Morganton Hardware Co. v. Morganton Graded Schools

66 S.E. 583, 151 N.C. 507, 1909 N.C. LEXIS 308
CourtSupreme Court of North Carolina
DecidedDecember 23, 1909
StatusPublished
Cited by16 cases

This text of 66 S.E. 583 (Morganton Hardware Co. v. Morganton Graded Schools) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Morganton Hardware Co. v. Morganton Graded Schools, 66 S.E. 583, 151 N.C. 507, 1909 N.C. LEXIS 308 (N.C. 1909).

Opinion

Walker, J.

This case was before us at the last term and will be found reported in 150 N. C., at p. 680. Counsel agreed then, as the briefs on file in this Court show, that the real question involved was whether the plaintiffs were entitled to liens upon the graded-school building, and virtually conceded that/ if they were not, the plaintiffs had not made out their case and the judgment below was wrong. It may also be said that if the reversal of the judgment in that appeal affected injuriously the plaintiff’s rights, they should have brought the matter to the attention of this Court by a petition to rehear, which they have not done. This was also virtually an admission that the judgment of this Court was right; otherwise the plaintiff would have asked that it be reheard or reviewed, or called the alleged inadvertence to the attention of the Court, so that it might be corrected, provided there was any inadvertence. But there was not. In the former opinion the Court confined the discussion solely to *509 the very point wbicb counsel agreed was the one presented in the case, and to which their arguments in this Court were addressed. We will not, though, place our decision entirely upon the ground just stated, but will also discuss and decide the case upon its merits, as if the case were here upon an order for a rehearing.

We decided before that a public building, such as a graded school, is not the subject of a lien, under our statute (chapter 48 of the Revisal). Our decisions, as well as those of other States, support this view. Gastonia v. Eng. Co., 131 N. C., 363; Snow v. Commissioners, 112 N. C., 335; 1 Phillips on Mech. Liens (3d Ed.), secs. 179 and 179a. The other cases supporting the principle were cited in our former opinion. Even, a cursory perusal of our statute (Revisal, ch. 48) will make it plainly appear that a sub-contractor or a person who furnishes materials for the construction of the building has no claim against the owner apart from the claim he acquires by virtue of his lien after notice to the owner and before he settles with the contractor. The statute was not intended to change the well-settled general principle that there must be privity of contract before any liability by one person to another can arise. We know that this general principle has its exceptions, arising out of the peculiar nature of the cases to which they apply. Gorrell v. Water Co., 124 N. C., 328; Gastonia v. Engineering Co., supra; Wadsworth v. Concord, 133 N. C., 594; Jones v. Water Co., 135 N. C., 554; Voorhees v. Porter, 134 N. C., 591. In the case last cited the authorities are collected and the application of the rule and its exceptions discussed. One person cannot make another his debtor without his consent or the sanction of the law. It is true that a lien, generally speaking, implies the existence of a debt, the payment of which is secured by it, but it does not follow always, and conversely, that a debt implies the existence of a lien. The latter arises by contract of the parties or by some provision of the law, common or statute. Revisal, secs. 2019, 2020 and 2021 of ch. 48, clearly import, by their words, that the subcontractor or material man, if he gives the required notice, shall have a lien; and when he acquires a lien by giving the proper notice, the owner of the property upon which the lien rests becomes his debtor to the amount owing by the owner to the contractor at the time of the notice and not exceeding the debt. If there are more creditors than one, then they can recover only their pro rata share of what is due by the owner to the contractor at the time of the notice. The language of section 2021 is. perhaps the strongest in favor of the plaintiff’s contention in this case. But it will be observed that the closing words of that *510 section distinctly qualify and explain wbat precedes. They are as follows: “Upon the delivery of such notice to such owner or his agent, the person giving such notice shall be entitled to all the liens and benefits conferred by this section or by any other law of this State, in as full and ample a manner as though the statement had been furnished by the contractor, architect or such other person.” Section 2022 further elucidates this question and shows clearly what the Legislature meant. “Section 2022 — Sums Due by Statement, a Lien. — The sums due to the laborer, mechanic or artisan for labor done or due the person furnishing materials, as shown in the itemized statement rendered to the owner, shall be a lien on the building, vessel or railroad built, altered or repaired, without any lien being filed before a justice of the peace or the Superior Court.” Who can successfully assert, after reading the sections quoted, that it was or could have been the purpose and intent of the Legislature to give the subcontractor a simple action of debt against the owner, when they had never been brought into contractual relations with each other? The contract of the material man or sub-contractor was with the contractor, and not with the owner, and the material man has no direct claim against the owner as his creditor, under the contract or by any known principle of law. He may subject the debt due by the owner to the contractor, when he has acquired no lien under the statute, in certain cases, by process of the law, such as an attachment or supplementary proceedings, and, in the latter case, after reducing his claim to judgment and complying with the necessary procedure; or, if he has acquired a lien on the debt by contract with the owner or by any provision of the law, he may subject it, by suit, to the payment of the debt. Under the statute, his right as against the owner, must be worked out through the lien it gives him upon the property of the owner, after notice of his claim and to the extent of his claim, provided it does not exceed what is due the contractor by the owner. It would seem to be unnecessary to cite authorities for our construction of the statute. In the case of Walker v. Paine, 2 E. D. Smith (N. Y.), 662, the very question arose, and .(at page 664) the court said: “In an action against the owner of a building to recover, under the lien law, the value of work or materials furnished to a contractor, there can be no personal judgment against the owner, but a mere foreclosure of the lien upon his interest in the premises, with a judgment directing the sale of such interest to pay the amount found due to the claimant, with the costs, as provided in the first section of the amendatory act, passed 13 April, 1855. (a) A personal judgment thus erroneously entered *511 against the owner will be reversed on appeal.” Numerous other authorities could be cited, but this one states the principle so clearly that we will not encumber the opinion by referring to them. In the case of Pinkston v. Young, 104 N. C., 102, the Court distinctly recognizes the doctrine that what the laborer, sub-contractor or material man acquires by notice to the owner is a lien upon his property, and that his remedy, in order to secure payment of this debt, is by enforcing this- lien. It has been held that a judgment charging the premises with a lien cannot be rendered except as an incident to a personal judgment against one holding a contract relation with the plaintiff, and that there must always be privity of contract between the parties. Stemkamper v.

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Cite This Page — Counsel Stack

Bluebook (online)
66 S.E. 583, 151 N.C. 507, 1909 N.C. LEXIS 308, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morganton-hardware-co-v-morganton-graded-schools-nc-1909.