Armco Steel Corp. v. Chicago & North Western Railway Co.

149 N.W.2d 23, 276 Minn. 133, 1967 Minn. LEXIS 993
CourtSupreme Court of Minnesota
DecidedFebruary 24, 1967
Docket40290
StatusPublished
Cited by17 cases

This text of 149 N.W.2d 23 (Armco Steel Corp. v. Chicago & North Western Railway Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Armco Steel Corp. v. Chicago & North Western Railway Co., 149 N.W.2d 23, 276 Minn. 133, 1967 Minn. LEXIS 993 (Mich. 1967).

Opinion

Knutson, Chief Justice.

This is an appeal from an order denying defendants’ motion for summary judgment. The issue was certified as important and doubtful, making it reviewable here.

In 1963 defendant railway company contracted with defendant E. J. G. Company, formerly Steelock Building Company, to construct a building at 740 Westminster Street in St. Paul on a vacant lot belonging to the railway. After the building was constructed it was leased to Crane Service Corporation, which subleased to defendant Britton Motor Service, Inc. The building was designed and built primarily for the purpose of providing a place where truck trailers arriving piggyback on railroad flatcars could be loaded and unloaded by lessees. Material for the building was furnished by plaintiff, Armco Steel Corporation, Metal Products Division. On'August 13, 1964, after the building was completed, Armco Steel Corporation filed a mechanics lien statement in the office of the register of deeds of Ramsey County, and on November 25, 1964, commenced an action to foreclose the lien. All of the defendants except the general contractor, who apparently is unable to pay the materialmen for the material furnished in the construction of the building, moved for summary judgment on the ground that the mechanics lien should have been filed with the secretary of state instead of with the register of deeds. The only question here is whether filing with the register of deeds created an enforceable lien. The applicable statutes are:

*135 Minn. St. 514.01. “Whoever contributes to the improvement of. real estate by performing labor, or furnishing skill, material or machinery for any of the purposes hereinafter stated, whether under contract with the owner of such real estate or at the instance of any agent, trustee, contractor or subcontractor of such owner, shall have a lien upon the improvement, and upon the land on which it is situated or to which it may be removed, for the price or value of such contribution; that is to say, for the erection, alteration, repair, or removal of any building, fixture, bridge, wharf, fence, or other structure thereon, * *
§ 514.04. “If such contribution be thus made for the construction, alteration, or repair of any line of railway, or any structure or appurtenance of such railway, or of any telegraph, telephone, or electric light line, or of any line of pipe, conduit, or subway, or any appliance or fixture pertaining to either, the person performing such labor, or furnishing such skill, material, or machinery, shall have a like lien upon the lines so improved, and upon all the rights, franchises, and privileges of the owner appertaining thereto.”
§ 514.08. “The lien shall cease at the end of 90 days after doing the last of such work, or furnishing the last item of such skill, material, or machinery, unless within such period a statement of the claim therefor, be filed for record with the register of deeds of the county in which the improved premises are situated, or, if the claim be made under 514.04, with the secretary of state. * * *” (Italics supplied.)

It is the contention of defendants that the provision of § 514.08, that if the claim is made under § 514.04 the lien statement is to be filed with the secretary of state, is exclusive and that inasmuch as the building here was an appurtenance of the railway, filing with the register of deeds did not create any lien. The trial court held that the two provisions of § 514.08 are cumulative and that filing with the register of deeds created a valid lien.

The legislative history of our lien statutes may furnish some light on this question. G. S. 1866, c. 90, § 1, provides:

“Whoever performs labor, or furnishes materials or machinery for *136 erecting, constructing, * * * any house, mill, manufactory or other building * * * shall have a lien * *

Section 7 of this act provides:

“Any person entitled to a lien under section one * * * shall file the same in the register’s office of the county in which such labor * * * have been furnished * *

The provision with respect to liens against railway lines came into being for the first time in 1874. It must be kept in mind that this was a period when railroads were being constructed quite extensively and, while we merely guess at the purpose of the law, it is reasonable to assume that the legislature felt that if a lien were to attach to a railway line running in more than one county, and to its rights, privileges, and franchises as well, it would be most practical to have the lien filed in one place rather than with the register of deeds of every county through which the line ran. In any event, L. 1874, c. 69, added this provision to § 1 of the lien law:

“Whoever furnishes any labor, skill or material for constructing, altering or repairing any line of railway, or for constructing, altering or repairing any bridge, telegraph, depot, fences or other structure appertaining to any line of railway * * * shall have a lien * * * upon all such line of railway, and upon all franchises, privileges and immunities, and upon all bridges, depots, telegraphs, fences and other structures, and upon all right of way appertaining to such line of railway.”

L. 1874, c. 69, amended § 7 of the lien law so as to provide:

“Any person * * * entitled to a lien under the provisions of section one aforesaid, shall * * * file the same in the office of the register of deeds of the county * * * in case the same shall have been furnished for the construction, alteration or repair of any line of railway, or of any bridge, depot, fences or other structure appertaining to such line of railway in the office of the secretary of state; * *

It is quite obvious from reading the original provision for a hen against a railway line that the parts of the line to which the hen would attach were for the most part expressly stated. The only part left more or less *137 open is the language, “furnished for the construction * * * of * * * other structure appertaining to such line of railway.”

Through a number of subsequent amendments the present law has come down to us. Certainly, under the laws of 1866 prior to its amendment in 1874, a lien filed with the register of deeds of the county in which the building involved in this litigation is located would have been sufficient to create a valid lien. The question then is: Would the adoption of the subsequent statute expressly permitting a lien against the railway line, as such, destroy the right to create a lien by filing with the register of deeds? L. 1889, c. 200, repealed the above provisions and replaced them with a statute having somewhat similar language, the material parts of which read:

“Section 1. Whoever performs labor, or furnishes skill, material or machinery for the construction * * * or * * * erection * * * of any house, mill, manufactory, or other building * * * shall have a lien * * *.
“Sec. 2. Whoever performs labor, or furnishes skill, material or machinery for grading, filling in or excavating * * * shall have a lien * * *.
“Sec. 3.

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Cite This Page — Counsel Stack

Bluebook (online)
149 N.W.2d 23, 276 Minn. 133, 1967 Minn. LEXIS 993, Counsel Stack Legal Research, https://law.counselstack.com/opinion/armco-steel-corp-v-chicago-north-western-railway-co-minn-1967.