Hazard Powder Co. v. Loomis & Campbell

2 Disney (Ohio) 544
CourtOhio Superior Court, Cincinnati
DecidedJune 15, 1859
DocketNo. 6,872
StatusPublished

This text of 2 Disney (Ohio) 544 (Hazard Powder Co. v. Loomis & Campbell) is published on Counsel Stack Legal Research, covering Ohio Superior Court, Cincinnati primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hazard Powder Co. v. Loomis & Campbell, 2 Disney (Ohio) 544 (Ohio Super. Ct. 1859).

Opinion

Spencer, J.

The Eagle Bank of Rochester claims to have the first lien upon the fund by virtue of its judgment rendered in April, 1856. No levy was made upon the premises under this judgment, and the claim has no other foundation than the mere force of the judgment. Section 421 of the Code provides “ that the lands and tenements of the debtor within the county, etc., shall be bound for the satisfaction thereof from the first day of the term at which judgment is rendered.”

Since the ease, Lessee of Bisbee’s v. Hall, 3 Ohio, 449, leases for years (not perpetual) have been regarded as chattels merely, liable to be seized and sold on execution as such, not as lands and tenements, within the above provision.

By section 421 of the Code, it is provided that chattels shall be bound from the time when seized in execution. It is claimed, however, on the part of the Bank, that the clause in this lease, securing to the lessees the privilege of purchase within the term, at a given price, alters its character in this respect, and renders it liable only to be taken as land. This principle does not’ per se alter the nature of the estate, nor enlarge the interest of the lessee. It is not a contract for [548]*548purchase, by which both parties are bound, but a mere privilege on the part of the lessee, creating no estate or interest in the land, until availed of by payment or tender of the price.

It does not present a case, therefore, analogous to that of a contract of purchase, where the contemplated purchaser enters into possession before purchase money paid. There, the possession is referred directly to the contract, and is supposed to be co-extensive with the estate to be acquired under the contract. There, possessory interest, as such, represents an estate, and, if sold at all, must be sold as represented by the contract — i. e., as a fee, or for life, or for years, as the contract calls for. But in the case of a lease, possession is taken, solely with regard to the term granted; it is properly referable to that only, and must terminate with the expiration of the term; not until the privilege of purchase is complied with, can the tenant claim any other or greater estate than that granted by the term, and consequently his right of possession is no greater than that of the term itself.

The cases, therefore, which favor the doctrine, that a possessary interest in lands, accompanied by á contract of purchase in fee, may be sold on execution as land, and so as to convey the interest under the contract, do not apply to a possession secured for a term of years certain, and no longer.

The claim, therefore, of the Eagle Bank is disallowed.

2. The second claim to be considered, is that of Mrs. Smith, under her mortgage. It bears date January 6th, and as against Loomis & Campbell takes effect from delivery; but as to other incumbrancers, it only takes effect from the date of its record, which was Nov. 7th, 1856. If other incumbrances have not intervened between January and November, it is entitled to the whole of this fund. This renders it necessary to consider the state of the other claims. All of which are founded upon the mechanics’ lien law. 2 Curwen,964. The provisions of which are substantially “that any person who shall perform labor or furnish materials, etc., [549]*549for erecting or repairing any house or other building, or appurtenance, by virtue of a contract or agreement with the owner thereof, shall have a lien, to secure the same, upon such house or other building, or appurtenance, and the lot of land on which the same shall stand.”

2. “ That any person entitled to such lien shall make an account in writing of the items of labor, materials, etc. furnished ; and after making oath thereto within four months from the time of performing such labor or furnishing such materials, shall file the same in the recorder’s office, etc., who shall record the same, and said account shall, from the commencement of such labor, or furnishing such materials, and for two years after the completion of such labor, or furnishing such materials, operate as a lien on such buildings, etc., and the lots on which they stand. If furnished" on a written contract, a copy of such contract shall be filed with said account.”

3. That such lien shall not “interfere with prior bona fide liens on grounds on which such building shall be erected, if a fixture.”

In the construction put upon this law by the supreme court in the case of Choteau, et al. v. Thompson, et al., 2 Ohio St. 114, it was held, that although as to other parties, liens properly taken had effect from the commencement of the work, etc.; yet, as between the lien holders themselves, the law allows no priority, but protects all alike. As a consequence of this, where a mortgage or other lien takes effect after the commencement of one or more building liens, but before the commencement of others, the latter must be postponed to the mortgage, etc., and with it to the other building liens, while the former only are required to submit to an equal distribution. (Ib. 129). The result is, that Robert Creighton’s claim being for materials wholly furnished after the 7th November (when the mortgage of Mrs. Smith went into full effect by the record), must be postponed to the mortgage and the other claims, in distribution, and so nothing is left for it.

[550]*550The next claim we propose to consider, is that which arises upon the account of N. T. Horton. That account commences on the 28th September, 1856, and continues by items closely ’ connected, until the 31st day of December, 1856, when the whole amounted to $922 41. The items after that are small, extending up to February 9, 1857, and amounting to only $16. The balance claimed is only $920 31, and therefore it is needless to consider of these latter items. Assuming the account with this building to be fully closed by the 31st December, 1856. The lien taken on the 17th April following, was within the four months allowed by law, for the termination of the account, and therefore properly chargeable upon the premises from the 28th Sept.? the commencement of his account.

It is claimed, however, on the part of Mrs. Smith, that Horton’s account was not the result of any express contract between him and Loomis & Campbell, for the furnishing of this iron work. But that the work was furnished from time to time, only as it was ordered or called for; that he had no written contract for furnishing this-work and materials for the whole building, but that he might have stopped at any time; and that, therefore, at all events, all work, etc. furnished by him after the 7th November, must be regarded as furnished upon a contract or contracts entered into after that date, and so postponed to the mortgage. And, forasmuch as the account was not filed for record within four months of the last item prior to the 7th November, it was not filed within the time prescribed for taking a lien, and must, therefore, be wholly rejected as against the mortgage. This view ^of the case depends upon one of two, or perhaps three hypotheses:

1. Either that the furnishing of work upon an order, does not amount to a contract between the party and the owner, in respect to the building or repairing of the house: or 2d. That every item furnished upon such order or orders, must be regarded as an independent contract, for which liens must be separately taken, in order that all may be protected; [551]

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