Edwards v. Elliott

36 N.J.L. 449
CourtSupreme Court of New Jersey
DecidedJune 15, 1872
StatusPublished

This text of 36 N.J.L. 449 (Edwards v. Elliott) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Edwards v. Elliott, 36 N.J.L. 449 (N.J. 1872).

Opinion

The opinion of the court was delivered by

Scudder, J.

Upon the special verdict rendered in this-cause, the Supreme Court has adjudged, as appears by the record returned, that the act entitled, “An act for the collection of demands against ships, steamboats, and other vessels,” approved March 30th, 1857, is valid and constitutional, and that Nathaniel Ellis and Henry Jeroleman, the builders of said vessel, were the owners thereof, and competent to-charge it with liens, and that the respective claims of the plaintiffs were subsisting liens under the laws of the State of New Jersey, on the said vessel at the time of exhibiting the-same, and that the accounts claimed by the plaintiffs were due [451]*451in tins suit. Errors are assigned upon the several points of the judgment.

I will consider first the construction of the statute in its application to the facts in this case as they appear on the record, assuming its validity; and next the validity or constitutionality of the act, so far as it affects this action.

The suit is upon the bond given by the defendants to the plaintiffs below, to discharge the vessel from the seizure of the sheriff. This bond is compulsory, in invitum put upon them by the statute before they can take their property from the custody of the law. They should not therefore be shut out from any defence which they have to the merits, and which they have pleaded and presented to the court with proper diligence, and without waiver.

The condition of the bond is, that the obligors shall pay the amount of all such claims and demands as shall have been exhibited to said commissioner, which shall be established to be subsisting liens upon said vessel, pursuant to the provisions of said act, at the time of exhibiting the same respectively. There can be no subsisting lien, if the provisions of the act have not been met, or if the act itself is a nullity. These particulars must be established by the plaintiffs, when challenged and* denied in proper legal form by the defendants, and this defence is open to them by the very terms of the condition of the bond.

1. Are these claims subsisting liens under the statute, assuming its validity ?

It is insisted in opposition, that the two several debts in the declaration mentioned were not contracted by any master, owner, agent, or consignee of said schooner. The timber was bought for the vessel by Jeroleman, who was the contractor and builder. It is said he was only the builder, not the master, owner, agent or consignee.

The vessel, when seized by the sheriff, was on the stocks, in the possession of Jeroleman, to be built and finished under his contract with Edwards and others, above stated. The work was all done, and the materials furnished by him. It [452]*452was not completed, not delivered, and the title remained in the Builder, unless there is some special condition in the cop-tract which alters the general principle of law. See the cases cited in the opinion delivered in the Supreme Court, especially West Jersey R. R. Co. v. Trenton Car Works, 3 Vroom 517, decided in this court June Term, 1866, holding, that in the case of an executory contract for the sale of an article not in existence, but to be manufactured, even when the contract price is paid in advance, no title passes until the thing is completely finished, and is either delivered to the orderer or is appropriated to his benefit, or set apart for him, or is accepted by him.

It is claimed that there has been a delivery, appropriation and acceptance under the terms of the contract. The only part of the contract that can have this effect is the express provision, that from time to time, as the several instalments were paid by the parties for whom the vessel was built, and upon the payment of each instalment, the said schooner, so far as then constructed, and the materials therein inserted, shall be and become the property of the said parties of the second part.

This is an agreement, that on payment of the first instalment, and of each succeeding instalment, the general property, in so much of the vessel as is then constructed, shall vest in the purchasers. It is not necessary, therefore, to do more than again refer to the authorities cited in the opinion of the Supreme Court, upon the effect of a stipulation in an executory contract to pay certain instalments as the work progresses. A summary and. review of all the important cases upon this point will be found in the brief of counsel, and in the opinion of Justice Denio, in Andrews v. Durant, 1 Kern. 35. This last case denies the authority of Woods v. Russell, 5 Barn. & Ald. 942, and Clarke v. Spence, 4 Ad. & El. 448, which have often been doubted, explained and modified, and returns to the principles held in the earlier English cases, and in Laidler v. Burlinson, 2 Mees. & Wel. 602, that the general rule is, that under the contract for [453]*453the building of a vessel or other thing, no property vests in the person for whom it is agreed to be built, until it is so finished and delivered. This case also holds that the rule is the same where certain portions of the contract price arc agreed to be paid, and are paid by the builder at specified stages of the work; and when an agent of the person for whom the article is to be constructed is appointed, and actu • ally does superintend and approve the materials and work. Thus covering the points wherein Woods v. Russell and Clark v. Spence are distinguished from the general rule.

In the present case, our Supreme Court has decided that an executory contract to build a vessel, to be paid for in instalments as the work progresses, the title remains in the builder until'the work is completed and delivered. The rule is accurately expressed, and is supported by the weight of authority.

But in this contract we have something different; the express stipulation that the property shall pass as the several instalments are paid, and' it is contended that upon tire payment of an instalment, the builder ceased to be the owner, and the person who furnished materials to the builder could have no lien.

The true construction of such contract, and its effect in depriving a party of a lien, can be determined when the question arises. Here, there is no proof that any instalment was paid before all the materials were furnished and the vessel seized by the sheriff.

The only finding of the jury in their special verdict upon this point is, “ that the original contract price for constructing said vessel would have been about $21,000, but said Jerolemari was paid in excess of said price about $1500. There is no time given and no fact stated upon which an appropriation of payment could be founded. The builder was therefore, in law, still the owner of the vessel, and the debts contracted by him became liens on the vessel, under the statute.

The burden of proof was on the defendants to show tVeir payments and the change of title, if there were any.

The next point of exception is, that this act was not in[454]*454tended to apply to vessels on stocks, newly and primarily built.

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Cite This Page — Counsel Stack

Bluebook (online)
36 N.J.L. 449, Counsel Stack Legal Research, https://law.counselstack.com/opinion/edwards-v-elliott-nj-1872.