Bohn Sash & Door Co. v. Case

60 N.W. 576, 42 Neb. 281, 1894 Neb. LEXIS 427
CourtNebraska Supreme Court
DecidedOctober 16, 1894
DocketNo. 5524
StatusPublished
Cited by25 cases

This text of 60 N.W. 576 (Bohn Sash & Door Co. v. Case) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bohn Sash & Door Co. v. Case, 60 N.W. 576, 42 Neb. 281, 1894 Neb. LEXIS 427 (Neb. 1894).

Opinion

Ryan, C.

The Bohn Sash & Door Company, M. A. Disbrow, and George A. Hoagland each began a separate action for the foreclosure of a mechanic’s lien in the district court of Douglas county. These three cases were consolidated and tried as one, and upon final hearing a decree was rendered granting each plaintiff and cross-complainant relief, though not in each instance in the measure prayed. The facts out of which arose the controversy adjusted by the above decree were, in substance, as follows: On the first of October, 1889, William J. Paul, one of the defendants, was the owner and in possession of the following described real property: Lots 3 and 4, in block 1, in Capitol Hill Addition to the city of Omaha, being a tract of land situate at the northeast corner of Twenty-sixth and Harney streets in said city, and hereinafter mentioned and called the [286]*286“Twenty-sixth street property;” also the north 120 feet of a subdivision of lot 13 of lot 6, in Capitol Hill Addition to the city of Omaha, being a tract of land situate at the southeast corner of Twenty-fifth and Harney streets and hereinafter mentioned and called the “Twenty-fifth street property.” These tracts were separated from each other by the space of an intervening block or more. On the 9th day of October 1889, William J. Paul entered into a written contract with the firm of Case & Kennedy, by the terms of which Case & Kennedy undertook to construct a block of ten contiguous residences on said Twenty-sixth street property, and also a block of five contiguous residences on the Twenty-fifth street property. By the terms of this contract the firm of Case & Kennedy were to perform all work and furnish all material necessary to construct the aforesaid two blocks according to plans and specifications agreed on, in payment for which the said firm was to receive $51,650 in money and real property, to be conveyed at an agreed price. Immediately the erection of the Twenty-fifth street property was begun, and afterwards, in 1890, the building contemplated was commenced on the Twenty-sixth street property. Afterwards there was completed the block on Twenty-fifth street. That on Twenty-sixth street was never finished. For the satisfaction of the unpaid claims of subcontractors under Case & Kennedy, and of mortgages on the properties on Twenty-fifth and Twenty-sixth streets, foreclosure proceedings were begun, and because some of the causes of action affected both properties, the consolidation hereinbefore referred to was rendered indispensably necessary. The decree fixed the priorities of the several claimants and directed a sale of the property on Twenty-sixth street and Twenty-fifth street respectively, directing the application of the proceeds of sale of each property to be made to such parties as were respectively entitled to liens thereon. While there were thirty-two parties whose rights were thus determined, there has [287]*287been an appeal taken by but six, and to a consideration of these appeals alone need our attention be directed.

Before the contract was made for the erection of the block of buildings on the Twenty-sixth street property, that property had been mortgaged by a former owner, one Andrew J. Rosewater, to John P. Sehoning, who had assigned his mortgage to the Omaha Savings Bank. By this mortgage there was secured the payment of three promissory notes for $5,022.22 each, but one of these notes meantime had been paid. On the Twenty-sixth street property William J. Paul, on May 1, 1888, made another mortgage to secure payment of his promissory note for $6,500, held by J. H. Millard, trustee. On the 27th of May, 1890, William J. Paul executed to W. B. Millard, trustee, a mortgage on the Twenty-sixth street property to secure payment of his note for $10,000, due August 27 following. On the 13th day of June, 1890, said Paul made another mortgage on the Twenty-sixth street property to W. B. Millard, trustee, for $5,000, due in ninety days after date. Each of said mortgages was duly recorded. On July 7, 1890, Mahoney & Co. filed a subcontractor’s claim for a mechanic’s lien for $178.85. So far as is shown by the record this was the condition of the Twenty-sixth street property when, in July, 1890, Mr. Paul applied to the Omaha agent of the Kansas City Loan Company for a loan thereon to be made by Willis G. Myers. This loan was afterwards effected, and with a part of the proceeds thereof there were paid on the mortgages above referred to the following sums, to-wit: To the Omaha Savings'Bank, $11,203.91; to J. H. Millard, $6,933.74; to W. B. Millard, $16,258.91. Mr. Myers procured the release of these mortgages of record, and forebore to take any assignment of them; but, in consideration of the fact that the loan was effected for the purpose of taking up these mortgages, the district court subrogated Mr. Myers to the rights of the holders of the original mortgages' which he had paid [288]*288with the proceeds of the loan made by him to Paul. This right of subrogation will be considered later. Incidentally, however, to this loan there arose other questions, which by the district court were held of sufficient importance to postpone the lien of the Bohn Sash & Door Company and Edward C. Tighe to the lien of the mortgage for $35,000 held by Myers. This mortgage, after it had been recorded, was transferred, with the bond which it secured, to Jeffries & Sons, who were parties to the foreclosure proceedings in he district court. The lien of the Bohn Sash & Door Company for $3,331.67, with which we have to deal, was for material furnished between March 1 and July 30, 1890. In like manner we must consider the claim of Edward C. Tighe for labor performed and material furnished between the 25th day of November, 1889, and the 5th day of August, 1890, to the amount of $844.03.

1. The district court, after describing the manner in which the loan of $35,000 was made and expended, made the following findings as to the Bohn Sash & Door Company and Edward C. Tighe: “That the Bohn Sash & Door Company, by its officers and agents, had knowledge that the said William J. Paul was negotiating and endeavoring to procure said loan, and the making to and acceptance by said Myers of said note and mortgage before the same was actually made, and while the said Paul was negotiating with the said Myers to obtain said loan, and although intending at that time to file said claim as a lien upon said premises, the said company, at the request of and by collusion w;th said Paul, withheld its claim against said premises, and the lien filed by it as aforesaid, until about the time said loan was made and the said note and mortgage executed and accepted by the said Myers, for the purpose of enabling the said Paul to procure said loan and the acceptance thereof, to and with the intent of concealing, and did conceal, from the said Myers the fact that they had or claimed any lien upon said premises until said loan should [289]*289be made, and did not file said lien until they knew said loan had been made.” As to Edward C. Tighe, the findings were the same as those above set out with reference to the Bohn Sash & Door Company. On account of the facts found as above stated and described with reference to the Bohn Sash & Door Company and Edward C. Tighe, it was decreed by the district court that their liens as subcontractors should be postponed to the lien of Jeffries & Sons, and as Jeffries & Sons had liens in the third, seventh, and ninth classes, the result was that the Bohn Sash & Door Company and Edward C. Tighe’s claims were adjudged to belong to the tenth class.

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Bluebook (online)
60 N.W. 576, 42 Neb. 281, 1894 Neb. LEXIS 427, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bohn-sash-door-co-v-case-neb-1894.