International Fidelity was the surety on the statutory pеrformance bond issued to Youngblood.
See
On March 15,2007, the petitioner filed a notice of claim in superior court pursuant to
II. Discussion
A. Compliance with
1. Standard of Review
The petitioner first argues that the trial court erroneously interpreted
We are the final аrbiters of the legislature’s intent as expressed in the words of the statute considered as a whole.
Appeal of Parkland Med. Ctr.,
%. Overview
We begin with a brief general discussion regarding bonds issued for public works projects and the statutory scheme that governs such bonds. “A bond is a three-party instrument by which one party (the surety) guarantees or promises a second party (the owner or general contractor) the successful performance of contract obligations owed to the second party by its principal (the contractor or subcontractor).” 3 S. Stein, Construction LAW Appendix 9J, at App. 9-27 (Sept. 2006). Three kinds of bonds are common in construction: bid bonds, performance bonds, and payment bonds.
Id. A
bid bond guarantees that the bidder will enter into the contract for the bid amount.
Id.
“A performance bond guarantees to the owner that a prime contractor will рerform according to the contract referenced in the bond.”
Id.; see Wolfeboro Neck Prop. Owners Assoc. v. Town of Wolfeboro,
Officers, public boards, agents or other persons who contract in behalf of the state or any political subdivision thereof for the construction, repair or rebuilding of public buildings, public highways, bridges or other public works shall if said contract involves an expenditure of $25,000, and may if it involves an expenditure of less amount, obtain as a condition precedent to the execution of the contract, sufficient security, by bond or otherwise, in an amount equal to at least 100 percent of the contract price, or of the estimated cost of the work if no aggregate price is agreed upon, conditioned upon the payment by the contractors and subcontractors for all labor performed or furnished, for all equipment hired, including trucks, for all material used and for fuels, lubricants, power, tools, hardware and supplies purchased by said principal and used in carrying out said contract, and for labor and parts furnished upon the order of said contractor for the repair of equipment used in carrying out said contract. .
The purpose of this provision, which was first enacted in 1927, is “to furnish an alternative security to lienors, in general more practically adapted to protect them and at the same time to sаve the state or municipality from annoyance.”
Petition of Keyser,
To obtain the benefit of bonds issued pursuant to
“[T]he main purpose of [this] notice requirement is to provide parties with an opportunity to settle the claim without resorting to litigation.”
In the event that there is no settlement, a claimant may sue on a statutory bond provided that the claimant, “within one year after filing [the notice of claim],” files a petition in superior court to enforce the claim “with copy to the principal and surety, and such further notice as the court may order.”
In addition to the remedy of seeking payment on the bond,
3. Interpretation of
The petitioner concedes that it did not provide copies of its petitions to the moving respondents until August 2008, more than one year after filing its March 2007 claim. The petitioner argues that, nonetheless, it complied with
“Although the legislature is not compelled to follow technical rules of grammar and composition, a widely accepted method of statutory construction is tо read and examine the text of the statute and draw inferences concerning its meaning from its composition and structure.”
In re Richard M. ,
“Where a sentence contains several antecedents and several consequents they are to be read distributively. The words are to be applied to the subjects that seem most properly related by context and applicability.” 2A N. Singer & J.D. Singer, Statutes and Statutоry Construction § 47.26, at 438 (7th ed. 2007). Thus, “[w]here several words granting power, authority, and obligation are found at the beginning of a clause, it is not necessary that each of the words apply to the several branches of the clause. It may be construed reddendo singula singulis and the words giving power and authority limited to particular subjects and those of obligation applied to others.” Id. at 441.
In this case, the subjects most properly related to the phrase “within one year after filing such claim” are “file a petition” and “with copy tо principal and surety.” It would not make sense to apply the phrase to “such further notice as the court may order” because a petitioner has no control over when a court will issue orders for further notice. As the petitioner contends: “[I]t is impossible for a party filing a Petition to predict when a particular Court might be able to receive, process, and return an Order of Notice for service on a Respondent.” We will not interpret a statute to require such an illogical result.
State v. Yates,
Further aiding our construction is the fact that the phrase “with copy to principal and surety” is separated from the phrase “file a petition” with a comma and that there is a conjunction separating “such further
The petitioner argues thаt it is “absurd” to require a petitioner to provide a respondent with “two (2) copies of the exact same pleading.” We disagree. New Hampshire is not alone in requiring a petitioner to provide separate notice of the filing of a lawsuit under similar circumstances.
See
Moreover, construing the statute to require a petitioner to provide the principal and surety with a copy of the petition to enforce the bond in addition to “such further notice as the court may order” is consistent with the last antecedent rule.
See Mountain Valley Mall Assocs. v. Municipality of Conway,
In this case, because the petitioner did not provide the moving respondents with a copy of its petitions within one year after filing its notice of claim, the petitioner did not strictly comply with
The petitioner next asserts that the trial court erred by dismissing its alternative claims for unjust enrichment/restitution and quаntum meruit. The petitioner contends that, contrary to the trial court’s decision, its petitions alleged sufficient facts to establish these claims against the moving respondents.
“In reviewing a motion to dismiss, our standard of review is whether the allegations in the petitioner’s] pleadings are reasonably susceptible of a construction that would permit recovery.”
McNamara v. Hersh,
The petitioner’s petitions failed to allege facts sufficient to state either a claim for restitution or for quantum meruit recovery against the moving respondents. Restitution and quаntum meruit recovery based upon “unjust enrichment are allowed by the courts as alternative remedies to an action for damages for breach of contract.” 26 R. Lord, WlLLISTON ON CONTRACTS § 68:1, at 5 (4th ed. 2003);
see Kondrat v. Freedom School Board,
“A plaintiff is entitled to restitution for unjust enrichment if the defendant received a benefit and it would be unconscionable for the defendant to retain that benefit.”
Nat’l Employment Serv. Corp. v. Olsten Staffing Serv.,
The petitioner’s petitions alleged only that the respondents “received a substantial benefit without compensating Petitioner for same,” which it would be “unconscionable” for them to retain. These are legal conclusions, however, which we are not obliged to accept as true.
See In the
We next turn to the petitioner’s claim for quantum meruit recovery. While “[d]amages in unjust enrichment are measured by the value of what was inequitably retained[,] [i]n
quantum meruit,
by contrast, the damages . . . are based on the value of the services provided by the plaintiff.”
Paffhausen v. Balano,
For all of the above reasons, therefore, we affirm the trial court’s dismissal of the petitioner’s petitions against the moving respondents.
Affirmed and remanded.
retired, specially assigned under
The filing of a claim to enforce a bond involves two steps. First, a statement of claim is filed “within 90 days after thе completion and acceptance of the project by the contracting party.”
The second step, governed by
In this case, it is undisputed that General Insulation timely filed both its notice of claim
and
its petition to enforce its claim. General Insulation filed its notice of claim on March 15,2007, and its petition on March 6,2008, well within one year of its notice of claim. Pursuant to Superior Court Rule 124 and
Nonetheless, the trial court ruled, and the plurality agrees, that General Insulation’s petition was untimely because the principals and sureties received copies of it in August 2008 instead of before March 15,2008 (within one year of General Insulation’s notice of claim). This result is not only unfair, but is contrary to the plain language of
The next phrases in
Nothing in
Justices Duggan and Horton, using an analytical process grounded in linguistic sophistry and shrouded in Latin to divine legislative intent, conclude that “the statute requires that the petitioner provide the respondents with two copies of the same pleading, once when the рetitioner first files the petition and again when the petitioner is ordered to serve the respondents by the trial court.” Unfazed by the lack of logic in its conclusion, the plurality argues that “New Hampshire is not alone in requiring a petitioner to provide separate notice of the filing of a lawsuit under
similar
circumstances.” (Emphasis added.) In support of this statement, the plurality cites a New Mexico statute, which it describes as “requiring that written notice of lawsuit to obtain satisfaction of stop notice be mailed to subject of lawsuit within five days after date suit was filed.” The New Mexico statute relied upon, however, involves the issuance of “stop notices,” which require a construction lender or owner to withhold construction funds equal to the amount of the claim stated in the stop notice.
See
In construing
Rаther than slavishly following arcane canons of statutory construction, we should look to what the legislature intended.
See Chagnon v. Union-Leader Co.,
Here, because the petitioner timely filed its petitions and provided the respondents with copies of them after the court issued orders of notice, the petitioner fully complied with