Arrison v. Company D

98 N.W. 83, 12 N.D. 554, 1904 N.D. LEXIS 4
CourtNorth Dakota Supreme Court
DecidedJanuary 11, 1904
StatusPublished
Cited by3 cases

This text of 98 N.W. 83 (Arrison v. Company D) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arrison v. Company D, 98 N.W. 83, 12 N.D. 554, 1904 N.D. LEXIS 4 (N.D. 1904).

Opinion

Young, C. J.

This is an action to foreclose a mechanic’s lien. The complaint alleges that the defendant, “Company D, North Dakota National Guard,” is a corporation organized under the authority of section 1425a, Rev. Codes 1899; that said corporation contracted with the defendant O. T. White for the erection of an armory building upon certain lots in Devils Lake; that the plaintiff performed work, labor, and services as a subcontractor on said building of the agreed and reasonable value of $43.47; that he filed his claim for a lien therefor under chapter 77 of the Civil Code, and asks judgment for that sum, with interest, and the foreclosure of his lien. The defendants joined in a demurrer to the complaint on the ground that it does not state facts sufficient to constitute a cause of action. The demurrer was overruled, and defendants appeal from the order overruling the same.

The single contention of the appellants is that an armory building erected and owned by a corporation organized under section 1425a, Rev. Codes 1899, is not subject to mechanics’ liens. This section was enacted as chapter 101, p. 159, Laws 1897, and is as follows : “Any number of persons, not less than three, being members or ex-members of regularly enrolled companies of the national guard of this state, may form a corporation for the purpose of erecting, obtaining and maintaining a building to be used by the company of which they are members or ex-members, as a military training school, armory and place of meeting, which corporation shall possess the powers and be subject to the duties and liabilities of other corporations, except as herein otherwise provided. The principal office of said corporation must be located at the town or city wherein the national guard company for the benefit of whom the military training school is erected or maintained, is stationed. The general management of such company shall be [556]*556vested in a board of not less than three nor more than eleven directors, each of whom shall during his term of office be a member of the national guard of the slate of North Dakota. Such corporation may lease or buy real estate upon which to erect a military training school, armory or drill hall to be by the corporation erected or maintained, and may purchase or lease land upon which a rifle range may be maintained, and all such land, and the buildings thereon which are used for a military training school, drill hall, armory or rifle range, shall be exempt from taxation. The articles of incorporation of such corporation shall be filed and a certificate of incorporation issued by the secretary of state without fee.” Counsel for appellants contend that Company D, North Dakota National Guard, is “a corporation in aid of a distinct branch or arm of the government,” organized for .the benefit of the state, and not for private gain; and that its property is, from reasons of public policy, exempt from the remedy afforded by the mechanics’ lien laws. We are of opinion that this corporation does not come within the protection of the doctrine which is invoked. There is a well-settled rule, resting upon grounds of public policy, that “mechanics’ lien laws do not, in the absence of express provisions, apply to public buildings erected by states, counties, and towns for public uses.” 2 Jones on Lieps, section 1375, and cases cited, note 3. It is well settled that “public property cannot be the subject of such a lien unless the statute shall expressly so provide. It is by implication excepted from lien statutes, as much as from general taxation laws, and for the same reason.” Knapp v. Swaney, 56 Mich. 345, 23 N. W. 162, 56 Am. Rep. 397, and cases cited. In many cases the fact that the property of the corporation could not be sold upon execution is held to be decisive against the right to a mechanic’s lien. Board v. Greenbaum, 39 Ill. 609; Jones on Liens, section 1375; Loring v. Small, 50 Iowa 271, 32 Am. Rep. 136; Charnock v. Dist. Tp. (Iowa) 50 N. W. 286, 33 Am. Rep. 116; Brinckerhoff v. Board, 6 Abb. Prac. (N. S.) 428; Leonard v. City of Brooklyn, 71 N. Y. 498, 27 Am. Rep. 80; Patterson & Co. v. Penn. Reform School, 92 Pa. 229; Knapp v. Swaney, 56 Mich. 345, 23 N. W. 162, 56 Am. Rep. 397. In Philipps on Mechanics’ Liens, section 179, it is said that: “Property which is exempt from seizure and sale under an execution upon grounds of public necessity must, for the same reason, be equally exempt from the operation of the mechanics’ lien law, unless it appears by the law itself that property [557]*557of this description was meant to be included.” See, also, 20 Am. & Eng. Enc. of L. (2d Ed.) 295, and cases cited. The ground upon which the property of a municipal or strictly public corporation is exempt from mechanics’ liens is stated in Board v. Greenbaum, supra, to be “that such a proceeding against a municipal corporation would break it up, and that, possessing the taxing power, which it can be compelled by mandamus to exercise, its debts can be paid and all its liabilities met in that mode. Creditors against such corporation have this distinct and most efficient remedy.” In this state express provision is made by statute for indemnity to those who perform labor upon or furnish material for public works. Chapter 78 of the Civil Code provides that: “Whenever any public officer shall under the laws of this state enter into contract in any sum exceeding one hundred dollars with any person for making any public improvements, or for constructing any public building or making repairs on the same, such officer” shall exact a bond in amount equal to the contract price to secure all indebtedness for labor and material, and any person to whom there is due any sum for labor or material furnished is authorized to bring an action upon the bond for his indebtedness. The defendant is not a public corporation. Corporations are classified and defined by the Civil Code as follows: Section 2854: “Corporations are either (1) public; or (2) private.” Section 2855: “Public corporations are formed or organized for the government of a portion of the state. Such corporations are regulated by the Political Code or by local statutes.” Section 2856: “All corporations not public are private.” The defendants cannot claim immunity upon the ground that it is a public corporation, for it is clear that it cannot be so classified. There are, however, certain private corporations, which, because of their nature, purposes, duties to the public and the direct interest of the public therein, are generally held to be exempt from the operation of mechanics’ lien laws, unless the intent to extend the remedy to them is plainly expressed. This class includes those corporations in which the interest of the public is direct and enforceable, such as railroads, canals, and turnpike corporations. See 1 Freeman on Executions, section 126a. The classification made by Chief Justice Thompson in Foster v. Fowler, 60 Pa. 27, has been uniformly approved both by courts and textwriters: “Most people acquainted at all with corporate action, understand that corporations other than municipal, which are purely public, naturally divide [558]*558into public and private corporations; that is, into those that are agencies of the public directly affecting it and those which only affect it indirectly by adding to its prosperity in developing its natural resources or in improving its mental or moral qualities. Of the former are corporations for the building of bridges, turnpike roads, railroads, canals, and the like.

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Bluebook (online)
98 N.W. 83, 12 N.D. 554, 1904 N.D. LEXIS 4, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arrison-v-company-d-nd-1904.