Grunbaum Bros. Furniture Co. v. Humphrey Investment Corp.

251 P. 567, 141 Wash. 329, 1926 Wash. LEXIS 824
CourtWashington Supreme Court
DecidedDecember 20, 1926
DocketNo. 20024. Department One.
StatusPublished
Cited by6 cases

This text of 251 P. 567 (Grunbaum Bros. Furniture Co. v. Humphrey Investment Corp.) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grunbaum Bros. Furniture Co. v. Humphrey Investment Corp., 251 P. 567, 141 Wash. 329, 1926 Wash. LEXIS 824 (Wash. 1926).

Opinion

Holcomb, J.

? findings made by the trial court, so far as material and necessary to a determination of this matter, may be summarized and in part quoted as follows:

*330 On about April 5, 1923, respondent Humphrey Investment Corporation entered, into a written contract with the Great Northern Construction' Company, a corporation, for the erection of an apartment house upon lots owned by the investment corporation, now known as the Humphrey Apartments, and operated by respondent Smart under that business name. The lessee’s predecessor under the lease took possession of the apartments January 1, 1924, and remained therein until April 30, 1924, when she sold, assigned and transferred her lease to Smart, who is in possession of the building thereunder. The apartment building consists of seventy-five apartments, seventy of which are occupied by sub-tenants of Smart. The chattels in question, consisting of linoleum and carpets, were laid in the halls of the building, and linoleum in each of the seventy-five apartments, as provided for.in the specifications. Before this suit was begun, appellant made demand upon respondent for the return of the chattels.

By the terms of the contract, the Great Northern Construction Company agreed to furnish the material and labor for the construction of the apartment house and. pay for the same. Respondent Humphrey Investment. Corporation agreed to pay $205,000 for the construction and delivery of the complete apartment house. The contract also provided that the owner of the property should execute two certain mortgages upon the. property, one, a first mortgage, in the sum of $140,000, to W. P. Harper & Son, and oné for the balance of $53,000, to M. Ross Downs, as trustee. The first mortgage was executed on about April 20, 1923, and duly filed for record on that day. The second mortgage to-the trastee was executed on about January 11, 1924, and duly filed for record on that day. Neither of the- *331 mortgages has been satisfied or paid, and the court found that they were first and second mortgage liens on the property and the whole thereof. Neither Harper & Son, nor Downs, as trustee, were made parties defendant to the action.

The specifications for the building, which were part of the contract between the investment corporation and the construction company, provided for the placing of linoleum and carpets on certain of the floors and halls of the apartment building, the details of which are not necessary to set out in this statement.

Under the terms of the first and second mortgages, the linoleum and carpets and all other property became subject to the mortgage liens upon being delivered to, and placed in, the building.

Late in September, 1923, the construction company purchased from appellant 668 1/3 square yards of 3/16" brown Battleship linoleum, paying therefor at the rate of two dollars per square yard. This linoleum was purchased on open account by the construction company, and on October 24,1923, appellant billed the linoleum to the Great Northern Construction Company. In addition to the linoleum, appellant and the construction company, at the time the linoleum was purchased, agreed that appellant should cement the linoleum to the floors of the building at an agreed price. That work was done by appellant, and the bill therefor made to the Great Northern Construction Company on October 27, 1923.

On about November 21, 1923, the construction company purchased from appellant a large quantity of Wilton carpets at an agreed price, and a certain quan- . tity of felt paper, and the labor necessary to be done in filling channels with felt.

This carpet was sold under a conditional sales con *332 tract, which reserved title in the vendor until the purchase price was paid in full. At the time of entering into the agreement for the sale of the carpet, appellant and the Great Northern Construction Company entered into an agreement to include, and did include, in the conditional sales contract, the linoleum which had theretofore been sold and delivered. The linoleum was delivered to the apartments, cemented to the floors as provided in the specifications, during the latter part of October, and all delivered and installed complete on or before December 3, 1923, the final delivery being on that day. The carpets were delivered in rolls to the apartment by appellant on or about January 1, 1924, and were completely laid on or before January 9,1924.

On November 21,1923, a memorandum of conditional sales, in which appellant was vendor and the Great Northern Construction Company, a corporation, was vendee, was duly executed by both parties thereto1, and thereafter, on January 11, 1924, the instrument was filed for record in the office of the auditor of King county, and since that time has remained of record. -

This memorandum of conditional sales, so far as necessary to be set out here, is as follows:

“ Conditional Sale
“This Agreement Witnesseth: That the Grunbaum Bros. Furniture Co. Inc., of Seattle, King-County, Washington, party' of the first part, has this day delivered to Great Northern Const. Co., resident No. 617-18 Alaska Building, Seattle, King County, Washington, party of the second part, the following described personal property, to wit: [here follows a description of linoleum, carpets, felt paper and labor putting in felt paper] — for which the party of the second part agrees to pay at the office of the party of the first part the following sums, to wit: $3,595.24, to be paid in installments as follows: $800.00 cash; *333 $232.94 to be paid on tbe lOtb of each succeeding month ■ beginning Dec. 10, 1923. ....
“In Witness Whereof the parties hereto have hereunto set their hands this 21st day of November, A. D. 1923.
(Signed) “Grunbaum Bros. Furniture Co. Inc., “By M. L. Grunbaum.
“ Great Northern Const. Co.,
“By A. Gerbel, Secy.”

Respondent Humphrey Investment Corporation had no actual notice of the conditional sales contract for linoleum and carpets, and no constructive notice except that given by the filing of the conditional sales contract in the office of the auditor of King county, on January 11, 1924, but knew the contractor was buying the linoleum and carpets from appellant.

On or about February 7, 1924, the investment corporation completed the payment for the building by delivering to Downs, Trustee, the $53,000 of second mortgage bonds on the property, secured by the mortgage above mentioned, and by the payment thereof the investment corporation became and was the subsequent purchaser of the property involved in this action, without notice actual or constructive, of the conditional sales contract.

The conditional sales contract was made by appellant with the knowledge that the Great Northern Construction Company intended to make delivery and resale of the property to the Humphrey Investment Corporation.

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Bluebook (online)
251 P. 567, 141 Wash. 329, 1926 Wash. LEXIS 824, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grunbaum-bros-furniture-co-v-humphrey-investment-corp-wash-1926.