Real Estate Investment Co. v. Haseltine

53 Mo. App. 308, 1893 Mo. App. LEXIS 55
CourtMissouri Court of Appeals
DecidedMarch 21, 1893
StatusPublished
Cited by2 cases

This text of 53 Mo. App. 308 (Real Estate Investment Co. v. Haseltine) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Real Estate Investment Co. v. Haseltine, 53 Mo. App. 308, 1893 Mo. App. LEXIS 55 (Mo. Ct. App. 1893).

Opinion

Rombauer, P. J.

— It is often very difficult to make practical application in the trial'of causes of propositions of law which are seemingly simple. That this is eminently the case in ultimately determining priorities between incumbrancers by deed, and incumbrancers by mechanics’ liens, the cases collected and discussed in Phillips on Mechanics’ Liens, sections 226, 242, amply ■demonstrate. Unfortunately, cases of this character •depend almost exclusively on statutory provisions, and, as the statutes on this subject of no two states are -exactly alike, decisions in other states- furnish little light for our guidance.

In determining priorities where they depend upon written instruments executed by the parties, or priority ■of registry, a production of the instruments and evidence of their registry usually suffices to make a prima facie case one way or the other. But with mechanics’ liens the case is very different, because such a lien is not a creature of contract, but the creature of the statute. The mechanic or material man does not [310]*310establish a lien against certain premises by filing a lien account in the clerk’s office, but by furnishing labor or material for the betterment of certain premises, by thereafter filing a lien account within a certain time after the indebtedness has accrued in the circuit clerk’s office, and by instituting a suit of foreclosure thereon within a certain number of days after so filing it. If he fails in either of these requirements, he either acquires no lien, or, having acquired it, loses it again by his laches. This distinction between mechanics’ liens and liens by deed must be clearly kept in view, when we discuss the effect of judgments obtained in mechanics’ lien suits as evidence in proceedings between the mechanic or those claiming under him on the one hand, and mortgagees of the premises or those claiming under them on the other hand, when such mortgagees were not parties to the record foreclosing the mechanics’ lien.

The present proceeding is of that character. The plaintiff claims a house, on the ground that it was part of a freehold which it acquired by the foreclosure of a mortgage. The defendant resists the claim on the ground that the house, having been erected by a mechani'c, who filed and foreclosed a lien thereon, such lien attached to the house in preference to the mortgage under which the plaintiff claims, and he, the defendant, being the purchaser at the foreclosure sale of the lien, acquired a title thereto superior to that of the plaintiff. In order to substantiate this defense, the defendant at the trial offered in evidence the lien record, to which the plaintiff objected on the ground that neither it nor those under whom it claims were parties to such record, and hence, as far as it is concerned, it was res inter alios acta. The record was excluded, and whether it was properly excluded is the only question for our consideration.

[311]*311Our statute on the subject of mechanic’s liens provides: “In all suits under this article, the parties to the contract shall, and all other persons '* * * * may, be made parties, but such as are not made parties shall not be bound by any such proceedings.” Revised Statutes, 1889, sec. 6713. If this statute means literally what it says, there would seem to be no doubt that the record was properly ruled out, because,’ there was no pretense that the plaintiff, or those under who m it claims, were parties to the-lien proceedings. If the record was not binding upon it, it was no evidence against it, and, hence, not admissible. But there is unquestionably room for the view that the word bound, as used in the statute, in a case of this character at least, is used in its narrower sense, namely, as meaning concktded, and that view becomes more plausible by reference to the adjudications on this subject in this state, which are far from reconcilable.

I will state át the outset that the section from the mechanics’ lien law, above quoted, has been the law of this state while the decisions hereinafter referred to were rendered. In Hauser v. Hoffman, 32 Mo. 334, the action was ejectment for a lot. The plaintiff claimed as purchaser under a deed of trust sale, the defendant as purchaser under a sale of foreclosure of a mechanic’s lien on the lot. When the defendant made proof of his title, the plaintiff objected on the ground that the record disclosed that suit of foreclosure had not been brought within ninety days. The trial court overruled the objection, but its ruling was reversed, and it was held that, since the mortgagee was no party to the suit foreclosing the lien, he was not concluded thereby, but might show irregularity in those proceedings. In Schaeffer v. Lohman, 34 Mo. 68, where it does not clearly appear whether the owner at the • time when the materials were furnished was the party with whom the [312]*312contract was made, and where the contest in an action of ejectment was between the purchaser under the lien judgment, and a purchaser from the owner, it was held that the lien judgment was prima facie evidence against the latter, although not made a party. Judge Bates, arguendo, said: “It is true, those not made parties are not bound by the judgment; that is, they may impeach ■■its regularity” — thus showing that he construed the word “bound” in the statute to have been used as equivalent in meaning to “concluded.” The subsequent cases of Mississippi Planing Mill Co.. v. Church, 54 Mo. 525, and Heim v. Vogel, 69 Mo. 535, discuss this question arguendo, but the point was not directly involved.

On the other hand, in Crandall v. Cooper, 62 Mo. 478, 480, which was an action of. ejectment for a lot (the plaintiff being a purchaser at the mechanic’s lien sale, and the defendant purchaser at foreclosure sale of a deed of trust), Judge Wagner held that, as Clark, the mortgagee, was not made a party to the proceedings for the enforcement of the mechanic’s lien, he was a stranger to them, and they have no force or effect upon him, thus giving the word “boimd” in the statute its strict meaning. In the later case of Coe v. Ritter, 86 Mo. 277, 285, Judge Sherwood approved of that holding, and held that, as the statute gives a lien claim only to the extent of the interest of the party with whom the lienor made the contract direct or derivative, a lien proceeding which does not make a mortgagee a party, affects only the owner’s equity of redemption, and, if that is foreclosed, the lien of the mechanic becomes extinct. This case substantially returns to the doctine announced by Judge Bichardson in the early case of Clark v. Brown, 25 Mo. 559, 564, that “the plainest dictates of justice require that the real owner, whose property it is proposed to condemn to pay another’s [313]*313debt, should at least have the opportunity of being present to show that no lien lawfully exists against his property.” I may state in this connection that the ease of Bridwell v. Clark, 39 Mo. 170, was decided under the local St. Louis act, which gave no lien on buildings independent of the land, except as to leaseholds, and, therefore, has no. bearing on this question.

The cases of Crandall v. Cooper and Coe v. Ritter, supra, being the last decisions of the supreme court on this subject, ■ and as such conclusive upon us, were followed in our decision of the Missouri Fire Clay Works v. Ellison, 30 Mo. App. 67.

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Related

McLaren v. International Real Estate & Improvement Co.
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84 S.W. 446 (Missouri Court of Appeals, 1904)

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53 Mo. App. 308, 1893 Mo. App. LEXIS 55, Counsel Stack Legal Research, https://law.counselstack.com/opinion/real-estate-investment-co-v-haseltine-moctapp-1893.