James v. Van Horn

39 N.J.L. 353
CourtSupreme Court of New Jersey
DecidedJune 15, 1877
StatusPublished
Cited by2 cases

This text of 39 N.J.L. 353 (James v. Van Horn) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
James v. Van Horn, 39 N.J.L. 353 (N.J. 1877).

Opinion

The opinion of the court was delivered by

Reed, J.

The first error assigned is, that the allowance of an apportionment of the lien-claim was error.

It is insisted that the lien filed without apportionment was fatally defective. This is true, if tire buildings were on separate tracts of land. Morris Co. Bank v. Rockaway Manufacturing Co., 1 C. E. Green 150.

Assuming this to be so, although it does not appear, it is then insisted that it was not within the power of the court to permit an amendment. Was it amendable ?

The fourteenth section of the present mechanics’ lien act (Rev., p. 671,) provides, “That at any time before judgment on a lieu-claim, a justice of the Supreme Court, on application of the claimant of such lien, and on reasonable notice to all parties interested, may order such lien-claim to be amended in matter of substance, as well as in matters of form, whenever it shalL appear to him that such amendment can be justly made.”

Under this section I think the court had the power to order the amendment.

The tendency of the courts in other states has been in the direction of a liberal exercise of the privilege of amending proceedings under these statutes. Indeed, the scope of the exercise of the power conferred by statute is limited only by an injustice to either defendant or to third parties. Phillips on Mech. Lien, § 426.

In this instance there were three buildings belonging to the same owner. A lien was filed for work done upon all of them, without apportioning the amount upon each. The vice of blending the several claims consisted in the injustice of [357]*357placing upon one house a liability for a debt incurred in erecting another.

As that fault in a lien-claim was remediless before the section permitting amendments, the whole claim failed as a lien. The clear office of this remedial power to amend could hardly be exhibited in a stronger light than in this ease. By this amendment the disproportion is removed. Each building is made liable for the particular debt incurred in its erection or repair, and no injustice is done to the defendant or third party. On the other hand, a hardship in depriving the creditor of his right of lien, by reason of a technical defect in his proceeding to enforce it, is prevented.

Nor is there any ground for the insistment that because the building was commenced and the lien attached in November, 1874, and the act allowing amendments did not go into effect until January following, that therefore the amendment cannot be made.

It is true it was held by this court, in Vreeland v. Bramhall, 10 Vroom 1, that this act did not have a retrospective operation. If the lien-claim had been filed previous to January 1st, 1875, this would be within that case.

But the defective lien claim was not filed till after January 1st. The fact that work was commenced in November, 1874, cannot affect the question.

The injustice of allowing a defective lien-claim, filed before January 1st, to be amended, consisted in this: When a lien-claim was once filed, and manifested fatal defects, any person perceiving it had the right to regard it as unamendable, and so deal with the property upon which it purported to establish a lien upon that basis.

Intervening the commencement of the building and the filing of the lien, all parties should be held to have dealt with the property with full knowledge that there was a right of lien, and a complete method provided for its enforcement.

There would be no justice in recognizing a right in third parties to speculate on the possibility'of the claimant losing [358]*358his right by subsequent errors of procedure under the then existing law.

When the lien-claim was once filed, all parties had the right to regard it with reference to the law existing at that time. If it was so faulty that the lien was lost and the vice was cureless, it was then right to so regard it. If, at the time, however, the fault by the law was remediable, they would be charged with notice of that, and the subsequent exercise of the power of amendment would work no injustice. I think there was no error in the allowance of the amendment.

Secondly. It is assigned for error, that the court held that it was unnecessary to distinguish between erection, construc1tion and repairs.

The right of lien for repairs is given in a separate section (8) of the act, and there is a provision applicable to liens for repairs, which is not applicable to liens for construction. This is the proviso: “That it shall not be valid against a bona fide purchaser or mortgagee before said lien is filed in the office of the clerk of the county.”

It is perceived, therefore, that while the cost for an addition to a house may be a valid lien, the cost of an extension in height, or interior alteration made at the same time, may not be enforceable against the property.

Any purchaser or mortgagee of the property, who became such subsequent to the commencement of the work and before lien filed, is, by the statute, fixed with a notice of the commencement of the construction of the building or addition, but his knowledge of the beginning of the reparation is a matter for proof.

The want of such notice constitutes a complete defence to that part of the account'which is for repairs.

This might make the contest entirely an ascertainment of what portion of the claim _ was for construction and what for reparation. It seems that, for the purpose of affording the defendant the information required for an intelligent defence, [359]*359the amount of each of these elements should be indicated in the claim.

It is also highly essential that-the record should show what part of the claim recovered represents construction, and what portion reparation. A judgment upon a lien for either, or-both, is conclusive, in any collateral proceeding, as to the-amount of the debt or debts.

The time at which the debts became liens must be established in such proceeding by extrinsic testimony ; and by virtue of the proviso relative to liens for reparation, the establishment of the time in each, as we have already observed,, differs. Upon proof of the time of the commencement of the construction, the attachment of the lien for the debt incurred for that purpose is fixed at that time, and the lien of any subsequent encumbrancer is subjected to it. But the discovery of the time of the attachment of the lien for reparation may involve another inquiry, as to whether a person acquiring a lien between the time of the beginning such reparation and the filing of the lien claim, had notice of such work at the time of acquiring his lien.

I think the lien-claim should show the claims for each distinctly, and the verdict should contain distinct findings for-each.

Unless this is done, it is apparent that, in any collateral contest between the judgment creditor or a purchaser under the special fi. fa. and an intervening mortgagee, the action of the jury in adjusting the amounts in the original trial has no conelusiveness. The verdict upon which judgment is. entered may have been, so far as the proceedings show, for a claim for construction, or for reparation, or for both. If for both, then what amount for each does not appear.

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Cite This Page — Counsel Stack

Bluebook (online)
39 N.J.L. 353, Counsel Stack Legal Research, https://law.counselstack.com/opinion/james-v-van-horn-nj-1877.