Roseliep v. Herro

239 N.W. 413, 206 Wis. 256, 1931 Wisc. LEXIS 159
CourtWisconsin Supreme Court
DecidedDecember 8, 1931
StatusPublished
Cited by28 cases

This text of 239 N.W. 413 (Roseliep v. Herro) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Roseliep v. Herro, 239 N.W. 413, 206 Wis. 256, 1931 Wisc. LEXIS 159 (Wis. 1931).

Opinion

Nelson, J.

The facts in this controversy are not in dispute. The question for decision is whether the court erred in holding that the Finance Corporation, by taking judgment on its note, waived the right to foreclose its lien. The court held that the entry of judgment on the note by the Finance Corporation operated as a waiver of its lien as a matter of law, although there is language in the decision of the court which indicates that the court may also have thought that the Finance Corporation, having elected its remedy by bringing action on the note, could not thereafter take the inconsistent position of asking for the foreclosure of its lien.

It has been consistently held by this court that the lien statutes of this state provide new or additional remedies supplementary to the common-law remedies and that such laws should be liberally construed for the purpose of aiding materialmen and laborers to obtain compensation for mat[260]*260erials used and services bestowed upon the property of another enhancing its value. Vilas v. McDonough Mfg. Co. 91 Wis. 607, 65 N. W. 488; Wiedenbeck-Dobelin Co. v. Mahoney, 160 Wis. 641, 152 N. W. 479.

Sec. 289.05, Stats., provides that the “taking of a promissory note or other evidence of indebtedness for any such work, labor or materials done or furnished shall not discharge the lien therefor hereby given unless expressly received as payment therefor and so specified therein.” Under this statute it is clear, from the well considered decisions of this court construing it, that the mere taking of a note or other evidence of indebtedness does not in and of itself amount to a waiver. The,question of waiver is to be determined by the intention of the parties. Phœnix Mfg. Co. v. McCormick H. M. Co. 111 Wis. 570, 573, 87 N. W. 458; Carl Miller L. Co. v. Meyer, 183 Wis. 360, 365, 196 N. W. 840.

In this action no claim was made by the Herros .to the effect that the giving of the note in this case was intended by the parties as a waiver of the lien. No testimony to that effect was offered or received. It is quite apparent that the giving of the note for an amount exceeding the amount due under Leitgabel’s contract, which covered financing charges, so as to permit the Herros to pay it in thirty-six equal in-stalments, rather strongly suggests that the lien was to be preserved rather than waived. The note must have been given with the financing charges definitely in mind. With the lien waived the note of the Herros would be wholly unsecured.

While it is no doubt true that a waiver may be implied from facts and conduct of the parties inconsistent with the right to file a lien, such facts, however, must manifest an intention to waive such right. Carl Miller L. Co. v. Meyer, supra; Davis v. La Crosse H. Asso. 121 Wis. 579, 99 N. W. 351,

[261]*261Whether the giving of a promissory note by an owner to a lien claimant, upon which judgment is thereafter entered, prevents the lien claimant from thereafter proceeding to foreclose his claim for lien, has not been decided by this court. Looking to the decisions of other courts, we find the general rule to be that a lien claimant may bring a personal action against the owner for the amount of the debt for which a lien is claimed as a cumulative remedy without waiving the right to the lien, although there are at least two states which seem to hold otherwise. An extended note upon this subject is found in 65 A. L. R. at page 313, in which a considerable number of the cases are digested. The following cases support the general rule: West v. Flemming, 18 Ill. 248; Southern Surety Co. v. New York Tire Service, 209 Iowa, 104, 227 N. W. 606; Kirkwood v. Hoxie, 95 Mich. 62, 54 N. W. 720; F. M. Sibley L. Co. v. Murphy, 243 Mich. 483, 220 N. W. 746; Kinzel v. Joslyn, 158 Minn. 194, 197 N. W. 217; Erickson v. Russ, 21 N. Dak. 208, 129 N. W. 1025, 32 L. R. A. n. s. 1072. See, also, 18 Ruling Case Law, p. 980, and 40 Corp. Jur. p. 367.

Decisions to the contrary appear to be confined to the states of Missouri and Texas. Matthews v. Stephenson, 172 Mo. App. 220, 157 S. W. 887; Wycoff v. Epworth Hotel, 146 Mo. App. 554, 125 S. W. 550; Foster v. Spearman Equity Exchange (Tex. Civ. App.) 266 S. W. 583. The underlying theory of the Missouri decisions is that the account on which the lien must be based merges into a judgment obtained thereon. It seems clear to us that the majority rule is the better rule, considering the remedial purposes of our lien law, and that entry of judgment on either the original indebtedness secured by a mechanic’s lien or on a note given therefor without intention to waive the lien should not bar foreclosure of the lien. We conclude that no waiver or release of the lien herein resulted by virtue of the entry of judgment under the circumstances of this case.

[262]*262Nor do we think that the entry of judgment on the note was an election to pursue an inconsistent remedy which prevented the Finance Corporation from foreclosing its lien. The courts generally hold, as will appear from a reading of the authorities hereinbefore cited, that the rights of a lien claimant to proceed concurrently at common law on a claim, or on a note given to evidence it, and to proceed by foreclosure of his lien, are concurrent, cumulative remedies which may be pursued concurrently. Although a party may generally have two recoveries he of course is entitled to but one satisfaction.

This court has, in matters somewhat analogous, permitted the bringing of two actions concurrently for the recovery of the same indebtedness. It has been held that a chattel mortgage may be foreclosed after entry of judgment on an indebtedness secured thereby (J. I. Case T. M. Co. v. Johnson, 152 Wis. 8, 139 N. W. 445; Ex parte Logan, 185 Ala. 525, 64 South. 570, 51 L. R. A. n. s. 1069; Graham v. Perry, 200 Wis. 211, 228 N. W. 135) ; and, prior to the adoption of the Uniform Conditional Sales Act, that judgment could be entered on an indebtedness secured by a conditional sales contract and that the security reserved could thereafter be relied on (Hyland v. Bohn Mfg. Co. 91 Wis. 574, 65 N. W. 369; Wiedenbeck-Dobelin Co. v. Anderson, 168 Wis. 212, 169 N. W. 615); and that entry of judgment on an indebtedness secured by a real-estate mortgage does not prevent subsequent foreclosure of the mortgage (Bliss v. Weil, 14 Wis. *36; Witter v. Neeves, 78 Wis. 547, 47 N. W. 938; Duecker v. Goeres, 104 Wis. 29, 80 N. W. 91). The only exception to both proceeding at common law on the note and also foreclosing the mortgage is that found in Witter v. Neeves, supra, wherein it was held that after judgment of foreclosure has been entered which provides for a deficiency judgment, no action on the note may thereafter be brought. We therefore think it clear, both on principle and on authority, that [263]*263the general rule established by the decisions of the courts.of other jurisdictions permitting the foreclosure of a mechanic’s lien after judgment has been entered on the account or on a note, should be followed in this state.'

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Bluebook (online)
239 N.W. 413, 206 Wis. 256, 1931 Wisc. LEXIS 159, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roseliep-v-herro-wis-1931.