Badger Lumber Co. v. Parker
Badger Lumber Co. v. Parker
Opinion of the Court
The opinion of the court was delivered by
July 1, 1904, W. Gordon Parker contracted with an investment company for a tract of land near Arkansas City for $8760, paying $1500 cash
“It is further stipulated and agreed that this contract shall not be assigned or any interest in the same transferred by the party of the second part except with the written consent of the party of the first part indorsed thereon.”
On February 20, 1906, the lumber company brought an action to foreclose its mechanic’s lien. The investment company and Faulconer and Cunningham answered. On September 12 the lumber company filed an amendment to its petition claiming a lien by reason of its assignment, and on November 27 filed a second amendment claiming priority over Faulconer and Cun
Complaint is made that the court erred in dispensing with the jury, but as the issues between the parties to the appeal involved only the claim for lien upon the real estate, the action was properly one for the court so far as these parties are concerned. The other contentions of the appellant are in effect that the court erred in denying a lien upon the real estate.
On February 5, 1906, Faulconer and Cunningham, as attorneys for Parker’s mother, procured from him an assignment to her of his contract which was duly acknowledged, Faulconer and Cunningham knowing of the previous assignment to the lumber company. On February 13 Mrs. Parker assigned to Faulconer and Cunningham, and on July 12 they .assigned to Gibson, each of these assignments being approved by the investment company by indorsement on the contract or on the duplicate copy thereof. When Gibson took the assignment he kept back $1000 of the consideration to indemnify himself against the lumber company’s claim, then in litigation, wherein it was sought to recover by virtue of the mechanic’s lien.
It is urged that the statement was filed too late and could not lawfully include the item purchased in February, and also that the assignment to the lumber company not having the consent of the investment company indorsed on the contract was without effect.
The testimony shows conclusively that the account with Parker was practically closed on August.17, 1905,
“To permit a contractor, long after the completion of his contract, to revive or keep alive his right of lien by tacking on and adding to his account by filling additional orders for labor or material not contemplated by his original contract, would throw open wide the doors to fraud and collusion, and in many cases defeat the very purpose and object of the statute, as it would enable the favored creditor to keep alive -indefinitely his right to a lien, and at the same time prevent the property subject to lien from being reached by other lienholders whose contracts were entered into subsequent to that of his own.” (Cahoon & Bro. v. Fortune Min. & Mill. Co. et al., 26 Utah, 86, 96.)
(See, also, Spencer v. Barnett, 35 N. Y. 94; Gilbert, Hedge & Co. v. Tharp et al., 72 Iowa, 714; Pacific Manufacturing Co. v. Broton, 8 Wash. 347.)
It appears to be the theory of the appellees that Parker’s interest in the land reverted ipso facto to the investment company upon default of the January in
The judgment is reversed with directions to order the amount due the lumber company at the time of its assignment to be paid by Gibson out of the 1000-dollar fund.
Reference
- Full Case Name
- The Badger Lumber Company v. W. Gordon Parker (Albert Faulconer, Appellees)
- Cited By
- 10 cases
- Status
- Published
- Syllabus
- SYLLABUS BY THE COURT. 1. Liens and Lienholders — Time of Filing Lien — Fraud. A lumber company sold material for the erection of improvements upon real estate, furnishing items from time to time as desired until August 17. January 31, thereafter, it endeavored to collect its bill, and, failing, took security for its payment. The next day it sold two cans of paint and a brush to the debtor and added the price to the bill and sought to maintain thereon a materialman’s lien. Held, that parties can not by such afterthought and subterfuge increase the time for filing a statement of lien beyond the four months prescribed by statute. 2. -- Assignment of Executory Contract as Security for Material. While as between the original parties to an ex-ecutory contract for the salé of land a stipulation against assignment is binding, still when the intended purchaser is in possession and has paid about one-fourth of the entire consideration, he may secure a debt for material which he has purchased and with which he has made improvements upon the land, by assigning his interest in the contract, his present interest and investment being such that the vendor could not claim forfeiture under his contract or dispossess the purchaser without an accounting for the payments and improvements made on the land.