# Federal Insurance Co. v. I. Kruger, Inc.

> Supreme Court of Alabama · March 15, 2002 · 829 So. 2d 732

URL: https://www.frixlaw.com/law-library/cases/9937352

## Case

- **Full name:** Federal Insurance Company and Bill Harbert Construction Company v. I. Kruger, Inc.
- **Court:** Supreme Court of Alabama
- **Decided:** March 15, 2002
- **Citations:** 829 So. 2d 732; 2002 Ala. LEXIS 93; 2002 WL 399039
- **Precedential status:** Published
- **Opinion:** Dissent by Houston
- **Judges:** Houston, Stuart
- **Cited by:** 14 later opinions in the Frix Law Library

## Citator (automated)

- No negative treatment found by the automated citator. That is not the same as a confirmation that the case is good law; read the citing cases.
- Full citator and citing cases: https://www.frixlaw.com/law-library/cases/9937352

## How later opinions describe it (automated extraction)

- holding that “the majority of jurisdictions construe [a pay-when-paid] * * * provision as allowing payment under the contract to be delayed but not stopped altogether”

## Opinion text

I dissent.
The contract between Bill Harbert Construction Company and I. Kruger, Inc., is unambiguous and plain in expression; therefore, no canon of construction warrants an interpretation the only effect of which is to relieve a party to the contract from consequences it deems hard or unfair. Ex parte Foster , 758 So.2d 516 , 519 (Ala. 1999); Lilley v. Gonzales , 417 So.2d 161 , 163 (Ala. 1982). Therefore, even if there were not a material question of fact as to whether Kruger had completely performed under the contract — and I think there was — Kruger would not be entitled to a judgment against Harbert until Harbert is paid by the Board of Water and Sewer Commissioners of the City of Mobile. It is undisputed that this has not occurred. See James E. Watts Sons Contractors, Inc. v. Nabors , 484 So.2d 373 (Ala. 1985). Because payment to Kruger is not yet due under its contract with Harbert, Harbert's surety, Federal Insurance Company, is not obligated to make payment on its bond at this time. Watts Sons , 484 So.2d at 374 .
See, Lyons, and Brown, JJ., concur.

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/cases/9937352. Public record. Not legal advice.