Deming-Colborn Lumber Co. v. Union National Savings & Loan Ass'n

51 N.E. 936, 151 Ind. 463, 1898 Ind. LEXIS 120
CourtIndiana Supreme Court
DecidedNovember 22, 1898
DocketNo. 17,959
StatusPublished
Cited by16 cases

This text of 51 N.E. 936 (Deming-Colborn Lumber Co. v. Union National Savings & Loan Ass'n) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Deming-Colborn Lumber Co. v. Union National Savings & Loan Ass'n, 51 N.E. 936, 151 Ind. 463, 1898 Ind. LEXIS 120 (Ind. 1898).

Opinion

Howard^ J.

The appellee brought this action against the appellants for the foreclosure of a mortgage dated March 31, 1893, and made a lien upon certain real estate in the city of Hammond, described in the complaint. Among the allegations of the complaint are the following: “The said plaintiff further avers that the defendant the Deming-Colborn Lumber Company 'claims to have furnished lumber and materials for the erection of a dwelling house or other building upon said premises in the year 1893, and to have filed a notice of its intention to hold a mechanic’s lien upon said real estate, in the recorder’s office of Lake county, Indiana, on the 22nd day of June, 1893, and claims to have foreclosed its mechanic’s lien by suit in the Labe Circuit Court, and obtained a decree for the sale of said real estate, and by virtue thereof said real estate was duly advertised and sold under such decree, and said Deming-Colborn Lumber Company purchased the same at such sale; but the plaintiff avers that said lien was not filed according to law, and the same does not describe the above described property, or any other property, and as to it the said pretended mechanic’s lien is of no force or validity whatever; that it was filed and recorded more than one year previous to this date, and that the plaintiff was not a party to said foreclosure proceeding in 'favor of the said the Deming-Colborn Lumber Company, and no attempt has been made to enforce said pretended lien against this plaintiff, and that as to this plaintiff the said pretended lien stands as if it had never been foreclosed, and the time permitted for the foreclosure of the same has expired, and said lien is barred against this plaintiff.” The appellant lumber company filed its motion to make the complaint more specific, in this: “That whereas it seeks to have its mortgage declared [465]*465a prior lien to the judgment of the defendant lumber company, and whereas the said defendant lumber company’s judgment is obtained by the foreclosure of its mechanic’s lien, that it set up in the complaint the time and dates upon which said defendant lumber company furnished said materials,” etc. This motion was overruled, as was also the lumber company’s demurrer to the complaint. The lumber company then filed its answer, being a general denial, which was afterwards withdrawn, and*also a special paragraph. In the special paragraph of answer it is. admitted that the company obtained a decree of foreclosure of its mechanic’s lien on February 9, 1894, together with an order of sale of the property described in the complaint. It is further averred “that the said lumber company began to furnish materials to be used in the erection and construction of a certain frame building, and which materials were used in the erection and construction of said building upon the land as described in its notice of lien; that on the 17th day of February, 1893, such lien was foreclosed on the same land .as described in plaintiff’s mortgage, which mortgage was not recorded until March, 1893; that the said lumber company continued so to furnish such materials under contract * * * continuously up until the 24th day of June, 1893, and within sixty days after the furnishing of the said last materials, and on the 26th day of July, 1893, it filed its notice of its intention to hold a lien against the said described real estate, the same as set forth in plaintiff’s complaint herein, and within one year thereafter brought its suit to foreclose said lien, and obtained a judgment foreclosing its said lien, and an order of sale to sell the said described realty to satisfy the said judgment.” To this answer a de[466]*466murrer was sustained, and, the lumber company refusing to plead further, judgment of foreclosure was entered in favor of appellee. There can be no doubt that the facts pleaded in the answer show that the appellant’s lien, which related back to the date of furnishing the first material, February 17, 1893, was prior to the lien of appellee’s mortgage, which latter was not recorded until April 4, 1893. As said in Fleming v. Bumgarner, 29 Ind. 424, “The lien of the mechanic or material man relates to the time when the work commenced, or the materials began to be furnished, as to subsequent conveyances as well as to other liens.” Indeed, we do not understand that the learned counsel for appellee deny the priority of appellant’s lien. They simply contend that they may foreclose their mortgage and sell the property without regard to appellant’s lien or the foreclosure and sale thereunder; and this for the reason that appellee was not made a party to the proceedings for the foreclosure of appellant’s mechanic’s lien. The right to a mechanic’s lien and the procedure for its enforcement are purely statutory. As said in Goodbub v. Estate of Hornung, 127 Ind. 181, “In so far as a right to a mechanic’s lien in a given case is concerned, we must look only to the statute in force when the material or machinery is furnished or the labor is done;” and “such rights are to be established and enforced by the law existing at the bringing of the suit.” Even if the land were already mortgaged at the time the mechanic’s lien attached, that would not affect such lien, so far as the then interest of the owner might be concerned. As provided in section 7256, Burns’ R. ¡3.1894, “the lien, so far as concerns the buildings erected by said lien holder, is not impaired by * * * foreclosure of mortgage; but the same may be sold to satisfy the lien and removed within ninety [467]*467days after the sale by the purchaser.” See Carriger v. Mackey, 15 Ind. App. 392. Moreover, even if the mortgage in suit were prior in time to appellant’s lien (which it was not), we might yet say (following Farmers, etc., Co. v. Canada, etc., R. W. Co., 127 Ind. 250, in its citation from Brooks v. Railway Co., 101 U. S. 443), that the appellee knew that the structure here in question was yet to be built, and that, while such building would add to the value of appellee’s security, the law gave to the men whose labor and money built it a lien superior to that of the mortgage. One cannot shut his eyes to the condition and character of property upon which he is about to take a mortgage. So it was held in Jenckes v. Jenckes, 145 Ind. 624, citing Warren v. Sohn, 112 Ind. 213, that, when a person acquires a mortgage lien upon property, he acquires it “with knowledge of the uses and purposes to which such property was applied by its owner, and with notice that under the statute the mortgaged property was liable to be subjected to after-acquired liens for labor and material.”

So far as to mortgages made prior to the attaching of a mechanic’s lien. The mortgage here considered was, however, given after the attaching of the mechanic’s lien, and is therefore a junior incumbrance. But it is not absolutely necessary to the validity of a foreclosure proceeding that either senior or junior incumbrancers should be made parties. At most, it is to be said that the rights of those not made parties are not affected. If such rights are not thereby diminished, neither are they increased, and we are to look to the law in each case to see what such rights are. If we should treat appellant’s mechanic’s lien and appellee’s junior mortgage lien as having to each other simply the relation of two mortgages, as appellee would seem to argue they ought to be treated, then, [468]*468as we have seen, the rights of appellee, as holder of the junior lien, were, at most, not affected by appellant’s foreclosure.

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Bluebook (online)
51 N.E. 936, 151 Ind. 463, 1898 Ind. LEXIS 120, Counsel Stack Legal Research, https://law.counselstack.com/opinion/deming-colborn-lumber-co-v-union-national-savings-loan-assn-ind-1898.