San Juan Hardware Co. v. Carrothers

7 Colo. App. 413
CourtColorado Court of Appeals
DecidedJanuary 15, 1896
StatusPublished

This text of 7 Colo. App. 413 (San Juan Hardware Co. v. Carrothers) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
San Juan Hardware Co. v. Carrothers, 7 Colo. App. 413 (Colo. Ct. App. 1896).

Opinion

Bissell, J.,

delivered the opinion of the court.

The San Juan Hardware Company claims a lien on the [414]*414property of The Happy Jack Gold and Silver Mining Company for about $1,600. A suit was commenced on the 9th of November, 1892, in the county court of Ouray, to foreclose it. This suit went to judgment, whereby, according to the plaintiff’s contention, the lien was established and he acquired the right to file his present bill. The only averments respecting the lien, other than a narration of what the statement contained, are substantially that the Hardware Company sold goods, wares and merchandise to the Mining Company between the 1st day of June, 1891, and the 12th day of July, 1892. There is no attempt to state the kind of goods, the circumstances under which they were furnished, the purposes to which they were put, nor anything which would tend to show it to be possible for the Hardware Company to acquire a mechanic’s lien on the realty belonging to the mining corporation.

The pleader then proceeds to state that Russell, as trustee, has some sort of a title by a trust deed on the property to secure some mortgage bonds or other evidences of indebtedness, but states the plaintiff is advised that the indebtedness has been paid, and he requires that Russell be made a party and brought in and required to set up his lien, if he has any, or, in default thereof, that his lien be barred. The pleader does not otherwise than by this suggestion set up the character of Russell’s claim, the nature of the indebtedness which was to be secured, nor aver an absolute payment, or facts from which a payment would be presumed, nor state other facts on which, if proven, the court would have a right to adjudge the claim of The San Juan Hardware Company superior in right or prior in time to that of the trustee, Russell. In like manner, but with even more indefiniteness of statement, he^sets up that four or five other parties claim to have some interest in the premises by reason of asserted liens; but he does not state what the liens are, when they were acquired, in what form they exist, nor allege those matters which, if sustained, would show the claim of the Hardware Company to be superior to that of the persons named. [415]*415In a like indefinite fashion, and with like absence of averments requisite to the successful assertion of a priority of right as against them, he sets up an attachment by the Hendrie & Bolthoff Company, which, according to his complaint, has proceeded to judgment and sale, but in no manner does he allege the requisite particulars to establish the superiority of his own title or right. He likewise alleges that Carrothers claims a lien to secure notes and bonds of the company, and requires Carrothers to come in and set up what his title may he.

After all of these indefinite allegations respecting the claims of the defendants, the extraordinary relief of a judgment settling the status of all the lien claimants with reference to each other, and particularly with reference to the mechanic’s lien of the Hardware Company, is prayed. There is also a prayer for the foreclosure of this lien as against these other people. This is the only thing that saves the bill from absolute -wreck, and the only relief to which, under any circumstances, according to the allegations, the plaintiff could be entitled. The complaint was demurred to and the demurrer was overruled. The- demurrer should have been sustained. If the case had not gone off on some other theory than the one adopted by the court and on a defense ultimately put in by some of the parties, we should have no hesitancy in holding the complaint to be fundamentally bad. The defendants in error, however, do not raise the question by cross assignments of error, and since we can by astute and strained search find enough in the complaint to suggest an attempt to state the existence of a mechanic’s lien and facts on which the right to foreclose might he predicated, we do not propose otherwise than by this suggestion to attack its sufficiency.

All of the defendants answered who are concerned with this review and set up the nature of their own titles, and alleged, as a kind of “special defense,” if such it might be termed, the failure on the part of the Hardware Company to bring suit as against them to foreclose the lien within six [416]*416months from the time the statement was filed. The court regarded this as fatal to the action, and held the statute respecting the commencement of suits to enforce mechanics’ liens applicable to those cases wherein rights were asserted against the owner and the property, as well as where a foreclosure was sought against third persons claiming liens thereon. The plaintiff demurred to this portion of the answer, and the demurrer was possibly well taken, but the conclusion of the court on the general question was erroneous, and since the case went, off on that hypothesis, we feel under obligations to dispose of the case. Under other circumstances, we might possibly refuse to consider it at all.

This somewhat lengthy statement brings into plain view the radical difficulties with the plaintiff’s conception of the action. A right to maintain a suit to foreclose this lien against the claims of third persons will be conceded, and, so far as may be, sustained. But, manifestly, according to the bill, the plaintiff was without any right to file such a complaint, and call on the defendants to come in and set up their liens, when the complaint contained no statement whatever to show a right or title superior to theirs, or any right or claim as against them by reason of what had been done. Although the Hardware Company had obtained a judgment against the mining corpoi’ation, and had the right to issue process and sell' the realty and acquire whatever title they might thereunder, and might possibly thereafter have brought suit to remove the apparent clouds cast by the outstanding liens, there was a complete neglect to proceed to this extent.' The Hardware Company were simply the owners of a judgment which, as between them and the orvners of The Happy Jack Gold and Silver Mining Company, established a lien against the realty in favor of the creditors who sold the goods. Such a condition does not, according to any principle to which our attention has been called or with which we are familiar, give the Hardware Company the right to maintain a suit to marshal the liens. This may sometimes exist where two creditors have claims on the same fund and on different funds, [417]*417whereby the one having a claim on two funds may be compelled to resort to that on which the first has no claim and exhaust it before coming in on the other. Neither does the situation entitle the plaintiff to maintain what is well known as a “ bill quia timet ,” or a bill of peace, or the analogous one to remove a cloud upon a title. There seems to be no recognized ground of equitable jurisdiction which would permit the filing of a bill like that which is before us. As has been suggested, however, it may possibly contain the elements of a bill to foreclose a lien as against these third parties. Assuming it to be such, the bill may be maintained and the proper relief obtained on sufficient proof of the facts which must exist to entitle the plaintiffs to recover. Of course, the plaintiff would be bound to allege all the matters which would establish a right to file a lien claim in exact and literal compliance with the statute as against these other lien claimants, and the acquirement of a right superior and prior in time to those possessed by the defendants.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Johnston v. Bennett
6 Colo. App. 362 (Colorado Court of Appeals, 1895)

Cite This Page — Counsel Stack

Bluebook (online)
7 Colo. App. 413, Counsel Stack Legal Research, https://law.counselstack.com/opinion/san-juan-hardware-co-v-carrothers-coloctapp-1896.