Imboden v. Citizens' Bank

260 S.W. 734, 163 Ark. 615, 1924 Ark. LEXIS 333
Supreme Court of Arkansas·Decided April 21, 1924·Published·Cited by 8 cases

Opinion

McCulloch, C. J.

C. C. Harris was the owner of real estate in the city of Morrilton, on which was situated a residence, and appellant, J. H. Imboden, furnished to him building* material to be used in the repair and extension, or enlargement, of the dwelling-house. Appellant filed Ms lien in accordance with, the statute, claiming a balance in tbe sum of $1,000, tbe price of the material furnished, and on April 23, 1921, instituted an action in the .chancery court of Conway County against Harris and wife to enforce his lien. There was a decree in favor of appellant against Harris for the recovery of the amount of his debt claimed and for enforcement of the same as a lien for material furnished. The property (the lots and building) was ordered sold by a commissioner appointed by the court, and the sale was advertised, but, before the date of the sale, the Georgia State Savings Association, a foreign corporation, instituted an action in the chancery court for the purpose of foreclosing a mortgage on the property, and a temporary restraining order was issued against appellant, staying-further proceeding’s under the former decree. Appellant was made defendant in that action, and also appellee Citizens’ Bank was made party as a junior lienor.

Harris and wife mortgaged the property in question to the Georgia State Savings Association in the year 1918, and later executed a second mortgage to the Citizens’ Bank. Both of these mortgages were in force at the time appellant furnished the material to Harris, and are still in force, none of the debts having (been paid by Harris.

The Citizens’ Bank appeared and filed its cross-complaint, asking for a foreclosure of its mortgage, subject only to the prior mortgage of the Georgia State Savings Association. Appellant filed his plea in the nature of a cross-complaint, asking that, in the event the court decided that the respective liens of the Georgia State Savings Association and the Citizens’ Bank were prior to his lien on the land, his lien be declared superior on the building.

The cause proceeded to a hearing on the pleadings and proof, and the court rendered a final decree declaring the respective mortgage liens of the Georgia State Savings Association and the Citizens’ Bank to be superior, in the order named, to the lien of appellant on the building as well as on the land.

It seems to be conceded on all sides that the property is not of sufficient value to discharge all of the liens.

Appellant concedes that the respective liens of the two mortgages are superior to his so far as the land .is concerned, but he insists that his lien is superior on the building, and should be enforced under the statute, which reads as follows:'

“Section 6909. The liens for the things aforesaid, or work, shall attach to the buildings, erections or other improvements, for which they were furnished or work was done, in preference to any prior lien or incumbrance or mortgage existing upon said land before said buildings, erections, improvements, or machinery were erected or put thereon, and any person enforcing such lien may have such building, erection or improvement sold under execution, and the purchaser may remove the same within a reasonable time thereafter; (a), provided, however, that in all cases where said prior lien or incumbrance or mortgage was given or executed for the purpose of raising money or funds with which to make such erections, improvements or buildings, then said lien shall be prior to the lien given by this act.” Crawford & Moses’ Digest.

“■Section 6911. The lien for work and materials as aforesaid shall be preferred to all other incumbrances which may be attached to or upon such building, bridges, boats or vessels or other improvements, on the ground, or either of them, subsequent to the commencement of such' buildings or improvements.” Id.

The character of the added improvement constituted an extension or enlargement of the building on the mortgaged property, and the proof is conflicting as to whether or not it constituted a real betterment so as to enhance its value. It is clear from the proof that the building is not separate from the original building so as to constitute a distinct improvement which is separable from the original building. Appellant’s claim of priority therefore calls for a construction of the statute quoted above.

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Imboden v. Citizens' Bank, 260 S.W. 734, 163 Ark. 615, 1924 Ark. LEXIS 333 (Ark. 1924).

260 S.W. 734 (Imboden v. Citizens' Bank) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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