Campbell v. Jacobson

34 N.E. 39, 145 Ill. 389
CourtIllinois Supreme Court
DecidedMay 9, 1893
StatusPublished
Cited by29 cases

This text of 34 N.E. 39 (Campbell v. Jacobson) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Campbell v. Jacobson, 34 N.E. 39, 145 Ill. 389 (Ill. 1893).

Opinion

Mr. Chief Justice Bailey

delivered the opinion of the Court:

The first section of the statute in relation to Mechanic’s Liens provides, that any person “who shall, by contract, express or implied, or partly expressed and partly implied, with the owner of any lot or piece of land, furnish labor or material” in erecting a house or other building on such land, shall have a lien upon the lot or piece of land and upon the building for the amount due him for such labor and material. It thus appears that the first and indispensable requisite is, that the labor and material for which the lien is sought to be enforced shall have been furnished by the petitioner, under and in pursuance of a contract with the owner of the land.

The petitioner in this case alleges and relies upon an express contract between him and Fannie Jacobson, the owner of the land. He avers in his petition that this contract was executed on behalf -of Fannie Jacobson, by Morris Jacobson, her husband and agent, and a copy of the contract is exhibited and made a part of the petition. On referring to the contract itself, we find a document which makes no reference whatever to Fannie Jacobson, but which purports to be a contract between Archibald Campbell, party of the first part, and Morris Jacobson, party of the second part, and the contract is executed by these parties under their respective hands and seals. In the body of the contract Morris Jacobson is referred to as the owner of the premises upon which the proposed buildings were to be erected. Unless this can be held to be in fact the contract of Fannie Jacobson, the petitioner has manifestly no title under the statute to a lien, at least upon the case made by his pleadings.

At the time the contract was executed Fannie Jacobson was not present, nor had she taken any part in the negotiations out of which the contract grew. The petitioner at that time had no actual knowledge that she was the owner of the lots upon which the proposed buildings were to be erected, but supposed that they belonged to Morris Jacobson, and the contract was entered into by him on that basis. He treated with Morris Jacobson as a principal contracting party, and not as the agent of his wife, and upon the face of the contract as executed, Morris Jacobson appears to be a principal. The only theory upon which Fannie Jacobson can now be substituted in place of her husband as a party to the contract is, that she was an undisclosed principal, and that her husband, in entering into the contract, really acted as her agent.

The petitioner having alleged and relied upon a contract thus executed under seal by Morris Jacobson as the ostensible principal, there may perhaps be difficulty, on technical common law grounds, in holding Fannie Jacobson liable thereon as an undisclosed principal. But, waiving that point, it is very clear that the burden of showing that the relation of principal and agent existed between Fannie Jacobson and her husband, and that he had authority to enter into a contract, on her behalf, for the erection of buildings on her lots, is on the petitioner.

After carefully considering the evidence bearing upon this question, we are brought to the conclusion that .the chancellor who heard the cause was justified in holding that the preponderance of the evidence on this point was against the petitioner. No direct evidence was offered of any authority, on Morris Jacobson’s part, to act as his wife’s agent in the premises. She testifies positively that she never gave him such authority, and that she did not even know that the contract was made, or that the erection of the buildings was in contemplation, until at least a month after the date of the contract, nor until the buildings were well under way. She further says, that when she learned of the enterprise, she strongly objected to it, and made such objections repeatedly afterwards; that she was at the buildings, as she thinks, but once or twice while they were in process of erection, and that was when they were nearly finished.

Morris Jacobson testifies that, in executing the contract, he was acting for himself and not in any way for his wife; that he did not represent her, and had no authority so to do; that in his negotiations with the petitioner, her name was not mentioned; that she had nothing whatever to do with the construction of the buildings, and knew nothing about what he was going to do; and that he merely went to work with his own money and erected the buildings.

One of the witnesses, who was the petitioner’s foreman, testifies that about October 21st, and when the buildings were nearly completed, Mrs. Jacobson came there, and that he, at her request, explained to her what the “trim” was to be, she saying at the time that Mr. Jacobson had already explained it to her; that she said she was well pleased with the “trim” they were putting on; that she was not at all pleased with the other, and was glad that Mr. Jacobson had had it changed, and that she had ordered it to be changed. Mrs. Jacobson, on the other hand, positively denies that she made these statements, or that she ever gave any orders or directions in relation to any changes or alterations in the buildings.

Another circumstance relied upon by the petitioner, to show the agency of Mr. Jacobson is, that during the construction of the buildings Jacobson negotiated a loan, in order to get the means to complete the buildings, and that to secure the loan, Mrs. Jacobson joined with him in the execution of a deed of trust on these lots, with the understanding that the money borrowed should go into his hands to be used for that purpose. This she did, as she explains, "upon his telling her that he wanted' to go on finishing the buildings, and that unless he had more money to go ahead with, he would lose what he had already invested; that he wished her to go his security, and that, to relieve him of his embarrassment, she consented to do so, and executed the deed for that purpose. It also appears that after the buildings were completed, Mrs. Jacobson permitted her husband to collect the rents therefor without accounting to her for the same.

The foregoing are substantially all the facts relied upon as tending to charge Mrs. Jacobson as an undisclosed principal, upon the contract entered into by her husband. We are of the opinion that, when all the evidence is considered, these circumstances are insufficient to produce that result. None of them seem to us to be necessarily inconsistent with the theory, supported by the testimony of Mr. and Mrs. Jacobson, that the erection of the buildings, though on Mrs. Jacobson’s property, was an enterprise undertaken by Mr. Jacobson for himself and in his own interest, and without his wife’s sanction or authority. And if that theory is correct, the buildings can not be said to have been erected in pursuance of any contract with the owner of the lots, so as to entitle the petitioner to a lien thereon.

But it is urged that Mrs. Jacobson, by standing by and permitting her husband to hold himself out as the owner of the lots, and by allowing him to enter into a contract with the petitioner for the erection of buildings thereon, is guilty of such fraudulent conduct as should preclude her from disavowing her husband’s acts, or alleging that the lots were not in fact his. It might perhaps be a sufficient answer to this contention to say, that the petitions are not framed on any such theory. They contain no allegations of fraudulent conduct on the part of Mrs.

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Bluebook (online)
34 N.E. 39, 145 Ill. 389, Counsel Stack Legal Research, https://law.counselstack.com/opinion/campbell-v-jacobson-ill-1893.