Case Title: State v. Glens Falls Insurance Company

Citation: 432 P.2d 400, 78 N.M. 435

Docket Number: 

State: new-mexico

Court: New Mexico Supreme Court

Date: 1967-09-11T00:00:00Z

Document:
432 P.2d 400 (1967) 78 N.M. 435 STATE of New Mexico for the Use and Benefit of DAR TILE COMPANY and Lath and Plaster Supply Company, Plaintiffs-Appellants, v. GLENS FALLS INSURANCE COMPANY, Defendant-Appellee. No. 8369. Supreme Court of New Mexico. September 11, 1967. Rehearing Denied October 18, 1967. Oliver B. Cohen, Albuquerque, for appellants. Rodey, Dickason, Sloan, Akin & Robb, William C. Briggs, Albuquerque, for appellee. CARMODY, Justice. This action was brought to collect from a surety certain unpaid portions of three judgments previously rendered against a contractor. The trial court refused to enforce the judgments insofar as they provided for attorneys' fees, and the plaintiffs have appealed. The Dar Tile Company and Lath and Plaster Supply Company had furnished labor and materials to a licensed contractor by *401 the name of Carrasco. Carrasco had failed to pay the suppliers, and their claims were reduced to judgment. Glens Falls Insurance Company, the defendant here, was surety for the contractor. In order to be licensed as a contractor in New Mexico, the licensee must furnish a bond. Section 67-16-21(C), N.M.S.A. 1953 (1965 Pocket Supp.), insofar as applicable, provides: The judgments against Carrasco included allowance for plaintiffs' costs, interest, and attorneys' fees. The defendant paid the judgment creditors for the labor and materials, but refused to pay the attorneys' fees, costs, or interest. Thereupon plaintiffs brought this action to recover these amounts. The trial court granted plaintiffs judgment for the costs and interest, but refused to enforce the judgments insofar as they awarded attorneys' fees. The issue is simple, i.e., whether the judgments may be collaterally attacked because it is claimed that attorneys' fees are not a proper element of damages in a suit based upon a statutory contractor's bond. Actually, we see no statutory authorization for an award of attorneys' fees, nor do we see any bar thereto. Really, the question is immaterial, because the surety's obligation is to pay the judgments resulting from the failure to pay for materials, labor and supplies. The judgment against the principal is conclusive, absent fraud or collusion, and there may be no collateral attack on that judgment. See Simpson, Suretyship, § 51, page 261, wherein it is said: See, also, Ward v. Federal Insurance Co., 1958, 233 S.C. 561, 106 S.E.2d 169; General Motors Acceptance Corp. v. Mogge, 1957, 181 Kan. 346, 311 P.2d 339; Christenson v. Diversified Builders Incorporated, (10th Cir.1964), 331 F.2d 992; Haroco Co. v. National Surety Corp., 1954, 283 App.Div. 921, 130 N.Y.S.2d 313, aff'd 1 N.Y.2d 685, 150 N.Y.S.2d 611, 133 N.E.2d 835; Gescheidler v. National Cas. Co. (1951) 120 Ind. App. 673, 96 N.E.2d 123. Compare, Moore v. Humphrey, 1958, 247 N.C. 423, 101 S.E.2d 460; Sargeant v. Starr, 1960, 102 Ga. App. 453, 116 S.E.2d 633. There was no evidence introduced in the district court. All that was before the court was the complaint, to which were attached certified transcripts of the judgment docket, and the answer of the defendant. No effort was made by the defendant to overcome the prima facie case made by the admissions in the answer with respect to the three judgments sued upon. It has been suggested that an award of attorneys' fees is beyond the jurisdiction of the courts of this state. We do not determine the question, because even if such is the law, neither we nor the district court could correct the mistake under the rule enunciated in Hambaugh v. Peoples, 1965, 75 N.M. 144, 401 P.2d 777, that: *402 The invalidity, if any, of the earlier judgment cannot be determined without having the judgment or record from that case before us. The judgments of the district courts are presumptively correct. Porter v. Mesilla Valley Cotton Products Co., 1937, 42 N.M. 217, 76 P.2d 937. See, also, St. Paul Fire & Marine Ins. Co. v. Rutledge, 1961, 68 N.M. 140, 359 P.2d 767. The judgment of the district court is reversed and the cause remanded for entry of judgment consistent herewith. It is so ordered. NOBLE, J., and HENSLEY, C.J., Court of Appeals, concur.