Boulia-Gorrell Lumber Co. v. East Coast Realty Co.

148 A. 28, 84 N.H. 174, 69 A.L.R. 1200, 1929 N.H. LEXIS 75
CourtSupreme Court of New Hampshire
DecidedDecember 3, 1929
StatusPublished
Cited by15 cases

This text of 148 A. 28 (Boulia-Gorrell Lumber Co. v. East Coast Realty Co.) is published on Counsel Stack Legal Research, covering Supreme Court of New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Boulia-Gorrell Lumber Co. v. East Coast Realty Co., 148 A. 28, 84 N.H. 174, 69 A.L.R. 1200, 1929 N.H. LEXIS 75 (N.H. 1929).

Opinion

Allen, J.

I. The question of the effect of a sub-contractor’s knowledge of the contractor’s release of liens at the time performance of the former’s contract is commenced or under way, is not raised. The release was not given until the plaintiff had partly performed its contract, and there is nothing to show that it had any knowledge of the release before its performance was fully completed. And no consideration has been given to the construction of the release. Its fair meaning to prevent and bar all liens arising from the work so far as it could, is assumed.

In this situation the claim that the lien was lost through Benoit’s release of his lien is based upon a theory that the plaintiff’s lien was derived from and depended upon Benoit’s and that whatever Benoit did to invalidate his had a like effect upon the plaintiff’s. In other words, the plaintiff could not have a lien unless Benoit had one.

In support of this position stress is laid upon some of the language in Cudworth v. Bostwick, 69 N. H. 536, and particularly the following: “The statute gives the sub-contractor the same lien that the principal contractor has and nothing more. Both as to amount and the property to which it attaches, it is limited by what the principal contractor could enforce against the property.”

In that case the issue was whether the sub-contractor had a lien when the owner owed the principal contractor nothing, and no such situation as is now presented was under discussion or purported to be passed upon. The quoted excerpt from the opinion is to be construed in connection with the facts of the case and in the light of the context. An earlier paragraph of the opinion emphasizes as the only essential thing to make the sub-contractor’s lien good, that the owner should be a debtor of the contractor. “ . . . the owner is to hold back from the principal contractor the amount due the subcontractor,” on notice of the latter’s claim of a lien. What was meant by calling the sub-contractor’s lien the same lien as the contractor’s was that it had the same character and standing, and could not be enforced unless the law gave the contractor a lien for what might be due him. It did not mean that if the contractor saw fit to invalidate his lien, the sub-contractor was thereby deprived of his. *176 The law gives the contractor a lien only to the extent of the amount due him, and the sub-contractor may not have a lien beyond that amount. The contractor’s and sub-contractor’s liens are put on the same parity, subject to protection to the owner against having to pay more than is due under his contract with the contractor. Thus fairly construed, the opinion in Cudworth v. Bostwick is not even dictum against the plaintiff’s lien.

To deny the sub-contractor his lien for any other reason than the owner’s freedom from debt to the contractor would lead to the singular absurdity that one person might defeat and destroy another person’s property interests at his pleasure. That the legislature undertook to give protection to the sub-contractor and at the same time place the protection at the contractor’s mercy, is not shown by the phraseology of the statute that the sub-contractor “shall have the same lien” as is given the contractor. If such a limited lien was intended to be given, language which might not fairly be otherwise construed would be necessary to express it, in view of the departure from the normal incidents of ownership that would be involved.

Whatever may have once been the rule of strict construction of statutes in derogation of common-law principles, courts to-day are more disposed to adopt an attitude of ascertaining fairly and reasonably what statutes mean when their meaning is in doubt. But under the application of strict construction it would appear more in conflict with common-law doctrines to allow the contractor to dispose of the sub-contractor’s lien behind his back, without his knowledge, and regardless of his consent, than to uphold the lien so far as injustice is not done the owner.

The result reached on this point is believed to be supported by the weight of authority, and among the cases which may be cited are Norton v. Clark, 85 Me. 357; Miller v. Mead, 127 N. Y. 544; Friedman v. County, 204 Mass. 494; Stewart &c. Company v.Company, 71 N. J. L. 568; Smalley v. Gearing, 121 Mich. 190; Myers v. Company, 82 Or. 29; Maddux v. Buchanan, 121 Va. 102; Jarvis v. Bank, 22 Colo. 309; Gimbert v. Heinsath, 11 Oh. C. C. 339; Cost v. Company, 85 Ark. 407.

II. A contractor furnishing labor upon, and materials for structural use for, the owner’s property under a contract with him is given a lien upon the materials thus furnished and upon the property. P. L., c. 217, s. 12.

In Cheshire Provident Institution v. Stone, 52 N. H. 365, it was held that a builder had a lien superior to the lien of mortgages given dur *177 ing the construction of the building and that as the work was done under an entire contract, the lien had priority over the mortgages for the labor and materials furnished after as well as before the mortgages were recorded. The mortgagee had actual notice when the mortgages were given that a building was being erected, but this fact is immaterial. “It was an entire contract; and if any part of the lumber was delivered within ninety days of the attachment, the lien was preserved for the whole. Calef v. Brinley, 58 N. H. 90. If the materials were furnished under one entire contract, one indivisible lien for the whole was created thereby.” Pike v. Scott, 60 N. H. 469, 471. “The building being in the course of erection when the claimant took the mortgages, he would have constructive, if not actual, notice of the contract under which the belting was furnished, and his security would be subject to the statutory lien, if one existed.” Groton & Knight &c. Co. v. Company, 69 N. H. 177, 178.

It thus appears that the contractor’s lien is created as soon as any work or materials are furnished under the contract, increasing in amount according to the progress of the work until performance is completed and subject to no impairment from intervening changes of the owner’s title.

As to the sub-contractor’s lien, the statute gives it “provided, that he gives notice in writing to the owner . . . that he shall claim such lien before performing the labor or furnishing the material for which it is claimed,” with an allowance of an alternative notice given after the work and materials are furnished. And the point is here taken that as the mortgage antedated the notice, although not the commencement of performance of the plaintiff’s contract, it took priority over the lien, on the ground that there is no lien until the notice is given.

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Cite This Page — Counsel Stack

Bluebook (online)
148 A. 28, 84 N.H. 174, 69 A.L.R. 1200, 1929 N.H. LEXIS 75, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boulia-gorrell-lumber-co-v-east-coast-realty-co-nh-1929.