New Lincoln Hotel Co. v. Shears

43 L.R.A. 588, 78 N.W. 25, 57 Neb. 478, 1899 Neb. LEXIS 54
CourtNebraska Supreme Court
DecidedJanuary 19, 1899
DocketNo. 8552
StatusPublished
Cited by6 cases

This text of 43 L.R.A. 588 (New Lincoln Hotel Co. v. Shears) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New Lincoln Hotel Co. v. Shears, 43 L.R.A. 588, 78 N.W. 25, 57 Neb. 478, 1899 Neb. LEXIS 54 (Neb. 1899).

Opinion

Ryan, C.

This action for the foreclosure of an alleged lien by virtue of a jiro vision in the lease hereinafter described was successfully prosecuted in the district court of Lancaster county. The First National Bank of Lincoln and the personal representatives of John L. Carson have appealed from the decree whereby the mortgage to the bank and Carson was found and decreed junior and subject to the lien of the New Lincoln Hotel Company, which has succeeded -by assignment to the rights of the Lincoln Hotel Company, the original lessor. From the fact that briefs have been filed only on behalf of the [479]*479aforesaid bank and the personal representatives of Carson as appellants, and of the New Lincoln Hotel Company and Jacob E. Markel as appellees, Ave assume that the controversy is betAveen those parties alone, and hence shall content ourselves with quoting and describing such findings of the district court, as affect the interests of these parties in this appeal. These findings were as follows:

“1. On the 16th day of October, 1890, the Lincoln Hotel Company, a corporation, by lease of that date, demised certain premises, to-wit, the Hotel Lincoln, in the city of Lincoln, Nebraska, to Samuel Shears and Jacob E. Markel for a term of ten years from the 1st day of December, 1890, to the 1st day of December, 1900.
“2. The lease contained the following provisions, to-wit: That upon the non-payment of the whole or any part of the said rental at the time when the same as above is promised to be paid, or upon Adolation or non-fulfillment of any of the covenants of this lease, the said party of the first part may, at its election, either distrain for the rent due and damages sustained and shall have a lien upon all the personal property of the party of the second part at any time in or upon the said premises for the payment of rent and for the security of each and every covenant herein contained, and the party of the first part may also declare this lease at an end and recover possession as if the same were held by forcible detainer. The said party of the second part hereby AvaiA^es any notice of such election or any demand for the possession of the said premises.
“3. On the 16th day of October, 1890, the building was in process of erection and was not ready for occupancy as a hotel until after January 1, 1891.
“4. By an oral agreement between the parties to said lease, rent did not commence until January 15, 1891, and none of the property of the lessees' involved in this suit was placed in said building until aftqr December 1, 1890.
[480]*480“5. In the latter part of October, 1890, Shears and Markel, the lessees, placed with Dewey & Stone, of Omaha, an order for furniture, amounting to over $11,-000 in value, for the Lincoln Hotel, and the same was placed therein by them, mainly in the month of December, 1890. Said lessees, on the 28th of October, 1890, placed with the Union Porcelain Works in Greenport, L. I., an order for chinaware for said hotel, stamped ‘The, Lincoln/ which chinaware was delivered to said lessees at Brooklyn, N. Y., December 3, 1890, and thereafter placed by them in said hotel. On November 6, 1890, said lessees placed an order with Reed & Barton, of New York and Taunton, Mass., for silverware for the Hotel Lincoln, which, in value nearly $1,000, was delivered to said lessees at Taunton, Mass., and shipped from there to said lessees at Lincoln, December 20, 1890, and January 10, 13, 14, 1891, and was placed in said hotel on arrival at Lincoln. On November 8, 1890, said lessees placed with the John Van Range Company, of Cincinnati, Ohio, an order in value over $1,500 for ranges, boilers,' and culinary utensils for the Hotel Lincoln, shipped November 2G, 1890, from Cincinnati, and on arrival placed in said hotel, where all said personal property has since remained and now-is.”
“9..The Lincoln Hotel Company, a corporation, said lessor, on or about the-day of April, 1893, sold its said hotel property to the plaintiff in this suit and assigned its said lease to the plaintiff.
“10. A copy of the said lease and assignment wars by the plaintiff filed in the office of the county clerk of Lancaster county on the 24th day of-January, 1895.
“11. Rent to the amount of $10,500, to-wit, from the 1st day of December, 1893, to the 1st day of March, 1895, is due to plaintiff from defendants.”

Mary P. Shears and Stuart Shears had succeeded to 1he rights and liabilities of Samuel Shears and Jacob E. Markel before February 2, 1895, and on that day executed a chattel mortgage on all the- personal property [481]*481in the Lincoln Hotel to secure a note owing by them to John L. Carson and another note owing by them to the First National Bank of Lincoln. The amounts of. these notes are indicated in the conclusions of law hereinafter set forth. This mortgage was filed for record on the day of its execution. It was found by .the court that the bank and Carson had actual notice of the provision by which the hotel sought to create a lien for rent before said lease was recorded.

Upon the facts found there were the following conclusions of law:

“First. The plaintiff is entitled to a valid and subsisting and first lien upon all the personal property of Shears and Markel, in the possession of Shears & Shears in the Hotel Lincoln, on the 1st day of March, 1895, for the sum of $10,500 with interest at seven per cent from said 1st day of March, 1895.
“Second. That the defendants the First National Bank' and John L. Carson have a valid and subsisting and second lien upon said personal property contained in said hotel, — the said bank for the sum of $4,489.80, with interest at ten per cent from February 14, 1896, and the said Carson for the sum of $3,126.81, with ten per cent from the 15th day of February, 1896.
“Third. That the defendants Hargreaves Brothers have a valid, subsisting, and third lien upon said property for the sum of $1,053.19, with interest at the rate of seven per cent per annum from August 23, 1895.
“Fourth. That said liens are due, unpaid, and plaintiff and said defendants are entitled to have said liens foreclosed and said property sold according to law.”

In accordance with the above findings and conclusions the lien ¿¡f the hotel company was declared paramount to that of the bank and the representatives of Carson, and the question which we feel called upon to determine is whether or not this adjustment of priorities was correct. The appellees insist that the provision of the lease quoted in the second finding of fact operated as though [482]*482a lease had been made October 16, 1890, contemporaneously with which there had been executed a chattel mortgage to secure payment of the rent, upon all the personal property of the lessee at any time in or upon the demised premises, and we shall accept this assumption as being correct. While this lease was of date October 16, 1890, it is evident from the findings hereinbefore quoted that not until afterwards was any of the personal property ordered or selected for use in the hotel. All of the property was sent upon orders placed in other cities than Lincoln, and the delivery in Lincoln was de°layed by reason of the unfinished condition of the hotel building until in December of 1890 and January of 1891.

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Bluebook (online)
43 L.R.A. 588, 78 N.W. 25, 57 Neb. 478, 1899 Neb. LEXIS 54, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-lincoln-hotel-co-v-shears-neb-1899.