For the plaintiff, Scammell, Knight & Reese.
For the defendant Karno-Smith Company, Ellis L. Pierson.
For the defendant Cold Spring Granite Company, Sidney S. Stark (Ellis L. Pierson, of counsel).
Before Justices Parker, Lloyd and Perskie.
The opinion of the court was delivered by
PERSKIE, J. The agreed state of facts are as follows: On October 21st, 1931, Karno-Smith Company, general contractor, one of the defendants, entered into a contract with the state house commission, acting for the state, for the erection of boulevards and approaches to the state house addition and war memorial building, at Trenton.
On November 16th, 1931, the Karno-Smith Company entered into a contract with the New Jersey Brick and Supply Company, Incorporated, also a defendant in this cause, for the furnishing and delivery of all granite for the undertaking.
The New Jersey Brick and Supply Company, Incorporated, in turn, purchased the granite from the other defendant Cold Spring Granite Company. The granite so purchased actually went into the operation.
On September 3d, 1932, Cold Spring Granite Company notified Karno-Smith Company, by letter, that there was a balance due it from the New Jersey Brick and Supply Company, Incorporated, and that Karno-Smith Company should
hold said fund until further advice from it. At the time of the completion of the building, Karno-Smith Company had on hand $5,456.27 as the unpaid balance due under its contract with the New Jersey Brick and Supply Company, Incorporated.
On May 2d, 1933, the First-Mechanics National Bank of Trenton obtained a judgment against New Jersey Brick and Supply Company, Incorporated. On May 8th, 1933, it caused execution to be issued and levy made for the amount of its judgment and costs, totaling $855.62, upon the rights and credits, and money due to the New Jersey Brick and Supply Company, Incorporated, from Karno-Smith Company. Thereafter, Cold Spring Granite Company demanded of Karno-Smith Company the sum of $6,931.94, the balance due it for the granite supplied to New Jersey Brick and Supply Company, Incorporated. This demand was based upon the alleged obligation of Karno-Smith Company on a bond issued to ...