J. J. Newman Lumber Co. v. Wemple

56 Misc. 168, 107 N.Y.S. 318
New York Supreme Court·Decided October 15, 1907·Published·Cited by 5 cases

Opinion

Clark, J,

This is an action brought by the plaintiff to foreclose a lien filed against moneys due, or to become due, under a contract made between the board of managers of the State Industrial School and J. Cady Wemple and George W. Eycleshymer, composing a copartnership, doing business under the firm name and style of the Schenectady Engineering and Construction Company. The contract was dated August 80, 1904, and was for. the construction of sixteen cottages and sixteen barns on the State Industrial School property at Rush, N. Y., and the contractors were to receive for such work $96,454.82. The contract was to be completed on or before the 31st day of May, 1905.

The plaintiff’s lien is one of about eighty-four liens filed against the same moneys, sixteen of said liens being for materials furnished, and the balance for labor. ' Two of the liens for materials and seven for labor were not proven upon the trial, but all of the lienors were made parties defendant.

The answer of each of the defendant lienors sets forth his lien and seeks for a foreclosure .of the same. The defendants, the State of New York and the board of managers. of the State Industrial School, each appeared by the Attorney-General, and by their answers they admit the making of the contract, and admit certain payments- made to the contractors, and as defenses they allege that the contractors made default in not progressing with the work according to the terms of the contract, and that because of such fact the board of managers of the State Industrial School, after giving notice as required by the contract, can-[170] celled the same and advertised for new bids, and completed the work at a large expense over and above the contract price, and that at the time of the filing of the several liens there was no money due to the contractors from the State of Mew York, and none to become due in pursuance of the terms of the contract.

By the terms of the contract eighty-five per cent, of the value of the materials and work incorporated in the building, as certified by the State Architect, was to be paid monthly as the work progressed, and the balance was to be paid upon the satisfactory completion of the contract, when so certified by the architect.

This action was tried at the Monroe Equity Term in October, 1906, before Mr. Justice Dunwell, who died before rendering a decision in the case, and, by stipulation of all the attorneys, it was submitted to the undersigned for decision.

The first of'the liens was filed July 29, 1905, and the last February 13, 1906, and this action was brought February 6, 1906.

The defendant, the People of the State of Mew York, demurred to the complaint, on the ground that the court had no jurisdiction of the person of the defendant, the People of th.e State of Mew York, and that the People of the State could not be sued without their consent, and that no consent had been given or alleged.

Subsequently, and on the 5th day of May, 1906, a stipulation was entered into between the plaintiff’s attorney and the Attorney-General, representing the State of Mew York, to the effect that inasmuch as an act had recently been passed by the Legislature, permitting the plaintiff in an action of this character to make the State .a party defendant, the demurrer above referred to was withdrawn, without costs to either party, and the defendant, the People of the State of Mew York, was given twenty days after the date of the stipulation within which to answer the complaint, and subsequently, and on or about the 11th day of May, 1906, the State of Mew York, by its Attorney-General, appeared generally in the case and served an answer in which nothing [171] was said about the State not properly being made a party, but setting up as a defense that the contractors failed to perform the contract according to its terms, and the board of managers of the State Industrial School cancelled the contract, and that the contract was completed by other parties at an additional cost to the State of about $40,000; that at the time of the filing of the several liens referred to in the complaint there was no money due to the said contractors from the State of Hew York, nor did any become due thereafter in pursuance of the contract -above referred to, and judgment was demanded in behalf of the People of the State of Hew York to the effect that the complaint be dismissed, with costs.

At the conclusion of the plaintiff’s evidence the Attorney-General moved for a dismissal of the complaint upon three grounds, as follows: First. That the" defendants, lienors, never commenced any action or served any notice of pendency on the Comptroller. Second. That the plaintiff lienor failed to file a notice of pendency of this action after April 19, 1906, when the amendment permitting the State to be sued went into effect. Third. That at no time was there any fund to which the liens could be attached.

Mechanic’s liens are purely the creatures of the statute, and the General Lien Law, passed in 1855, did not apply to public property.

By the Laws of 1897 (chaps. 418, 419), the present Lien Law was enacted, and in 1902 section 5 of the Lien Law was amended as follows: “A person performing labor for or furnishing materials to a contractor, his sub-contractor or legal representative, for the construction of a public improvement, pursuant to a contract, by such contractor, with the state or a municipal corporation, shall have a lien for the principal and interest of the value or agreed price of such labor or materials upon the moneys of the state or such corporation applicable to the construction of such improvement, to the extent of the amount due or to become due on such contract, upon filing a notice of lien as prescribed in this, article.” Laws of 1902, chap. 37.

And by the same act it was provided that a person per[172] forming work or furnishing materials for a public improvement might file a notice of lien with the head of the department having charge of such construction, and with the Comptroller of the State.

Section 16 of the Lien Law provides, among other things, “ that if a lienor is made a party defendant in an action to enforce another lien, and the plaintiff or such defendant has filed a notice of the pendency of the action within the time prescribed in this section, the lien of such defendant is thereby continued. ' Such action shall be deemed an action to enforce the lien of such defendant lienor.”

Section 17 of the Lien Law, as amended by chapter 25 of the Laws of 1899, and as further amended by chapter 37 of the Laws of 1902, provides, among other things, as follows : “ If a lien is for labor done or materials furnished for a public improvement, it shall not continue' for a longer period than three months from the time of filing the notice of such lien, unless an action is commenced to foreclose such lien within that time, and a notice of the pendency of such action is filed with the comptroller of the state, or the financial officer of the municipal corporation, with whom the notice of such lien was filed, or unless an order be made by a court of record continuing such lien and a new docket be made stating such fact.” Laws of 1899, chap. 25; Laws of 1902, chap. 37.

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J. J. Newman Lumber Co. v. Wemple, 56 Misc. 168, 107 N.Y.S. 318 (N.Y. Super. Ct. 1907).

56 Misc. 168 (J. J. Newman Lumber Co. v. Wemple) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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