Patent Scaffolding Co. v. William Simpson Construction Co.

The William Simpson Construction Company (“Simpson”) appeals from a judgment in favor of The Patent Scaffolding Co. (“Patent”) awarding to Patent judgment for $16,481.09, with interest and costs.

Procedural and Factual Summary

Three insurance companies, United States Fidelity and Guaranty Company, Niagara Fire Insurance Company, and National Fire Insurance Company (“insurers”), brought the action in the name of their insured, Patent, against Simpson and California Institute of Technology (“Caltech”) to recover damages for claimed breach of a contract between Patent and Simpson and of a contract between Simpson and Caltech of which Patent claimed to be a third party beneficiary.

Simpson, a general contractor, executed a contract with Caltech to construct a building for Caltech. Simpson entered into a subcontract with Patent whereby Patent was to furnish scaffolding and other equipment for use during construction of the building, to erect the scaffolding and equipment at the job site, and to remove such materials when the job was completed. The written contract, dated November 20, 1959, between Patent and Simpson contained the following paragraph:

During the course of…