Church v. Smithea

4 Colo. App. 175
Colorado Court of Appeals·Decided September 15, 1893·Published·Cited by 4 cases

Opinion

Bissell, P. J.,

delivered the opinion of the court.

An asserted priority in right springing in the one case from a trust deed on unimproved property, and in the other from a mechanic’s lien for work done in the construction of a building after the execution of the conveyance, has given rise to this suit.

While one Ermerins was ,the owner of four lots in a subdivision to the city of Denver, she executed on the 22d day of January, 1890, a trust deed to secure the payment of certain promissory notes aggregating the sum of $17,600. On the first of May thereafter, a contract was made with Smithea & Arnold to put up two buildings on these premises for a specified price. The contractors continued the work üntil the foundation was completed, when for some unexplained reason it was abandoned, and the contract never carried out. No importance is attached to the non-completion of the con[176] tract, and the record is silent as to the reason of it. The buildings were afterwards finished under one or more contracts made by the owner of the property. What the facts may be respecting these matters do not appear. When they completed the foundation, Smitbea & Arnold filed a notice of lien under the statute, and apparently took all the steps necessary to assert their rights, if. they had any. The owner made default in the payment of the notes which were secured by the trust deed, and under the authority which the conveyance contained the trustee proceeded to advertise and sell the property, and conveyed it by a deed of unquestioned validity to Mitchell Benedict, who transferred it to Frank Church, the present appellant. The lien of the contractors remained unsatisfied, and the present suit was begun to enforce it. Church defended, set up his convej^ance, and denied the right to'a hen on the ground that, as the owner of the premises, he was entitled to what may have been put on them after the delivery of his security.

This claim is substantially an assertion of a principle well settled at the common law. Under that doctrine, it was universally true that any building or improvement erected on land subsequent to the execution of a mortgage became thereby a part of the realty and subject to the incumbrance. The mortgagee could never be deprived of the benefit of this added security, except by express legislation clearly designed to deprive him of this benefit and to give superior rights to a third party.

Many statutes have been enacted which were intended to secure to mechanics and contractors what might be due them for betterments put upon property. The original purpose of these enactments has long since been lost sight of, and by an imperceptible process of extension they have been brought to include everything that may be necessary to secure to either the mechanics, material men, or contractors pay for an}*- service rendered in the betterment of property. Whatever may be the opinion about the wisdom of this sort of class legislation, its validity and constitutionality is too well settled to [177] admit of discussion. The courts universally uphold it, and may express a very strong conviction concerning its propriety. Brooks v. R'way Co., 101 U. S. 443; Wimberley v. Mayberry & Co., 94 Ala. 240; Newark L. & C. Co. v. Morrison et al., 13 N. J. Equity, 133; Turner v. Robbins, 78 Ala. 592; McAllister v. Clopton, 51 Miss. 257.

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Church v. Smithea, 4 Colo. App. 175 (Colo. Ct. App. 1893).

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