Jones v. Keen

115 Mass. 170, 1874 Mass. LEXIS 183
CourtMassachusetts Supreme Judicial Court
DecidedJune 17, 1874
StatusPublished
Cited by27 cases

This text of 115 Mass. 170 (Jones v. Keen) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jones v. Keen, 115 Mass. 170, 1874 Mass. LEXIS 183 (Mass. 1874).

Opinion

Endicott, J.

This case presents for decision questions raised upon the bill, answers, master’s report, and the exceptions thereto. [179]*179Tile parties, including all who have entered a formal appearance, filed answers or offered proof of claims, and have an interest in the proceeds of the sale of the barque Etta Loring, are twenty-seven in number, representing twenty-eight different claims, which have been passed upon by the master. This enumeration does not include the owner, who is a mere nominal party having no interest in the result. These parties may be divided into two classes: there are twenty-four, who claim liens for labor performed and materials furnished in the construction of the barque under the Gen. Sts. c. 151, §§ 12, 13, 14 ; and three, who claim under four different mortgages made upon her hull by her owner Keen, during her construction; the third and fourth mortgages being held by the same persons.

No question is raised and no objections are taken to the finding of the master, in allowing a large number of the claims for labor and materials, or in rejecting several because the parties had wilfully and knowingly claimed more than was due, in the certificate of their claims, filed in the town clerk’s office, § 13, supra. But in the master’s report and the exceptions thereto, questions both of law and fact arise in regard to certain of these claims passed upon by the master, including that of the plaintiff, and also including the master’s decision upon the compensation to be allowed the receiver. Questions are also open respecting the rights of the several mortgagees to share the proceeds, and it is insisted by the parties, holding the second, third and fourth mortgages, that this bill cannot be maintained, because the plaintiff has a full, complete and adequate remedy at law. These questions will be considered in reverse order.

1. In considering whether this bill should be dismissed because the plaintiff has a remedy at law it will be necessary to examine somewhat the facts, and the circumstances under which this question is presented. It is raised by Lewis & Co., who hold the second mortgage, and Patton & Ginn, who hold the third and fourth mortgages. All the other parties desire to proceed under this bill, as affording the most speedy and satisfactory determination of their rights, and of the numerous questions presented. Indeed it would raise serious complications, and work much mischief if it should be necessary at this stage to dismiss the cause. The bill "seeks not only for a determination of the various liens [180]*180upon the vessel for labor and materials, but that the mortgagees may be enjoined from selling under their mortgages, and that a receiver may be appointed to finish the vessel and sell her for the benefit of all parties. At the hearing May 22,1871, to determine whether a receiver should be appointed and the mortgagees enjoined as prayed for, the order passed by the court to that effect and also the order appointing the master seem to have been assented to by all parties. One member of the firm of Patton & Ginn was present at the hearing and made no objection. Before the sale of the vessel by the receiver, July 11, 1871, both Lewis & Co., and Patton & Ginn, had notice that the sale would take place on that day, and had retained counsel, who consulted with the counsel for the plaintiff, and no objection was made to the proposed sale or to any of the proceedings. On August 14, following, both these parties entered a formal appearance on the docket, employing the same counsel. The hearings before the master commenced October 4, and were continued from time to time until November 9, 1871. At these hearings these parties were present in person and by counsel, taking part in the proceedings ; some of them were examined as witnesses, their mortgages and certain certificates they had filed were put in evidence, and they were heard, as other claimants. After the ease was closed before the master, they filed answers on January 15, 1872, and for the first time they raised this question, denying the jurisdiction because there was a full, adequate and complete remedy at law. We do not think it was then open to them. They, submitted to the jurisdiction, made no objection to the appointment of the receiver or to the sale, and tried their case before the master to obtain their share of the proceeds. If they intended from the first to raise the question, they did not act in good faith in delaying until January 15,1872. If it was an afterthought, having taken their chance with the others at the hearing, it was too late to raise it at that stage of the proceedings. No one appears to have consented to the filing of these answers, and all the other parties oppose the dismissal of the bill. We do not therefore think it necessary to consider the question thus raised. The objection, so far as these parties have the right to avail themselves of it, we must consider to have been waived. First Congregational Society v. Trustees, 28 Pick. 148. Russell v [181]*181Loring, 3 Allen, 121. Dearth, v. Hide Leather National Bank, 100 Mass. 540. Lawrence v. Bassett, 5 Allen, 140.

2. These mortgagees also contend that their mortgages have priority to the claims for labor performed and materials furnished in the construction of the barque. We think it well settled that they have no such preference, but that liens attach and have priority over mortgages, and this is clearly so where the mortgages are created after the contract. The mortgage of Lewis & Go. was not recorded till May, 1871, and the mortgages of Patton and Ginn were recorded in November, 1870, and all the contracts for labor and materials appear to have been made prior to that time, as the work on the ship was suspended in December, 1870, by reason of the insolvency of Keen. Allen Prior, who holds the first mortgage, does not raise this question. Donnell v. The Starlight, 103 Mass. 227. The Granite State, 1 Sprague, 277. Dunklee v. Crane, 103 Mass. 470. The Kiersage, 2 Curtis, 421.

3. Objection is made by Allen Prior, the first mortgagee, in his exceptions to the master’s report, to the amount allowed by the master to the receiver as compensation for his services, and also for counsel fees. The basis upon which the receiver estimated his services, a commission of five per cent, on the sale, was incorrect. It was held in Grant v. Bryant, 101 Mass. 567, that the compensation of a receiver could not be determined by a fixed commission on the amount of money passing through his hands, but such an amount should be allowed as would be reasonable for the services rendered by a person competent to perform the duty. The master, objecting to the basis adopted by the receiver, determined the sum charged to be reasonable and allowed it. We see no reason to disturb his finding upon the evidence reported. Nor do we see any reason for disturbing the finding of the master, allowing in the disbursements of the receiver a charge for counsel fees. No objection was made before the master to the propriety of his employing counsel or the reasonableness of the bill. The master was not requested to report the evidence on the subject. We are therefore unable to pass upon that question, and it is not open on the exception. An exception to the finding of a master upon the facts before him is to be regarded only so far as it is supported by the statements of the master, or the evidence reported by him. Harding v. Sandy, 11 Wheat. 103. Adams v. Brown, 7 Cush. 220.

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Bluebook (online)
115 Mass. 170, 1874 Mass. LEXIS 183, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jones-v-keen-mass-1874.