Kreatz v. McDonald

143 N.W. 975, 123 Minn. 353, 1913 Minn. LEXIS 428
CourtSupreme Court of Minnesota
DecidedNovember 14, 1913
DocketNos. 18,203, 18,458-69, 70).
StatusPublished
Cited by1 cases

This text of 143 N.W. 975 (Kreatz v. McDonald) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kreatz v. McDonald, 143 N.W. 975, 123 Minn. 353, 1913 Minn. LEXIS 428 (Mich. 1913).

Opinion

Holt, J.

On January 4, 1908, the defendant, an attorney at law, drew a mechanic’s lien for plaintiff upon certain premises in Bemidji, Minnesota, owned by Matt Thome. The lien was claimed in the sum of $3,048.65, being a balance due for the erection of a large building under a contract between plaintiff and Thome, the contract price being $23,300, and the extras $1,942.40. The lien was duly filed for record on February 26, 1908, by defendant. Plaintiff began the building on April 20, 1907. The lien so stated, and also that the last work thereon was done December 15, 1907. The lien was in proper form. After the work was begun, and prior to its completion, Thome placed two mortgages on the premises, the first for $20,000' and a second for $5,000. The first mortgage was foreclosed and the time for redemption expired December 28, 1908. No redemption was made. Plaintiff claims that he employed defendant to foreclose the lien. That defendant neglected to commence the foreclosure within the time provided by law, or at all. And that when plaintiff ascertained that no action had been begun, it was too late. Thome is insolvent. This action is to recover as damages the amount of the lien which plaintiff alleges was wholly lost because of defendant’s failure and neglect to foreclose the same as he had agreed to do. The defense was practically a general denial. The trial resulted in a verdict for defendant. A motion in the alternative for judgment or a new trial was denied and plaintiff appeals.

On December 5, 1912, a garnishee proceeding ancillary to the main action was instituted wherein Beltrami county was made garnishee. On motion of defendant the proceedings were vacated and set aside by an order of the court filed February 4, 1913. Plaintiff appeals also from such order.

We shall dispose of both appeals in this opinion. In the main *355 action plaintiff assigns as error: That the verdict was not justified by the evidence; that the court gave wrong instructions to the jury bearing upon the validity of the mechanic’s lien and as to the insolvency of the makers of notes received by plaintiff at the time he and the owner agreed upon the amount due; and that the jury failed to answer a special finding submitted for determination.

Whether or not plaintiff employed defendant to foreclose the lien was no donbt a question for the jury. It cannot be said that the.verdict is so manifestly against the evidence that this court may interfere with the result reached in the trial court, unless the charge-of the court in matters complained of, or the failure of the jury to-determine the special finding submitted constitutes prejudicial error..

The charge of the court is assailed wherein the jury were told, im substance, that unless plaintiff proved that the work done in the-spring of 1908 was under a new contract the lien was invalid. We-deem this instruction erroneous under the facts disclosed by the-record. The lien was for a balance due upon a large contract together with considerable extras. On the day defendant drew the lien, or a few days prior, plaintiff and Thome had agreed upon the amount due, being the sum stated in the lien. This was in the wintertime. The building was practically completed and ready for occupancy. Thome had taken full possession. As is well known, in the-erection of a building of any magnitude some little finishing touches- or adjustments remain to be done after it is so far completed that it is occupied and used. In this instance there were, on January 4,. 1908, a few of these little things to be fixed up, some of which could not very well be done at that time of the year, such as washing part of an outside wall, some pointing on the foundation, patching of the plastering, a little painting on a cornice and the like. The value of all is estimated at less than $40. After agreeing upon the amount due, Thome and one Mayer executed and delivered their five promissory notes to plaintiff in the aggregate amount of $2,600, and it was agreed that Thome was not to.be called upon to pay the balance until the odds and ends mentioned were completed. This was done the-following April or May. The unfinished work was so trivial compared with the entire job that it cannot have any- bearing on the- *356 validity of plaintiff’s lien. Thome, the owner of the property, adjusted the amount due with plaintiff on or prior to the date the lien was prepared, occupied the building, assented tó the finishing touches being put on in the spring, and this was done. Under these conditions no court would entertain a defense from Thome that the lien was prematurely filed. Nor could the mortgagee assert any such defense on this evidence. There is not anything tending to show bad faith on the part of the lien claimant, and the utmost the mortgagee could have hoped to do, if an action to foreclose the lien had been brought in time, would have been to reduce the claim by the value of the work done subsequent to the date stated in the lien as the last item of work. Under no view of this record could the mort.gagee have succeeded in invalidating the whole lien, or have its rights ■declared superior thereto.

Moreover, defendant, who had acted for plaintiff in the disputes •which arose between him and Thome in the construction of the building and particularly in respect to the item which made up the largest portion of the extras, was familiar with the situation, knew of the agreement of the parties, and drew the notes mentioned, is hardly in a position to successfully attack plaintiff’s lien on the ground that it was prematurely asserted or for any other technicality. Plaintiff would rather have a right to expect that when he intrusted the preparation of the lien to defendant, who was so well acquainted with the ¡situation, no such loop hole as is now sought to defeat the lien would Nave been left open. But, be that as it may, we are satisfied that the •evidence did not present a defense on the ground that plaintiff’s lien as made out and filed was unenforceable in any amount, because the work was not completed at the time the lien statement was signed, or at the time stated in the lien. Its validity did not depend upon the existence of a separate contract for the significant work done in the spring of 1908. It was error to submit any issue in that respect to the jury.

The court instructed the jury that it was incumbent on plaintiff to prove the insolvency of Mr. Mayer and Mr. Thome from the time the notes were due, and error is assigned thereon. The evidence was conclusive that the notes were worthless, that ever since their *357 maturity, and since the expiration of the time of redemption from the foreclosure of the $20,000 mortgage, the makers thereof had been insolvent. They both so testified, and there was not the slighetst proof to indicate the contrary. No issue was presented by the testimony tending to show a defense’ because plaintiff might have saved himself from loss by recourse to the makers of these notes.

At the request of defendant, and over the objection of plaintiff,, the court submitted this question to the jury for a special finding; “Was the labor done or material furnished, on the building herein involved, in April or May, 1908, done and furnished under an entirely new and separate contract from the original contract, or one entered into about September 1, 1907 ?” The jury returned a general verdict for the defendant, without answering this special question submitted.

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Related

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215 N.W. 225 (Supreme Court of Minnesota, 1927)

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Bluebook (online)
143 N.W. 975, 123 Minn. 353, 1913 Minn. LEXIS 428, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kreatz-v-mcdonald-minn-1913.