Salomon-Waterton Co. v. Union Asbestos & Rubber Co.

263 Ill. App. 583, 1931 Ill. App. LEXIS 932
CourtAppellate Court of Illinois
DecidedDecember 2, 1931
DocketGen. No. 34,879
StatusPublished
Cited by4 cases

This text of 263 Ill. App. 583 (Salomon-Waterton Co. v. Union Asbestos & Rubber Co.) 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
Salomon-Waterton Co. v. Union Asbestos & Rubber Co., 263 Ill. App. 583, 1931 Ill. App. LEXIS 932 (Ill. Ct. App. 1931).

Opinion

Mr. Presiding Justice Hebel

delivered the opinion of the court.

The appeal in this case is from a decree of the circuit court of Cook county approving and affirming the master’s report sustaining the allegations of complainant’s bill of complaint, and foreclosing a claim for mechanic’s lien upon the factory buildings of the defendant.

The construction of the buildings under the contract dated December 7, 1925, was started in the same month. During the construction period complainant requested of the defendant payments on the contract price of $77,000. Sometimes this was done verbally and sometimes in writing, and the complainant received from the defendant, from time to time, during the construction of the buildings, a sum aggregating $73,021.53. At no time did the complainant apply for or receive any certificates from Chester L. Hill, named as inspector, nor did the defendant ever request such certificates. The buildings were completed on June 17, 1926, and the complainant furnished extra labor and material during the course of this construction in the sum of $10,873.44, according to the master’s report.

There is a letter in the record signed by Gf. Thomsen, the bookkeeper of the defendant company, addressed to the complainant, dated August 26, 1926, from which it appears that there is a balance, as shown by the records sent the defendant, in favor of the complainant on the contract price, in the amount of $3,174.47. Certain other letters were introduced in evidence, all of which were addressed to the complainant and written on the letterhead of the Union Asbestos & Rubber Company, the defendant company, and signed, “Chester L. Hill, General Manager.” Hill commenced to act as general manager about four days after the date of the contract/

Certain sets of specifications also appear in the record. One of these has the following words written in ink by Mr. Hill, “The word ‘Inspector’ should be substituted for the word ‘Architect’ in all cases where the last named is mentioned in the specifications.”

The defendant upon the trial of this case, offered no evidence, and stands upon the record as made, and frankly admits that the defense is largely technical. The jurisdiction of the trial court to hear and determine this cause is questioned by the defendant, for the reason that the complainant failed to comply with paragraph 26 of the contract, which provides:

“Neither the contractor nor any sub-contractor, materialman, nor any other person, shall file or maintain a lien, commonly called a mechanic’s lien, for ma- ' terials delivered for use in, or work done in performance of this contract, and the right to maintain such lien by any or all of the above-named parties is hereby expressly waived, except in the event of the failure or refusal of the owner to pay the amount called for by any certificate of the Inspector within three (3) days of its tender for payment. Then, and in such case only, shall any of the above-named parties have the right to file and maintain a mechanic’s lien.”

The defendant’s contention may be summarized as follows:

(1) Where the contract expressly makes the inspector’s certificate a condition precedent to any rig*ht of action, in order to maintain a mechanic’s lien, the contractor must do one of two alternatives:

(a) Present the inspector’s final certificate; or

(b) Present an adequate excuse for his failure to do so.

(2) Where, in addition to making the inspector’s certificate a condition precedent to any right of action, the contractor waives all right to a mechanic’s lien, except upon one condition only, that condition being the presentation of the final certificate and failure to pay within the time limit.

In construing paragraph 26 of this contract, it is evident that the parties intended that the complainant would waive his claim for lien provided the defendant, within three days after the presentation of the inspector’s final certificate, paid the amount so certified.

Generally, a contractor or mechanic failing to procure a certificate from an architect or person so designated in a contract, cannot enforce Ms claim for a lien unless the owner under such building contract prevents the contractor from obtaining such a certificate, or waives such a provision, or where the brnlder fails to employ an architect or engineer to supervise or approve the work, or where the parties proceed with the work, the owner participating in it with full knowledge that the provisions of the contract relating to certificates and orders of the architect were being disregarded, and being a party to it, waives such a provision in the contract for the production of an architect’s certificate. Foster v. McKeown, 192 Ill. 339; Connelly v. Wallin, 181 Ill. App. 212.

The defendant contends, however, that unless the complainant presented the inspector’s certificate and showed that the defendant refused to pay within three days thereafter, then the complainant would have no right to maintain a claim for a mechanic’s lien. The provision in this contract is not an absolute waiver, but is conditional, and it would be a harsh rule to hold that the complainant cannot maintain his claim for a lien, notwithstanding that the facts-justify the conclusion that the owner by its conduct waived the production of such a certificate. However, the facts are that the defendant issued a certificate in the form of a letter addressed to the complainant, after the completion of the buildings, from which it appears that according to its records there is due on the contract price the sum of $3,174.47. The defendant itself adjusted and determined the balance due on the contract price. This was a substantial act which determined the. right of the complainant to the money, and determined the obligation of the defendant to pay. TMs fact in connection with the payment of $73,021.53 during the progress of the- work without requiring the production of the certificates provided for by'the contract, "indicates clearly that the provision that certificates be. issued by the inspector was disregarded and waived. This act of admitting the amount due on the contract price bound the defendant, and it would be rather technical to say that notwithstanding its admission, the complainant cannot maintain its right to foreclose a claim for a mechanic’s lien because of failure to produce the certificates provided for by the contract.

That such provision was waived is further fortified by the fact that Hill in his dealings with the complainant signed all letters or written documents as the general manager of the defendant company, and not as inspector.

The master found in his report that 19'items, aggregating the sum of $3,320.83, were for extras required; that these items were admitted as extras by the defendant in its answer, and that they are items for which the complainant is entitled to recover.

As to 22 items aggregating the sum of $7,552.61, the master found that they were for extra material furnished by the complainant, and that they entered into and became a part of said buildings; that the price of each item was the usual and customary market price.

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Bluebook (online)
263 Ill. App. 583, 1931 Ill. App. LEXIS 932, Counsel Stack Legal Research, https://law.counselstack.com/opinion/salomon-waterton-co-v-union-asbestos-rubber-co-illappct-1931.