Midland Building Industries, Inc. v. Oldenkamp

103 N.E.2d 451, 122 Ind. App. 347, 1952 Ind. App. LEXIS 132
CourtIndiana Court of Appeals
DecidedFebruary 1, 1952
Docket18,225
StatusPublished
Cited by15 cases

This text of 103 N.E.2d 451 (Midland Building Industries, Inc. v. Oldenkamp) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Midland Building Industries, Inc. v. Oldenkamp, 103 N.E.2d 451, 122 Ind. App. 347, 1952 Ind. App. LEXIS 132 (Ind. Ct. App. 1952).

Opinions

Martin, J.

There was a complaint filed by appellant against the appellees Hastings for foreclosure of a mechanic’s (materialman’s) lien against the real estate owned by appellees Hastings.

The issues in regard to the furnishing of material in question were found in favor of appellees Hastings and against the appellant as to the foreclosure of the mechanic’s lien here involved. The court also found that $790 tendered by appellees Hastings and paid into court as the unpaid balance due from them to John Oldenkamp should be credited upon appellant’s demand against the latter. A finding was against appellees Hastings on the cross-complaint against John Oldenkamp.

The error assigned and relied upon for reversal by the appellant is that the court overruled its motion for a new trial.

The reasons alleged in the motion for a new trial are that the decision of the court is not sustained by suffi[351]*351cient evidence and that the decision of the court is contrary to law.

The record, when considered most favorable to the appellees and with reasonable inference against the appellant, discloses that the appellees Hastings in November, 1948, entered into a no-lien contract with one John Oldenkamp, under the terms of which he was to build a house for them on Lot Number 37 in Section “A” of Bonbrook Addition. The record shows that the appellees Hastings did not post signs on the property as required by the statute. Burns’ 1942 Replacement (1949 Supp.), §43-701.

Leroy Hastings testified that after recording this contract he had a conversation with Dean Krom at the Wilkinson Lumber Company concerning materials, in which he told Krom that he had a no-lien contract with John Oldenkamp to build a house in Bonbrook Addition; that he understood from Mr. Oldenkamp that he was to buy a part of his supplies from the Wilkinson Lumber Company. He further testified that he told Mr. Krom that he would appreciate it if he would let him know if John Oldenkamp did not keep his bills paid as he understood he (Mr. Oldenkamp) did not have very much money, to which Mr. Krom answered, “You need have no fear because we have a credit arrangement with John Oldenkamp whereby if he does not pay, we shut off his credit.” He said we had nothing to worry about as far as payment of the material between the lumber company and John Oldenkamp as he would take care of that. The following question was asked Mr. Krom with reference to the conversation with the Hastings: “Did they at any time say anything to you about not wanting any liens filed against the house that was being built?” Mr. Krom made the following answer: “They said they wanted to make sure that their house had no liens filed against it.” [352]*352Following this date Mr. Hastings made no inquiry of the Wilkinson Lumber Company as to whether or not their account had been paid until on May 17,. 1949. Hastings further testified that on November 3rd he paid Oldenkamp $500 under the contract; that he paid Oldenkamp under this contract'on December 7, 1948, $2,000; on January 10, 1949, $3,000; on February 15, 1949, $3,000; on March 19, 1949, $1,000; on April 13, 1949, $2,000; on May 7, 1949, $500; totaling $12,000. He also paid him some extras, $197.97 on February 15th and $37.19 on April 4th. $790 had not been paid on the contract price.

The second and third paragraphs of appellees Hastings’ answer are on the theory of estoppel, relying upon a credit arrangement which the appellant had with the contractor, John Oldenkamp. 31 C. J. S., Estoppel, §67, p. 254, reads in part as follows:

“In order to constitute an equitable estoppel or estoppel in pais there must exist a false representation or concealment of material facts; it must have been made with knowledge, actual or constructive, of the facts; the party to whom it was made must have been without knowledge or the means of knowledge of the real facts; it must have been made with the intention that it should be acted on; and the party to whom it was made must have relied on or acted on it to his prejudice.”

In the case of Johnson v. Spencer (1912), 49 Ind. App. 166, 96 N. E. 1041, it is stated as follows.:

“An estoppel in pais arises when by the fault of one person another has been induced, ignorantly or innocently, to change his position for the worse. Its existence is determined by the acts, knowledge and conduct of both parties.”

[353]*353[352]*352Even though a materialman relies primarily upon the credit of the contractor, he does not thereby wáive, [353]*353forfeit or estop his right to a lien when he furnishes material for a building and the material is used in the building. Clark et al. v. Huey et al. (1895), 12 Ind. App. 224, 40 N. E. 152; Johnson v. Spencer, supra; Kendall Lumber & Coal Co. v. Roman (1950), 120 Ind. App. 368, 91 N. E. 2d 187.

The statute, by its terms, gives the lien, upon proper notice filed by materialmen for materials furnished for a building, to the extent that they are used therein. Burns’ 1942 Replacement (1949 Supp.), §43-701. If the materialman furnished the materials for the building, and they "are used in it, and the improvement is being made by the authority and direction of the owner, the right to the lien attaches. Clark et al. v. Huey et al., supra.

The lien is not the creature of the contract, but of the law. It is the law, and not the contract, which gives the lien. Clark et al. v. Huey et al., supra; Shilling et ux. v. Templeton (1879), 66 Ind. 585; Vail et ux. v. Meyer (1880), 71 Ind. 159.

It- has not been the policy, of the courts to require from the mechanics and materialmen more than the statute itself demands. These statutes are entitled to a liberal construction in favor of the lien-holder. Clark et al. v. Huey et al., supra.

It is our opinion that the materialman does not lose his lien simply because he furnishes the materials for the house upon the order and credit of the contractor, and not upon the credit of the house, even if this latter fact was made to appear. Where the contractor is himself, by the terms of his contract with the owner, to furnish the materials, he buys them, and, unless he pays cash, is necessarily bound for them. He is primarily and personally liable therefor to the materialman. If he fails to pay, and a lien is [354]*354taken and paid by the owner, he may deduct the amount from any sum due the contractor, or he may sue the contractor therefor if necessary. Clark et al. v. Huey et al., supra.

In the case of Johnson v. Spencer, supra, the court quoted with approval from Clark et al. v. Huey et al., supra, as follows:

“ ‘When the work is done on the building for the contractor of the materials furnished to him to be used in that particular building, and they are so used, the laborer or materialman is entitled to a lien upon filing'the proper notice at the proper time, subject to his power to waive the lien by contract, or to estop himself from asserting it by acts which would create an estoppel in any other case; but simply furnishing the goods or doing the work on the order and credit of the contract or without' any present intention of creating a lien is not a waiver nor an estoppel.’ ”

In 155 A. L. R., §62, p.

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Midland Building Industries, Inc. v. Oldenkamp
103 N.E.2d 451 (Indiana Court of Appeals, 1952)

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Bluebook (online)
103 N.E.2d 451, 122 Ind. App. 347, 1952 Ind. App. LEXIS 132, Counsel Stack Legal Research, https://law.counselstack.com/opinion/midland-building-industries-inc-v-oldenkamp-indctapp-1952.