Atlantic Coast Brewing Co. v. Donnelly
Atlantic Coast Brewing Co. v. Donnelly
Opinion of the Court
The opinion of the court was delivered by
These four cases arose out of the same transaction and may be considered together, although each case has some feature not common to all. Of the several assignments of error there is one that runs through the entire group and raises this question, viz., whether, under our Mechanics’ Lieu law, where the building is erected under a contract with the owner of the land not on file, a materialman must, in order to have a lien under section 1, show a written consent of the owner, under section 4.
lu the transaction before us the contract was between the Atlantic Coast Brewing Company, owner, and Frank Math, builder. The sixth section was in these words: “ The owner shall notin any manner be answerable or accountable * * * for any of the materials or other things used and employed in finishing and completing (said building).”
’When this contract was offered in behalf of the plaintiff, who, in each ease, claimed for materials furnished, it w;as objected to upon the ground that "it is so inconsistent with the offer to show that it is a consent to the builder in writing, that it clearly shows that it is not.”
The major premiss in this proposition is that a building erected under a contract with the owner of the land, is a building erected by a person other than the owner of the land. If this be not so, the objection is without force. We think that it is without force. The construction uniformly given to this fourth section of the Lien law, from 1855, when Babbitt v. Condon, 3 Dutcher 154, was decided by this court, down to
The matter seems to be entirely at rest.
In the case of the Atlantic Lumber Company, plaintiff, the court was requested to instruct the jury that a certain bond to secure the builder’s contract, from which the plaintiff’s name had been erased, imputed to the plaintiff notice of such contract, and that as the contract provided against liens, the plaintiff was debarred from asserting its lien. The testimony did not establish all of the facts recited in this request so that it could have been charged as a whole. It was therefore not error to deny it. If the substantial question be severed the refusal was still correct. The facts touching the plaintiff’s knowledge of the bond and the time it was acquired, whether before or after the materials were furnished, must in any event be for the jury. So that the plaintiff was not injured unless the bare existence of the waiver of liens in an unfiled contract protects a building from liens. This obviously is not so. The right of lien given by the first section is fixed when materials are furnished, unless it is taken away by section 2. The fact that the builder who made the contract has waived his right does not affect the rights of others. In each case the right is personal and is vested unless personally waived.
There is nothing substantial in the assignment.
In the case of the Phoenix Iron Company, plaintiff, there are two assignments of error based upon a request to charge, and an exception to the charge of the court as delivered. These exceptions tend to raise the question whether a materialman, who has made an entire contract with the builder, may, upon the failure of the builder to make the payments called for by each contract, refuse to complete it and lien the building for the material actually delivered as on a quantum
The jury were correctly instructed by the trial court, that the right of the plaintiff to a lien for materials furnished the building under an entire contract, depended upon whether the contract had been lawfully rescinded by the parties thereto. This was left to the jury, although the testimony upon this .point was practically undisputed. There was no occasion for charging an abstract proposition of law, unsupported by .adequate proof.
The case of Joseph C. Clement, plaintiff, presents a somewhat novel question. Math, the builder, had given a bond to the owner for the faithful performance of his contract. Clement was one of the sureties on this bond. The condition of the bond was that Math should “ indemnify and save harmless the owner from all claims, demands, suits and' actions, * * * and should keep the said building and lot free from encumbrance and lien of any and all debts, and furnish -complete release of liens.” Clement- furnished materials for the building, for which he filed a lien. The contention of ■the owner is that Clement, by executing the bond as surety, barred his own right to lien the building.
The bond was put in evidence incidentally—almost accidentally—since the fact of its mechanical attachment to the contract seems to have been its only relevancy to the plaintiff’s case at- the time it was impliedly offered. Its introduction was opposed by the defendant below, who now seeks to make •the case turn upon its controlling import. After the issue raised by the pleadings had been tried, the defendant asked “that a binding instruction be given the jury to find that the debt is not a lien, for the reason that the plaintiff has undertaken, in a bond, that there shall be no lien as per' the terms •of the bond itself offered in evidence.” The refusal of this request is the point upon which a reversal of the judgment is now sought.
It will be seen that the proposition is presented in a mode .ill-adapted to its proper consideration. If true, it constituted
The “ vigilance and jealousy ” with which the law “ favors-a surety and protects him ” (De Colyar, p. 277), would be a very empty phrase if his legal liability may be enlarged upon the ground that it is inequitable to limit it by the express-terms of his undertaking.
Avoidance of circuity of action is at best a doctrine of convenience, a secondary equity, so to speak, and not to be resorted to in the face of either legal rule or substantial right. Nor is it to be rashly assumed that the equity of the case is with the obligee.- The plaintiff is one of three sureties, between whom the right of contribution exists as part of the contract of each. This right at law rests upon an involuntary payment made for a defaulting principal.
This right is not only a principle of equity but inheres also-at law in the contract itself. As. was suggested by Lord Eldon, in Craythorne v. Swinburne, 14 Ves. 164, “the principle of equity being in its operation established, a contract may be inferred upon the implied knowledge of that principloby all persons.” This legal and equitable right of the plaint
My own opinion is that if a surety lives up to his undertaking according to its precise terms, he has filled the measure-of duty demanded of him at law and has suffered all that his agreement calls for, without stripping himself of the right to partial reimbursement with which he was clothed by his contract.
This leads to a denial of the doctrine that a surety on a contractor’s bond, by the bare fact of agreeing to indemnify against liens, has barred his own right of lien in the premises.
The judgment rendered in each of these cases is affirmed,, with costs.
Reference
- Full Case Name
- ATLANTIC COAST BREWING COMPANY v. DONNELLY ATLANTIC COAST BREWING COMPANY v. ATLANTIC LUMBER COMPANY ATLANTIC COAST BREWING COMPANY v. PHŒNIX IRON COMPANY ATLANTIC COAST BREWING COMPANY v. CLEMENT
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