Hallahan v. Herbert

11 Abb. Pr. 326, 4 Daly 209
CourtNew York Court of Common Pleas
DecidedDecember 15, 1871
StatusPublished

This text of 11 Abb. Pr. 326 (Hallahan v. Herbert) is published on Counsel Stack Legal Research, covering New York Court of Common Pleas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hallahan v. Herbert, 11 Abb. Pr. 326, 4 Daly 209 (N.Y. Super. Ct. 1871).

Opinion

By the Court.—Robinson, J.

The facts of the case are substantially as follows: The defendants, Daniel and Elias Herbert, and William S. Ford, composing the firm of D. & E. Herbert & Co., in 1860, made a verbal contract with the defendant, Cudlipp, to purchase from him twenty-eight lots on the northerly side of Sixty-ninth-street, in the city of New York, commencing at Tenth-avenue and extending about six hundred and fifty feet westerly, and to erect sixteen houses thereon, Cudlipp agreeing to advance money towards the erection of the houses, and when they they were built, the purchasers were to take deeds and give back mortgages for the price of the land and the advances. They proceeded with the work, and, on December 23, 1866, the houses being all enclosed, Cudlipp and Graff and wives, con[331]*331veyed the lots to Daniel Herbert, who at the same time executed to his grantors two mortgages on the property, one for ten thousand dollars, and one for thirty-one thousand nine hundred dollars. Subsequently, Daniel Herbert and wife, by deed dated February 13, 1863, conveyed to Cudlipp the same twenty-eight lots, subject to all incumbrances. Cudlipp, together with his wife, subsequently, by deed dated March 7, 1863, reconveyed to Herbert twenty-four of the same lots, who at the same time executed to Cudlipp a mortgage thereon, for twenty-three thousand five hundred dollars. It was agreed on the trial, that these several deeds and mortgages were executed in pursuance of the original verbal agreement between Cudlipp and Herbert & Co. The reconveyance to Cudlipp, dated [332]*332February 12, 1862, was upon a consideration then received from him.

In May, 1862, D. & E. Herbert & Co. contracted with Jacob Demarest, for the furnishing of the blue stone for the sixteen houses, under written contract, by which it was provided, if he delayed in fulfilling his contract, Herbert & Go. might proceed with the same, and charge the expense to him. In August, 1862, he became insolvent, and left the work incomplete, and ■plaintiff, his assignee, and Herbert & Co., supplied what was required, and on an accounting and settlement, which shortly afterwards took place between them (the only parties then interested), nine hundred and sixty dollars and sixty-seven cents was found due for the work performed under this contract.

In November, 1862, Demarest filed a mechanics’ lien on these sixteen buildings for this work, claiming seven hundred and ninety-five dollars to be still due him, in which Cudlipp was alleged to be the owner. '

On January 23, 1863, he filed another notice of lien in the county clerk’s office, claiming nine hundred and ninety dollars to be due him on this contract with Herbert & Co., and that they were the equitable owners, under a written contract of sale made0, by them with Cudlipp, the legal owner. This latter is the lien' attempted to be foreclosed in this action.

The evidence shows the claim of Demarest, as attempted to be asserted under these several liens, had been assigned to the plaintiff; and there was proof of some such transfer, before November, 1862 ; but the formal assignment was dated January 23, 1863.

The first lien was radically defective, in attempting to assert rights against the title of Cudlipp, as owner, under an alleged contract with Herbert & Go., as “ contracting builders” (Beals v. Congregation B’nai Jeshurun, 1 E. D. Smith, 654).

Cudlipp, the owner of the legal title, having agreed [333]*333to sell the lots,' and also to make the loan to enable the purchasers to build, the buildings were not erected for him, but for the purchasers, who were the equitable owners, and were engaged in erecting the buildings on their own account.

They contracted with Demarest on their own behalf, and it was only against their interest in the premises that the lien could be asserted (Loonie v. Hogan, 9 N. Y. [5 Seld.], 435; Walker v. Paine, 2 E. D. Smith, 662; McMahon v. Tenth-ward School, &c., 12 Abb. Pr., 129). The mortgage of Herbert to Cudlipp for twenty-three thousand five dollars, above referred to, was foreclosed in an action in which Daniel Herbert, the mortgagee, and wife, and William S. Ford, were defendants, and by judgment therein, dated January 19, 1864, the premises were sold February 12, 1864, to Robert J. Brown; but neither the plaintiff nor defendant was made a party to the proceedings, nor was the lien that had been created by the notice filed January 23, 1863, upon the interest which Daniel Herbert had in the land on which the buildings were erected, whether legal or equitable, affected thereby.

Although the interest of D. & E. Herbert and Ford in the land was merely equitable, and subject to such •proceedings at law as operated to extinguish it, yet being one patent and matter of record, so long as it subsisted, the creditor holding the lien was entitled to notice of and to be made a party to any proceeding instituted for its foreclosure or extinguishment. By statute, his lien continued until the ‘ ‘ expiration of one year from the creation thereof and until judgment rendered in any proceeding for the enforcement thereof” (Laws of 1851, ch. 513, § 12).

These proceedings for the foreclosure of the lien as against the owner and subsequent parties in interest, were commenced within the year, to wit, January 14, 1864, and have ever since been pending.

[334]*334Neither the act of 1851 nor the amendatory act of 1855, affords any way of relieving or discharging the lien created by the filing of the notice as provided for by the former act, except in the manner provided by section 11 of the act of 1861 (ch. 513).

1. By satisfaction; 2. A. deposit of the amount claimed with the clerk ; 3. An entry of clerk, after the lapse of one year, that no notice had been given Mm to enforce the lien ; 4. Proof of default of claimant on notice by owners to commence action for the enforcement of the lien ; and, 5. By its satisfaction after action brought for its enforcement. The act of 1863 (ch. 500), which took effect July 1, 1863 (§15), repealed (§ 12) the acts above referred to, except so far as might be necessary to carry into effect liens acquired before that act took effect, and to allow persons thereafter performing work or furnishing work prior to July 1,1863, to acquire a lien pursuant to the provision of that act. This lien had been acquired under the act. of 1851, and its amendment of 1855, under which both the right and the remedy had then been perfected so far as could be afforded by those acts.

It was within the province of the legislature to alter the remedy for the enforcement of the right, but not to affect its. validity or efficacy as created by existing laws by authorizing any substituted security (Bronson v. Kinzie, 1 How. U. S., 311 ; Howard v. Bugbee, 24 Id., 461).

The provision in the subsequent act of 1863, authorized a discharge of the lien effected under that act ' by an entry (on the judgment docket) by order of the court, that the judgment [on proceeding to enforce it] had been “ secured on appeal,” but it did not in terms or in effect otherwise interfere with liens acquired under previous statutes, or authorize their discharge upon the terms or in the manner provided as to those ..that might subsequently be acquired under that act.

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Related

Rathbone v. Morris
9 Abb. Pr. 213 (New York Supreme Court, 1859)
McMahon v. Tenth Ward School-Officers
12 Abb. Pr. 129 (New York Court of Common Pleas, 1861)

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Bluebook (online)
11 Abb. Pr. 326, 4 Daly 209, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hallahan-v-herbert-nyctcompl-1871.