Sierra Nevada Lumber Co. v. Whitmore

66 P. 779, 24 Utah 130, 1901 Utah LEXIS 73
CourtUtah Supreme Court
DecidedDecember 5, 1901
DocketNo. 1325
StatusPublished
Cited by7 cases

This text of 66 P. 779 (Sierra Nevada Lumber Co. v. Whitmore) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sierra Nevada Lumber Co. v. Whitmore, 66 P. 779, 24 Utah 130, 1901 Utah LEXIS 73 (Utah 1901).

Opinion

BASKIN, J.

This is an action to foreclose a mechanic’s lien. The appeal is upon the judgment roll from a decree awarding to the Sierra Nevada Lumber Company, respondent, a lien for $197.51 and costs on certain real estate of the appellant, and ordering a sale of the same to satisfy the lien.

The trial court found: “That on or about the thirty-first day of August, A. ,D. 1899, the defendant, Samuel M. Whit-more, who was the owner of an interest in the property described in the complaint, entered into a contract with the defendant, J. F. McLachlan, for the erection by said McLachlan for said Whitmore and others, of a terrace of dwelling houses, described, for the sum of $5,500; that said property is situated [135]*135in the city and county of Salt Lake; that between August-30 and December 9, 1899, the plaintiff sold and delivered to Mc-Lachlan certain materials, which were furnished for the building upon the premises described; that prior to furnishing said materials the said plaintiff, at the request of said McLachlan, made an estimate of what the said plaintiff would furnish the same for to the said McLachlan, which said estimate was itemized as to different materials, .lumber, and millwork to be furnished, and the prices to be charged for each item stated; that said estimate was made in competition with other bidders, and there is no allegation or evidence of fraudulent overcharge; that McLachlan examined the estimate, and agreed to pay the plaintiff the amount thereof; that among the items so furnished to the said McLachlan were three flights of stairs and setting, the same in place, which, under the said estimate, were to be charged for at the rate of $125 for each stairway, or $375 in all; that the said stairways and the setting of them in place were of the reasonable value of $80 each only, or $240 in all; that among the items so- furnished to the said McLachlan was a quantity- of sheeting, architrave molding, back band, quarter round and dimension timber, the price to be charged and the amount which the said McLachlan agreed to pay for which, aggregated $78.02; that the said items last mentioned were delivered upon the said premises to the said McLachlan to be used in the said building, but the same were never actually used therein, nor returned to plantiff, and there is no evidence to show what became of it; that on October 23, 1899, the defendant, Whitmore, gave to McLachlan the sum of $100, to be paid to the plaintiff company on account of materials furnished for the building but McLachlan paid the same to the plaintiff, and caused the amount to be credited on another account; that plaintiff was not aware that said $100 had been paid by the defendant, Whitmore, to be paid on the said account, but in good faith applied the said'amount to the payment of another account of indebtedness of the said McLachlan to the plaintiff.” [136]*136The trial court refused to allow, as a set-off against tbe plaintiff’s claim, the difference ($135) between the contract price of the three flights of stairs and the sum found as the reasonable value thereof, $78.02, the contract price of lumber not actually used, and $100 given to McLachlan to be paid to the plaintiff.

1. Appellant, Whitmore, contends that the $135 item should have been allowed as a credit in his favor on the ground that under the provisions of the mechanic’s lien law of this state (Rev. Stat., sec. 1372) the respondent was entitled to a lien only for the value of the materials furnished. Said section provides that mechanics,, materialmen, contractors, subcontractors, etc., shall have a lien ..... for the value of services rendered, labor done, or materials furnished, . . . whether at the instance of the owner or of any other person acting by his authority or under him as agent, contractor, or otherwise. This section, if it stood alone, would limit the lien of the original 1 contractor and all other lienholders to the value of the services, labor, and materials performed and furnished. In the absence of a special contract fixing the value of the services, labor, or materials, the law would imply an agreement- to pay what they were reasonably worth, and in such instance their reasonable value would be the limit of the lien; but where there is an express contract between the owner and contractor by virtue of section 1373, which provides: “In case of a contract between an owner and a contractor, the lien shall extend to the entire contract price, and such contract shall operate as a lien in favor of all persons except the contractor to the extent of the whole contract price; and after all such liens are satisfied, then as a lien for any balance of the contract price in favor of the contractor” — a different rule prevails, and in that case the 2 lien, without regard to reasonable value, extends to, and is limited only by, the contract price. Such contract operates as a lien in favor of all persons who have, under either an express or implied contract with the original contractor, ren[137]*137dered services, performed labor, or furnished materials; and the satisfaction of the lien of such person, if the sum secured thereby equals the original contract price, satisfies the lien under the original contract; otherwise it satisfies said lien only to the extent of the sum paid in satisfaction of the lien of persons other than the original contractor. Section 1383 provides that “whoever shall do work or furnish materials by contract, express or implied, with the owner as in this chapter provided, shall be deemed an original contractor, and all other persons doing work or furnishing materials shall be deemed subcontractors.” Section 1386 requires a subcontractor, in bis notice of intention to bold and claim a lien, to state the name of the person by whom be was employed or to whom be furnished the materials; also the terms, time given, and conditions of the contract. In the provisions of the statute cited, the rights of a contractor to make subcontracts is recognized. The owner, in bis dealings with the contractor, is charged with notice of 3 that fact, and that a subcontractor, by virtue of the original contract, is entitled, under bis subcontract, to a lien, within the limit of the original contract price. Lumber Co. v. Partridge, 10 Utah 322, 329, 37 Pac. 572. The subcontract price may be less or greater than the value of the services rendered, labor performed, or materials furnished. If much less, in the absence of fraud or mistake, certainly tbe subcontractor would not be entitled to a lien for their reasonable value; and, if much greater, in tbe absence of fraud or mistake, it follows that be would be entitled to a lien for tbe full subcontract price, as it is tbe original contract which, under tbe statute, in cases like tbe one at bar, operates as a lien in favor of tbe subcontractor and is limited to tbe original contract price. The 4 owner has tbe right in self-protection to retain enough of tbe original contract price to cover tbe liens of subcontractors, and apply tbe same in satisfaction of sucb liens; but in no other respect relating to tbe subcontract price is tbe owner concerned. It was not tbe intention of tbe Legislature to limit

[138]*138the lien to the value of the services, labor, or materials in cases where there is an express agreement between the owner and contractor, but its intention was to secure in such cases to a subcontractor under a subcontract made in good faith a lien for the subcontract price, within the limit of the original contract price. Counsel for the appellant cite in support of their contention Deardorff v. Everhartt, 74 Mo.

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Bluebook (online)
66 P. 779, 24 Utah 130, 1901 Utah LEXIS 73, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sierra-nevada-lumber-co-v-whitmore-utah-1901.