Herrell v. Donovan

7 App. D.C. 322, 1895 U.S. App. LEXIS 3641
CourtCourt of Appeals for the D.C. Circuit
DecidedDecember 2, 1895
DocketNos. 502 and 503
StatusPublished
Cited by2 cases

This text of 7 App. D.C. 322 (Herrell v. Donovan) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Herrell v. Donovan, 7 App. D.C. 322, 1895 U.S. App. LEXIS 3641 (D.C. Cir. 1895).

Opinion

Mr. Justice Morris

delivered the opinion of the Court:

1. We will consider first the appeal of John E. Herrell & Company.

The facts in regard to their connection with the work are these: Vaughn, the builder, had contracted with one R. E. Cozzens to do the brick work on Donovan’s houses and to supply the brick for the purpose. Cozzens was a bricklayer, but not a dealer in brick ; and he applied to Herrell & Company, who were dealers in brick, to furnish to him the necessary brick for the work. John F. O’Neill, the member of the firm of Herrell & Company with whom Cozzens had his negotiation, testified that his firm would not furnish any brick to Cozzens, unless he paid for them in advance ; but that nevertheless he bargained with the latter to let him have the brick upon his giving an order upon Vaughn for payment therefor and procuring the acceptance of the order by Vaughn. The order and acceptance were as follows:

“Washington, D. C., March 20, 1894.

“ Mr. Wm. A. Vaughn.

“Sir: You will please pay John E. Herrell & Co. the amount of bill that may be rendered by them for the brick to used in the construction of two houses on 31st street [332]*332between Road and Q streets, N. W., for Mr. J. E. Donovan ; payments to be made as follows :

$200 to be paid when 2nd floor joists are on;

$300 “ “ “ roof is on;

$200 “ “ “ (house) plastered;

Balance at completion of houses, and charge the same to my account.

“ Respectfully yours,

(Signed) “ R. E. Cozzens.

(Written across the face: “Accepted March 20, 1894.

(Signed) “ Wm. A. Vaughn.”

O’Neill, in his testimony, says, that 'he had a contract with Vaughn to furnish the brick ; and the strenuous attempt in the argument before us is to show that Herrell & Company were immediate subcontractors with Vaughn. But O’Neill distinctly admits that the only contract whatever which he had with Vaughn was the contract evidenced by the order and acceptance that have been set forth. It may be proper to add, too, that he stated to Donovan, both orally and in writing, that his firm had a contract with Vaughn to furnish the brick ; that Vaughn was not paying them as he had agreed to do; and that Donovan had said that he would see to it, and see that they were paid.

The question then presented on behalf of Herrell & Company is, whether in this condition of things they were subcontractors of Vaughn in immediate contractual rela'tions with him such as that they were thereby entitled to hold and claim a lien upon the property of Donovan under the Mechanics’ Lien law..

We are very clearly of opinion that they were not so entitled. In the case of Leitch v. Emergency Hospital, 6 App. D. C. 247, we held that subcontractors of a subcontractor were not entitled to claim a lien under the Mechanics’ Lien law in force in this District; and that only subcontractors in the first degree — that is, persons in immediate contractual relations with the builder or principal contractor — were entitled by the law to hold such lien. We [333]*333are entirely satisfied with that decision, and reaffim it; and we think that the rule there laid down is antagonistic to the claim of the appellants Herrell & Company in this case.

An ingenious and able argument has been made to show that Herrell & Company were, in the sense of the law and of that case, immediate subcontractors of Vaughn. But the writing produced, and which is distinctly admitted to have been the only contract, or evidence of contract, between Vaughn and the firm of Herrell & Company, to our mind conclusively negatives this contention. That writing does not show any contract on the part of Herrell & Company to furnish bricks to Vaughn; it show's no liability on the part of Herrell & Company which Vaughn could be entitled to enforce. As between Vaughn and that firm, it is an ordinary and well known contract of guaranty, by which Vaughn guaranteed to Herrell & Company the performance by Cozzens of a contract between the latter and that firm. The money to be paid by Vaughn was the money of Cozzens or the money that was to come to Cozzens, under the contract between Cozzens and Vaughn; and that money was to be paid to Herrell & Company, in a certain contingency, as the money of Cozzens, and to be charged to Cozzens in the account between the latter and Vaughn. There is no contract here between Vaughn, on the one side, and Herrell & Company on the other, whereby the latter were under any obligation to deliver brick to Vaughn, or whereby Vaughn was under any primary or direct obligation to pay Herrell & Company. The contract was that Vaughn wmuld pay Herrell & Company if Herrell & Company would .furnish brick to Cozzens and enter into contractual relations with Cozzens to enable the latter to carry out his contract with Vaughn. These are not the contractual relations required to give one a right of lien under the Mechanics’ Lien law'.

Nor is there here any question of novation, or of anything being taken out of the contract between Vaughn and Cozzens, and made the subject of contract between Vaughn [334]*334and Herrell & Company. It was competent for the parties to make such an arrangement, if they thought proper; but the proof is not of any such arrangement, but of an entirely different one — an arrangement, in fact, wholly inconsistent with the theory of novation.

We think that Herrell & Company did not become immediate subcontractors of Vaughn, and therefore that the court below did not err in denying their right to a lien under the law. Their remedy is against Cozzens on the primary contract, or against Vaughn on the acceptance.

2. The appeal of Allen S. Johnson is next to be considered.

Johnson, as stated, was the surety on Vaughn’s bond, which required the discharge of all liens on Donovan’s property preparatory to the final payment. Johnson was also a subcontractor for the heating and tinning of the buildings. Of course, as surety in the bond, he was precluded from filing any lien as subcontractor, unless he was in some way discharged from his contract of suretyship. He claims to have been so discharged by the act of Donovan in making his alleged premature payments to Vaughn before payments became due under the contract; and it is argued on his behalf that this conduct of Donovan was a violation of the contract between the latter and Vaughn, such as to discharge the surety.

But we fail to see wherein there was any violation of contract by Donovan. At most, the partial payments made by him were merely equitable subdivisions of the payments stipulated to be made; and the work which they represented had all been actually performed. These payments injured no one. No rights of other persons had intervened when they were made. The payments, in fact, were for the benefit of Vaughn, the principal in the bond ; and they did not, and could not, prejudice the rights of Johnson as surety. The conduct of Donovan throughout seems to have been honest, straightforward and liberal; and it deserves credit and commendation, rather than that he should be charged with a violation of duty.

[335]*335A more pointed answer, however, to the contention on behalf of the appellant Johnson, is that he approved and ratified these payments; and he cannot now be heard to controvert their propriety.

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7 App. D.C. 322, 1895 U.S. App. LEXIS 3641, Counsel Stack Legal Research, https://law.counselstack.com/opinion/herrell-v-donovan-cadc-1895.