184 F. 199 | 8th Cir. | 1910
This is a suit to foreclose a mechanic’s lien. The-materials and labor were furnished to a lessee, the defendant, the Merchants’ Refrigerating Company, a corporation, to enable it to insulate a building which had been erected by the lessor, the defendant, Morris Lyon, as trustee, on land owned by him. The hill Of the complainant was repeatedly amended, and the suit was finally submitted to the court below on the last amended bill and numerous demurrers and pleas, which presented two questions: Was the suit of the complainant barred by its laches? and, if not, did the amended bill state facts sufficient to show that the complainant was entitled to a lien upon the interest of the lessor in the land and building? The court below answered tlie first question in the affirmative, dismissed the bill in pursuance to that answer, and did not- consider or decide the second question. The facts which conditioned the determination of the first question were these:
The statute of Missouri, which creates the mechanic’s lien, limits the time within which a suit may be brought to enforce it to 90 days after the date of the filing of the statement of the lien with the clerk of the court. Rev. St. Mo. 1899, § 4218 (Ann. St. 1906, p. 2310). Under the established practice in the courts of the state of Missouri such suits may be treated and tried as actions at law. but in the courts of the United States they are suits in equity. Scheffield Furnace Co. v. Witherow, 149 U. S. 574, 579, 13 Sup. Ct. 936, 37 L. Ed. 853; Hatcher v. Hendrie & Bolthoff Mfg. & Supply Co., 133 Fed. 267, 271, 68 C. C. A. 19, 23. One of the defendants in the suit in hand was Willard P. Hall, who, as receiver and trustee in bankruptcy of the Refrigerating Compan}'-, had succeeded to the interest of that lessee in the land and building. Complainant’s counsel had prepared their petition to foreclose the lien for filing in the state court on the assurance of Mr. I-Iall that he would be officially .discharged before'the ninetieth day after the filing of the statement of lien. The ninetieth day was February 7, 1908, and on February 6, 1908, Hall told the counsel for the complainant that an obstacle had appeared which would prevent his discharge until after the ninetieth day. Then it became necessary to make Mr. Hall a defendant in the suit, and counsel found that there was no federal district judge in the Western district of Missouri from whom they could obtain leave to sue the receiver and trustee, and they went to Red Oak, Iowa, and obtained, from Judge McPherson, who had been assigned to the Missouri district, an order permitting them to sue the officer of the federal court, hut the judg'e requested that the suit be broüght in the federal court if counsel found
Counsel for the defendants argue (1) that the original petition was filed in an action at law on the ninetieth day, and while a summons was issued none was served so that the action at law was never commenced; (2) that neither the original petition, nor the amended petition which was filed oil February 13, 1908, were effective as bills in equity because neither contained any prayer for process; and (3) that "the amended petition could not constitute an amendment of the original petition because it was a bill in a suit in equity, while the original petition was a complaint in an action at law; and (4) that the amended petition and the subpoenas were too late to commence' a suit in equity to foreclose the mechanic’s lien, because the former was not filed and the latter were not issued until several days after the expiration of the ninety days from the date of the filing of the statement of the lien, and it was indispensable to the maintenance of the suit that the- former should have been filed and the latter should have been issued within the ninety days.
For the purpose of the consideration and decision of this case it is conceded that no action at law was commenced by the filing of the original petition and the issue of the summons which was returned without service by order of complainant’s counsel. Hut that petition stated facts which .constituted a good cause of action in equity, a cause of action which entitled the complainant to a decree for the foreclosure of its mechanic’s lien. That petitiou set forth the interests of the defendants in the property in controversy, a contract between the Refrigerating Company and the complainant for the-materials and labor requisite to insulate the building in order to make it a cold storage warehouse, the furnishing of the materials and the performance of the labor by the complainant pursuant to the contract, the RefrigeratingaCompany’s indebtedness to the complainant for these materials and this labor in the sum of $12,1 (JUG, and the fifing of the statement and claim of lien as prescribed by the statute, and it also contained a prayer that the complainant have judgment against the Refrigerating Company for the amount of the latter’s indebtedness, and that “the same may be declared a lien against the property above described prior and superior to the lien or claim of each and
The facts stated and the remedy sought in the original pleading in the case at bar constituted! a cause of action in equity because the issues tendered thereby were not triable by a jury, and the relief sought, the adjudication and foreclosure of the mechanic’s 4ien, was grantable by a court of equity and not by a court of law. In other words, the pleading disclosed! the fact that the complainant had no adequate remedy at law in the federal courts, and hence that that court in equity had jurisdiction. The petition was in fact a bill in equity, although in the form of such a petition as was customarily filed in the state courts in cases of this character. It was filed on the ninetieth day
Rules 11, 12, and 23 in equity provide that no process of subpoena shall issue until the bill is filed, that when the bill is filed the clerk shall issue the process of subpoena of course upon application of the plaintiff, and that the prayer for process in the bill shall contain the names of all the defendants named in the introductory part of the bill, but in this case neither the original nor the amended bill contained any prayer for process. No objection, however, to the subpoenas issued on February 10, 1908, on the application of the complainant, or to the original or amended bill was made upon this ground by any of the defendants, either by motion or by demurrer, but they entered their appearances and claimed on other grounds that the suit could not be maintained. Was the absence of the prayer for process fatal to the bills? Section 954, of the Revised Statutes (U. S. Comp. St. 1901, p. 696) provides that no declaration, process or proceedings in civil causes in any court of the United States shall be abated, arrested, quashed or reversed, for any defect or want of form, but that such court shall proceed to give judgment according to the right of the matter without regarding any such defect or want of form except those which, in cases of demurrer the party demurring specially sets down together with his demurrer as the cause thereof, and that the court may at any time permit either party to amend any defect in the process or pleadings. «The only reason for a prayer for process is that the names of the defendants to be subpoenaed may be clearly set forth in the pleading so that the clerk may issue the process to the right parties. The names of the defendants in this case were stated in the caption and in the introductory part of the bill. ' The absence of a prayer for the process of subpoena, and the failure of the complainant to state the names of the defendants a third time in the prayer, was not set down for hearing by any of the defendants as the cause of his or its demurrer. The absence of this prayer for process was a mere defect of form, and defendants who are named in the body of the bill, who have been subpoenaed, who have entered their general appearance, and have not demurred on the specific ground that there was no prayer for process against them are estopped from defeating
The rule upon this subject under the ancient English chancery practice and in the. early practice in the chancery courts of the states, seems to have been that a suit in equity was commenced when the subpoena was issued with the honest intent, followed by a diligent attempt, to serve it speedily. United States v. American Lumber Co., 85 Fed. 827, 829, 830, 29 C. C. A. 431; Harg. Law Tracts, 321, 425; Pigott v. Nower, 3 Swanst. 534; Hayden v. Bucklin, 9 Paige (N. Y.) 512; Fitch v. Smith, 10 Paige (N. Y.) 9; Pindell v. Mavdwell, 7 B. Mon. (Ky.) 314. This rule was perhaps -a natural result from the fact that in the ancient English chancery practice sitbpcenas were issued before the bills were, filed. The multiplication of courts of concurrent jurisdiction in this country, and the necessity for the frequent application of the rule that the court which first acquires jurisdiction of a subject-matter retains it against all others until the purpose of the invocation of its. jurisdiction has been served have led to a wise modification of this rule in the federal courts where the modern and the wiser rule now prevails that a suit in equity is commenced by the filing of the bill with the bona fide intention to prosecute the suit diligently, provided there is no detrimental or unreasonable delay in the issue or the service of the subpoena. Farmers’ Loan & Trust Co. v. Lake Street R. R. Co., 177 U. S. 51, 60, 20 Sup. Ct. 564, 44 L. Ed. 667; Humane Bit Co. v. Barnet (C. C.) 117 Fed. 316. There is an exception to this rule that notice of the pendency of the action to third persons who are bona fide purchasers is not given by the mere filing of the bill until the subpoena is served upon the defendant. Miller v. Sherry, 2 Wall. 237, 250, 17 L. Ed. 827. Under this rule a suit was commenced within the 90 days and it may be maintained.
Moreover in the courts of the state of Missouri the filing of a petition is the commencement of the suit, although no process issues until after the time limited by the statute has expired, and if this suit had been brought in the state court, and the summons had not been issued until the ninety-third day it would undoubtedly have been sustained. Rev. St. Mo. 1899, § 566 (Ann. St. 1906, p. 595); Gosline v. Thompson, 61 Mo. 471; South Missouri Lumber Co. v. Wright, 114 Mo. 326, 332-334, 21 S. W. 811; McGrath v. St. Louis. K. C. &. C. R. Co., 128 Mo. 1, 30 S. W. 329; State v. Wilson, 216 Mo. 215, 115 S. W. 549. This is a suit in equity in a federal court. The defense under consideration is not the statute of limitations, but the laches of the complainant, for courts of equity are not bound b}' the statute of limitations, but are governed by their analogous doctrine of laches. Thi-s doctrine, is applied in analogy to the statute of limita-
The second question in this case is, Did the amended bill state facts sufficient to show that the complainant was entitled to a lien upon the interest of the lessor, Morris Lyon, as trustee, in the land and building owned by him? By stipulation of the parties it is agreed that the lease which conditions the true answer to this question shall be deemed an exhibit to the bill. That lease was made on May 10, 1906, between Morris Fyon, trustee for Morris Byon and Theodore Lyon and M. Lyon & Co., called lessors, and one Brady, and the Merchants’ Refrigerating Company, a corporation, called the lessees, but for the purposes of this decision Morris Fyon, the trustee, will be termed the lessor and the Refrigerating Company the lessee. The premises leased consisted of a part of a building to be erected and constructed on certain lots in Kansas City, Mo., the term was 10 years, with the privilege of a further term of 3 5 years, the rental was $1,000 per year, the building was to be erected, and it was subsequently erected, by the lessor, and tlie lease contained provisions that ‘‘the lessees shall have the right to install in said building, and in and upon said premises, its pipes and insulation for refrigerating purposes throughout said building, and said pipes, insulation and necessary attachments thereof shall be and remain the property of the lessees, and shall never be considered as having become a part of the realty and belonging to the lessors, provided, however, that if the lessee shall fail to pay any monthly installment of rent due the lessors on the tenth of the month after the same shall have become due on the first day of the month,” then the lessors may give written notices, and if the rent
It is settled in that state by repeated decisions that no mechanic’s lien can exist upon personal property. The line of demarcation between realty and personalty in cases between landlord and tenant is by no means the same as in cases between vendor and vendee and mortgagor and mortgagee, and this for the reason that the relation of landlord and tenant is transitory — the use of the property is by one who is to stay for a limited time, and many articles are placed upon the realty by the tenant which both parties intend shall be- removed at the end of the term; while the things placed upon the realty by the vendor or the mortgagor are put there by one whose term of occupancy is ordinarily unlimited and generally with the intention that they shall become a part of the real estate, and that they shall be perpetually and habituallv used with it. Thus in Press Brick & Machine Co. v. Brick & Quarry Co., 151 Mo. 501, 513, 514, 52 S. W. 401, 404 (74 Am. St. Rep. 557) the Supreme Court of Missouri- says:
“Of course there is no lien on the house or land given by the statute for any kind of machinery that is simply stored in the house awaiting sale, or for any temporary purpose; nor can there be a lien where a tenant puts in machinery under a lease which reserves to him a right of removal, for in such cases the chattel never becomes part of the realty ; but if the machinery is put into a building by the owner with the intention of making it a permanent part, then the person furnishing the material is entitled to a lien on the building, and it is then wholly immaterial when the machinery is so put in the building, whether at the time it was originally constructed or at any time afterwards.”