Kansas City Southern Ry. Co. v. Wallace

1913 OK 369, 132 P. 908, 38 Okla. 233, 1913 Okla. LEXIS 351
CourtSupreme Court of Oklahoma
DecidedJune 3, 1913
Docket2640
StatusPublished
Cited by28 cases

This text of 1913 OK 369 (Kansas City Southern Ry. Co. v. Wallace) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kansas City Southern Ry. Co. v. Wallace, 1913 OK 369, 132 P. 908, 38 Okla. 233, 1913 Okla. LEXIS 351 (Okla. 1913).

Opinion

DUNN, J.

This case presents error from, the district court of Sequoyah county and is an action brought by defendants in error against the plaintiff in error and the Ferguson Contracting Company to recover a judgment for a balance due on work and ■ labor performed under a certain contract by plaintiffs, as subcontractors under the said Ferguson Contracting Company, and to enforce a lien for the amount thereof against the Kansas City Southern Railway Company, on whose line of railroad the work was performed. The answer denied the amount claimed and the right of plaintiffs to a lien. On a trial had on the issues made, the court found in favor of plaintiffs for the amount sued for and rendered a judgment decreeing the same a lien upon the roadbed, buildings, and equipments, etc., of the said railroad company, from which the case has been brought to this court for review.

But two propositions are urged by counsel for plaintiff in error, which are: First, that, under the contract existing *235 between it and the Ferguson Contracting Company and between the latter and the plaintiffs, a right to a lien was, by the plaintiffs, waived; and, second, that the statute under which the action is brought gives no lien to - contractors.

The contract between the Ferguson Contracting Company and the railway company contains, among other things, the following section:

“The contractor further agrees to pay in full for all materials by him1 furnished for the construction of the work aforesaid and for all labor by him employed upon said work, or any part thereof, -and to so contract for said labor as to retain from the money due .therefor the amount of the board bills, if any, contracted during the performance of such labor, and to pay the board bills with the money so retained, and to save the railway company free and harmless from -any lien for work or labor performed or material or supplies furnished in the performance of the work under this agreement, and from every claim, demand or lien arising from or growing out of any act or thing done or suffered by the contractor or his agents or servants and his or their employees, in connection with the work aforesaid.”

And the contract of the plaintiffs with the said contracting company provides as follows:

“It is understood -and agreed by both parties hereto that this agreement is and shall be subordinate to the said contract heretofore made between the party of the second part herein and the railway company, in all its provisions as to the times, manner and conditions in and under which the whole and every part of said construction work is to be done and performed and in all essential respects, and that all the rights, powers and privileges that are given and reserved to said railway company in their said contract with the party of the second part herein, are hereby expressly given, reserved and conceded to the party of the second part in and under this agreement, as between the parties' hereto.”

From the proof it is made to appear that some time prior to the 1st of December, 1910, the plaintiffs received from the resident engineer of the railway company statements showing the amount due under the contract of plaintiffs with the Ferguson Contracting Company. On these statements *236 the action seems .to have been based; and under such circumstances the contract of the plaintiffs contained the following provision with reference to the filing and enforcement of a lien:

“As it is the express intention of the parties hereto to avoid litigation, and it is further expressly understood and agreed between the parties hereto that there shall be no liens filed or suits brought until after the resident engineer has published his award, and then only for the purpose of enforcing said award.”

As we view the terms' of both contracts taken together, it was the intention of the parties to avoid any litigation over unliquidated accounts. In other words, no suits were to be brought nor liens filed until after the resident engineer had published his award, and the agreement then seems to contemplate that suits might be brought, if only for the purpose of enforcing such award. This action was for that purpose, and hence the contention of counsel for the company that plaintiffs had waived their right to a lien, under the terms of the contract, is untenable; the rule being that there is no implication in favor of "a waiver, but to exist it must be made to clearly appear. 27 Cyc. 262.

The second proposition presented is one of more difficulty and is in fact the one upon which counsel chiefly rely. It is divided into two parts and arises on the question of 'the proper construction of section 6166, Comp. Laws 1909 (Rev. Laws 1910, sec. 3868), which provides as follows:

“Every mechanic, builder, artisan, workman, laborer, or other person, who shall do or perform any work or labor upon, or furnish any materials, machinery, fixtures or other thing towards the equipment, or to facilitate the operation of any railroad, shall have a lien therefor upon the roadbed, buildings, equipments, income, franchises, and all other appurtenances of said railroad, superior and paramount, whether prior in time or not, to that of all persons interested in said railroad as managers, lessees, mortgagees, trustees and beneficiaries under trust or owners.”

The work of plaintiffs in this case was the construction of concrete abutments, piers, and furnishing material for the *237 roadbed of tbe railway, and it is the contention of counsel that the only persons who are given a lien under the foregoing act are those who furnish labor and materials toward the equipment of the railroad or to facilitate the operation of the same; that equipment means cars, locomotives, and things of that class; and, as none of the work performed by plaintiffs falls therein, the statute gives them no lien thereof. This particular branch of the case is dealt with in Kansas City Southern Ry. Co. v. Rosier, ante, 132 Pac. 908, and the discussion therein contained is pertinent and conclusive and we will not reiterate it. Suffice to say that therein we held that under this section laborers who performed work on a roadbed, right of way, and tracks of a railway company were, under this statute, entitled to the lien here objected to.

The question of whether the plaintiffs, who were subcontractors, would be entitled to such a lien, even if the same was provided for by the statute, for the character of their work is the second proposition presented by counsel. Counsel for the defendant company insist that contractors or subcontractors, not being mentioned in the act and not being of the same class of persons as those mentioned in the act, were not included therein, and that it was not the intention of the Legislature that the protection and remedy provided for should be extended to them. They rely upon the cases of Tucker v. Railway Company, 59 Ark. 81, 26 S. W. 375, and Little Rock, H. S. & T. R. Co. v. Spencer, 65 Ark. 183, 47 S. W. 196, 43 L. R. A.

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Bluebook (online)
1913 OK 369, 132 P. 908, 38 Okla. 233, 1913 Okla. LEXIS 351, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kansas-city-southern-ry-co-v-wallace-okla-1913.