City of Salem v. Lane & Bodley Co.

60 N.E. 37, 189 Ill. 593
CourtIllinois Supreme Court
DecidedApril 18, 1901
StatusPublished
Cited by12 cases

This text of 60 N.E. 37 (City of Salem v. Lane & Bodley Co.) 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
City of Salem v. Lane & Bodley Co., 60 N.E. 37, 189 Ill. 593 (Ill. 1901).

Opinion

Mr. Chief Justice Boggs

delivered the opinion of the court:

The circuit court of Marion county granted a decree establishing a lien in virtue of the act of the General Assembly entitled “An act to revise the law in relation to mechanics’ liens,” in force July 1, 1895, (Hurd’s Stat. '1899, p. 1104,) in favor of the defendant in error corporation against certain premises belonging to the city of Salem, which premises, together with the buildings and machinery thereon, constitute the electric light plant of the said city. This writ of error bring's into review the judgment of the Appellate Court for the Fourth District affirming said decree.

The decree was not awarded on the theory the property thus held by the municipality for the use of the public—to enable the city to discharge its public functions— is within the,purview of the Mechanic’s Lien law and subject to be sold to discharge an indebtedness contracted by the city for material or labor used in the construction of the plant, but that the lien attached to the electric light plant before it became the property of the city, for the debt of the then owners, T. C. Heed and William Van-Kirk, and that the city acquired the property subject to the lien. Reed and VanKirk were parties defendant to the bill, and a personal money decree was entered against them and a decree in rem against the electric light plant. The appeal was prosecuted on behalf of the city only. If the defendant in error corporation had perfected.a lien against the plant while it was the property of an individual owner, the subsequent purchase of the plant by the city could not operate to deprive the lienor of the benefit of the statutory provisions for the enforcement of the lien by a forced sale of the property. The decree is a personal money decree against Reed and VanKirk, and for the sale of the electric light plant in default of payment of the decree debt. There is no decree against the city for the payment of any sum. The city cannot be required, by mandamus or any order or process of the court, to pay the decree debt. It is not a decree debtor, but the owner of real property upon which the lien of the decree may operate if it does not pay the sum specified in the decree. It may voluntarily pay the amount necessary to remove the lien from the property, but there is no process or authority of law that may be invoked to coerce it to make payment. The lien is created by the statute, and the statute provides, as the mode of enforcement of the lien, the sale of the land on which the lien has attached. To deny to the plaintiff in error corporation the benefit of this mode of enforcing the decree is, in this case, to nullify the lien.

An investigation of the evidence as. preserved in the record has convinced us the chancellor correctly held a lien attached in favor of the defendant in error corporation on the electric light plant while it was the property of said private parties, Reed and VanKirk, the title being in Reed, and that the city of Salem acquired the property subject to the lien. The material facts are: The firm of T. C. Reed & Co., composed of T. C. Reed and William VanKirk, on the 7th day of September, 1898, submitted a written, proposition to the city of Salem to furnish the city a complete electric light plant, in accordance with specifications set out in the proposition, for the sum of $9000, to be paid for, if accepted by the city, in whole (if the city desired) in bonds of the city, or in such bonds to the amount of $3000 and $6000, in six equal annual payments, for which, the proposition provided, the notes of the city were to be given. The proposition contained the following provision: “It is further stipulated that said city shall have the right to pay any or all of said notes or bonds, or both, at any time the said city shall choose, by paying the face or par value of said notes or bonds, and by paying all interest due at the time they may make such selection. When all of said notes, and 'interest thereon, are fully paid as herein noted, then said Reed & Co. are to convey, in fee simple and clear of encumbrance, the electric light and power plant herein named, and all of the real estate upon which same may be located, with all pole lines, wire and lamp circuits, of whatsoever kinds and nature, so erected in said city, and all interest whatsoever they may have in any pole lines, wire circuits or lamps which may be erected by said city. Should said city desire to issue the full amount of the city bonds of nine thousand dollars ($9000) of five (5) per cent in lieu of issuing the thre'e thousand dollars ($3000) of bonds and the six notes, as herein stated, then the said Reed & Co. agree to accept same at once for the purchase of said plant and at once convey all of the aforesaid property to said city.” The proposition was formally accepted by the city council. Reed & Co. caused a tract or parcel of land to be purchased frojn one W. B. Wilson on which to locate the plant. Reed & Co. arranged with one Thomas S. Marshall, a banker of the city of Salem,' to supply them with money to enable them, in whole or in part, to carry out the contract with the city, and then caused Wilson to convey the tract or parcel of land to Marshall by deed of date November 7,1898, and Marshall paid the purchase money for the lot to Wilson for Reed & Co. Marshall held the title to secure to him the repayment of money so advanced to Reed & Co., and also to secure their indebtedness to him for any further advances. The title remained in Marshall until the 17th day of February, 1899, when he conveyed the premises to T. C. Reed, of said firm of Reed & Co. On the 28th day of October, 1898, Reed & Co. contracted with the defendant in error company for an engine wherewith to operate the plant, to be paid for upon the completion and acceptance of the plant. The defendant in error company delivered the engine under this contract on the 21st day of December, 1898, and it was put in place as part of the machinery of the plant. On the 27th day of January, 1899, the defendant in error company notified the city council of the plaintiff in error city that it had furnished the engine to Reed & Co., and the amount due therefor. On the 17th day of February, 1899, Marshall conveyed the land upon which the plant had been built, to Reed & Co., and they tendered the plant to the city as being complete and in full compliance with the contract. The city on that day inspected the plant, accepted it and elected to pay for it in full in the bonds of the city, issued the bonds and delivered them to Reed, and Reed executed a deed conveying the premises on which the plant stood, to the city. The indebtedness to the defendant in error company not being paid, it, within less than four months after the maturity of the demand, filed the bill on which the decree here in question was entered.

The defendant in error was a contractor, within the meaning of that word as used in section 1 of the said Lien act, and it was not necessary notice of the lien should be given, as the suit was begun within four months after the final payment of its debt fell due. Such is the provision of section 7 of the act.

When the contract for the engine was made, the title to the premises on which the plant was being constructed was in Marshall. But he held it only as security for- the indebtedness of Reed & Co. to him. The equitable interest and title were in Reed & Co., with whom defendant in error contracted to furnish the engine, and to whom it did furnish it, and the lien attached to that interest. In section 1 of Mechanic’s Lien act (Hurd’s Stat. 1899, p.

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Cite This Page — Counsel Stack

Bluebook (online)
60 N.E. 37, 189 Ill. 593, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-salem-v-lane-bodley-co-ill-1901.