McDonald v. Mayor

42 Misc. 131, 85 N.Y.S. 1096, 89 A.D. 131
CourtNew York Supreme Court
DecidedDecember 15, 1903
StatusPublished
Cited by2 cases

This text of 42 Misc. 131 (McDonald v. Mayor) 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
McDonald v. Mayor, 42 Misc. 131, 85 N.Y.S. 1096, 89 A.D. 131 (N.Y. Super. Ct. 1903).

Opinion

Gbeenbaum, J.

The defendant Collins having a contract with the defendant The Mayor, Aldermen and Commonalty [132]*132of the City of New York for the regulating and grading of Jerome avenue, in the said city, entered into an agreement with the plaintiff whereby the latter was to furnish certain material to be used upon this work. For the sum claimed to be due him under his contract with Collins, the plaintiff, on March 6, 1897, filed a mechanic’s lien under the provisions of the New York City Consolidation Act then in force (Laws of 1882, chap. 410, §§ 1824-1838), and this suit was brought to foreclose the lien so filed. The lien was discharged by order after suit had been begun upon the filing of an undertaking. Upon a previous trial the complaint was dismissed at Special Term. The judgment of dismissal was affirmed by the Appellate Division (58 App. Div. 73) and reversed by the Court of Appeals (170 N. Y. 409). Upon this trial the case was submitted upon the evidence taken at the first trial as the same appeal’s in the case on appeal, and upon the testimony of the defendant Moran taken ouf of court and submitted under stipulation. The defendants now attack the validity of the plaintiff’s lien on the ground that the notice of claim was verified by one who described himself as the agent of the plaintiff, and deposed that the statements therein contained “ are true to his own knowledge or information and belief,” urging that the verification is defective, in that it fails to state that the agent has knowledge of the facts set forth in the notice, or to give the sources of his information. In answer to the objection it should be pointed out that the Consolidation Act required the claim merely to be verified by oath or affirmation. 'No provision in the Consolidation Act required the verification which is necessary under the general Mechanic’s Lien Law. It may also be assumed that the Court of Appeals considered the form, of verification in this case as sufficient, inasmuch as the official report of the case in that court (170 N. Y. 409) shows that the authorities relied upon by the defendants in' support of their present contention were there cited. If the Court of Appeals had deemed this point well taken the lien would have been held ineffective and the judgment affirmed. That court has held that the Lien Law was to be liberally construed, and that the verification by the agent was good, and as the statute provided no form of verifi[133]*133cation it will be held sufficient. The defendants further attack the lien’s validity upon the ground that it was not filed within the statutory time. Section 1825 of the Consolidation Act provides that the lien may be filed: “At any time before the whole work to be performed by the contractor for the city is completed or accepted by the city.” The testimony of the defendant Moran to the effect that work upon the city’s contract was done up to August 14, 1897, to wit, after the date of the filing of the lien, shows that the work was not completed when the lien was filed and sufficiently disposes of this point. The defendants also urge that the plaintiff had filed a lien previous to the one sought to be foreclosed in this action upon the same claim, and cite among others the Special Term case of Clarke v. Heylman (N. Y. L. J., Oct. 21, 1902) in support of the proposition that the first lien precluded the filing of a second. Counsel evidently overlooked the fact that the Appellate Division reversed the Special Term (80 App. Div. 572) and upheld the validity of the second lien, although for the same claim as that of the former. The next point urged by the defendants is that this action for a foreclosure is not maintainable because the lien was discharged by the giving of an undertaking pursuant to statute, and because the sureties upon such undertaking were not made parties to the action. The case of Morton v. Tucker, 145 N. Y. 244, is cited in support of the proposition that the plaintiff can recover upon the bond only, or in a suit in equity in which the bondsmen are parties. My understanding of Morton v. Tucker is, that where an undertaking has been given to discharge a mechanic’s lien, the bondsmen are not necessary parties to a foreclosure, but may be interpleaded in the suit or be made defendants in a separate action upon the bond. This conclusion is fortified by the case of Ringle v. Matthiessen, 10 App. Div. 274, affd., 158 N. Y. 740, which was an action upon a bond after a judgment of foreclosure of the lien in an action wherein the bondsmen had not been made parties. Another defense urged by the defendant Moran is that no lien could have been acquired by the plaintiff, for the reason that before the filing of the plain[134]*134tiffs notice of claim the defendant Collins had assigned to the defendant Moran his claim and all right and title to the moneys due, or to grow due, to him from the city of New York. The testimony undoubtedly shows an assignment absolute on its face of moneys that would become payable under the contract, and that it was executed before the date of the filing of the lien. It, however, also appears that the assignment is dated January 10, 1896, when there was apparently nothing owing to Moran from Collins; that thereafter Moran furnished materials to the defendant Collins upon the Jerome avenue work of the value of $25,044.13, and made advances of money to him to the amount of $31,859.90 and that he expended in completing the job $551.48; that the aggregate of Moran’s claim was $57,455.51, upon which was paid from moneys received from the city under the Collins contract $50,075.99, and that, to quote from Moran’s testimony, “I, therefore, expended on this job $7,879.52 more than I received from all sources.” Moran further testified that the material and labor furnished and performed by him were in reliance upon the assignment from Collins, and no testimony was presented that.it was intended that the assignment was in fact an absolute one between Moran and Collins. It also appears that the defendant Collins, in his contract with plaintiff, agreed to make “ such assignments of the payments or moneys due him on his contract by the city of New York as the said McDonald shall require of him in order to secure the payments due him for work done under his contract.” It is conceded that at the time of the filing of the lien there was due from the city on the Collins contract upward of $20,000. It- is obvious, under all the circumstances disclosed, that it was never intended that the assignment was to be deemed an absolute one, but that on the contrary it was taken merely as collateral security for the claims that were to arise in favor of Moran for materials to be furnished and moneys to be advanced. The assignment should, therefore, be treated as a claim having precedence over that of the plaintiff to the extent of the balance due Moran from Collins, and the lien held available [135]*135against the balance of upward of $12,000 due to Oollins after the discharge of the Moran obligation. My conclusions upon the points thus far considered preclude the necessity of considering the further point raised by the defendant Collins that the plaintiff cannot recover a personal judgment against him in this action, as I am prepared to hold that the plaintiff is entitled to a decree of foreclosure herein. It remains only to determine the amount of the plaintiff’s claim. The notice of claim charges the defendant Collins with 49,115 cubic yards of fill at twenty-five cents per yard, amounting to| $12,278.75, and extra work amounting to $532.74. A credit of $6,725 is given, leaving a balance alleged to be due of $6,086.49. The testimony offered to establish the full amount claimed was uncertain and inconclusive.

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Related

McDonald v. Mayor
113 A.D. 625 (Appellate Division of the Supreme Court of New York, 1906)
Sitts v. Waiontha Knitting Co.
94 A.D. 38 (Appellate Division of the Supreme Court of New York, 1904)

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Bluebook (online)
42 Misc. 131, 85 N.Y.S. 1096, 89 A.D. 131, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcdonald-v-mayor-nysupct-1903.