Laughlin v. Reed

36 A. 131, 89 Me. 226, 1896 Me. LEXIS 103
CourtSupreme Judicial Court of Maine
DecidedMay 22, 1896
StatusPublished
Cited by2 cases

This text of 36 A. 131 (Laughlin v. Reed) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Laughlin v. Reed, 36 A. 131, 89 Me. 226, 1896 Me. LEXIS 103 (Me. 1896).

Opinion

Whitehohse, J.

The plaintiffs as assignees in insolvency of Frank W. Lincoln brought this action of trespass against the defendant, as sheriff of Penobscot County, for the act of his deputy in attaching, seizing, and selling a certain building situated on leased land in Indian Township No. 4, known as the “Lincoln House ” and at the date of the attachment owned by Frank W. Lincoln. The attachment was made November 21, 1894, in a suit brought against Lincoln by James M. Davis to enforce a mechanic’s lien, which Davis claimed to have on the building for labor [229]*229performed and materials furnished in its erection, the balance claimed being $176.36. The declaration on the account annexed to the writ, specifying the items of labor and materials, contains an averment that the suit was “ brought to enforce the plaintiff’s lien on said building,” previously described in the writ. It is stated in the officer’s return that the attachment was made for the purpose of enforcing the plaintiff’s lien claim on the building, and that personal service was at the same time made on the defendant Lincoln, who was the debtor and the owner of the building. The writ was duly entered in the Municipal Court of Bangor to which it was made returnable, the defendant appeared and answered, and judgment was rendered for the plaintiff on the third Monday in December for $90.06 and costs of suit. The defendant appealed from this decision, but failing to prosecute his appeal, the judgment of the lower court was affirmed in the Supreme Court on the sixth day of February, and execution duly issued thereon on the fourth day of March, 1895. On this execution is a memorandum describing the building attached and stating that it was “for the purpose of enforcing plaintiff’s lien on said hotel.” By virtue of this execution the officer seized and sold the hotel, after due notice, stating in his return that it was the same building attached on the original writ to enforce the creditor’s lien claimed thereon.

In the meantime, however, Frank W. Lincoln, the defendant in that suit, was duly adjudged an insolvent debtor on the first day of January, 1895, on his own petition, and the plaintiffs as his assignees received the usual assignment, vesting in them all the property and estate of the debtor . . “ although the same was then attached on mesne process as the property of the debtor.” Thereupon, these plaintiffs invoked the succeeding clause in § 33, c. 70, R. S., declaring that, “such assignment dissolves any such attachment made within four months . . preceding the commencement of such proceedings and contend that even if the lien creditor Davis had, in other respects, observed the requirements of the statute for the preservation of his lien, his attachment was dissolved and his lien discharged by force of these proceedings in insolvency.

This position of the assignees is clearly untenable. The bene[230]*230ficent' provisions of our statutes in favor of mechanics and material men are not in conflict with the spirit and purpose of the insolvent law, because no injustice will be done to any creditor, or class of creditors, by the enforcement of a mechanic’s lien. There is an obvious distinction between the lien which a mechanic acquires under the statute by furnishing labor and materials in the erection of a building and a general lien created by the ordinary attachment on mesne process. “ In the latter case, an attaching creditor has no claim for preference over other creditors except by his attachment; whereas, when a mechanic obtains a lien under the statute, and relying thereon, increases the value of the land by erecting buildings thereon, he has a strong equitable claim for re-imbursement to the extent of the value of his labor and materials furnished for building; and in this respect he has a marked preference over other creditors of the owner of the land, who had trusted to the personal credit of their debtor.” Foster v. Stone, 20 Pick. 542. The operation of the lien law is analogous to that of the clause in § 52, c. 70, R. S., declaring valid any loan of actual value made in good faith upon security taken at the time; because such security is only “ equivalent to the additional value which the creditor has by this means given to the property of the debtor, and therefore does not diminish the assets of the latter applicable to the payment of his pre-existing debts.” In re, Coulter, 5 Nat. Bank. Reg. 64; Phil. on Mech. Liens, 299.

Again, it is an uncontroverted and familiar principle that, in the absence of fraud, the assignee in insolvency stands in the place of the insolvent debtor and takes only the property which he had subject to all equities, liens or incumbrances, whether created by operation of law or by the act of the insolvent, which had a valid existence against the property in the hands of the insolvent. Yeatman v. Sav. Inst. 95 U. S., 764; Newbert v. Fletcher, 84 Maine, 408; Hutchinson v. Murchie, 74 Maine, 187.

Reasoning from these two postulates we reach an easy solution of the apparent difficulty arising from the unqualified provision in § 33, c. 70, R. S., that all attachments are dissolved by proceedings in insolvency. The assignees took the property subject to the [231]*231strong equities attaching to a mechanic’s lien, the security óf which, as we have seen, is in no way obnoxious to the policy of the insolvent law; and the insolvent statute should not be construed to destroy those equities by dissolving the lien, unless such a construction is imperatively demanded by its terms when considered in comparison with the statutes under which the mechanic’s lien is acquired.

Section 34 of c. 91, R. S., provides that the lien shall be dissolved unless a suit to enforce it is commenced within ninety days after the last labor is performed; but section 35 of the same chapter proceeds to declare that . . . “ when a warrant in insolvency issues against his estate within the ninety days and before the commencement Of a suit, the action may be commenced within sixty days after notice given of the election or appointment of the assignee, or the revocation of the warrant, and the lien shall be extended accordingly.” This amendment to the Revised Statutes of 1871 was enacted in 1881, three years after the passage of the insolvent law; and it is an established rule that acts in pari materia are to be taken together and construed as one law. Thus these several provisions reflect light upon each other, and the whole should be so expounded if practicable, as to avoid any contradiction or inconsistency and give some effect to every part. Newbert v. Fletcher, 84 Maine, 408; Gray v. Co. Com. 83 Maine, 429; Endlich on Int. of Statutes, 40-41; Sedgwick on Stat. Const. 238.

But there seems to be no necessary conflict between the statutes above quoted. They may be naturally construed so as to leave a clear and definite field of operation for each. The provision in § 33, c. 70, is restricted to general attachments by which liens are created; while § 34 of c. 91 expressly relates to liens created by the act of furnishing labor and materials and enforced by attachment, affording at the same time an obvious implication that all such liens are to be upheld against a warrant in insolvency.

The lien in favor of the plaintiff in the action Davis v. Lincoln, if otherwise preserved, was protected against the operation of the [232]

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Bluebook (online)
36 A. 131, 89 Me. 226, 1896 Me. LEXIS 103, Counsel Stack Legal Research, https://law.counselstack.com/opinion/laughlin-v-reed-me-1896.