Melton v. Quality Homes, Inc.

1957 OK 77, 312 P.2d 476, 1957 Okla. LEXIS 448
CourtSupreme Court of Oklahoma
DecidedApril 2, 1957
Docket37441
StatusPublished
Cited by13 cases

This text of 1957 OK 77 (Melton v. Quality Homes, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Melton v. Quality Homes, Inc., 1957 OK 77, 312 P.2d 476, 1957 Okla. LEXIS 448 (Okla. 1957).

Opinion

PER CURIAM.

This action was commenced in the District Court of Payne County by the plaintiffs in error, as plaintiffs, against Quality Homes, Inc., a corporation, and another corporation not a party to this appeal.

Plaintiffs’ petition, filed on the 20th day of November, 1955, sought to quiet their title to Lot 10, Block 12, McFarland Heights Addition to the City of Stillwater. The main purpose of the action was to cancel certain specific and separate material-man’s liens that had been filed against the property by the two defendants, respectively. The defendant, Quality Homes, Inc., filed its separate answer and cross-petition seeking, by its first cause of action, establishment and foreclosure of a mate-rialman’s lien in the sum of $1,990.93, against the above described property, and, by its second cause of action, establishment and foreclosure of a materialman’s lien in the sum of $51.12 against Lot 9, Block 12, of the same addition. Plaintiffs’ answer to said defendant’s first cause of action was in effect payment in full, and to said defendant’s second cause of action, a denial that defendant had furnished any of the material for construction of plaintiffs’ house on Lot 9, but if so, same was furnished on open account to the R. O. Fox Company, and first stored in that lumber company’s yard, and was not sold to the contractor on the strength of plaintiffs’ credit. Defendant replied by general denial and specific allegations of the receipt of a certain check of plaintiffs in the sum of $2,000, which it applied to the account of materials furnished to Lot 9, Block 12, and specifically denied that it sold R. O. Fox Lumber Company any materials which went into the construction of plaintiffs’ house on Lot 9, but as a sub-contractor sold said materials to R. O. Fox, plaintiffs’ contractor, relying upon its status as a lien claimant.

At the conclusion of all the testimony, submitted to the trial court without a jury, the court made special findings of fact and conclusions of law, as follows:

“As between the plaintiffs and the defendant, Quality Plomes, Inc., the Court finds from the evidence that a contract existed between Quality Homes, Inc., and R. O. Fox, the plaintiffs’ contractor, so as to constitute the former a sub-contractor under 42 O.S. [1951 §] 143 as to the materials furnished on both lots 9 and 10, Block 12, involved in this case, and that the lien statements were filed as provided by law. The Court further finds that at the time of the delivery of the $2,-000.00 check with the notation in regard to Lot 10, Block 12, the plaintiffs’ contractor, R. O. Fox, directed that the same be applied on Lot 9, the older of the the two accounts. The Court is of the opinion, that for the intention, proposed to be conveyed by the notation on the check, to constitute the application of the $2,000.00 to a particular lot, it was necessary that such intention be communicated in some man *478 ner to the supplier of the materials, and that the mere notation on the check was not sufficient, especially in view of the circumstances then existing and of the oral direction of plaintiffs’ contractor to apply the same on Lot 9. (70 C.J.S., Payment, § 54, p. 260) and (40 Am.Jur. 795). * * *”

Thereupon, judgment was entered in favor of defendant, establishing its lien for material furnished in the building of a house upon Lot 10, Block 12, supra, in the sum of $1,640.70 plus $164.70 attorney’s fees and court costs, and establishing its lien upon Lot 9, Block 12, supra, in the sum of $51.12 plus $5.11 attorney’s fees and court costs.

After the overruling of their motion for a new trial plaintiffs perfected this appeal, contending that the trial court’s judgment is contrary to the evidence and against the clear weight thereof.

While plaintiffs have separated their argument into four propositions, it all concerns defendant’s application of plaintiffs’ two-thousand-dollar check to payment for materials used in the construction of the house on Lot 9. They do not contend that payment has been made for such materials so used, but do contend that they had a right to direct the application of their money to the payment of a specific amount, by notation on the check, and that defendant was bound to so apply it.

Plaintiffs cite several cases wherein it was held that the materialman was required to apply the payments made by a contractor to the liquidation of the liens against the property of the owner who furnished the funds for such payments; also cases wherein it was held that a debtor owing more than one debt to a creditor, or a debt composed of several items, has the right to direct to which debt, or debts, or to which item of a single debt, and in what amounts, a payment made by him shall be applied. They cite as decisive of the question here involved, the case of Kubatzky v. Pittsburg Plate Glass Co., 119 Okl. 236, 249 P. 412, wherein it was held:

“Where P. with knowledge of the fact that K. is erecting two buildings, one on lands owned by K. and one on lands owned by T., and T. delivers to P. its check made direct to P., as payee, for a sum sufficient to pay all claims for materials furnished by P. for the erection of a building on T.’s lands, P. is required to credit the sum of said check against the charges on T.’s lands, irrespective of any direction as to the application of such sum by the contractor.”

The facts in that case are not analogous to the instant case. There, as here, the payment was made by the property owner directly to the materialman who had furnished material to a contractor. However, in that case T. owned only the one lot upon which the contractor was building a building for him; and it there appeared that the materialman was aware of the purpose and source of the payment.

In those cases wherein this court has held that the seller of the materials must apply payment made by the owner against the seller’s claim for materials furnished for the owner’s building, the seller, with knowledge of the source of funds, applied same to the detriment of the owner, in liquidation of an account owed it by the contractor, for which it had no lien. No proposition of law is more universally recognized than that a debtor, in making payment to a creditor to whom he owes more than one debt may direct its application. However, no general rule applicable to every case could be adopted and adhered to, without producing great hardship. Men keep their accounts differently, and sometimes loosely; and scarcely any case arises which does not vary in one or more material circumstance from every other case. Justice to the parties would frequently require exceptions to any specific rule that might be adopted; and these exceptions would multiply with the ever-varying dealings and transactions of individuals, until at length the rule itself, and the particular *479 cases in which it could apply, would become exceptions.

The materialman’s lien law is the creature of statute, and is to be construed so as to reasonably and fairly carry out its remedial intent. We may not ascertain the construction of a single provision of this law nor the legislative intent by its words alone. We must take all of its provisions and read them as a whole so that each provision will be in harmony with every other, and the remedial purposes of the law preserved.

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Bluebook (online)
1957 OK 77, 312 P.2d 476, 1957 Okla. LEXIS 448, Counsel Stack Legal Research, https://law.counselstack.com/opinion/melton-v-quality-homes-inc-okla-1957.