Lincoln National Bank v. John Peirce Co.

98 Misc. 325
CourtNew York Supreme Court
DecidedJanuary 15, 1917
StatusPublished
Cited by2 cases

This text of 98 Misc. 325 (Lincoln National Bank v. John Peirce Co.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lincoln National Bank v. John Peirce Co., 98 Misc. 325 (N.Y. Super. Ct. 1917).

Opinion

Hotchkiss, J.

(1) For the reasons stated on the trial the amount owing by the New York Central Railroad Company must be fixed at the sum of $81,712.73, to which interest will be added. (2) If the decision of this case required me to pass upon the claim of the plaintiff that the acceptance of the assignment by the railroad company and its promise to pay to plaintiff all moneys earned under the contract, on the faith of which engagement plaintiff made its loans to the Peirce Company, was the legal equivalent of an actual payment by the railroad company to plaintiff, or constituted a novation, giving plaintiff title to the moneys superior to-claims of subsequent lienors, I should be inclined to hold adversely to the plaintiff’s contention. Harvey v. Brewer, 82 App. Div. 589; affd., 178 N. Y. 5, is clearly distinguishable. Here there was no positive .engagement by the railroad to pay plaintiff any sum whatever. The promise was to pay if and when money was earned by the Peirce Company. The case seems to be controlled by Van Kannel Revolving Door Co. v. Astor, 119 App. Div. 214; Smith & Co. v. Douglas, 165 id. 707. See, also, Standard Sand (& Gravel Co. v. City of New York, 172 App. Div. 80. (3) The objection that plaintiff failed to comply with section 15 of the Lien Law must be overruled. The ordinary meaning of the word “ substance ” when used with respect of a contract is its essential or material parts, its important parts. But the word is susceptible of different signifi..cations, according to the circumstances, and, as in all other ca.ses where interpretation becomes necessary, must be taken to have an exclusive or inclusive meaning, according to the subject to which it relates What might be matters of substance as between the contracting parties might be wholly immaterial as "betVe’en them or either of them and third parties, [331]*331depending entirely upon the circumstances. The only conceivable purpose of the provision requiring the contract or a copy or “ a statement containing the substance thereof ” to be filed is to give notice to all interested persons that an assignment of that particular contract or moneys due thereunder or an order upon the owner for the payment of moneys on account thereof has been made or issued. For the purposes of such notice the consideration and what may be called the operating details of the contract are of no importance. The object of the section is accomplished when there is filed such a description of the contract as clearly identifies it. This necessarily includes the character of the work involved and the location of the property. This "interpretation of the section accomplishes everything the legislature intended and is in accord with the spirit of section 23 of the article, which commands that it be liberally construed and that a substantial compliance with its several provisions shall be sufficient for the . validity of a lien. ’ ’ Undoubtedly the “ statement ” may be contained in the assignment itself. The assignment in question sets forth the following particulars of the contract: Its date; the parties thereto; that it is “ for the delivery of material, labor performed and the erection complete of the Mail Service & Loft Building, 45th and 46th Street, Lexington Avenue and Depew Place, Grand Central Terminal.” To say that this description might cover a contract for the delivery of some material and the performance of some labor, besides the labor of “ erecting ” the building, as distinguished from a contract to furnish all material and the labor and to erect the building, is to analyze the language used too nicely. The question is, What would the words used convey to the ordinary mind? To me the meaning seems clear — that the Peirce Company was [332]*332the general contractor for the “ erection complete ” of the building and the furnishing of all material and labor necessary therefor. The cases of Barrett v. Schaefer, Jr., & Co., 162 App. Div. 52; affd., 217 N. Y. 722, scad. Smith & Co. v. Douglas, supra, are distinguishable. In each the description of the contract was vague and indefinite in material particulars. In the Barrett case, although the parties were named, the date of the contract was not given and the contract was described as one “ for the erection of twenty-eight (28) buildings at Pleasantville, New York. ’ ’ Where in Pleasant-ville was not stated. Whether the buildings were at one location or at twenty-eight locations was left to inference. In the Smith S Go. case the parties were named, but the date was omitted, as in the Barrett case, and the contract was described as one “ for repair work on a building now erected on the property of W. H. Douglas, located at Gforey Brook road, North Tarrytown, N. Y.” The nature of the repair work, the particular building on the Douglas property or the location of that property on the Gforey Brook road were all omitted. The words of description in the present case are equivalent to those used in the assignments held to be sufficient in American Hardware Corpn. of N. Y. v. Lyttle, not reported, copy of opinion, Mills, J., furnished by counsel; affd., 154 N. Y. Supp. 1109, and N. Y. County Nat. Bank v. Peckworth, Lehman, J., N. Y. L. J., July 2,1914, and in Wright Ogden Co., Inc., v. Strayer, per Tierney, J., March 8, 1916. I shall follow the latter cases. (4) The “ change orders are immaterial. Section 4 of the contract provided for changes. Changes which increased the amount of the work were not to be made unless covered by a “ supplemental ” written agreement. This was the equivalent of the ordinary case of extra work. It is not certain that the changes made were increases, [333]*333but, however that may be, when made they are to be taken as having been made in pursuance of the original contract. The objections to the various liens filed by parties defendant are divisible into general and specific objections. The general objections cover the following situations: (1) Where no order was obtained extending the lien and no Us pendens herein was filed by the particular lienor; (2) where no order of extension was obtained, but a Us pendens was filed by that lienor, and (3) where the New York Central and Hudson River Railroad Company and not the New York Central Railroad Company was named as owner. It is not disputed that McClintic-Marshall Company, James McCullagh, Inc., and Denton Company, whose liens were the first three filed, did severally file notices of Us pendens. The objection to the efficacy of all notices of Us pendens is put upon the ground that this action is not one “ to enforce another lien ” within the meaning of section 17. Plaintiff’s assignment was to secure it for moneys advanced. In effect it was a mortgage and, as between the parties, it constituted a common-law lien on the fund. Standard Sand & Gravel Co. v. City of New York, supra. But, by reason of section 15, it was not enforcible as against the various classes of persons who are entitled to avail themselves of the Mechanics ’ Lien Act and who filed liens thereunder unless the provisions of section 15 were complied with. When this was done plaintiff was brought expressly within the definition of section 2, which says: ‘ ‘ The term ‘ Lienor ’ when used in this chapter, means any person having a lien upon property by virtue of its provisions.” Philbrick & Brother v. Florio Co-Operative Assn., 137 App. Div. 613, 615; affd., 200 N. Y. 526. The question remains as to whether the Us pendens

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Bluebook (online)
98 Misc. 325, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lincoln-national-bank-v-john-peirce-co-nysupct-1917.