Guarantee & Trust Co. v. McCulloh

69 A. 434, 108 Md. 48, 1908 Md. LEXIS 63
CourtCourt of Appeals of Maryland
DecidedApril 1, 1908
StatusPublished
Cited by5 cases

This text of 69 A. 434 (Guarantee & Trust Co. v. McCulloh) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Guarantee & Trust Co. v. McCulloh, 69 A. 434, 108 Md. 48, 1908 Md. LEXIS 63 (Md. 1908).

Opinion

*49 Boyd, C. J.,

delivered the opinion of the Court.

This is an appeal by the Title Guarantee and Trust Company from an order dismissing the exceptions of that company to an audit designated Account “A,” and sustaining the exceptions of the appellees to what is known as Account “B.” In Account A the auditor allowed the mechanics’ lien claims of Clarence E. Jones and R. N. McCulloh, trading as R. N. McCulloh & Co., respectively, while in Account B, which was stated at the instance of the appellant, he disallowed both of those claims and distributed the fund to the appellant, mortgagee. The solicitors for the appellant very ably presented a number of interesting points concerning the validity, vel non, of those lien claims, but at the threshold of the case we are met with a question, which in our judgment, must dispose of the appeal — that the claims of both of the appellees were finally adjudicated by the decision of this Court in Title Cot v. Burdette, 104 Md. 666.

Harry C. Barnes filed a bill in equity against the Independent Methodist Church of the Nazarenes, of Baltimore City, to enforce a mechanics’ lien for work done by him on the church. It was filed on his behalf “and also for such other persons interested herein who may contribute thereto.” An answer was filed admitting all the facts and consenting to a decree, and the same day a decree was passed. Shortly after-wards Barnes assigned his claim to Charles B. Burdette. After some proceedings by the present appellant, a co-trustee was appointed with Mr. Merryman who was the original trustee named in the decree. The property was sold and the sale ratified. Upon application of the trustees an order was passed directing them to give notice to all .persons having claims against the church to file them, properly authenticated, with the Clerk of Circuit Court No. 2, of Baltimore City, on or before May 5th, 1906. On petition of the plaintiff an order was passed allowing Mr. Merryman a fee of $250, subject to the usual exceptions, on the theory, as stated in the petition, that the bill was filed on behalf of the plaintiff and other creditors. On April 28th an account was stated allowing the trustees *50 commissions, costs and expenditures and the fee of Mr. Merryman, reserving the balance of the proceeds of sale for distribution. That audit was ratified on May 12th, except as to the allowance of the fee, which was not then acted on. On May 3rd these appellees filed a petition alleging that they were the only mechanics’ lienors and as such were preferred creditors of the church, at the same time denying and excepting to any lien claim that Barnes claimed to have and asking to be made parties defendants, which was done by an order of the Court of the same date. They filed with their petition certified copies of their respective lien claims. This appellant filed exceptions to the allowance of Mr. Merryman’s fee and also a statement of its mortgage claim. Another audit was filed which, after allowing certain additional costs, distributed the funds to the claims of Jones, McCulloh and Burdette, assignee of Barnes, in full, with interest, and the remainder to the appellant — the latter only getting $400.88 out'of a claim of $2,322. The appellant filed exceptions to the claims of Burdette, assignee, Jones and McCulloh, assigning as reasons therefor. “First: That the said lien claim is invalid in law and of no effect or force. Second: For other reasons to be assigned at the hearing of these exceptions.” Separate exceptions were filed against each of those three claims but the reasons given in each were stated in the language above quoted'.

On the same day Burdette, assignee of Barnes, filed a motion to dismiss the exceptions to the last audit for the reason “First. Because the validity of said claim has already been finally adjudicated in this cause. Second. That said exceptant is estopped from raising the said objection to said claim,” and on the next day he made a motion to have “the cause placed on the Trial Calendar for hearing on exceptions to auditor’s distribution account in conformity with the First Equity Rule.” On June nth McCulloh and Jones each filed a petition to dismiss the exceptions to the allowance to their claims. On that day the Court passed an order overruling and dismissing the exceptions of the appellant to Auditor’s Account No. x *51 (which allowed the fee of Mr. Merryman), ratified that account and also granted a motion of Burdette, assignee, to dismiss the exceptions of the appellant to his claim in Auditor’s Account No. 2, and finally ratified and confirmed said account, as to said claim. On the same day the Court also passed orders dismissing the exceptions of the appellant to the allowance of the respective claims of McCulloh and Jones, and on June 15th Account No. 2 was ratified.

On June 18th this appellant entered an appeal from the several orders passed June nth and June 15th, dismissing the exceptions to the fee of Mr. Merryman and ratifying that account, and “also sustaining the several motions filed respectively by Charles B. Burdette, R. N. McCulloh and Clarence E. Jones, to dismiss the objections filed by the Title Guarantee and Trust Company to the second auditor’s account and dismissing the said exceptions; also finally ratifying the second auditor’s account filed in this cause.” Those were the appeals brought to this Court which we heard and determined as reported in 104 Md. 666, and it will be observed that they included the claims of Jones and McCulloh, as well as that of Burdette.

In the appellant’s brief in the first case (104 Md.), after reciting the facts, the fee of Mr. Merryman was first considered, then the lien claim of Burdette, assignee of Barnes, at some length, and then the claim of McCulloh and Jones. Counsel for the latter appeared and a brief was filed on their behalf. This Court, through Judge Pearce, after holding that the fee of Mr. Merryman could not be allowed, and not deeming it necessary to determine whether the effect of the decree for sale, passed upon the claim of Burdette, was to establish conclusively both the validity and amount of that claim, held that by its course of conduct the appellant was estopped from questioning its validity. The opinion went on to say that Jones and McCulloh were not estopped, but that they had taken no steps, after intervening by petition and being made parties, to support their attack upon the claim of Burdette. Judge Pearce said, “It being admitted as correct *52 by the answer of the Church, such admission, for the purposes of the decree, was equivalent at least to primary proof. Strike's case, r Bland, p. 70. Assuming ex gratia argmnenti that this was only primary proof, they should have asked leave to take testimony, as they had ample opportunity to do, to sustain their attack upon plaintiff’s claim, before audit was made. Primary proof stands in the place of full proof until ful proof has been rendered.”

But the opinion then went on to say, “Moreover, apart from the ground just considered, the exceptions of the appellant were insufficient in form and in substance, and were entitled to no consideration.” As we have seen, the same language was used in the exceptions, to each of the three claims.

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Bluebook (online)
69 A. 434, 108 Md. 48, 1908 Md. LEXIS 63, Counsel Stack Legal Research, https://law.counselstack.com/opinion/guarantee-trust-co-v-mcculloh-md-1908.