Hughes v. Lansing

55 P. 95, 34 Or. 118, 1898 Ore. LEXIS 19
Oregon Supreme Court·Decided December 5, 1898·Published·Cited by 22 cases

Opinion

Mr. Chief Justice Wolverton

delivered the opinion.

This is a suit to foreclose a mechanic’s lien. J. O. Goodale, a party defendant, answered, setting up a lien for lumber and materials furnished Plummer & Ault, which were used in several buildings constructed by them for the defendant E. Y. Lansing, as original contractors. Lansing defends against this claim of lien by alleging, in effect, that Goodale, for a valuable consideration, waived his right thereto. The facts upon which the alleged waiver is based are, in substance, as follows : Goodale was engaged in the manufacture and sale of lumber, and J. E. Baker was his agent, empowered to conduct and carry on the business at Salem, Oregon. Baker was authorized to sign checks, receipt for collections, and to act as his agent generally in and about the business, but had no written authority except for signing checks. He had always attended to the necessary steps for perfecting liens, and as such agent sold the lumber [120]*120and materials to Plummer & Ault, stated the account with them, and subsequently signed and verified the claim of lien for record. He admits the signing of the alleged waiver, but explains the manner of its procurement on cross-examination as follows: “I didn’t see Mr. Lansing the day that was given — that receipt. In the first place, we gave that receipt to Plummer & Ault for the amount paid. Mr. Pugh wrote out that receipt, and sent it down there, and I supposed it was just a receipt that day, until I went out there, and Mr. Lansing said that it was a waiver, and that was the first knowledge I had of what I had signed.” The paper referred to is in the following language : “Salem, Oregon, March 15, 1894. Mr. E. Y. Lansing, Salem, Oregon : This is to certify that we, the undersigned lumbering company, do and hereby waive all claims for lumber or other materials furnished by us to Plummer & Ault (contractors), used in the construction of the various buildings erected, or being erected, on your premises south of Salem. J. C. Goodale, per Baker.” E. Y. Lansing testified touching the matter as follows: “Well, the way that came was this : These small buildings — this cottage, barn, poultry house — was done under a verbal contract; and I had no way of protecting myself; and I said, when the payment became due to Plummer & Ault— I think it was $500 on this building. I said to Plummer — S- In fact, all my transactions were with Plummer — I said, ‘I want you to bring’— I wanted to have those bills brought in ; and he said, ‘I will go and get your bills, and get you $10,000 more bond, if you want it.’ Mr. Pugh was present. He came back with this receipt: ‘Received payment for all the lumber furnished on the Lansing job.’ Mr. Pugh was there, and I said to him, ‘That seems a very improper way to do ;’ and he said, ‘I will have a waiver drawn ;’ and, on [121]*121his bringing me this waiver, I paid to Plummer & Ault the amount — I think it was $500 — on the contract.” Goodale’s account with Plummer & Ault shows a credit of $500 of the same date as the alleged waiver. Pugh was charged, as Lansing’s architect, with the duty of overseeing the work as it progressed, and determining whether it was performed according to contract.

1. Upon this state of the case, it is contended, in behalf of Lansing, that Goodale waived his lien upon the buildings erected under contract with Plummer & Ault. That a party may waive his right to a mechanic’s lien upon structures for the building of which his labor or materials have been employed, is a matter about which there can be no controversy. The right to assert and perfect the lien given by statute is a privilege (Brown v. Harper, 4 Or. 89) which he may exercise or not, at his pleasure.

2. The statute (Hill’s Ann. Laws, § 3669) provides that a person furnishing materials, etc., shall have a lien, and sections 3673, 3675 and 3677, the manner of preserving and perpetuating it. Now, while the statute gives the lien in the first instance for a specified time, without the assertion of any formal claim therefor, it is made incumbent upon the lienor, if he intends to preserve his lien, to make a record of such intention, and to bring suit thereon within the time prescribed, and, if he does not observe these regulations, the lien must be deemed to have lapsed. And he may, if he so desire, waive his right or privilege of invoking the protection which the statute has accorded him as well, by direct and positive stipulations.

Whether the paper above set forth constitutes such a waiver on the part of Goodale, we shall now inquire. Lansing objected to making a certain payment upon his contract with Plummer & Ault for the construction of [122]*122one of the buildings until their accounts for material were brought in, so that he might protect himself against any claims of lien based thereon. Among others, was the account for lumber with Goodale. It appears that Plummer, of the firm of Plummer and Ault, with the purpose of satisfying Lansing, first obtained from Good-ale, through Baker, a receipt showing “payment for all lumber furnished on the Lansing job.” To this Lansing made objections as improper, and thereupon Mr. Pugh, the architect, said : “I will have a waiver drawn,” and presently returned with the paper in question, and the $500 was thereupon paid to Plummer & Ault. Upon the same day Plummer & Ault paid Goodale a like amount, which appears credited upon his account with them.

It is objected, first, that the purported waiver is a unilateral undertaking, without a corresponding obligation or promise upon the part of Lansing — that there was no consideration to support it, and for these reasons it is unavailing for the purpose in view in its procurement; and, second, that it is a transaction concerning real property in which the supposed agent, Baker, had no competent authority to bind Goodale, under the statute of frauds.

3. If there was a consideration supporting the alleged waiver, then it is plain, without elucidation, that it cannot be characterized as a unilateral contract or undertaking. Lansing was charged, under the statute, with the duty of seeing that whatever payments he made to Plummer & Ault before the expiration of thirty days after the completion of the buildings were distributed among the laborers and material men according to their several demands ; otherwise he would have subjected himself to a second payment of the same installment: Hill’s Ann. Laws, §§ 3678, 3679. Being charged with such duty, it was manifestly his right to require Plummer & Ault to [123]*123bring in the bills that they had contracted on account of the buildings constructed, or in course of construction. First, the receipt of Goodale was produced, which proved unsatisfactory to Lansing, and then came the alleged waiver, and, upon the faith of that instrument, the $500 was paid to Plummer & Ault, and a like amount was paid by them to Goodale. Goodale undoubtedly understood, through Baker, that no money would be paid to Plummer & Ault by Lansing until the waiver was produced, else why should he first give a receipt showing “payment for all lumber furnished on the Lansing job,” and, when that proved unsatisfactory, execute the alleged waiver? We think the payment of the $500 to Plummer & Ault, under the conditions then present, and the fact that Goodale secured the benefit of such payment, was ample and sufficient consideration to support the waiver upon the part of Goodale.

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Hughes v. Lansing, 55 P. 95, 34 Or. 118, 1898 Ore. LEXIS 19 (Or. 1898).

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