Moyes v. Kimball
Moyes v. Kimball
Opinion of the Court
The first case is an action of debt on bond signed by the defendant Kimball as principal and by the other defendants, Bearce & Clifford, George .B. Brooks, C. T. Fitzgerald and George W. Lane, as sureties. The condition of the bond is as follows: “Whereas the said F. H. Kimball has contracted with the said Mrs. J. A. Moyes to furnish or cause to be furnished all labor and materials for the erection and construction of a wooden
The other two cases are bills in equity to enforce liens for materials furnished to Kimball and used in the construction of the house mentioned in the bond. The plaintiffs in the bills in equity are sureties on the bond, and are defendants in the action at law brought by Mrs. Moyes on the bond. The actions are reported together, with the stipulation that if Fitzgerald and Brooks cannot maintain their liens, decrees shall be entered accordingly in the equity suits, and judgment shall be entered for the plaintiff in the suit on the bond for the sum of $214.79 with interest; otherwise judgment shall be for the plaintiff in the bond case for the amount of the three lien claims with costs thereon, less a specified amount due from the plaintiff on the contract; and decrees shall be entered accordingly in the equity suits. '
The vital question is whether the plaintiffs in the bills in equity can enforce liens upon the property of Mrs. Moyes, under the circumstances of this case. The contractor, Kimball, by his bond, agreed with the owner, Moyes, to turn the building over to her “ with all lien claims arising from contracts made directly or indirectly by said Kimball fully discharged, legally waived, or good and sufficient indemnity therefor given said Moyes.” The plaintiffs in the lien suits as sureties of Kimball have also contracted with Mrs. Moyes that Kimball shall turn over the building free from liens. Having contracted that the building shall be turned
It is suggested that the contract in the bond is not that there shall be no liens, but that all liens shall be discharged, or waived, or indemnified against, and that therefore the sureties were not estopped from, creating liens, but were only bound to see them discharged. We do not, however, perceive that this distinction aids in the solution of the problem. If it should be held that one who has contracted that there shall be no liens is himself barred from enforcing one, so likewise ought one to be, who has contracted that all liens shall be discharged, waived or indemnified. For, in the one case as in the other, the object of the contract is'that the owner shall receive the building from the contractor free from any burden or incumbrance in the nature of liens. Liens unless enforceable are harmless and useless. Of what avail is it to a surety in this case that he may create a lien if he cannot enforce it? So if it be said that the language of the condition in the bond contemplates that liens may be created, and only requires the sureties to discharge them, it does not necessarily follow that it also contemplates that the sureties themselves may create liens. A lien is - created by force of law and may exist for the benefit of others than the sureties. The question still remains whether a surety who has agreed that liens shall be discharged may nevertheless enforce one. These lienors agreed that the liens should be discharged, waived, or indemnified against. Instead of discharging or waiving, or indemnifying, they are seeking to enforce, which is precisely the thing that they contracted should not be done. We see no good reason why the doctrine -of estoppel is not as applicable in these cases as it would be if these sureties had contracted against the creation of liens.
• It is also suggested that this is virtually a contest between two sets of sureties, those who seek to enforce liens, and those who have none, and that although it would be inequitable to enforce these liens to the injury of the owner of the building, and in violation of the condition of the bond given to her, still in this case, the sureties are all parties in court, and it is not inequitable to
The sureties who seek to enforce liens cite German Lutheran Church v. Wehr, 44 Md. 453 ; Atlantic Coast Brewing Co. v. Donnelly, 59 N. J. Law, 48, and Atlantic Coast Brewing Co v. Clement, 59 N. J. Law, 438.
In the Maryland case, the. surety on the bond having furnished materials for the building, filed a bill in equity to enforce á lien therefor. The bond was set up as a bar in answer to the bill. The claimants in reply said that there had been extensive changes and additions in the performance of the contract, increasing the liability of the sureties, whereby the sureties had become discharged. The court said: “It would be against equity and justice to allow the claimants to- proceed with the enforcement of
The two New Jersey cases (in reality but one case at two different stages) follow the Maryland, case, and go further. They sustain the right'of the surety to maintain an action expressly on the ground that otherwise he would lose the power to enforce contribution from-co-sureties.
We can perceive no other practical reason for sustaining these
But dismissing these considerations as arguméntative rather than decisive, we prefer to rest our decision upon the broader ground that the sureties should be held to do precisely what they agreed to do, and that having agreed that the building should be turned over to the owner free from liens, they are estopped from enforcing any. This would seem to be good law on general principles, without the citation of authorities. But we find the same view has been entertained by other courts. In a similar case in Pennsylvania, it was said, “ If the plaintiff can recover upon a mechanic’s lien against this building, the condition of the bond would be violated, and he would thereupon become bound upon a breach of condition to reimburse to the defendant whatever the defendant was obliged to pay him as a mechanic’s lien creditor. He voluntarily made himself surety for the original contractors that he would indemnify the defendant against all charges, claims, liens, mechanic’s liens, or any incumbrance or debt in the nature of a lien or charge, of any kind whatsoever. This is not a mere undertaking not to file a lien, but a contract by this particular plaintiff that the building shall be delivered to the defendant free of all charges, claims, liens..... To perform this contract, there
“It would be inequitable to allow a person to enter into a solemn agreement to protect another- from certain- contingencies, and thereafter, and while such agreement was in full force, to himself seek to enforce the special liability which he had obligated himself to protect against.” Spears v. Lawrence, 10 Wash. 368.
We think the ■ reasoning in these cases is sound. We think it must be held that all the parties to the bond, principal and sureties, intended what they said, that no liens should be enforced against the building. The sureties expressly so agreed with the owner, and such, we think, was their implied contract inter sese.
In Moyes v. Kimball et als.,
Judgment for plaintiff for $21J/..19, with interest.
In Fitzgerald, in Eq., v. Kimball et als.,
Bill dismissed.
In Brooks, in Eq., v. Kimball et als.,
Bill dismissed.
Reference
- Full Case Name
- Emily Moyes v. Fred H. Kimball and others Charles T. Fitzgerald, in Equity v. Same George B. Brooks, in Equity v. Same
- Status
- Published