Nu-Way Boiler & Engineering Co. v. Morensky

268 Ill. App. 211, 1932 Ill. App. LEXIS 125
CourtAppellate Court of Illinois
DecidedNovember 14, 1932
DocketGen. No. 35,888
StatusPublished
Cited by1 cases

This text of 268 Ill. App. 211 (Nu-Way Boiler & Engineering Co. v. Morensky) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nu-Way Boiler & Engineering Co. v. Morensky, 268 Ill. App. 211, 1932 Ill. App. LEXIS 125 (Ill. Ct. App. 1932).

Opinion

Mr. Justice O’Connor

delivered the opinion of the court.

Complainant filed its bill against Rubin Morensky, the owner of certain real estate in Chicago, and other parties, praying that it be decreed to have a lien on Morensky’s real estate for the balance due it for the cost of installing a boiler and smokestack. The cause was referred to a master who recommended that a decree be entered in accordance with the prayer of the bill.. Exceptions were sustained to the master’s report and a decree entered finding that complainant was not entitled to the lien; its bill was dismissed and it prosecutes this appeal.

The record discloses that in 1926 Rubin Morensky as landlord entered into a lease -with the Uptown Family Laundry Company, lessee, whereby the landlord agreed to build an addition to the laundry building on the premises, which was then being occupied by the laundry company. The lease provided that the tenant should install a new boiler to be placed in the additional structure and also a smokestack, at the tenant’s expense. The landlord constructed the addition and the tenant entered into a written contract with the complainant whereby the complainant agreed to install the boiler and erect the smokestack. After making provision for the work to be done and the payment to be made by the tenant, the contract contained the following condition: “It is agreed that the machinery above specified shall remain our property until fully paid for in cash; and the acceptance of a note shall not constitute such payment, and that the same, being now a chattel, shall so remain, and although it inay be enclosed in masonry, it shall not become a part of the realty but remain personalty, and, in the event of failure to pay for the same, we shall have the right to take possession thereof and to remove the same from the premises without being liable for trespass. The receipt by us of a note or notes for the purchase price shall not be considered a ‘payment’ under this contract or a waiver of the title herein.”

The contract price for the work was $4,345. The tenant paid $875 of this amount and executed its judgment notes for the balance. Each note contains the following : ‘ ‘ The express conditions of sale and purchase of machinery, for which this note is given, are such that the title, ownership or possession of said machinery, to-wit: Boiler Masonry and Stack shall not pass from the said Nuway Boiler & Engineering Co., Inc., until this note with interest is paid in full, but the title to said property shall remain in Nuway Boiler & Engineering Co., Inc., until said purchase price with interest is fully paid; and the said Nuway Boiler & Engineering Co., Inc., have full power to declare this note due and take possession of said machinery at any time they may deem this note insecure, even before the maturity of the same; it being also agreed, understood and contracted by the signer or signers of this note, individually or collectively that said machinery shall not become a fixture of any realty on account of being annexed thereto, before the full payment of principal and interest of this note. ’ ’

The boiler was installed, the smokestack erected, the laundry company proceeded to operate its laundry, and a few months thereafter was forced into bankruptcy. Complainant'filed its claim in the bankruptcy proceedings, which was allowed, and later received a small dividend.

Morensky alleged in his answer that the boiler and smokestack were trade fixtures and not an improvement of the freehold, and that complainant’s claim was against the laundry company alone. To the master’s report recommending that a decree be entered in accordance with the prayer of the bill, Morensky filed objections pointing out that the master had ignored and overlooked the provisions of the contract and notes. The master overruled the objections, but no reference is made to the provision of the contract and notes. The decree entered sustains the exceptions to the master’s report and..specifically finds that it was the intention of the complainant and the laundry company that the boiler and smokestack should remain personal property in accordance with the provisions of the contract. The court further finds that the boiler and smokestack were trade fixtures installed by the laundry company for its special benefit and could be removed with but slight injury to the building, and that the interest of the laundry company in the boiler and smokestack was sold by the trustee in bankruptcy.

Complainant contends that the boiler and smokestack became a part of the real estate and therefore it was entitled to a lien and that the reservation of the title by complainant in its contract with the laundry company “manifested merely an effort to secure an additional or superior lien. ’ ’ ín support of this it cites Clark v. Moore, 64 Ill. 273; Phelps Lumber Co. v. McDonough Mfg. Co., 202 Fed. 445; Hooven, Owens & Rentschler Co. v. Featherstone’s Sons, 111 Fed. 81; Chicago & Alton R. Co. v. Union Rolling Mill Co., 109 U. S. 702, and other cases. We think none of these cases is in point.

In the Clark case (64 Ill. 273) the parties seeking to enforce their lien did not reserve the title in themselves but only attempted to reserve a lien upon it.

The Phelps Lumber Co. case (202 Fed. 445) was a suit to enforce a lien for certain saw mill machinery. The court there said (p. 447): “It is contended that the appellee waived the right to claim a mechanic’s lien by inserting in the contract the condition that the machinery and property supplied should remain its property until fully paid for. To sustain their contention, counsel cite authorities to the proposition that by agreement between the parties personal property may be made to retain its character as such, notwithstanding that it be attached to the realty, and that such an agreement may be implied from a conditional sale ; and decisions are cited which determine the respective rights of the contracting parties and third persons as to property so conditionally sold and attached to real estate. Those authorities are all aside from the question which is before us. The question here is whether the appellee’s right to claim a mechanic’s lien has been waived by the terms of the contract. The authorities are uniform in holding that such a condition in a contract is but additional security to the vendor, and does not in any way affect his right to claim a mechanic’s lien upon the machinery and property to which it may have become attached as part thereof.” The court then cites the Hooven case, supra, and the Union Rolling Mill Co. case, supra, in support1 of its position. We are unable to understand why the authorities cited by counsel for defendant mentioned in the quotation were not in point, if they, as the quotation says, are to the effect that by agreement of the parties personal property may be made to retain its character notwithstanding it is attached to the realty. Moreover, the court said the question as to whether the property furnished became a part of the realty was not raised.

The Hooven case (111 Fed. 81) was a suit to enforce payment of the balance of the purchase price of an engine. The court said (p.

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268 Ill. App. 211, 1932 Ill. App. LEXIS 125, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nu-way-boiler-engineering-co-v-morensky-illappct-1932.