McClintic-Marshall Co. v. Scandinavian-American Bldg. Co.

281 F. 166, 1922 U.S. Dist. LEXIS 1456
CourtDistrict Court, W.D. Washington
DecidedMarch 31, 1922
DocketNo. 117
StatusPublished
Cited by1 cases

This text of 281 F. 166 (McClintic-Marshall Co. v. Scandinavian-American Bldg. Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McClintic-Marshall Co. v. Scandinavian-American Bldg. Co., 281 F. 166, 1922 U.S. Dist. LEXIS 1456 (W.D. Wash. 1922).

Opinion

CUSHMAN, District Judge.

The present suit involves a number of asserted liens for labor and material furnished in and for the construction of a building upon that property commonly known as the “Scandinavian-American Building Company” property, and the marshaling of such liens as are established. Upon many of the issues raised, there appear a number of reasons supporting the court’s findings, which have been urged by counsel; but, on account of the desirability of an early decision upon the questions involved, the court has, in most instances, done no more than state some one reason which appears sufficient to justify and require that finding.

Further delay is not only prejudicial to the parties to this suit and creditors of the bank, but the court’s recollection of the testimony cannot but wane with the passing of time, and the public—as well as the parties—is interested in a speedy determination. Many points have been argued and considered in this case that are pertinent, and the discussion of which here would be appropriate, and no doubt more satisfactory to counsel, who have so earnestly urged them, but the discussion of which would necessarily postpone the determination of this cause. It is therefore deemed sufficient to state that the points made would in many instances support the conclusions reached, and in no way defeat or adversely control any of them.

[ 1 ] There are a number of general questions affecting more than one of the liens. Among these is the question of a right to lien for material, materials fabricated, and materials and fixtures specially prepared for the building, but not delivered on the premises to he improved. These questions affect the claims of the Tacoma Millwork Supply Company, Washington Brick, Lime & Sewer Pipe Company, Ben Olson Company, Crane & Co., and Edward Miller Cornice & Roofing Company. The Washington statute involved provides:

“Every person performing labor upon or furnishing material to be used in the construction * * * of any * * * building * * * has a lien [168]*168upon the same for the labor performed or material furnished by each * * * ” Section 1129, Rem. & Bal. Code.

While this statute has been before the Supreme Court of the state of Washington in many cases, the later expressions of that court to the point in question appear in Western Hdwe. & Metal Co. v. Maryland Casualty Co., 105 Wash. 54, 177 Pac. 703, 181 Pac. 700, and Holly-Mason Hdwe. Co. v. National Surety Co. et al., 107 Wash. 74, 180 Pac. 901. While it.may be true that, in a controversy solely between the materialmen, or contractor, or subcontractor, and the owner, the owner will be estopped to deny the lien because of a failure to deliver the material, where any act of his, or act with which he may be charged, has in any way caused such failure, yet, when the substantial controversy is, as it is here, between the lien claimants, no such rule should be applied. While, in a suit by a materialman, the contractor or subcontractor may, where material has been delivered to him for work up.on it by him, be considered, in some respects, as the agent of the owner (Western Hdwe. & Metal Co. v. Maryland Cas. Co., 105 Wash. 54, 177 Pac. 703, 181 Pac. 700), the owner is not-the lien claimant’s agent; nor will the lien claimant himself be considered the agent of the owner in respect to his own lien claims, where he claims to have retained the material in his shop or factory for the purpose of completing necessary work upon it, or because the owner was not prepared to receive it-at the building being constructed.

The court holds that there is no lien right on the part of any claimant here for any material or fixture not delivered on the premises where the building was in course of construction, nor for any labor .performed upon any such material or fixture. While a contractor or subcontractor may have been held to be the agent of the owner when a materialman delivered material to tire contractor or subcontractor for work to be done upon it away from the premises—the owner and his bondsman being thereby estopped to deny the lien because of a want of delivery (Western Hdwe. & Metal Co. v. Maryland Cas. Co., supra) —yet there is no reason that will extend that rule to.malee one lien claimant, contractor, or subcontractor the agent of another, who has done nothing to clothe him with power or authority.

Cases where fixtures or other material not delivered have been specially prepared, and their value, apart from the structure for which they have been prepared, is little or nothing, make a strong appeal for consideration in equity, yet to allow the lien on that account would lead to unending uncertainty, doubt, and confusion, and to prejudice of others contemplating furnishing material, or who have furnished labor and material. Material delivered upon the premises constitutes notice, not only to the owner, but to other materialmen, laborers, and contractors, of potential charges against the property; but materials not delivered, in the absence of actual knowledge, cannot do so. The case of Western Hdwe. & Metal Co. v. Maryland Casualty Co., 105 Wash. 54, 177 Pac. 703, 181 Pac. 700, was a bond case; that is, a suit upon a statutory bond to secure those performing work or furnishing materials in the installation of a heating plant in a school, which bond is, by statute, required in such cases in lieu of the security which, by the [169]*169lien statute, is afforded laborers and materialmen in the improvement of private property.

It has been argued that there is no distinction between such a case and the present; but there is this distinction: A surety on the bond stands behind, or in the shoes of, the principal; he has no lien upon the property, while, as between the lien claimants, there are primary equities to be considered which only remotely affect a surety, if at all. A particular lien claimant has a right, not only to look to the property improved, but to the value of the improvement as it progresses, and to the materials assembled upon, and delivered at the property for its improvement.

Claims of lien for material not actually delivered at the bank building are denied. The following Washington cases—the construction of which court, of the statute involved, this court is bound to follow—require such holding: Knudson-Jacob Co. v. Brandt, 44 Wash. 68, 87 Pac. 43; Crane Co. v. Farnandis, 46 Wash. 436, 90 Pac. 1134; Tsutakawa v. Kumamoto, 53 Wash. 231, 101 Pac. 869, 102 Pac. 766; Gate City Lbr. Co. v. Montesano, 60 Wash. 586, 111 Pac. 799; Western Hdwe. & Metal Co. v. Maryland Cas. Co., 105 Wash. 54, 177 Pac. 703, 181 Pac. 700; Holly-Mason Hdwe. Co. v. National Surety Co. et al., 107 Wash. 74, 180 Pac. 901. Neither lien nor judgment will be decreed ftir any materials delivered and reclaimed by the lienor, under order of the court or otherwise.

[2] In the contracts of a number of the lien claimants, there is a provision reciting a waiver of any lien on account of the work and material to be furnished under the contract. These waivers were executed upon the strength of statements made by representatives of the defendant in negotiating the contracts that waiver had been made by all others who had contracts, and would be required of those with whom contracts had not yet been made. It was further represented that funds had been provided or secured to pay for the construction of the building. These statements were erroneous.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Aetna Insurance v. Maryland Cast Stone Co.
253 A.2d 872 (Court of Appeals of Maryland, 1969)

Cite This Page — Counsel Stack

Bluebook (online)
281 F. 166, 1922 U.S. Dist. LEXIS 1456, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcclintic-marshall-co-v-scandinavian-american-bldg-co-wawd-1922.