Mawson-Peterson Lumber Co. v. Sprinkle

140 P.2d 588, 59 Wyo. 334, 147 A.L.R. 1089, 1943 Wyo. LEXIS 18
Wyoming Supreme Court·Decided August 10, 1943·No. 2249·Published·Cited by 11 cases

Opinion

*338 OPINION

Blume, Justice.

This is an action brought by the Mawson-Peterson Lumber Company against Golie B. Sprinkle, defendant, to foreclose a mechanics’ lien on Lots 6, 7, and 8 of Block 10, Kelley’s Addition to the City of Cheyenne, Wyoming. Montgomery Ward & Company intervened in the action as cross-petitioner and sought to foreclose a mechanics’ lien against the same defendant, Golie B. Sprinkle, filed on Lot 6 above mentioned. The Court entered a decree foreclosing these liens both in favor of the plaintiff respondent company as well as the cross-petitioner. From that decree, the defendant Sprinkle has appealed.

I. It is necessary to consider separately the controversy with the lumber company and Montgomery Ward & Company, respectively, and we shall proceed and *339 first consider the controversy with respect to the claim of the lumber company above mentioned.

(1) The contention is made by the defendant that the lumber company, by agreement between the parties, waived the filing of a mechanics’ lien and agreed to rely upon the proceeds of a loan which Sprinkle was to obtain from the Federal Housing Administration. It appears that Sprinkle applied for a loan on August 25, 1938 in the sum of §3200. Subsequently, during 1939, it appears that the Federal Housing Administration agreed to allow the loan to the extent of $1900. That was not sufficient to pay for all of the claims in connection with the construction of Sprinkle’s house, so he proceeded on October 17, 1939 to file a voluntary petition in bankruptcy and he was thereafter, about October 20, 1939, adjudged to be a bankrupt. After the filing of the petition in bankruptcy the Federal Housing Administration informed the defendant that on account of such bankruptcy it would not make any loan.

The defendant Sprinkle did not testify that the lumber company agreed to waive the filing of a mechanics’ lien. All he stated was that he told Mr. Singer, the manager of the plaintiff lumber company, “I says to Mr. Singer, your money comes from this loan and I would suggest you call them up and see what they tell you.” Defendant, however, relies upon the testimony of Mr. Singer himself which is as follows:

Q. “Did you or the plaintiff company apply for the loan?”
A. “No. Mr. Sprinkle applied for the loan.”
Q. “What was the idea as to the loan ?”
A. “To secure money to pay for the materials.”
Q. “Now, was there any agreement at that time that you would look exclusively to the proceeds of the loan for your payment?”
A. “Yes.”
*340 “You did not expect to be paid unless the loan was made?” ó
(Question objected to and objection sustained.)
“What was the agreement as to the loan between you and Mr. Sprinkle?” á
“That we was to help him secure a loan, and that the loan money was to pay for the materials furnished by us.” «i
“Did you know at that time whether a loan could be obtained?” ó
“No, I did not.” <

It is stated in 40 C. J. 313 that “what constitutes a waiver is essentially a question of intention; in order to establish it the intention to waive must clearly appear. * * * In the absence of language indicating a purpose under no circumstances to claim a lien it is not to be supposed that the contractor intended absolutely to relinquish his right.” It may be noted that no mention whatever was made, either on the part of the defendant or on the part of Mr. Singer, in regard to the waiver of a lien. At that time it was not known, as testified by Mr. Singer, whether or not the loan would be obtained, and he probably meant by his answer to one of the questions that the proceeds of the loan should be exclusively used for the purpose of paying for the materials to be furnished to the defendant. Not a single reason is indicated in the record why the lumber company should have waived the filing of a mechanics’ lien. If there had been any such agreement, the defendant could have testified to that effect, but he did not do so; he makes no claim in his testimony that any such waiver was made. We think that the one answer of Mr. Singer’s was the result of a misunderstanding in the record as a whole and is far from showing clearly that the lien was waived. If, moreover, the contrary could be said to be true, the defendant lost his right to rely thereon. If it was an agreement, it was an execu-tory one. Defendant became a voluntary bankrupt. He *341 testified that the Federal Housing Administration refused to make any loan to him thereafter. He accordingly placed it out of his power to do what any agreement with the lumber company contemplated. It is stated in 17 C. J. S. 912 that “where one party places it out of his power to perform the other party may treat the contract as terminated at once.” That the lumber company did not consider any such contract in force after the proceedings in bankruptcy is shown by the fact that soon thereafter it filed its statement of a mechanics’ lien as required by the statute. See also Pacific Lumber & Timber Co., 60 Wash. 566; 111 P. 869.

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Mawson-Peterson Lumber Co. v. Sprinkle, 140 P.2d 588, 59 Wyo. 334, 147 A.L.R. 1089, 1943 Wyo. LEXIS 18 (Wyo. 1943).

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