Pacific Rolling Mills Co. v. James Street Const. Co.

68 F. 966, 16 C.C.A. 68, 1895 U.S. App. LEXIS 2927
CourtCourt of Appeals for the Ninth Circuit
DecidedJune 24, 1895
DocketNo. 208
StatusPublished
Cited by4 cases

This text of 68 F. 966 (Pacific Rolling Mills Co. v. James Street Const. Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pacific Rolling Mills Co. v. James Street Const. Co., 68 F. 966, 16 C.C.A. 68, 1895 U.S. App. LEXIS 2927 (9th Cir. 1895).

Opinion

GILBERT. Circuit Judge.

The Pacific Rolling Mills Company brought a suit to foreclose a mechanic’s lien for a balance of $6,-731.22 against the street cable railway and power house of the James Street Construction Company, of Seattle, and the lots on which the power house was erected. The lien so claimed is for materials, furnished for and used in the construction of the street cable railway, and it consisted of rails, slot steel, bolts, plates, and shims. All the materials so furnished and used went to the construction of the cable railway in the streets, and none thereof was used in the improvement upon the lots where the power house was erected. The negotiations for the sale of the materials were opened by one C. L. Hamilton, of Seattle, who first telegraphed to the complainant for prices. He thereafter telegraphed again, instructing the complainant to send its answer to J. D. Lowman, of Seattle. The complainant wired its terms to Lowman. Negotiations were continued until they resulted in a sale of the materials from the complainant to C. L. Hamilton for a purchase price of about $13,000. Lowman was a director and was the manager of the defendant. That fact was known to the complainant, and was referred to in the correspondence. The complainant also knew that the materials were to be used in the construction of the defendant’s cable railway. It also appeared in one of Lowman’s dispatches to the complainant before the sale that he used these words: “Before contracting with Hamilton 1 had him wire you requesting answer to me to knowif youwould fill his orders. Receiving affirmative reply, I contracted same day with him, rail at fifty-five twenty-three,” etc. When the material was shipped by the complainant, it was consigned to Lowman, at Seattle, by Hamilton’s direction. The shipping receipts, with a draft attached for one-half the purchase price, to wit, $6,485.31, were mailed to the Puget Sound National Bank, at Seattle, with instructions to collect the draft on delivery of the receipts, and to take Hamilton’s note at 60 days for the other half of the purchase price. The material arrived at Seattle on August 25, 1890. Lowman and Hamilton called at the bank to get the draft and the shipping receipts. It was after banking hours, and the cashier declined to de* [968]*968liver the same. Later, on tbe same day, Lowman called at the bank, and stated that it was a strange proceeding for Hamilton to receive the bill of lading and give his note. To this the cashier agreed, and thereupon he telegraphed to the complainant’s bank in California for information and instructions. On August 26th Lowman telegraphed to the complainant, saying: “Hamilton says you have taken his note and released iron; wants me to pay him. Shall I do so?” During the same day, and before receiving an answer to this telegram, which did not arrive until the 27th, Lowman and Hamilton went to the bank. In the meantime the bank had received an answer from the complainant’s bank in San Francisco, as follows: “Our collection Hamilton of the 19th, $12,970, accept one-half cash, note balance in sixty days.” Lowman and Hamilton were thereupon informed by the cashier of the Seattle bank that such were the terms on which the shipping receipts were sent. Accordingly, the shipping receipts were delivered to Lowman upon the payment of the draft by Hamilton and the execution of Hamilton’s note for the other half of the purchase price. At the same time, Lowman paid Hamilton $8,-074.85 in cash and delivered to him the note of the defendant for the remainder of the purchase price, which note was subsequently paid. On the 27th Lowman received the answer to his dispatch of the day before, informing him that in taking Hamilton’s note for one-half the value of materials at 60 days the complainant did not relinquish its .right to file a lien in case of nonpayment of the note. On the trial in the circuit court, it was held that the complainant had no lien upon any of the defendant’s property, and the bill was dismissed.

On the appeal to this court, the question principally discussed is whether or not the law of the state of Washington gives to the complainant a lien which may be enforced, either against the railway or against the lots upon which the power house stands, or against both. The lien law of Washington (1 Hill’s Ann. Code, § 1663) provides as follows:

“Every person performing labor upon, or furnishing materials to be used in the construction, alteration, or repair of any mining claim, building, wharf, bridge, ditch, dike, flume, tunnel, fence, machinery, railroad, wagon-road, aqueduct to create hydraulic power, or any other structure, or who performs labor in any mine or mining claim, has a lion upon the same for the work or labor done, or materials furnished by each, respectively, (whether done or furnished at the instance of the owner of the building or other improvement, or his agent), and every contractor, sub-contractor, architect, builder, or person having charge of the construction, alteration or repair either in whole or in part, of any building or other improvement, as aforesaid, shall be held to be the agent of the owner for the purposes of this chapter.”

It was held in Kellogg v. Littell, 1 Wash. St. 408, 25 Pac. 461, that there can be no lien upon a building separate from the land whereon the same is situate; and in Railroad Co. v. Johnson, 2 Wash. St. 113, 25 Pac. 1084, it was held that unless there can be a lien upon the land there can be none upon the structure, and that no lien is given under the lien law for materials which enter into the construction of a cable railway, since the person or company constructing the same has no interest in the land; but the fee thereof is vested in the city for the public use, the railway company having only the [969]*969easement of use and a license to occupy and a franchise to collect fare's; mid it was further held, that a street cable railway is not a railroad, and is not within the purview of the lien law. The decision of the highest court of a state in regard to the meaning of the statutes of iliat state is to be considered the law of that state, under the requirement of section 721 of the Revised Statutes. Leffingwell v. Warren, 2 Black, 599; Luther v. Borden, 7 How. 40; Post v. Supervisors, 105 U. S. 667; Bucher v. Railroad Co., 125 U. S. 555, 8 Sup. Ct. 974. It is contended by the appellant that the construction so given to the law of Washington by the supreme court of that state is not conclusive upon this court; that, a decision so made in February, 1891, does not control the decision of rights which accrued in the preceding year; and it is said that federal courts will not give a retroactive effect to the construction of state statutes adopted bv the state courts. It is true that in certain cast's the federal courts have declined to give to the decisions of the state courts a retroactive effect; but, in order that a decision may be subject to objection because retroactive, there must have been a prior ruling of the state court holding I he reverse of the later construction, under which former ruling, and upon the theory that the decision of the court has the same effect as statute law, rights shall have become vested. It is held, indeed, that, where the state courts have in one line of decisions given a construction to state laws and have subsequently overruled such decisions, and adopted a different construction, the federal courts will not adopt the new interpretation so as to affect rights that accrued before it became announced as the law of the si ate courts. Douglass v.

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Bluebook (online)
68 F. 966, 16 C.C.A. 68, 1895 U.S. App. LEXIS 2927, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pacific-rolling-mills-co-v-james-street-const-co-ca9-1895.