Niehaus v. C. B. Barker Const. Co.

135 Tenn. 382
CourtTennessee Supreme Court
DecidedApril 15, 1916
StatusPublished
Cited by5 cases

This text of 135 Tenn. 382 (Niehaus v. C. B. Barker Const. Co.) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Niehaus v. C. B. Barker Const. Co., 135 Tenn. 382 (Tenn. 1916).

Opinion

Mr. Justice Oreen

delivered the opinion of the Court.

The Chickasaw Hotel Company let a contract to the C. B. Barker Construction Company to erect the Chisca Hotel in Memphis. The complainant was a subcontractor employed to do the plastering and metal lathing on the hotel building. The account of complainant not being paid, he gave notice as required by section 3540 of Shannon’s Code, providing for the lien of mechanics or materialmen, and thereafter, within ninety days, as required by the statute, he brought an attachment suit to enforce the said lien against the Chisca Hotel property. Complainant named as defendants to his bill the C. B. Barker Construction Company, the Chickasaw Hotel' Company, and the Bank of Commerce & Trust Company. The [385]*385last-named defendant was a trustee under a subsequent mortgage, and complainant’s lien was superior to the lien of this mortgage.

After some delay the C. B. Barker Construction Company filed an answer denying the claim, and the Chickasaw Hotel Company filed a plea in abatement. The plea in abatement set out that the property was covered by a previous mortgage executed when said property belonged to the Citizens’ Street Railway Company. It was averred in the plea that said original mortgage had not been satisfied, and that the attachment levied under complainant’s bill was void, inasmuch as the trustees under this prior mortgage, who held the legal title, had not been made parties to the proceedings. The plea in abatement was not filed until after the expiration of ninety days from the notice of lien served by the complainant upon the Chickasaw Hotel Company.

Complainant then filed an amended bill to which all the original defendants' were made parties, and the trustees under the mortgage of the Citizens’ Street Railway Company were likewise made defendants. It was averred in the amended bill that this old mortgage had been. satisfied; that the hotel company was estopped to rely on the existence of said mortgage as a defense; but the amended bill conceded that, if the old mortgage was valid and unsatisfied, complainant’s lien would be subsequent to the lien of said mortgage, and the amended bill asked that the rights of the trus[386]*386tees under the first mortgage be determined, and that, if it was found said mortgage was a valid prior lien, complainant be permitted to subject tbe equity of tbe hotel company to the satisfaction of bis claim.

To this amended bill all tbe parties filed separate answers; all insisting that, inasmuch as tbe amended bill was not filed until more than ninety days after tbe statutory notice of lien was given by tbe complainant to tbe hotel company, tbe suit to enforce tbe lien was barred. Tbe case was referred to a master, and proof taken upon tbe complainant’s claim. Tbe master made bis report, which was slightly modified by tbe chancellor. Tbe complainant was given a decree against the C. B. Barker Construction Company for tbe amount found by tbe chancellor to be due to him. Tbe chancellor, however, was of opinion that tbe amended bill came too late, and that tbe plea in abatement was good and denied complainant’s asserted lien upon tbe Cbisca Hotel property.

Tbe chancellor based bis decree on that line of cases, which bold that tbe owner of the legal title as well as tbe owij.er of tbe equitable title must be made a party to suits in which it is sought to reach tbe equitable estate. Lane v. Marshall, 1 Heisk., 30; Fulghum v. Cotton, 6 Lea, 596; Blackburn v. Clarke, 85 Tenn., 506, 3 S. W., 505; King v. Patterson, 129 Tenn., 1, 164 S. W., 1191, and cases therein reviewed.

These cases will be referred to later.

"Without for tbe present attempting to otherwise distinguish this controversy from tbe cases above [387]*387cited, we think they can have no application here by reason of the amendment made to the bill of complainant, by which amendment the trustees under the old mortgage of the Citizens’ Street Railway Company were made parties.

The Tennessee statute with reference to the addition of new parties to a pending suit is in these words:

“At any time before trial, new plaintiffs or defendants may be added to the suit by the plaintiff, upon supplemental process taken out and served, and subject to such terms in regard to costs as the court may impose. If at the appearance term, it may be done without costs; if at any subsequent term, on such conditions as the court may prescribe, so as especially to prevent delay.” Shannon’s Code, section 4495.

It is true as a general rule, where new parties defendant are brought in by amendment, the statute of limitations continues to run in their favor until they are made parties; that is to say, the doctrine of relation, under which amendments are considered to have been made as of the date of the original suit, will not be applied so as to deprive any defendant of a substantial right. In other words, a defendant will not be made responsible for a proceeding of which he has had no notice. 25 Cyc., 1302; Miller v. McIntyre, 6 Pet., 61, 8 L. Ed., 320. See, also, Flatley v. Railroad, 56 Tenn. (9 Heisk.), 230.

If relief is sought against a party defendant, or if his interests are, in fact, involved, he cannot be prejudiced by the application of a fiction of the law. Such [388]*388a defendant may successfully interpose a plea of the statute of limitations when it is sought to bring his rights into jeopardy by an amendment to an existing action.

There is, however, another class of cases where the addition of new parties merely corrects a defect in the original proceeding. In these cases the statute of limitations may not be relied on, but the amendments are held to relate back to the institution of the suit.

We have several of these cases in Tennessee. In Burgie v. Parks, 11 Lea (79 Tenn.), 84, an amendment was allowed by which a coexecntor was made party to a suit theretofore brought against the other executor. The amendment came more than two years and six' months after the qualification of the executors, but the statute of limitations was held not to be available to the executor brought in by said amendment. Likewise, in Love v. Railroad, 108 Tenn., 104, 65 S. W., 475, 55 L. R. A., 471, which was a suit by the administrator of one killed in a railroad accident, without averment of statutory beneficiaries, an amendment to the declaration was allowed more than twelve months after the accident, by which the statutory beneficiaries were brought in. This amendment was likewise held to relate back and the plea of the statute overruled. To like effect see Brooks v. Brooks, 12 Heisk. (59 Tenn.), 12.

There is less justification for a plea of the statute of limitations here than in any of the last cases mentioned.

[389]*389This is not a case in which it is claimed the mechanic’s lien had priority over the existing mortgage. There was no notice to the mortgagee or trustee, which the statute requires, in order to give precedence to the liens of the mechanics. Shannon’s Code, section 3536.

The estate of the trustees could not have been affected in any way by the original proceedings, nor could it have been affected by these proceedings after the amendment.

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135 Tenn. 382, Counsel Stack Legal Research, https://law.counselstack.com/opinion/niehaus-v-c-b-barker-const-co-tenn-1916.