Shaw v. Chicago Sash, Door & Blind Manufacturing Co.

33 N.E. 870, 144 Ill. 520
CourtIllinois Supreme Court
DecidedMarch 31, 1893
StatusPublished
Cited by10 cases

This text of 33 N.E. 870 (Shaw v. Chicago Sash, Door & Blind Manufacturing Co.) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shaw v. Chicago Sash, Door & Blind Manufacturing Co., 33 N.E. 870, 144 Ill. 520 (Ill. 1893).

Opinion

Mr. Chief Justice Bailey

delivered the opinion of the Court:

This was a proceeding brought by the Chicago Sash, Door and Blind Manufacturing Company against Elizabeth J. Shaw, for the establishment and foreclosure of a sub-contractor’s lien. The facts, about which there is very little if any controversy, are, in substance, as follows: On the 15th day of May, 1889, the defendant, being the owner of two lots in the city of Dixon, entered into a contract with William C. Schmidt for the construction of a dwelling-house thereon. By the terms of the contract, Schmidt was to furnish the labor and materials, and to erect, complete and deliver the dwelling house to the defendant on or before September 1, 1889, and was to receive therefor the sum of §4750, payable in monthly installments as the work should progress, the residue to be paid within thirty days after the completion of the work.

About July 6, 1889, Schmidt entered into a contract with the petitioner, by which the petitioner agreed to furnish the sash, doors and certain other mill-work to be used in the construction of the building, for the sum of $675. Under this contract, the petitioner commenced furnishing materials August 23, 1889, and finished delivering the same October 8, 1889, and also furnished certain extra materials and labor, amounting to $76.20, the last item being furnished October 15,1889, making in all $751.20, the sum for which a lien is now sought to be established.

Under date of August 14, 1889, the petitioner wrote to the defendant’s agent as follows:

“ Mr. W. C. Schmidt, the carpenter building your house, has ordered of us the mill-work for same, the amount of his contract being §675, barring extras. This is the first work we do for Mr. S., and as we are unable to get reliable information as to his financial standing, we inform you of his liability for account of your building. Please inform us whether you will see our bill paid when job is completed.”

To this the agent replied, under date of August 16, 1889:

“Your favor of the 14th inst. at hand. I can not agree to do anything in reference to the contract of W. O. Schmidt for building the house of Elizabeth J. Shaw. I will state, however, that she will doubtless keep -her agreement with him, and she probably will also see that there are no unpaid liens of sub-contractors under the mechanics’ lien statute. Hoping
that there will be no difficulty in your carrying out your subcontract, I remain,” etc.

During the time the work was in progress, Schmidt made out and delivered to the defendant two sworn statements, as required by section 35 of the Mechanics’ Lien Law, showing the various amounts due or to become due for labor or materials, the first of these statements being rendered July 6, 1889, and showing various claims unpaid, aggregating $300.01, and the second being rendered August 3, 1889, showing unpaid claims aggregating $1,190.02. Mo further statements seem to have been rendered by Schmidt to the defendant, but the defendant paid, from time to time, to laborers and material-men, on Schmidt’s orders, various sums of money, which, together with some small sums paid directly to Schmidt and certain orders of Schmidt in favor of laborers and material-men, which she had accepted, amounted to the entire contract price for the erection of the house. These payments had all been made and orders accepted before October 23, 1889, the date of the service by the petitioner upon the defendant of the notice prescribed by section 30 of the Mechanics’ Lien Law. On that day notice was served, and it is not disputed that the petitioner took all subsequent steps prescribed by the statute to perfect his lien. One other sub-contractor, to whom $135.16 was due, also served notice, and his claim has been paid in full.

Upon these facts the Circuit Court held that the petitioner was not entitled to a lien, and entered a decree dismissing the petition at its costs for want of equity. On appeal to the Appellate Court that decree was reversed, and the cause was remanded to the Circuit Court with directions to enter a decree in favor of the petitioner. The defendant, by a further appeal, now brings the record to this court for review.

The right of the petitioner to a lien must depend upon the construction to be placed upon the Mechanics’ Lien Law of 1874, as amended by the act of March 25, 1887, that being the law in force at the time the rights of the parties to this suit accrued. It is claimed on the part of the petitioner that, as a large portion of the payments made by the defendant were made without requiring of the contractor a statement under oath, giving the names of the sub-contractors and persons furnishing materials, and the terms of the contracts with them, and the amounts due or to become due to them respectively, such payments were made in violation of the rights of the petitioners and other sub-contractors, and that the defendant is therefore not entitled to credit for such payments, in determining whether she was indebted to the original contractor, at the time the notice of the petitioner’s lien was served upon her. The defendant, on the other hand, insists that the statute, when properly construed, leads to no such result, and that she is entitled to all payments made prior to the service of notice of the petitioner’s lien, and as nothing was then due from her to the principal contractor, there is nothing upon which the lien can operate.

The portions of the statute which it will be necessary for us to consider are sections 29, 30, 33 and 35. Section 29, which is one of the sections amended by the act of 1887, provides that, every sub-contractor, etc., who shall, in pursuance of the purpose of the original contract between the owner of any lot or piece of ground and the original contractor, perform any labor or furnish any materials in building any house or other building on such lot, shall have a lien for the value of such labor and materials, upon the lot, to the extent of the right, title and interest of the owner, at the time the original contract was made. “ But the aggregate of all the liens hereby authorized shall not exceed the price stipulated in the original contract between such owner and the original contractor for such improvements. In no case shall the owner be compelled to pay a greater sum for or on account of such house, building or other improvement, than the price or sum stipulated in said original contract or agreement, unless payments be made to the original contractor, or to his order, in violation of the rights and interests of the persons intended to be benefited by section 35 of this act.”

Section 33, which was not amended by the act of 1887 but remains as originally enacted, provides that no claim of a subcontractor shall be a lien, except so far as the owner may be indebted to the contractor at the time of giving notice of the lien, or may afterwards become indebted to the contractor. Section 30, which was amended, prescribes the form of the notice, and provides that such notice shall not be necessary, where the sworn statement of the contractor provided for by section 35 shall serve to give the owner notice of the amount due and to whom due. Section 35 as amended is as follows:

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Cite This Page — Counsel Stack

Bluebook (online)
33 N.E. 870, 144 Ill. 520, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shaw-v-chicago-sash-door-blind-manufacturing-co-ill-1893.