69 A.D. 361 | N.Y. App. Div. | 1902
The following is the opinion of the referee :
The action is brought to.foreclose a mechanic’s lien. The plain-, tiff is a sub-contractor. The defendant Livingston is the owner of the property. The defendants Mapes are the contractors. The' defendant Kimber is their assignee for the benefit of their creditors. The defendant .Weeks, as clerk of Putnam county, is alleged to have in his hands certain moneys deposited with him by Livingston for the purpose of discharging liens filed against the property, which liens, it is asserted, Were illegal and without force.. The other defendants are lienors, as sub-contractors, materialmen and laborers.
On May 13, 1895, Mapes & Son contracted with Livingston to furnish materials and labor and erect a brick dwelling house, a brick stable, a brick gardener’s cottage, a brick icehouse, a brick and Stone bridge and a wooden shed, and to sink an artesian well and Construct roads and do other work on premises belonging to Livingston and situated near Highland Station, in the.county of Putnam. Different dates were fixed for the completion of different portions ‘ of the work. Payments were to be made in installments as the work progressed. No payment could be demanded unless, with the demand, the contractors produced the certificate of the supervising ■architect or engineer. No installment could become payable so long as any liens filed against the property were undischarged of record. In case the contractors should fail to supply sufficient labor or material, or to prosecute the work with diligence, and the architect or engineer should certify that such failure was sufficient ground for such action by the owner, the owner should be at liberty to “ term!
The date fixed by the contract for the completion of the dwelling house ready for occupancy was September 1,1895. The cottage and bridge were to be completed by the first day of June; the icehouse by the fifteenth of June; the stable and shed by the first of July. The contractors did not perform in either of these particulars. About the 23d of January, 1896, they abandoned the work, leaving various portions of it, and especially the dwelling house, uncompleted. The architect certified that the defaults of the contractors were sufficient grounds for the termination of their employment by Livingston, and a like certificate was given by the engineer having ■ supervision of a portion of the work. Thereupon Livingston gave notice that the employment was terminated and contracted with other parties, who did what was left undone by Mapes & Son. The plaintiff’s notice of lien was filed on January twenty-second.
It is claimed in behalf of the lienors or some of them that Livingston unreasonably interfered with the contractors, whereby the work was hindered and delayed, and that he refused to make payments which became due and payable by the terms of the contract, and that, therefore, the contractors were justified in abandoning the work and are entitled to recover the full value of all labor performed and materials furnished. I have carefully examined the testimony relating to this charge of wrongful interference, and my opinion is that the charge is not supported. It is undoubtedly true that Livingston maintained a vigilant watch over the work as it progressed, and that he expressed dissatisfaction with some portions of it and with some of the materials provided by the contractors, and that he made various complaints that- the work did not comply with the contract, some of which complaints were regarded and others were not, and that some delays, not very considerable, resulted
. By .the contract Mapes was entitled to a fourth payment on." account of the dwelling house “ when third story walls built, frame work for roof and dormer roofing complete, with copper put on, four thousand dollars; ” and to a final payment on account of the stable “ when stable is entirely completed, with Avater introduced, ready for use, two thousand three hundred and nineteen dollars.” As already mentioned, it was expressly agreed that “in no case shall a payment be demanded unless accompanied by a certificate-signed by the supervising architect or engineer, as the case may be ; ” and also that “ no payment shall be demanded by, or become payable to, the (contractors) so long as any liens remain undischarged of record.” On January .il, 1896," Pelham, the architect, issued.to Mapes a certificate that the said payment of $4,000 had become due. The work embraced in this certificate had been completed for some days prior to that date: It does not appear that-the certificate was intentionally delayed by Pelham. Mapes testi-
As to the stable, it is admitted that it was not entirely completed by Mapes. Just how much remained to be done is matter of dispute. The preponderance of proof is that it was substantially finished. Pelham, the architect, so testifies. But there is no proof that any demand was ever made by Mapes for the final payment, or that he ever procured or applied for the certificate of the architect that the final payment had become due.
Upon the testimony I must find that Livingston did not default in making payments according to his contract, and that Mapes was not justified by any act or omission of Livingston in abandoning the work. Therefore, Livingston did not become liable to Mapes upon quantwn meruit. (Robinson v. Chinese Charitable Association, 47 App. Div. 69, 70.)
After the liens had been discharged by the deposit made by Livingston on the fifteenth of January, there was due to Mapes on .account of the fourth payment on the house the sum of $2,428.29. Against this payment Mapes had drawn an order for $1,350 in favor of Brown & Son. Tins order had been presented by Brown •& Son to Livingston on November 21, 1895, and had remained in
It is admitted by Livingston that the order referred to was presented to him by Brown & Son on November twenty-first. retained it in his possession. He recognized it as a valid order, upon which he was liable, in January, when, after the liens were discharged by the deposit, Mapes asked for the remainder of the fourth payment. Livingston now claims that he was not bound to pay the $1,350 to Brown & Son, because the order was conditional —first, upon a performance of their contract with Mapes, and, second, in that it was payable provided “ value has been received.” To entitle Brown & Son to payment of the order it was only.
The rules relating tó the rights acquired by a claimant by the filing "of a lien are stated in Van Clief v. Van Vechten (130 N. Y. 577) as follows : “ 1. Jf anything is due to the contractor pursuant to the-' terms of the contract when the lien is filed, it attaches to extent.
^ 2. If nothing is due to the contractor- according to the contract', when the lien is filed, but a certain amount subsequently becomes due thereunder, the lien attaches to the extent of that sum.
“ 3. If nothing is due to the. contractor pursuant to the contract, when the lien is filed, and he abandons the undertaking without just cause, but the owner completes the building according-to the contract and under a provision thereof permitting it, the lien attaches-to the extent of the difference between the cost, of completion and the amount unpaid when the lien was filed.” . .
It is also settled that when work is abandoned by a contractor, and is-completed by. the owner pursuant to a right reserved in the Contract (as in this case), the owner’s right to declare a forfeiture the contract, for non-perfdrmance is gone,, the work of. completion is deemed to be done under the contract and on account of the contractor, and the contractor becomes entitled to receive any- bahanee of the contract price that may.remain over , and above the cost of completion. (Murphy v. Buckman, 66 N. Y. 297; Graf v. Cunningham, 109 id. 369; Van Clief v. Van Vechten, supra.)
When Mapes stopped work, about January 23, 1896,.Livingston, as already mentioned, procured from the architect and. engineer the required certificates, and .then , notified . Mapes. that his employ
In Foshay v. Robinson (137 N. Y. 134) the work contracted for was to be paid for in installments; each payment was conditional upon the production of the architect’s certificate ; in case the contractor should neglect to provide sufficient materials or workmen* the owner was at liberty to take the work in his own hands and finish it. This , he did after notice to the contractor, which was dis
• It is insisted by ¡ the learned counsel for Livingston that the J^oshm/case is not an authority in favor of these lienors, for the reason that in the case at bar the contract provided that if the employment of the contractor should be terminated, “ he shall not be entitled to receive any further, payment under this contract until said. work shall be wholly finished, at which time, if the unpaid balance of the amount tobe paid under this contract shall exceed the expense incurred by the. owner in finishing the work, such excess shall be paid by the owner to the -contractor.”. It seems to me that' the most that can be claimed for this, provision is that, under the condition mentioned,, payments- which, by the terms, of the contract would otherwise become payable at intervals, are .postponed until the completion of the whole work, It does not
The claim that the cost of completing the work, etc., exceeded, by $649.54, the amount which would have become due to Mapes had he performed his contract, rests upon the certificates of Pelham, the architect^ and Oauldwell, the engineer. It was provided in the contract between Livingston and Mapes that, in case the contract- or’s employment should be terminated and the work be completed .by the owner, “if the unpaid balance of the amount to be paid under this contract shall exceed the expense incurred by the owner in finishing the work, such excess shall be paid by the owner to the contractor; ” and that “ the expense incurred by the owner as herein provided, either for furnishing materials or for finishing the work, and any damage incurred through such default, shall be audited and certified by the architect or engineer, as the case may be, whose' certificate shall be conclusive upon the parties.” The certificate of the architect above referred to includes an item of $1,000 for “ liquidated damages ” and another item Of $2,750 for “$50 per day from 1st April to 25th May, the date Emslie & Son agreed to have building complete, say 55 days at $50.” Both of these items are claimed under the supplemental agreement made between Livingston and Mapes on the 15th of January, 1896, in which the sum of $1,000 was fixed as the damages which the agreement recites Livingston had sustained to that date by reason of the delays and defaults of Mapes, and by which it was agreed that in case Mapes should fail to complete his contract by the first of April he should “ pay to said Livingston, as liquidated damages, the sum of ($50) fifty dollars for each and every day after that date that any part thereof remains not completely finished, which, if not paid, it is agreed shall be deducted from any money due under the said contract.” Whether or not that supplemental agreement was valid for one purpose or another as .between the parties to it, it is plain, I think, that as against sub-contractors it was inoperative and void, in so far as it attempted to cover into Mr. Livingston’s pocket any portion of the payments due or that might become due under the original con
-If I am "right in my construction of the contract it follows that Livingston or his property is liable in some amount to the lienors, and the next question is — in what amount? .- ' - -
• First. There is the sum of $2,428.29, being the amount' of the fourth payment on the house (which was past due when the contractor’s employment was terminated), less the sum deposited by Livingston with the county clerk.
; Seeond. ‘There is the sum -of $1,974, being the amount -of the final payment on the stable, less $345, the alleged cost of completion.-
: Third: There is' -the sum of. $145.21, being the difference between the Cost of completing the dwelling house and the ¡amount unpaid' (exclusive of the fourth payment); when the liens were filed. In determining this amount I have taken into account the $399.81 allowed by Emslie for materials upon the ground when he began his work.
Fourth. There' is the sum of fifty-seven dollars Unpaid on the contract price -of- the icehouse, which was -completed -by Mapes. The iron door which- was provided by Livingston at a' cost of thirty-six dollars and .".fifty '.cents was not called -for by the-specifications.
These together make'a total of $4,604.-50. ■ It-is- claimed that an allowance should be made for work done by Mapes" -upon" the roads, for which he was not-paid. I am -unable from the testimony to determine the amount of such work not paid- for, or-what would-be a proper allowance therefor. It is claimed that- a further allowance should be made for various -items of -extra work done, it is alleged^ by direction of Livingston or his architect. ■ All of these item’s are, I believe, disputed by Livingston, and it can hardly be said that the proof preponderates- in favor of the claimants.
...- The next question relates to the validity- and priority of the
The lien of Gain’s Sons is attacked by the plaintiff as invalid, because the notice fails to designate the act under which it was filed, and also because it fails to separately specify what portion .of the materials furnished entered into the construction of each of the buildings mentioned in the contract between Mapes and Livingston. The first objection must be overruled. Section 4 of the act of 1885 (Chap. 342) prescribed what a notice of lien should contain The act was a public act. When the notice was filed there was no other Mechanic’s Lien Law “ of the State of New York.” The second objection is not well taken. The 1st section of the act of 1885 declared that a claimant might have a lien upon a building and its .appurtenances and upon the “ lot, premises, parcel or farm of land ” upon which the same might stand, upon filing the notice prescribed in section 4. The notice was required to contain, among other things, “ the nature and amount of the labor and service performed, or .the materials furnished or to be furnished * * * and also a description of the property to be charged with a lien sufficient for identification.” There was no requirement that when materials were furnished for several buildings erected on the same parcel or premises the notice should state what portion thereof was used in the erection of each. In the 20th section it was provided: “In case of several buildings erected, altered or repaired under one contract, and of conflicting liens, each lienor shall have priority upon the particular building or premises where his labor is performed or his material used.” ■Clearly this had nothing to do with the creation of a lien which was wholly regulated by the provisions of section 4. Gain’s Sons acquired a lien upon the entire premises owned by Livingston at Highland for materials furnished for and actually used in the construction of (at least) the dwelling house and stable. The plaintiff has a later lien upon the same premises for work done upon and
, The plaintiff also attacks the lien of Brown & Son on the ground that the notice filed'contains statements which are. false, by which the lien is vitiated: . It is said that Brown had a written contract "with. Mapes for furnishing material, and that in filing his lien he “ deliberately • puts aside ” the terms of his written contract,.“ and makes his claim, for what he calls the value of his work and material.” Brown’s contract with. Mapes was ■ to perform all work and provide, all .materials for “ all the work called for in .the carpenter’s specifications, except heating for residence, stable, gardener’s cottage, .icehouse, and woodshed:” for.the sum of $10,787, to be.-paid-in install
- The claim of the defendant, the ¡Riverside Bank, assignee of •Blackburn .& He Graw, must be .dismissed. The notice of lien is :fatally defective., .It alleges an agreement between Blackburn &. :He Graw and Mapes & Son for furnishing and (constructing; the plumbing for the dwelling house, stable and gardener’s cottage for -the sum .of $2,290, and that, pursuant to such- agreement, Blackburn & He Graw had “ furnished certain of the said materials and .done a certain portion of the work of construction of -said plumbing.” .It fails tó state how much .of the agreement had been' .performed or the value of the work .and materials actually done and furnished. (McKinney v. White, 15 App. Div. 423.)
. .The remaining question has to do with the.deposit of .$1,511.11 made by Livingston with the defendant Edward C. Weeks, county clerk of Putnam county, on January 15, .1896, for the purpose of discharging mechanics’ liens then of record against the property. .On behalf of .the present lienors it is insisted that, for reasons assigned by them, the said liens had no validity, and that (as . the learned counsel for the plaintiff puts it) the former lienors “ acquired no lien upon the. funds in suit, and thereby said funds went into a general fund of moneys due from Livingston to Mapes and became impressed .with ¡the liens of each and every valid lienor filing his lien prior to the general assignment to Kimber.” Kimber, the assignee, contends that the fund, when deposited, became the money of Mapes and passed by the assignment free from any claim.or .lien of the present lienors.
The . facts in brief are that Mapes & .Son sub-let to James- and Edwards a part of the work covered by their contract with Livingston,'including the excavation of rock for cellars and sewers and the construction of ¡roads. ' James and Edwards abandoned the .work before completion. The various parties filed liens for labor and ■materials furnished to James and Edwards. It does not .appear that any money was then or afterwards became due to them from Mapes. The liens referred to were of record when the $4,0.00 payment, became due on the house, and, as before mentioned,- Livingston