Stimson Mill Co. v. Riley

42 P. 1072, 5 Cal. Unrep. 218, 1895 Cal. LEXIS 1178
CourtCalifornia Supreme Court
DecidedDecember 20, 1895
DocketL. A. No. 3
StatusPublished
Cited by2 cases

This text of 42 P. 1072 (Stimson Mill Co. v. Riley) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stimson Mill Co. v. Riley, 42 P. 1072, 5 Cal. Unrep. 218, 1895 Cal. LEXIS 1178 (Cal. 1895).

Opinion

BELCHER, C.

This action was instituted to foreclose twelve liens for labor and materials furnished and used in the construction of a house for the defendant Riley, the several claims, including costs of recording, aggregating in amount the sum of $1,728.86. One of the said liens was for materials furnished by the plaintiff, and the others were duly assigned to the plaintiff. One Duncan also commenced an action to foreclose a lien for labor done by him on the building, of the value of $25, and the two actions were consolidated and tried together. The contract, under which the building was constructed, was executed by Riley, as owner, and J. H. Cummins, as contractor, on October 10, 1893, and was duly recorded. It provided that Cummins should do all the work and furnish all the materials necessary to complete the building according to the plans and specifications made by Charles W. Davis, architect, for the sum of $2,180. It further provides that the payments, so far as need be stated here, should be made as follows: (4) When ready for plastering, $250; (5) when first coat of plastering is finished, $250; (6) when white coat of plastering is finished, $250; (7) when whole work completed and accepted by architect, $300; balance, $530, usual thirty-five days, “provided, that in each of the said cases a certificate be obtained and signed by the said Chas. W. Davis that he has done his work so far as done to his satisfac[220]*220tion, and also a statement of the value of the work so done by him.” Accompanying the contract was a bond, as required by section 1203 of the Code of Civil Procedure, which was signed by S. C. Dodge, one of plaintiff’s assignors, and R. A. Buchanan, but not by Cummins. It reads: “Know all men by these presents, that we, the undersigned, .... do hereby jointly and severally guarantee the faithful performance of the above contract, and the delivery of the said building to Spurgeon Riley, Esq., free from all liens that may be filed against the contractor on the above contract, not exceeding the sum of five hundred and forty-five dollars, that may accrue against him by reason of the nonfulfillment of the said contract by the said J. H. Cummins, the contractor aforesaid. We further agree that he will pay all his subcontractors, laborers, and materialmen all of the moneys that may become due them by reason of labor or materials under this contract. We hereby guarantee to them the payment in full of all their claims, and hold ourselves responsible to them in the sum of five hundred and forty-five dollars, or so much as may be necessary of the said sum to pay them in full of all labor and materials furnished for said building, exclusive of the contract price of the same.” It is alleged in the complaint, among other things, that at least twenty-five per cent of the whole contract price was not, by the terms of the contract, made payable at least thirty-five days after the final completion of the contract; that the first, fourth, fifth, and sixth payments were made by Riley to Cummins before they became due according to the terms of the contract; and that $750 is a reasonable sum to be allowed plaintiff as attorneys’ fees in the action. Wherefore plaintiff prayed judgment against the defendant Cummins for the several sums specified, aggregating $1,728.86; that it be allowed an attorney’s fee in the sum of $750; and that the said several sums be adjudged and decreed to be liens upon the land and building described, and that the same be sold, and the proceeds applied, etc. Cummins suffered his default to be entered. Riley appeared and answered. The answer set out the contract and accompanying bond and the work done thereunder. It denied that any payment was made before it became due, and alleged that each and every payment was made upon the certificate of the architect as provided by the contract. It also denied the right of the plaintiff to recover on the lien of S. C. Dodge, for the [221]*221reason that Dodge was estopped from claiming or maintaining any lien against said building by the covenants of the said bond, whereby he obligated himself that the contractor would complete his contract according to its terms, and deliver the house to defendant free of liens and charges. It also admitted that there was still in defendant’s hands money due and unpaid under the contract amounting to the sum of $870; and it asked that an order be made permitting the defendant to deposit the said sum in court, subject to the further direction of the court. The case was tried, and the court found, in effect, that the said contract was a valid and binding contract between the parties; that the first payment of $150 was made before the same became due; that the fourth, fifth and sixth payments were not made before the same became due; that plaintiff was not entitled to recover anything upon the cause of action assigned to it by S. C. Dodge, except as against the defendant Cummins; that $25 was a reasonable sum to be allowed Duncan as an attorney’s fee, and $75 was a reasonable sum to be allowed plaintiff as an attorney’s fee; that Duncan and the plaintiff were each entitled to recover of the defendant Cummins the amount of their respective liens, together with their costs and attorneys’ fees as aforesaid, and interest as prayed for, and were entitled to recover of the defendant Riley the sum of $1,020, being the $870 which was deposited in court and the $150 which was prematurely paid, and also the cost of verifying and recording their liens and their attorneys’ fees and costs of suit, which said several sums were declared to be liens on the land and building described. In accordance with the findings a judgment and decree of foreclosure was entered, from which, and from an order denying its motion for a new trial, the plaintiff Stimson Mill Company appeals.

The principal points made for a reversal are: (1) That the court erred in deciding that the contract was valid and binding, when, by its terms, twenty-five per cent of the whole contract price was not made payable at least thirty-five days after the final completion of the contract. (2) That the court erred in deciding that the fourth, fifth and sixth payments were not made before they became due. (3) That the court erred in deciding that the plaintiff was not entitled to enforce the lien for the claim of S. C. Dodge. (4) That the court erred in allowing plaintiff only $75 as an attorney’s fee.

[222]*222As to the first point: It appears that the sum reserved for the last payment was $15 less than twenty-five per cent of the whole contract price. The statute (Code Civ. Proc., sec. 1184) provides that the contract price shall be made payable in installments, or on the completion of the work, “provided, that at least twenty-five per cent of the whole contract price shall be made payable at least thirty-five days after the final completion of the contract”; and that, “in case such contracts and alterations thereof do not conform substantially to the provisions of this section, the labor done and materials furnished by all persons except the contractor shall be deemed to have been done and furnished at the personal instance and request of the person who contracted with the contractor, and they shall have a lien for the value thereof.” It will be observed that this section does not declare the contract void in case it fails to conform substantially to its provisions, but only imposes a penalty upon the owner by making him personally liable, and his improved property subject to liens, for the labor and materials done and furnished; and it was so held in San Diego Lumber Co. v. Wooldredge, 90 Cal. 574, 27 Pac. 431.

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Cite This Page — Counsel Stack

Bluebook (online)
42 P. 1072, 5 Cal. Unrep. 218, 1895 Cal. LEXIS 1178, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stimson-mill-co-v-riley-cal-1895.