Fischer Lime & Cement Co. v. Kaucher

51 S.W.2d 492, 164 Tenn. 657, 11 Smith & H. 657, 1931 Tenn. LEXIS 66
CourtTennessee Supreme Court
DecidedJuly 2, 1932
StatusPublished
Cited by4 cases

This text of 51 S.W.2d 492 (Fischer Lime & Cement Co. v. Kaucher) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fischer Lime & Cement Co. v. Kaucher, 51 S.W.2d 492, 164 Tenn. 657, 11 Smith & H. 657, 1931 Tenn. LEXIS 66 (Tenn. 1932).

Opinion

*659 MR. Chief Justice Green

delivered the opinion of the Court.

This is a suit to enforce a mechanic’s lien, which was dismissed by the chancellor. The Court of Appeals reversed the chancellor’s decree, holding that the complainant was entitled to a lien but that its claim should be reduced by certain credits. Both sides were dissatisfied with the decree of the Court of Appeals and filed petitions for certiorari. Both petitions have been granted and the cause argued here.

The Tri-State Compress & Warehouse Company, a Tennessee corporation, contracted with Kaucher for the erection of a compress and warehouse. He did not pay for material furnished by complainant. During the progress of the building, other parties acquired an interest in the property and a new corporation was formed, known as the Tri-State Compress Company, the stock of the new company being divided between the original interests and the new interests. A conveyance of the property by the old corporation to the new corporation was regularly executed and duly placed of record. This conveyance was made subject to an underlying mortgage. The mortgage, however, need not be further noticed, since the trustees thereof were made parties hereto, and the effort of complainant is to reach only the equity in the property.

The complainant made the old corporation a party to its bill. Later, when it learned of the conveyance by the old corporation to the new corporation, its bill was •amended so as to bring in the new corporation — the new corporation owning the property at the time of suit and at the time of notice of the claim of lien.

*660 The new corporation filed a plea to the amended bill setting out that notice of the claim of lien was not served on it as. required by statute and that more than ninety days had elapsed after the service of notice on the old corporation before the new corporation was made a party to the suit. The chancellor, as said before, sustained this plea and dismissed the bill insofar as it sought to enforce a lien upon the property.

It will be remembered that section 3531, Thompson’s-Shannon’s Code, provides for a lien upon land upon which a house has been constructed, etc., or improvements made, by special contract with the owner or his agent in favor of the mechanic or undertaker who does the work or furnishes the materials.

Section 3539, Thompson’s-'Shannon’s Code, provides that this lien shall continue for one year after the work is finished or materials are furnished and until the decision of any suit that may be brought within that time for the debt due the mechanic or undertaker, and that said lien shall bind the land although the owner may convey or otherwise dispose of the same.

Section 3540', Thompson’s-Shannon’s Code, provides that every journeyman or other person employed by such mechanic to work on the buildings or to furnish materials shall have this lien for his work or material, if, within thirty days after the building is completed, or the contract of such mechanic or furnisher shall expire, he shall notify in writing the owner of the property that said lien is claimed, and that said lien shall continue for the space of ninety days from the date of said notice.

We will hereafter refer to the lien created by section. 3531 as the Contractor’s' lien and the lien created by section 3540' as the subcontractor’s lien.

*661 Upon the formation of the new corporation some officers of the old corporation were elected to corresponding positions in the new corporation. Complainant’s notice of claim of lien was served on these officers. Both the lower courts were of opinion that since those so served with this notice were in official position with the new corporation, the notice to the new corporation was sufficient. This ruling is not very seriously questioned and we may pass it as proper.

The real question is whether a subcontractor's lien can be enforced upon property, the owner of which is not a party to the suit. If the new corporation was a necessary party to this suit, the suit was barred by the ninety days ’ limitation. If the new corporation was not a necessary party, the decree of the Court of Appeals was correct. That court sustained its conclusion by reference to previous decisions of this court, which we consider.

In Foust v. Wilson, 22 Tenn. (3 Humph.), 31, in a suit to enforce the general contractor’s lien, it was said that the vendee of the contracting owner, the land having been sold prior to the suit, was not a necessary party to such a suit. The vendee was, however, a party to that suit and this expression was a pure dictum.

In Weller & Bell v. McNabb, 36 Tenn. (4 Sneed), 422, a similar case, the vendee of the contracting owner was likewise a party, and there was no expression as to the necessity of his joinder.

Green v. Williams, 92 Tenn., 220, was a suit to enforce a subcontractor’s lien. Likewise in this case the vendee and the contracting owner were both made parties. In ' the course of the opinion the court referred to and quoted Blauvelt v. Woodworth, 31 N. Y., 285, in which case it was held that under the New York statute the vendee was *662 not a necessary party to such a suit. Of course no such, ruling was required in Green v. Williams.

In Burr v. Graves, 72 Tenn. (4 Lea), 522, the owner of a cotton compress, indebted to a general contractor for its erection, mortgaged the property. There was a default upon the mortgaged indebtedness and the mortgagees sold the property. Still within the year, the contractor brought suit to enforce his mechanic’s lien and, under that suit, the property was sold as the property of the original owner. The purchaser at the mortgage sale was not made a party. The purchaser at the mechanic’s lien sale thereafter brought suit to remove as a cloud upon the title the claim of the purchaser under the mortgage sale and this suit was sustained. The court assumed that the purchaser at the lien sale took title superior to the purchaser at the mortgage sale, although the latter was not named as a party to the lien suit. This point seems not to have been raised and was not discussed.

From the foregoing it is obvious that in no considered case has this court definitely decided that the vendee of the contracting owner, a conveyance of the property having been made prior to suit, is not a necessary party to a suit to enforce the lien of the general contractor.

The analogy of those cases in which suit has been brought to enforce a vendor’s lien or to foreclose a mortgage, where the vendee or mortgagor has sold, is relied on in this connection. These cases are all reviewed in Steele v. Satterfield,

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Bluebook (online)
51 S.W.2d 492, 164 Tenn. 657, 11 Smith & H. 657, 1931 Tenn. LEXIS 66, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fischer-lime-cement-co-v-kaucher-tenn-1932.