Arundel Asphalt Products, Inc. v. Morrison-Johnson, Inc.

259 A.2d 789, 256 Md. 170, 1969 Md. LEXIS 635
CourtCourt of Appeals of Maryland
DecidedDecember 15, 1969
Docket[No. 112, September Term, 1969.]
StatusPublished
Cited by11 cases

This text of 259 A.2d 789 (Arundel Asphalt Products, Inc. v. Morrison-Johnson, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arundel Asphalt Products, Inc. v. Morrison-Johnson, Inc., 259 A.2d 789, 256 Md. 170, 1969 Md. LEXIS 635 (Md. 1969).

Opinion

Singley, J.,

delivered the opinion of the Court.

In 1965, Mr. and Mrs. Thomas J. LaRoque bought some 133 acres of land in St. Mary’s County and began construction of St. Mary’s Drag-O-Way, a drag strip for stock car racing. As it turned out, the early history of *172 the drag strip was enlivened by an unscheduled race of creditors which commenced before the strip was opened. The parties to this case both worked on the construction job: Arundel Asphalt Products, Inc. (Arundel) laid the footings and foundations for two of the buildings and did the paving; Morrison-Johnson, Inc., did the grading.

By the time the track opened in June of 1966, it was plagued with financial problems. There was a first mortgage to The Waldorf Bank with an unpaid balance of some $12,000; Morrison-Johnson held a second mortgage for some $47,000; Arundel, a third mortgage for some $72,000, and there was a clutch of judgments and mechanics’ lien claims, which had been filed between August and November of 1966, the last claim being that filed by Arundel for its paving bill, it having previously accepted the third mortgage.

In Match of 1967, Morrison-Johnson instituted proceedings for the foreclosure of its mortgage and widely advertised the sale. Arundel, in an effort to improve its position, immediately began proceedings for the foreclosure of the mechanics’ lien claim which it had filed. A few months later, The Waldorf Bank’s assignee started foreclosure proceedings.

Ultimately, it was the Bank which was the winner of the creditors’ race. Morrison-Johnson’s foreclosure proceeding was stayed by agreement. From an order of the Circuit Court for St. Mary’s County dismissing Arundel’s attempt to foreclose what it conceived to be a valid mechanics’ lien claim, an appeal was taken to this Court which was in turn dismissed for failure to perfect the appeal, Arundel v. LaRoque, No. 172, September Term, 1968, dismissed 6 January 1969.

In September of 1967, the drag strip had been bought by Arundel at the foreclosure sale for $95,000. The present controversy relates to the distribution of the sale proceeds, and comes to us on appeal from the order ratifying the auditor’s supplemental report.

Arundel is understandably unhappy with the auditor’s reports. The first report, filed on 2 November 1967, *173 charged the sale proceeds with expenses of $7,217.65 (including commissions of $5,700) and with the amount necessary to satisfy The Waldorf Bank mortgage ($12,-940.53), leaving a balance of $74,841.82 for further distribution. The supplemental report, filed 13 September 1968, charged the remaining balance with amounts necessary to satisfy the Morrison-Johnson mortgage, $51,-559.30; five mechanics’ liens which totalled $12,092.73, and a judgment for $10,932.50. There remained only $2,690.04 for distribution to Arundel in partial satisfaction of its third mortgage of some $72,000. We shall now turn to a consideration of the points raised by Arundel.

First, Arundel would have us reverse the order of the Circuit Court for St. Mary’s County which dismissed its mechanics’ lien claim and hold that Arundel should share ratably in the sale proceeds with the holders of other mechanics’ liens. The short answer to this contention is that it is barred by res judicata. The basic rule of res judicata is that facts or questions which were in issue in a previous action and were there determined by a court which had jurisdiction of the parties and the subject matter are conclusively settled by a final judgment in the first case and may not again be litigated in a subsequent action between the same parties even though the subsequent suit takes a different form or is based on a different cause of action. Pat Perusse Realty Co. v. Lingo, 249 Md. 33, 35, 238 A. 2d 100 (1968); A. B. Veirs, Inc. v. Whalen, 256 Md. 162, 259 A. 2d 516 (1969); Polansky v. Orlove, 252 Md. 619, 251 A. 2d 201 (1969). When Arundel failed to perfect its appeal from the order of the Circuit Court dismissing the lien claim, the order was as much a final adjudication of Arundel’s rights as it would have been if no appeal had been taken.

Next, Arundel questions the propriety of allowances of $4,752.50 and $926.45 to Patuxent Pump and Well Company and Kirby Glass Company, respectively, in satisfaction of their mechanics’ lien claims. Arundel says both liens are invalid: Patuxent Pump’s, because Patuxent Pump gave no notice of its intention to claim *174 a lien to Mrs. LaRoque who with her husband owned the drag strip as tenants by the entirety. In support of this contention, Arundel relies on Maryland Code (1957, 1968 Repl. Yol.) Art. 63, § 10 and not on Art. 63, § 11 (b), which we regard as controlling. Arundel challenges the validity of the lien claim of Kirby Glass because the claim identifies the property by reference to a deed conveying 6.4924 acres, on which no buildings have, in fact, been erected, while the buildings on which Kirby Glass worked were located on an adjacent tract of 126.4012 acres.

' We find ourselves in the unhappy position of being unable to pass on these contentions one way or the other. The lien claims are not printed in the record extract. They are included in the transcript, but there is no evidence that any notice was given by Patuxent Pump 1 and no testimony fixing the location of the buildings where Kirby Glass worked. The points were apparently considered by the chancellor, who must have regarded the claims sufficient to support the auditor’s allowance. Schwartzman v. Payne, 203 Md. 256,100 A. 2d 23 (1953). There is nothing before us which would warrant disturbing the result reached below. Maryland Rule 886 a.

Arundel’s final point relates to the allowance of fees and expenses by the auditor. It will be recalled that in March of 1967, Morrison-Johnson had instituted proceedings for the foreclosure of the second mortgage which it held on the drag strip. By agreement between counsel for the mortgagors and for the mortgagee, the foreclosure was stayed for 120 days. Before the expiration of the stay, The Waldorf Bank had commenced proceedings for the foreclosure of its mortgage, which was senior to that held by Morrison-Johnson. Ultimately the claim which Morrison-Johnson asserted against the proceeds of the foreclosure sale included not only the amount of the second mortgage debt, but $1,434.87 of expenditures, which included not only court costs and ex *175 pense in advertising incurred in connection with the incomplete foreclosure, but also trustees’ commissions of $1,178.29. Arundel would have us reverse the allowance of these expenses.

Morrison-Johnson replies that entitlement to the allowance was a matter of contract, and refers us to paragraphs 6 and 7 of the LaRoques’ deed of trust, which secured the deed of trust note:

“6. That if the said property shall be advertised for sale, as herein provided, and not sold, the Trustee or Trustees acting shall be entitled to one-half (y%) the commission above provided,

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Bluebook (online)
259 A.2d 789, 256 Md. 170, 1969 Md. LEXIS 635, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arundel-asphalt-products-inc-v-morrison-johnson-inc-md-1969.