Henry & Coatsworth Co. v. Halter

79 N.W. 616, 58 Neb. 685, 1899 Neb. LEXIS 268
CourtNebraska Supreme Court
DecidedJune 8, 1899
DocketNo. 8897
StatusPublished
Cited by22 cases

This text of 79 N.W. 616 (Henry & Coatsworth Co. v. Halter) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Henry & Coatsworth Co. v. Halter, 79 N.W. 616, 58 Neb. 685, 1899 Neb. LEXIS 268 (Neb. 1899).

Opinion

Sullivan, J.

This action, which was brought by Henry & Coats-worth Company to foreclose a mechanic’s lien, resulted in a decree, from which a number of lien claimants, who Avere parties defendant, have appealed. The pleadings and evidence are voluminous, but we believe the following statement of facts will.sufficiently develop the main questions presented for decision: Alexis Halter, being the owner of three business lots in the city of Lincoln, decided to erect thereon a five-story building. In June, 1892, he employed Tyler & Son, architects, to prepare plans, and in the following October commenced the work of construction. January 21, 1893, he borrowed of the Clark & Leonard Investment Company |35,000 to be used in carrying the structure to completion. To secure this [692]*692loan Halter and wife executed to the investment company a coupon bond for $35,000 and a first mortgage on the property in question. At the same time the borrower executed to the lender a commission mortgage for $1,500 on the same property. Both mortgages were immediately recorded, and five days later, on January 26, the $35,000 mortgage was sold and assigned to the appellee Charles W. Hare, who afterwards transferred it to the appellee John J. Tyler, as collateral security for a loan of $32,000. In his written application for the loan Halter stated that the money was to be used in completing the building then in course of construction, but there was no agreement mpiiring him to use it for that purpose. Halter did, however, as part of the transaction, execute a bond with sureties to indemnify the mortgagee and its assigns against possible loss resulting from the filing of the mechanics’ liens. This obligation also provided that the investment company, or its successors in interest, might pay off any lien against the property when filed and established. In July, 1893, a portion of the building was ready for occupancy, but it was not entirely finished until December of that year. The appellants and others having contributed labor or materials toward the construction of the building, and not having been paid therefor, filed in the proper office their claims for liens. In August, 1893, the property in controversy, commonly known as the “Halter Block,” was conveyed by Alexis Halter and wife to the Lincoln Business Block Company, a corporation. Some of the stock of this corporation issued to Halter was by him pledged to the German National Bank as collateral security for money loaned. In March, 1894, transcripts of two judgments in favor of the I-Iawarden Furnace Grate Company and against the Lincoln Business Block Company were filed in the office of the clerk of the district court of Lancaster county. Under executions issued on these judgments, the Halter Block was sold on May 1, 1894, the t>urehaser being Charles T. Boggs, who urns acting in the interest of the German [693]*693National Bank, of which he was president. The sale was confirmed by the district court on May 5. In October, 1892, Christopher Tiernan recovered a judgment in the district court of Lancaster county against Alexis Halter for the sum of $385.40. This judgment was a lien on the Halter Block and was prior to the lien of the mortgages to the Clark & Leonard Investment Company, and also prior to most of the mechanics’ liens. In October, 1893, Alexis Halter sent his brother Andrew7 to pay the Tiernan judgment. He gave him for the purpose $300 in cash and his personal check for the balance. This balance Andrew7 agreed to advance as an accommodation. He made the advancement according to his agreement and paid the full amount due on the judgment. Instead, however, of having it canceled, he caused it to be assigned to Leo Haben, his brother-in-law7, who had no knowledge of the matter and no interest in it. The check given by Alexis to Andrew7 w7as afterwards paid, but tlie precise time of payment does not appear. In May, 1894, R. J. Greene, assuming to act as attorney for Haben, made a formal sale and assignment of the judgment to Boggs. Of this transaction I-Iaben was entirely ignorant. He had only recently learned that the judgment stood in his name as assignee. He claimed no interest in it, and had conferred upon Greene neither actual nor apparent authority to sell it. It seems, however, that he after-wards advanced Andrew7 Halter some money on the judgment, and that in September, 1894, for a consideration of $250, he ratified in writing the assignment previously made by Greene to Boggs. Under an execution issued on the Tiernan judgment, Boggs, soon after obtaining the assignment from Greene, caused the Halter Block to be sold and became himself the purchaser. The purchase price was $35,000, wdiich, according to the return of the sheriff, has been fully paid and is in his hands for distribution. On June 23, 1894, the sale wras confirmed and a deed ordered. The following day Boggs and wife conveyed the premises to Charles C, Clark? w7ho soon afte? [694]*694mortgaged tbe same to tbe Clark & Leonard Investment Company to secure his coupon bond for the sum of $35,-000. Clark also executed a mortgage on the property to W. F. Meyer to secure tbe sum of $18,777.50. This mortgage was apparently made for tbe benefit of tbe German National Bank and tbe First National Bank of Lincoln, and represents an indebtedness due from Halter to those banks. Clark paid nothing for tbe property and was merely acting for Boggs in making tbe mortgages, tbe latter not wishing to appear of record as a borrower. When tbe transactions were concluded tbe premises were reconveyed to Boggs, who is now tbe fee owner of tbe same. Before tbe sale under tbe Tiernan judgment an arrangement was made between Boggs and J. W. McDonald, representing tbe investment company, which contemplated that Boggs should buy tbe property, pay off tbe liens and claims of tbe investment company, and execute to it a new mortgage for $35,000, to take tbe place of tbe mortgage held by Hare and Tyler. Whether tbe execution of this plan was to depend upon confirmation of tbe sale, or upon tbe acquisition by Boggs of a good title under tbe sale, is not very clear. In pursuance of this arrangement Boggs paid the investment company on July 26, 1894, tbe sum of $5,500, being tbe amount of its commission, mortgage, interest coupons paid to Hare and Tyler, and some other matters. He also caused Charles O. Clark to execute the $35,000 mortgage above mentioned. This mortgage has never been delivered to Hare and Tyler personally, and they have neither surrendered tbe Halter mortgage nor released it of record. Prior to November, 1894, they bad no knowledge of tbe arrangement between McDonald and Boggs and were not aware that tbe property bad become involved in litigation, or that there bad been any change of ownership. Hare and Tyler were not originally parties to the action, but became such by intervention in February, 1895. Tbe substance of their amended answer is that they delivered the Halter mortgage to the Clark & Leonard Investment [695]*695Company to be exchanged for the Clark mortgage in case the court should affirm the validity of the sale under the Tiernan judgment. They ask, in the event of the sale being adjudged void, for a foreclosure of the Halter mortgage. Boggs filed an answer asking that the title acquired by him under the Tiernan judgment be quieted and confirmed. The appellants filed pleadings, alleging that the sale to Boggs was void; that the Halter mortgage had been extinguished, and that their liens were superior to the lien of the Clark mortgage. The district court found and decreed that James P.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Omaha National Bank v. Continental Western Corporation
274 N.W.2d 867 (Nebraska Supreme Court, 1979)
Exchange Elevator Co. v. Marshall
22 N.W.2d 403 (Nebraska Supreme Court, 1946)
Ideal Cement Stone Co. v. Dohse
16 N.W.2d 151 (Nebraska Supreme Court, 1944)
State ex rel. Nebraska State Bar Ass'n v. Hendrickson
295 N.W. 892 (Nebraska Supreme Court, 1941)
Morris v. Twichell
249 N.W. 905 (North Dakota Supreme Court, 1933)
Gaastra v. Bishop's Lodge Co.
299 P. 347 (New Mexico Supreme Court, 1931)
Union Loan & Savings Ass'n v. Johnson
223 N.W. 467 (Nebraska Supreme Court, 1929)
Rivett Lumber & Coal Co. v. Linder
204 N.W. 77 (Nebraska Supreme Court, 1925)
Lachner v. Myers
208 P. 1095 (Washington Supreme Court, 1922)
United States Fidelity & Guaranty Co. v. Bourdeau
208 P. 947 (Montana Supreme Court, 1922)
John A. Robbling's Sons Co. v. Nebraska Electric Co.
183 N.W. 546 (Nebraska Supreme Court, 1921)
Byers v. Chase
167 N.W. 405 (Nebraska Supreme Court, 1918)
Lamoreaux v. Andersch
150 N.W. 908 (Supreme Court of Minnesota, 1915)
Kramer v. Bankers Surety Co.
133 N.W. 427 (Nebraska Supreme Court, 1911)
Grove-Wharton Construction Co. v. Clarke
126 N.W. 651 (Nebraska Supreme Court, 1910)
Watt v. Davidson
118 N.W. 562 (Nebraska Supreme Court, 1908)
Old Colony Trust Co. v. Standard Beet Sugar Co.
150 F. 677 (U.S. Circuit Court for the District of Nebraska, 1907)
Fitzgerald v. Kimball Bros.
107 N.W. 227 (Nebraska Supreme Court, 1906)
Ebel v. Stringer
102 N.W. 466 (Nebraska Supreme Court, 1905)

Cite This Page — Counsel Stack

Bluebook (online)
79 N.W. 616, 58 Neb. 685, 1899 Neb. LEXIS 268, Counsel Stack Legal Research, https://law.counselstack.com/opinion/henry-coatsworth-co-v-halter-neb-1899.