Davis v. Ravenna Creamery Co.

67 N.W. 436, 48 Neb. 471, 1896 Neb. LEXIS 76
CourtNebraska Supreme Court
DecidedMay 19, 1896
DocketNo. 6486
StatusPublished
Cited by5 cases

This text of 67 N.W. 436 (Davis v. Ravenna Creamery Co.) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Davis v. Ravenna Creamery Co., 67 N.W. 436, 48 Neb. 471, 1896 Neb. LEXIS 76 (Neb. 1896).

Opinion

Norval, J.

This is an action by Daniel J. Davis and T. J. Rankin, a firm doing business under the name and style of Davis & Rankin, against the Ravenna Creamery Company and Erastus Smith and forty-four other subscribers to the stock of said company, to foreclose a mechanic’s lien. There was a decree for the defendants, and plaintiffs appeal.

It. appears from the record that on the 24th day of August, 1889, Davis & Rankin entered into a written [472]*472agreement with the individual defendants to erect and equip a butter and cheese factory at Ravenna according to certain specifications. The following is a copy of the contract, excepting the parts not material to-the present inquiry:

“We, Davis & Rankin, parties of the first part, hereby agree with the undersigned subscribers hereto, parties of the second part, to build, erect, complete, and equip for said parties for the second part a combined butter and cheese factory, at or near Ravenna, Nebraska, as follows, to-wit: * * * Said building shall be constructed and finished in substantial accordance with the specifications herein, in a thorough and workmanlike manner, the engine, boiler, and all the machinery and fixtures shall be properly set up, and shall be in good running order before the parties of the second part shall be required to pay for said factory.

“The parties of the second part hereby agree to furnish, at their own expense, suitable land for said building, together with sufficient water on said lot, for the use of said building, and they shall be credited therefor, as payment on said contract, the sum of $300; and it is further understood that in case the said second party shall fail to furnish said land and water within ten days after the execution of this contract, then said Davis & Rankin, at their option, may furnish said land and water. * * *

“Said Davis •& Rankin agree to erect said butter and cheese factory as set forth by the above specifications,, for the sum of sixty-eight hundred and fifty dollars ($6,850), payable half cash when completed, balance in four months from time the creamery is completed, by giving secured notes at the rate of ten per cent per annum. And it is hereby understood that subscribers are liable only for amount and number of shares signed by them, shares to be for one hundred and fifty dollars each.

“We, the subscribers, agree to pay the above amount [473]*473for said butter and cheese factory when completed, payment as above, and we, the said subscribers, agree to accept the same as soon as completed according to said specifications. Said building to be completed within ninety days, or thereabout, after the above amount, $6,850, is subscribed.

“As soon as the above amount of $6,850. is subscribed, or in a reasonable time thereafter, the said subscribers agree to incorporate under the laws of the state, as therein provided, fixing the aggregate amount of stock at not less than $6,850, to be divided into shares of $150' each. Said share or shares as above stated to be issued to the subscribers hereto in proportion to their paid up interest herein.

“It is hereby understood that Davis & Rankin will not be responsible for any pledges or promises made by their agents or representatives that do not appear in this contract, and a part thereof, either in print or writing.

“Por a faithful performance of our respective parts of the above contract, we bind ourselves, our heirs, executors, administrators, and assigns.

“Executed and dated this 24th day of August, 1889.”

The contract was executed by the plaintiffs, represented by a duly authorized agent, and was also signed by each of the individual defendants in the following-form:

Name of No. of Amount of Stock

Subscriber. Shares. after Incorporation.

Erastus Smith . 3 $450

C. E. Davis . 1 150

The signature of Mr. Davis is followed by the names of forty-three others, making the aggregate amount of subscriptions $6,850. The factory was constructed and equipped by the plaintiffs in accordance with the terms of the contract upon the lot furnished by the subscribers to the scheme, and plaintiffs have collected, in cash and notes from various subscribers, $5,552.76, leaving $997.24 of the contract price, with interest, unpaid and unse[474]*474cured, after deducting $300 for tbe value of tbe site. For tbis balance, plaintiffs filed, within tbe statutory period, a statement claiming a mechanic’s lien. Which of tbe subscribers have failed to pay or secure their subscriptions tbe petition does not allege. It also appears that shortly after tbe execution of tbe contract, and in pursuance of its provisions, tbe Ravenna Creamery Company was incorporated by tbe subscribers, and said company has ever since been in possession of, and operated, tbe plant, as owner. Upon tbe trial tbe district court made findings that tbe contract created a several liability on tbe part of each subscriber to the amount of bis individual subscription only, and that plaintiffs have no ■lien on tbe factory for the balance due them for its erection.

Tbis case binges upon tbe construction to be placed upon tbe contract above set out. If a joint and several obligation is imposed upon tbe subscribers to pay tbe whole contract price, then tbe decree of tbe lower court cannot stand. On tbe other band, if their undertaking was several only, binding them to pay tbe amount set opposite their respective names, which sum varies from $75 to $450, tbe plaintiffs are not entitled to a lien. Tbe contract is partially printed and a portion in writing. Tbe first sentence thereof is printed, and reads that “We, Davis & Rankin, parties of tbe first part, hereby agree with tbe undersigned subscribers hereto, parties of the second part,” etc. There are tbe following printed clauses in tbe agreement: “The parties of tbe second part hereby agree to furnish, at their own expense, suitable lands for said building,” etc., and “We, tbe subscribers, agree to pay tbe above amount for said butter and cheese factory when completed, payment as above, an,d we, tbe said subscribers, agree to accept tbe same as soon as completed according to said specifications.” If these clauses were construed by themselves, without regard to other provisions relating to tbe character of tbe obligation assumed by tbe several subscribers, we would [475]*475not hesitate to say that their undertaking was a joint one, binding them to pay the full sum of $6,800; but there is another stipulation, which was written into the printed form used in preparing the agreement, which must not be overlooked in determining the purport of the contract. It declares that “it is hereby understood that subscribers are liable only for the amount and number of shares signed by them, shares to be for one hundred and fifty dollars each.” This, taken in connection with the manner in which the contract was signed by the individual defendants, and the provision relating to the incorporation, shows that it was not the intention that each should alone be liable for the subscriptions of •all, blit rather that each person signing agreed to pay the sum subscribed by himself, and no more. Manifestly this was the intention of all the parties to the agreement, and was so understood by them at the time. This must have been the construction placed upon the contract by plaintiff’s agent, D. P. Gibbons, who was sent by them to Ravenna to make settlement after the factory was completed.

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Bluebook (online)
67 N.W. 436, 48 Neb. 471, 1896 Neb. LEXIS 76, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davis-v-ravenna-creamery-co-neb-1896.