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Contracts: Cases and Materials

Philadelphia v. Tripple

The findings of fact of the referee were substantially as follows: Dietrich was under contract with the City of Philadelphia to construct the foundations and superstructure of an engine and boilerhouse. Dietrich as principal and the City Trust, Safe Deposit and Surety Company of Philadelphia as surety executed and delivered to the city a bond in the sum of $56,500 conditioned as follows: "That if the said George C. Dietrich shall and will promptly make payment to all persons, any and all sum or sums of money which may be due for supplying him with labor and materials, whether as a subcontractor or otherwise, in the prosecution of the work provided for in said contract, and shall and will comply with all the provisions of the ordinance of the Select and Common Councils of the city of Philadelphia entitled, 'An ordinance for the protection of subcontractors,'" etc. . . . Dietrich entered into a subcontract with McMenamy for excavating and laying certain conduits for the price $35,000 to be paid monthly as the work progressed. In breach of his subcontract, Dietrich ordered McMenamy to discontinue the work after the latter had spent $24,461.89 for labor and materials and had received $9,000 on account. Dietrich, in completing the work, spent a sum larger than the difference between the contract price and the subcontractor's expenditures. The opinion of the referee was as follows: