Edward Hines Lumber Co. v. Great Lakes Chemical Works, Inc.

237 Ill. App. 246, 1925 Ill. App. LEXIS 167
Appellate Court of Illinois·Decided March 27, 1925·No. Gen. No. 7,338·Published·Cited by 2 cases

Opinion

Mr. Presiding Justice Jett

delivered the opinion of the court.

This is a proceeding to establish mechanics’ liens against certain real estate in Lake county, of which appellants Adolph F. Hottinger and Sherman Taylor were owners, for labor and materials furnished between June and December, 1920, by Edward Hines Lumber Company, appellee, and four other lien claimants also appellees herein, upon orders or contracts made by lien claimants with Great Lakes Chemical Works, Inc., or with Bennett & Davis, Inc., or with both.

The lands mentioned in the bill of complaint and on which the improvements in question were made by the respective lien claimants are described as follows: As that part of the southeast quarter of the northwest quarter of Section 27, Township 43 north, Range 12 east, of the 3rd Principal Meridian, lying west of highway and also of right of way of Chicago Northern Bailway Company, in Lake county.

It appears that each of the appellees filed a verified statement of claim and a lien with the clerk of the circuit court of Lake county, giving a correct description of the premises together with a brief statement of the contract, and showing the balance due, within four months after completion of their contracts.

It further appears that all of appellees herein brought suit or filed intervening petitions to enforce their liens within two years after the completion of their contracts. The appellee Paul Borchardt filed an amended petition, before the master made his report, by leave of court and without objection from appellants, to make the allegations in the amended petition conform to the proof as made.

Hottinger and Taylor, appellants, on May 10, 1920, entered into a contract with David A. Bennett for the sale of the premises in question upon future payments and contract for a deed.

Under the terms of the contract Bennett was to be let into possession upon payment of $5000 and was given a right to make “such statable changes, improvements and alterations as may be necessary to adapt the premises to the chemical and dye business in which he and his associates are about to engage”; and by clause 6 of said contract it was provided that Bennett and his associates “contemplate the organization of a corporation under the laws of the State of Illinois to engage in the manufacture of dyes and other chemical products upon the said premises and that upon complete organization thereof, this instrument and all the rights of the second party hereunder are to be transferred and assigned to said corporation. Parties of the first part agree said assignment may be made and that this instrument shall be as valid and binding in the hands of the assignee as before such assignment.”

The corporation contemplated by the said contract was organized under the laws of the State of Illinois as the Great Lakes Chemical Works, Incorporated, June 2, 1920. The said David A. Bennett was one of the organizers and directors and also president of the said company. Bennett was a subscriber for a large amount of the capital stock. He paid for his stock, in part, by assigning over to the corporation all his right, title and interest in the contract hereinbefore mentioned with Hottinger & Taylor.

The contract was presented by Bennett to the directors of the Great Lakes Chemical Works at their first meeting and accepted by them.

After the organization of the Great Lakes Chemical Works, Inc., the appellees and each of them entered into their several contracts, either with the Great Lakes Chemical Works or with Bennett & Davis, or with both. The said David A. Bennett was president and one of the directors of Bennett & Davis, Inc. The Great Lakes Chemical Works, Inc., and Bennett & Davis, Inc., both became bankrupts in December, 1920.

The evidence establishes the fact that Bennett paid the $5,000 to Hottinger and Taylor, and he was let into possession after the execution of said contract on May 10, 1920, and started the work of remodeling; that after the organization of the Great Lakes Chemical Works on June 2, 1920, the work of making the necessary changes, alterations and repairs to convert the premises into a suitable plant for manufacturing dyes and chemicals was done by the Great Lakes Chemical Works; that the work was done under Bennett’s direction; that the said premises had been used for a brickyard and that the improvements, alterations and repairs which were made were necessary to make them suitable for the dye and chemical business.

It is undisputed that the materials for which the several contracts were made were delivered to the Great Lakes Chemical Works upon the premises in question and were used thereon in making the necessary alterations and repairs; nor is it disputed that the said amounts as found by the decree are due and owing to the several appellees for material.

The evidence discloses that the appellant Taylor was in the City of Highland Park two or three times each week during the time the repairs were being made; that he heard complaints of the Great Lakes Chemical Works being a nuisance and knew of bad odors; he knew that some changes would have to be made to enable the company to manufacture dyes.

The court by its decree found that by virtue of the terms of the contract the appellants had as owners given to the said David A. Bennett, and to all parties in possession of said premises by, through or under him, the authority to make contracts for labor and materials to improve the premises in question and thereby to bind the interests of said owners in the real estate for the payment of all claims arising thereunder.

The court also sustained a supplemental finding of the master upon a re-reference to him that certain tanks which had been manufactured by lien claimant Bosner were intended by the parties to become part of the real estate, and establish a lien against the premises for the payment for the contract price of the tanks.

It is the contention of appellants that the decree is erroneous, and that there are fatal variances between the respective pleadings and proofs that were adduced to support the liens.

From the decree of the circuit court appellants prosecute this appeal.

It is insisted by appellants that by reason of the terms of the contract and under the showing made in the record by the respective hen claimants no right to hens was estabhshed.

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Edward Hines Lumber Co. v. Great Lakes Chemical Works, Inc., 237 Ill. App. 246, 1925 Ill. App. LEXIS 167 (Ill. Ct. App. 1925).

237 Ill. App. 246 (Edward Hines Lumber Co. v. Great Lakes Chemical Works, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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