Majestic Tile Co. v. Nicholls

161 Misc. 231, 291 N.Y.S. 551, 1936 N.Y. Misc. LEXIS 1497
CourtNew York County Courts
DecidedNovember 25, 1936
StatusPublished
Cited by4 cases

This text of 161 Misc. 231 (Majestic Tile Co. v. Nicholls) is published on Counsel Stack Legal Research, covering New York County Courts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Majestic Tile Co. v. Nicholls, 161 Misc. 231, 291 N.Y.S. 551, 1936 N.Y. Misc. LEXIS 1497 (N.Y. Super. Ct. 1936).

Opinion

Turk, J.

In July, 1916, the defendant Elma M. Perkins became the owner of certain premises, known as No. 5 Van Burén street, in Baldwin, Nassau county, N. Y. On this property there was a first mortgage of $3,500, held by the Home Title Insurance Company, and a second mortgage of $2,000, held by the defendant George M. Nicholls. In September, 1931, the defendant George M. Nicholls commenced an action to foreclose his mortgage, and in July, 1933, secured a judgment of foreclosure and sale. The premises were sold by a referee in September, 1933, and the defendant George M. Nicholls became the purchaser thereof for the sum of $1,000. George M. Nicholls assigned his memorandum of sale to his sister, Elizabeth G. Nicholls, and on October 2, 1933, Elizabeth G. Nicholls received a referee’s deed of said premises. On the 30th day of October, 1933, the defendant Elma M. Perkins obtained from the Home Title Insurance Company an extension of the time of payment of the first mortgage on these premises, extending the time of payment to June 1,1936. On December 1,1933, Elizabeth G. Nicholls entered into a contract with the Holi-Wood Corporation for the sale of the premises for the sum of $4,700, and on the same date the Holi-Wood Corporation entered into a contract with Elma M. Perkins for the sale of the same premises for the sum of $5,200, giving possession to Elma M. Perkins under a lease agreement wherein and whereby it was provided that The rent should be the payment by the second party [Elma M. Perkins] of the interest on the first mortgage, the taxes, water rent and a monthly payment of Thirty Dollars ($30.00) each, on the first day of each and every month to the first party [Holi-Wood Corporation].” At the time of the making of the extension agreement between the Home Title Insurance Company and Elma M. Perkins, there was a policy of insurance on the premises, but subsequently and on the 3d day of November, 1933, the defendant Elma M. Perkins caused the amount of that policy to be increased to $9,500 by securing a policy from the New York Underwriters Insurance Company, No. 21727, written in lieu of policy #21634,” with “ loss, if any, payable to the Home Title Insurance Co. as first mortgagee and George M. Nicholls as second mortgagee, and Joseph M. and Elma M. Perkins as interest may appear.” On or about December 23, 1933, a fire occurred on said premises, causing considerable damage to the premises, and thereafter the defendant [233]*233George M. Nicholls, apparently representing his sister, Elizabeth G. Nicholls, or the Holi-Wood Realty Corporation, or both, entered into negotiations with the “ Home Title ” and the New York Underwriters Insurance Company relative to the adjustment of the loss, and finally agreed upon an adjustment of $2,950, which sum was deposited with the Home Title Insurance Company. This sum is now being held by the Superintendent of Insurance, as rehabilitator of the Home Title Insurance Company. Following the fire and the adjustment, the Home Title Guaranty Company entered into an agreement with George M. Nicholls for the restoration of the premises, which was confirmed by a letter of George M. Nicholls to that company on March 9, 1934. The sound value of the building was established at $5,220, with a loss to replace it as it was prior to the fire of $1,977.92, the difference between that amount and the amount agreed upon, namely, $2,950, having been claimed by George M. Nicholls as a loss on furnishings and personal effects of Elizabeth G. Nicholls. Thereafter, and on March 16, 1934, George M. Nicholls commenced the work of cleaning out the rubbish and debris and restoration of the premises. On April 2, 1934, the defendant Elma M. Perkins entered into possession of the premises and refused to allow George M. Nicholls to continue with the restoration, claiming that the work done by Mr. Nicholls was not satisfactory and not in accordance with his agreement with the Home Title Insurance Company, and thereafter at intervals an inspector for the Home Title Insurance Company made inspections and found the work was being done as cheaply as possible in order to get the profit remaining after the loss had been paid,” and on June 8, 1934, that inspector wrote Mr. Nicholls that he was dissatisfied with the quality of some of the workmanship which he saw, that nothing had been done about replacing the tile, and that there were a number of other items to be furnished. On July 26, 1934, Elma M. Perkins entered into a contract with the plaintiff Majestic Tile Company for the performance of certain work on the premises, and on or about the 28th day of July, 1934, she entered into a contract with the plaintiff Alexander Jackson for the performance of certain work on said premises. Upon failing to receive pay for services rendered and materials furnished, each of the plaintiffs filed mechanics’ liens against the premises, and these actions were brought for the purpose of foreclosing those liens, and also to impress a trust upon the funds in the hands of the Superintendent of Insurance, as rehabilitator of the Home Title Insurance Company.

It is claimed by the defendant George M. Nicholls and the Holi-Wood Realty Corporation that the plaintiff Alexander Jack[234]*234son is not entitled to recover because of his failure to complete-the work called for by the terms of his contract, and that neither of the plaintiffs are entitled to recover because they have failed to prove that the work done by them was with the consent or at the request of the owner of the property in question. It is further claimed by these defendants that the defendant Elma M. Perkins had no insurable interest in the premises and is not entitled to any of the funds held by the Superintendent of Insurance.

The defendant Elma M. Perkins concedes that the plaintiffs are entitled to recover. She contends that the work done by the plaintiffs was done with the consent of the defendant George M. Nicholls, that his consent was sufficient under the Lien Law, and that this court has power to determine the equity between her and the other defendants in these actions and make allowance accordingly.

The Superintendent of Insurance urges that this court has no jurisdiction to impress a trust, under the circumstances in this case, and that the action should be dismissed in so far as the Superintendent of Insurance is concerned.

At the trial of the actions, a motion was made by the defendant Superintendent of Insurance to dismiss the complaint and also the counterclaim asserted against the Superintendent of Insurance. This motion was renewed at the end of the plaintiffs’ cases and at each of those instances decision was reserved. The court, therefore, first directs its attention to ruling on those motions.

Under section 67 of the Civil Practice Act, the County Court has jurisdiction for the enforcement or foreclosure of a mechanic’s lien on real property where the real property to which the action relates is situated within the county; and under section 69 of the Civil Practice Act where the County Court has jurisdiction of an action or special proceeding, it possesses the same jurisdiction, power and authority in and over the same, and in the course of the proceedings therein, which the Supreme Court possesses in a like case; and it may render any judgment, or grant either party any relief, which the Supreme Court might render or grant in a like case, and may enforce its mandates in like manner as the Supreme Court. Section 45 of the Lien Law provides that the court may adjust and determine the equity of all the parties to the action and determine all issues raised by any defendant, or counterclaim in the action.

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Cite This Page — Counsel Stack

Bluebook (online)
161 Misc. 231, 291 N.Y.S. 551, 1936 N.Y. Misc. LEXIS 1497, Counsel Stack Legal Research, https://law.counselstack.com/opinion/majestic-tile-co-v-nicholls-nycountyct-1936.