204 Mass. 494 | Mass. | 1910
There were two contracts between the Fosburgh Company and the county of Hampden.
It will be convenient to consider first whether and to what extent these claims for liens are valid. The statute above named upon which the lienors rely is entitled “An Act to provide for the protection of persons furnishing materials and labor for public works,” and reads as follows: “ Officers or agents who contract in behalf of any county, city or town for the construction or repair of public buildings or other public works shall obtain sufficient security, by bond or otherwise, for payment by the contractor and subcontractors for labor performed or furnished and for materials used in such construction or repair; but in order to obtain the benefit of such security the claimant shall file with such officers or agents a sworn statement of his claim within sixty days after the completion of the work.”
It is not denied by any of the parties that each of the two contracts between the Fosburgh Company and the county called for the construction of a public work within the meaning of that term as used in the statute, nor, so far as we understand, that the various claimants of liens filed their respective notices as required by the statute.
1. One of the contentions of the bank is that no part of the money now in the hands of the county commissioners is security for third parties within the meaning of the statute. It appears by the master’s report that each of the two contracts was an “ ordinary building contract of a standard form,” and that in each one are the following clauses, “ said clauses being in different parts of the contract ”:
“ If at any time there shall be evidence of any lien or claim for which, if established, the owner or said premises might become liable, and which is chargeable to the contractor, the owner shall have the right to retain out of any payment then due, or thereafter to become due, an amount sufficient to completely in
“ The party of the first part hereby agrees, in consideration of the full and faithful performance of the said several covenants and agreements of the party of the second part, to make payments on or before the tenth day of every month to the party of the second part, not exceeding in the aggregate the sum of eighty-five per cent of the cost of the work and materials during the preceding month, in lawful money of the United States of America; but no such payment shall be made except on the production and delivery to the party of the first part of a certificate in writing signed by the said architects, that this contract has been well and faithfully performed up to the date of such certificates, and that the value of the work, labor and materials theretofore rendered and employed in and upon the said building is at least fifteen per cent in excess of the payments called for by the party of the second part, to the extent and amount above described. But, on the full and final completion of the said building, the party of the first part is to pay, upon the certificate of the said architects that the same is due, the balance then unpaid of the full cost price of the said completed building, reckoning the cost of the said building at One Hundred and Eighteen Thousand, one hundred and eighty Dollars.
“ The contract is applicable to and binding upon the executors, administrators, and assigns and successors, respectively of the parties hereto; but it is not assignable by the party of the second part, except with the written consent of the party of the first part.”
In Burr v. Massachusetts School for the Feeble-Minded, 197 Mass. 357, it was adjudged that a clause identical with the first clause above named was to be regarded as the security required by the statute. In the course of the opinion delivered by Knowlton, C. J., it was said that under the statute it was the duty of the Commonwealth “ in making the contract, to obtain security for the payment of these claimants. . . . The parties must be presumed to have known of this statute when they
We are of opinion that the legal meaning of the contract, so far at least as respects the rights of third parties, is to be determined by its phraseology read in the light of the then existing statutes. If in a matter as to which third parties have the right to be secured, the contracting parties, upon each of whom rests a duty, the one to furnish security and the other to see that it is furnished, use language the only sensible interpretation of which, when read in the light of the then existing law, is that it is a provision for such security, they must be bound by that interpretation. The presumption as to the meaning of the language is one not of fact but of law, so far as respects the rights of third parties. Any other rule of interpretation would make two contracts precisely alike in phraseology mean, the one that security is provided and the other that it is not provided.' And this difference of meaning would be based upon a state of things not only not known but which could not be known with certainty by any third party interested in the security. It follows that the exception to the rejection by the master of the evidence offered should be overruled; and also that the motion that the report be recommitted for the purpose of taking evidence of a like ignorance of the statute on the part of the Fosburgh Company, and that the matter of security in any form to workmen or material men was riot mentioned between the two contracting parties, nor was intended, was rightly overruled.
2. It is next urged by the bank that even if any sum is held under the statute as security for laborers and material men, the lienors in this case are subcontractors, and that parties bearing that relation to the work are not within the protection of the statute. A subcontractor may be briefly described as “ one who
In the present casé it appears that all of the lienors with the exception of McClean are of the first degree so called; that the contract of each is with the Fosburgh Company, the original contractor with the county, the owner of the land. And it still further appears that in each of these contracts except some minor contracts for extra work with the lienors, there is a direct reference to the plans and specifications of the parent contract as a part of the subcontract. In other words, the thing contracted for is not definitely shown except by reference to the plans and
Among the considerations urged by the bank in support of the contention that subcontractors, especially those of the first degree, are not protected by the statute are the following: That the primary purpose of the statute is to protect laborers and material men “ pure and simple” as distinguished from subcontractors; that these latter are in a position to dictate payment to themselves according to their respective contracts as a condition to further performance thereof; that their contracts involve the element of profit over and above the value of the labor and materials furnished, that in these and other respects there is a great difference between the relation of the subcontractor to the parent contract and that sustained by the laborer or material man; and that upon this difference the Legislature might well base a distinction as to the right to a lien. And it is further urged that by necessary implication as well as by the plain reading of the statute, this distinction has been made so that the position of the subcontractor with reference to a right to a lien is precisely the same as that of the original contractor who is not protected by the statute. It is further urged that any other construction of the statute is inconsistent with the conservatism characteristic of this kind of legislation, and that in practice it would lead to inextricable difficulties and to injustice to the owner.
Since the right to a lien upon real estate for labor and materials is a creature of statute, it is well to look into the general history of the legislation leading up to St. 1904, c. 349, under which the lienors claim. St. 1819, c. 156, (substantially re
It is unnecessary to set forth further in detail our general lien law. Suffice it to say that a lien is given whether the lienor be the original contractor, a subcontractor of any degree, or simply a laborer or material man. And it is given, not as in some States
In this state of the law St. 1878, c. 209, was enacted. It is entitled “ An Act to insure payment of wages earned and for materials used in constructing public buildings and public works,” and is as follows: “ When public buildings or other public works are about to be built or repaired for this Commonwealth by contract, upon which liens might attach for labor or materials if they belonged to private persons, it shall be the duty of the officers or agents contracting in behalf of the Commonwealth to provide sufficient security, by bond or otherwise, for payment by the contractor and all subcontractors for all labor performed or furnished, and all materials used in the construction or repair thereof.” The debt to be secured by this statute is the same in nature as that for which in the case of a private building or structure a lien is provided under the general lien law. Kennedy v. Commonwealth, 182 Mass. 480. The security is for the payment of such debts due from the “contractor and all subcontractors.” Of course this does not mean that the debt to be secured shall be due from the contractor and subcontractors jointly. The words are used distributively and require only that the debt shall be due from either the contractor or some one of the subcontractors. It is enough if it be due from any one of them. The primary purpose of the use of the phrase “ contractor and all subcontractors ” is not to exclude them from the right to a lien, but to describe the individual debtors whose creditors on account of labor and materials are to be secured. And the reason the original contractor has no security under the statute is not
Hot so with the subcontractor, whatever may be his degree. He is not only named as a possible debtor, but it is certain that he may be a possible creditor of the original contractor, or of some subcontractor of a higher degree than himself. He of course needs no security as a debtor, but there is no apparent reason why ás a creditor either of the original contractor or of some superior subcontractor, he should not have security. As a creditor of either of these he surely comes within the express terms of the statute. He does not hold the Commonwealth as does the original contractor. Moreover there is an obvious reason why in describing the debtors whose creditors should be secured the subcontractors should be included. Many if not most of the laborers and material men would be likely to have no direct contractual relation as creditors with any one except a subcontractor, and it was well to be sure and include such creditors by specifically including subcontractors among the persons whose creditors might be entitled to the benefit of the statute. It is to be borne in mind, also, that, whatever may be the distinction in the lien laws of other States between subcontractors on the one hand and laborers and mere material men on the other, in our general lien law, as is above stated, there are no such distinctions, much less are there any between subcontractors of different degrees.
Interpreted in the light of our general lien law it is manifest that the purpose of this statute was in the case of a State build
There is nothing inconsistent with this view in St. 1873, c. 353, re-enacted with some modifications in Pub. Sts. c. 112, §§ 143-147 (now R. L. c. Ill, §§ 16A-168), which statute gives to certain laborers and material men a right of action against a railroad. In that statute certain contractors and subcontractors are excluded from its benefits. The fair inference is that but for this specific exclusion they would have been included in the general description of the class named in the first section as the persons to whom the right to sue is given. And the same may be said of St. 1904, c. 373, extending a similar remedy in the case of construction of street railways, hi or is there anything favorable to the contention of the bank to be found in St. 1892, c. 270 (now R. L. c. 25, § 57), which gives in certain cases to laborers an action against a city or town.
St. 1904, c. 349, is similar to St. 1878, c. 209 (now R. L. c. 6, § 77), and must receive a similar interpretation. It simply- extends to persons engaged in building public works of a county, city or town the same right of security as had been given by the previous statute to persons engaged on public works of the State.
If upon a similar statute of any other State decisions have been there rendered which are seemingly in conflict with the conclusion to which we have come as to our statute, it may be that the reason for the difference is to be found in some variation in the language of the statutes, or in the nature of their respective general lien laws; but whether that be the case or not, in so far as any such decision is in actual conflict in principle with our
3. It is settled, however, as above stated, that the statute provides security only for such a debt as could form a basis for a lien if the building or structure belonged to a private person; and it is urged by the bank that the first contract of the William N. Flynt Granite Company,
The only clauses of the contract upon which these objections are based are those providing for the erection of a temporary fence, for the removal and handling of loam, for grading and for a watchman. The exception of the Hampden Lumber Company founded upon the provisions of the contract respecting scaffolding and staging has been waived. There can be no doubt that the contract was entire for an entire price; and that it specially provided for the things upon which those exceptions are based. In accordance with these provisions the granite company erected upon the State Street side of the lot “ a very light board temporary cheap fence,” and while engaged upon the buildings employed a night watchman, and excavated and removed the earth and did the grading as fully set forth in the master’s report. The master found specially that it was necessary to have fences in order to keep people out, and a watchman “ to protect the property and materials while the building was being built ”; and he further found generally that the “ labor performed and furnished and the materials used by ” the granite company “ were respectively performed, furnished and used in the construction of said buildings ”; and it appears from the report of the justice upon which the case is before us that all parties have agreed that “ the findings of the master as stated in his report are that each and all of said items were used in the construction of the said Hall of Records building as erected and were reasonably necessary to its proper construction, and not merely that said items were necessary to the completion ” of the contract under which they were furnished.
Since the lumber used in the construction of the fence is not shown to have gone into the permanent construction of the building it may be that the material man who sold the lumber to the granite company could have no lien; Kennedy v. Commonwealth, ubi supra, and cases cited, but even if that be so it by no means necessarily follows that the provision in the contract for the building of the fence is fatal to the granite company’s claim of a lien. The granite company agreed to erect a permanent structure. Brick and stone were to be laid. Such work requires the application of contrivances. There must be staging
It follows that the second exception of the bank, (except the part relating to the small office building, which is sustained,) and the exceptions of the Hampden Lumber Company, so far as founded upon its first and third objection, (except that
The lien of the granite company, therefore, must be established to the amount found due by the master less the $39.16 above mentioned.
4. Some objection has been urged against the establishment of the lien of Henry J. Pratt and Company, but we think that the parties to the two contracts regarded them as closely connected with each, and there is nothing in the master’s report inconsistent with the establishment of their lien for the amounts due to them for work both upon the Hall of Records and the boiler house, including the $2.90 named by the master. Upon the facts found by the master the claims of all the other lienors also, with the exception of McClean, are established to the amounts respectively found due. The lien claimed by McClean is not established. So far as respected his contract with the Fosburgh Company he furnished an article which was not to enter into the permanent structure of the building, and his case stands with cases like Kennedy v. Commonwealth, 182 Mass. 480. While it is true that the article subsequently became a part of the permanent structure, yet it appears that this was done by virtue not of any contract with the Fosburgh Company but of a separate contract between McClean and the county commissioners. It is obvious, therefore, that he cannot look to any security provided for lienors in either of the contracts between the Fosburgh Company and the county commissioners.
Under the statute and the provisions for security these claims thus established must in the case of each contract have priority over any assignment by the Fosburgh Company. The county commissioners, in voting to use and appropriate the balances in their hands to the payment of these claims due respectively upon the contracts, simply voiced the mandate of the law. They only performed a duty incumbent upon them under the statute. The assignment to the bank related simply to the first contract. As it appears that the balance in the hands of the county commissioners is not sufficient to pay the lienors under that contract there can be nothing for the bank; and hence it becomes unnecessary to consider the other grounds relied upon to defeat the assignment.
The conclusion to which we have come renders it unnecessary to notice more specifically in the opinion the exceptions to the master’s report. They all have been considered. Some of them become immaterial. All material exceptions inconsistent with the conclusion reached are to be overruled, and the distribution of the two balances now in the hands of the county commissioners is to be made upon the principles above set forth; the form and details to be settled by a judge of the trial court. No costs are to be allowed in favor of or against any party.
iSo ordered.
The contracts were dated respectively November 9, 1905, and June 7, 1906.
The granite company contracted to “ Do all excavation, grading, back filling of every kind, build all foundations, drains, make connections with the sewers, and pay all expenses for so doing, dry well, furnish and lay Akron pipe, damp proofing, concrete and granolithic work, sidewalks, trenches, furnish and lay blue stone for covering trenches and wherever called for, furnish and put in place all wire cloth anchors, furnish and lay all brick required for trenches, piers, interior walls, backing up of granite, etc., furnish Monson Granite for exterior walls, cut and set same, do all carving and modelling, said models to be furnished and said carving to be done by John Evans & Company of Boston, Mass., furnish and provide all forms, scaffolding, staging, centers, etc., required for the work, put in place all iron anchors to be furnished by iron contractor, and do any and all work in connection with the foundations and masonry work throughout, and complete the building ready for the roof, excepting the finish grading which will be done by another contractor, and all good loam soil found on the premises in the excavation is to be left on the premises for this purpose instead of being carted away while excavation is being done. . . .
“ It is hereby further agreed that the contractor is to provide all necessary fences, sidewalks, guards, lights, etc., for the protection of the public, watchman, and comply with all the city ordinances regarding permits, etc., and when the above described work is completed to remove from the premises all unused materials, rubbish, etc., and leave the lot around the building clean and properly graded for relaying the finish soil upon the same, and make good any necessary repairs to the old sidewalk so as to leave the same in as good condition as before starting the work. ...”