Cutler v. Keller

153 P. 15, 88 Wash. 334, 1915 Wash. LEXIS 1123
CourtWashington Supreme Court
DecidedNovember 29, 1915
DocketNo. 12776
StatusPublished
Cited by20 cases

This text of 153 P. 15 (Cutler v. Keller) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cutler v. Keller, 153 P. 15, 88 Wash. 334, 1915 Wash. LEXIS 1123 (Wash. 1915).

Opinion

Ellis, J.

This is a consolidation of two separate actions brought, respectively, to foreclose certain labor and materialmen’s liens upon lots 17 and 18, in block 11, of Fletcher’s Heights addition to the city of Tacoma, and to foreclose two certain mortgages upon the same property. The dominant question is as to the order of priority of the several liens and mortgages.

No statement of facts is presented. The following is the substance of the court’s findings: On July 7, 1910, D. P. Lea and Leta M. Lea, husband and wife, being then the owners of the lots in question, executed and delivered to W. C. Bergstrom a mortgage thereon securing notes for the sum of $900. This mortgage was recorded in the office of the county auditor on July 9, 1910. On August 10, 1910, Bergstrom assigned the notes and mortgage to William N. Keller. This assignment was recorded on May 11, 1914.

On June 10, 1912, Lea and wife executed and delivered to the Fidelity Trust Company a second mortgage on the same premises to secure a note for $250. This mortgage was recorded on July 29, 1912. Between December 10, 1912, and December 24, 1912, E. W. Cutler and G. S. Graves, copartners as Cutler & Graves, performed labor for Lea and wife [336]*336in the erection of a frame building on the lots, and on March 22, 1913, filed a laborer’s lien on the building and lots for $78.65. Between December 10, 1912, and December 18, 1912, the Sixth Avenue Lumber & Fuel Company furnished building material to Lea and wife for the construction of the building, and on March 15, 1913, filed a materialman’s lien on the premises for $130.65.

The building in question was intended for a moving picture studio. It was set upon posts and was capable of removal without injury to the land or other buildings thereon. There was no finding that the building was a mere impermanent shed or temporary structure, or that, at the time of its erection, there was any intention on the owner’s part to remove it, or any contract with the lien claimants or any one else that it might be removed.

The court further found that there is due to William N. Keller upon his notes and mortgage from Lea and wife $1,078.19, and an attorney’s fee of $107.80; that there is due the Fidelity Trust Company upon its note and mortgage $269.50, and an attorney’s fee of $26.95; that there is due Cutler & Graves $86.30, and $30 attorney’s fee; and that there is due the Sixth Avenue Lumber & Fuel Company $145.19, and an attorney’s fee of $40; that the liens of the several mortgagees and lien claimants for the above amounts, respectively, are entitled to rank in the following order: First, that of William N. Keller; second, that of Fidelity Trust Company; third, that of Cutler & Graves; and fourth, that of the Sixth Avenue Lumber & Fuel Company.

Upon appropriate conclusions of law, the court entered a decree and order for sale of the above described premises, and an application of the proceeds in accordance with these findings. The lien claimants, Cutler & Graves and the Fuel Company, have appealed.

Appellants contend that they should have been accorded a first and second lien upon the building for the labor and ma[337]*337terials furnished, with the right to remove it from the lots. It is argued that, since in this state a mortgage is a lien, and not a conveyance with a defeasance, the mortgagors had the right to construct on the lots additional buildings which were not in contemplation of the parties when the mortgage was given, and to make a contract with third persons giving a lien on the building with the right of removal, since this can be done without injury to the land. It may be assumed, without so deciding, that had there been any such contract with the appellants, made by the mortgagors with the knowledge and acquiescence of the mortgagees, the asserted right of lien and removal would exist. Such, however, is not the case before us.

As a general rule, structures of a permanent character erected on land by the owner in fee simple are presumed to be built for the purpose of improving the land and to become a part of the realty, in the absence of evidence of a contemporaneous contrary intention.

“Buildings, unless of a very light construction, and fences, are usually regarded as placed on the land for its permanent improvement, and so to be considered as a part thereof.” 1 Tiffany, Modern Law of Real Property, p. 541, § 234.
“Prima facie, all buildings, and especially dwelling houses, •belong to the owner of the land on which they stand as part of the realty; and the burden of proof is upon those who claim that they are personal property to show that they retain that character.” Ewell, Fixtures (2d ed.), p. 102.

See, also, Lipsky v. Borgmann, 52 Wis. 256, 9 N. W. 158, 38 Am. Rep. 735; Indianapolis, D. & W. R. Co. v. First Nat. Bank of Indianapolis, 134 Ind. 127, 33 N. E. 679; Doscher v. Blackiston, 7 Ore. 143; Chatterton v. Saul, 16 Ill. 149.

When buildings are placed by the absolute owner of land on which they rest, their quality of removability without injury to the freehold is not usually a factor of controlling importance as between mortgagor and mortgagee, Rowland v. Sworts, 17 N. Y. Supp. 399, though it may be as between landlord and tenant or licensor and licensee.

[338]*338“Fully as much importance is attached to the relation of the party making the annexation, to the land and the permanency and habitual character of the annexation, as is paid to the manner or form of the fastening. When the absolute owner of land, for the better use of his land, erects property upon, or attaches it to the freehold, it will go to his heir, or pass by deed, to his grantee, and the same general rule applies between mortgagor and mortgagee, but as between landlord and tenant and licensor and licensee, this rule is relaxed, with a view to the encouragement of mechanical and agricultural pursuits.” Tiedeman, Real Property (3d ed.), p. 23, § 17.

Though the rule has become much relaxed as between landlord and tenant, especially as to the things affixed for the purposes of trade, manufacture or agriculture, the same strict rule which applies as between heirs and executors applies as between vendor and vendee, and mortgagor and mortgagee, unless excepted in express terms from the conveyance or mortgage. Sands v. Pfeiffer, 10 Cal. 258. This is true though the additions were made after the mortgage was executed.

“The rule is familiar, that all improvements placed on real estate by the owner when it is incumbered, inures to the security or benefit of the holder of the incumbrance. They can not be separated, when they savor of the realty, from the land, nor can their value be claimed as against the lien, but are held to be subject to it.” Baird v. Jackson, 98 Ill. 78.

See, also, Wood v. Whelen, 93 Ill. 153; Woodham, v. First Nat. Bank of Crookston, 48 Minn. 67, 50 N. W. 1015, 31 Am. St. 622; Leland v. Gassett, 17 Vt. 403.

It seems to us illogical to assume that this rule is relaxed by reason of the fact that a mortgage in this state is a lien and not a conveyance with a defeasance. It is a lien upon the real estate. Things becoming in law a part of the real estate are, therefore, essentially subject to the lien of the mortgage.

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Bluebook (online)
153 P. 15, 88 Wash. 334, 1915 Wash. LEXIS 1123, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cutler-v-keller-wash-1915.