Pflueger v. Lewis Foundry & Machine Co.

134 F. 28, 14 Ohio F. Dec. 677, 1904 U.S. App. LEXIS 4498
CourtCourt of Appeals for the Sixth Circuit
DecidedDecember 14, 1904
StatusPublished
Cited by9 cases

This text of 134 F. 28 (Pflueger v. Lewis Foundry & Machine Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pflueger v. Lewis Foundry & Machine Co., 134 F. 28, 14 Ohio F. Dec. 677, 1904 U.S. App. LEXIS 4498 (6th Cir. 1904).

Opinion

SEVERENS, Circuit Judge.

This controversy arose in the court below upon a petition presented by The Lewis Foundry & Machine Company, praying for the recognition and enforcement of a mechanic’s lien which it claimed, under the statutes of Ohio, upon the mill or manufactory of the bankrupt, the Ohio Steel & Iron Specialty Company, as well as upon the lands and premises upon which the same was built, and specifically upon certain particular machinery which it had furnished and sold to the bankrupt to be put into and used in said mill. It was for the purchase price of this particular machinery that the petitioner claimed 'the lien. The referee disallowed the petition, and the matter was taken before District Judge Wing upon a petition for review. The District Judge reversed the order of the referee, and directed the entry of an order allowing the lien claimed upon the mill and the land on which it stood, but disallowing it in so far as it was asserted as a distinct and separate lien upon the particular machinery sold by the petitioner to the bankrupt. No appeal was taken by the petitioner from this last part of the order, but the trustee has appealed from so much of the order as allows the lien upon the mill and the premises occupied by it. The mill was a rolling mill, used for the manufacture of steel and iron products. For the purpose of equipping it with machinery desirable for its work, the bankrupt on March 31, 1903, purchased, and the appellee sold to it, a machine called a “squeezer,” and a steam pump to supply it with hydraulic pressure. The function of a squeezer is to receive the product of the furnace after it has passed from the furnace between the rolls, and further to compact it by squeezing under hydraulic pressure, after which it is cut into billets. The squeezer is a heavy piece of machinery; weighing, with the pump, as much as 37,500 pounds. In the mill it was erected upon a base built of brick, four feet high, through which bolts were carried up to receive the base of the squeezer and burrs or nuts to hold the latter securely on its foundation. To provide a proper-place for it, the roof of the building was in this instance carried up some six feet, and a skylight put in at the top. The steam pump was to be put upon another similar base. Neither of the parts of the machine was connected with the wall of the building. The squeezer had already been erected in the mill at the time when the petition in bankruptcy was filed, but the steam pump, although it has been delivered at the works, had not yet been set up. The pump was to get its steam from the “header” — a large conduit coming from the boiler and carried out into the building to supply steam by branches to the different engines or machines in the building. The purchase price of the machinery was $3,750, to be paid within 30 days from the date of the contract. The necessary proceedings to obtain a lien were duly taken within the time prescribed by the statute. The purchase price not be[30]*30ing paid when it became due, the appellee pressed for payment. The Ohio Steel & Iron Specialty Company was in straitened circumstances and could not, or at least did not, pay the debt, but at length gave to the appellee its two checks, for $1,875 each, in settlement. These checks were drawn upon a bank where, as both the parties knew, the drawer had no funds, but where it was supposed by them he would before long have sufficient to pay the checks; but, though the checks were afterwards presented, no part of them was ever paid. On or about July 3, 1903, a petition in bankruptcy was filed by the creditors of the Ohio Steel & Iron Specialty Company, whereon it was shortly thereafter adjudged bankrupt. Pflueger was appointed trustee.

The principal questions argued by counsel orally and by brief are, first, whether the Ohio statute requires that the machinery, etc., furnished to a mill, manufactory, etc., must be something intended to be so attached to the realty as to become fixtures thereon, or whether the statute extends to machines not having that characteristic, and may continue to be personal property; and, second, whether this particular machinery should, upon the facts stated, be adjudged to be fixtures or chattels. The statute (section 3184 of the Revised Statutes of Ohio of 1892) provides as follows (omitting irrelevant matter):

“A person who performs labor or furnislies material or machinery * * * for erecting, altering, repairing or removing * * * a mill or manufactory * * * by virtue of a contract with the owner or his authorized agent, shall have a lien to secure the payment of the same upon such * * * mill or manufactory * * * and upon material and machinery so furnished, and upon the interest, leasehold, or otherwise, of the owner in the lot or land on which the same may stand, or to which it may be removed.”

The statutes of the different states providing for this class of liens vary so much that the construction which has been put upon them, and the language employed by their courts in such construction, must be attentively observed, before one can properly appreciate the value of the decisions relating thereto. We are required, however, to accept and conform to the construction which the Supreme Court of Ohio has given to this statute. It would seem, as a matter of first impression, that the Legislature of Ohio did not intend by section 3184 to prescribe, as a test for the application of its enactment, the question whether the thing furnished is' something intended to become a fixture, and will be such when placed in the intended location and relation to the mill or manufactory. The statute makes a distinction between the mill or manufactory and the real estate and the machinery furnished by the lienor. If the machinery furnished becomes a fixture, there was no need to expressly declare that the lien should extend to it. The Ohio Supreme Court holds that the lien given by this statute arises when it is furnished, and is not postponed until it is put in its place in the mill (Beckel v. Petticrew, 6 Ohio St. 247) — a conclusion wholly inconsistent with the idea that the lien attaches only when the machine or other thing is parcel of the realty, for nothing becomes a fixture until it is affixed. It was held by the Circuit Court of Appeals for the Fifth Circuit, affirming the decision of Judge Newman, in Re Georgia Handle Co., 109 Fed. 632, 48 C. C. A. 571, that, under the statute of Georgia which gives a lien upon the “factory” to those furnishing materials or machinery for such factory, it was immaterial whether the [31]*31machinery therein should he considered real or personal property. In either case it was subject to the lien. The record failed to show how the machinery was attached to the building. But it was held sufficient that it showed there was such attachment as was necessary to its operation. However, as we intend to decide this case upon another ground, we refrain from expressing any definite opinion upon the question just stated, and do not pursue the consideration of it further.

If the machinery which was furnished by the appellee was of the nature of a fixture to the mill, it is not doubted — indeed, it is conceded by the counsel for the appellant — that the furnishing it entitled the appellee to the lien admitted and allowed by the District Court. In considering whether it was in the nature of a fixture, it is necessary to keep the facts clearly in view. The purchaser was the owner of the mill, and of the land on which it stood. The mill was devoted to the business in which this machinery was to be employed. It had been reorganized for the business of a rolling mill.

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Bluebook (online)
134 F. 28, 14 Ohio F. Dec. 677, 1904 U.S. App. LEXIS 4498, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pflueger-v-lewis-foundry-machine-co-ca6-1904.