Thomas v. Board of Education of Paterson

88 A. 326, 81 N.J. Eq. 94, 1911 N.J. Ch. LEXIS 49
CourtNew Jersey Court of Chancery
DecidedApril 8, 1911
StatusPublished

This text of 88 A. 326 (Thomas v. Board of Education of Paterson) is published on Counsel Stack Legal Research, covering New Jersey Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thomas v. Board of Education of Paterson, 88 A. 326, 81 N.J. Eq. 94, 1911 N.J. Ch. LEXIS 49 (N.J. Ct. App. 1911).

Opinion

Steveksoiv, V. C.

The bill is filed to enforce a lien alleged to have been acquired by the complainants under the statute commonly called the Mu[96]*96nicipal Improvements Lien act, approved March 30th, 1892. 2 Gen. Stat. p. 2078. The defendant the board of education, the stakeholder, files an answer admitting that it holds the sum of $3,936.84 to which the defendants or some of them are entitled, and prays that the court may direct it in regard to the payment of said sum. This answer to a large extent makes the suit in effect an interpleader suit. All the parties agree that the amount of the stake which the defendant the board of education holds is correctly stated in the answer of that defendant. The wfhole contest lies between the following-named parties, to wit:

1. The' complainants who claim a lien as aforesaid under the above-mentioned statute.

2. The defendants, the bondsmen of the defaulting and-absconding original contractor, Maloney, who finished the building after Maloney had abandoned his contract under a contract made between themselves and the board of education, and

3. The defendant Thomas Brogan, who claims that before the lien of the complainants was created by notice duly served under the statute, the entire fund had passed by an assignment to a party to whose rights he succeeded under a subsequent assignment.

I see no reason to alter the decision which I announced at the conclusion of the argument in regard to the rights of the bondsmen. Holding always in view the claims and admissions of these bondsmen contained in their answer, and in the argument of their counsel, I reached the conclusion announced at the end of the oral argument, that the bondsmen were entitled to receive from the fund $3,347.25, leaving a balance of $589.59 to be disposed'of between the complainants and the defendant Thomas Brogan, the former claiming under their statutory lien, and the latter claiming under'his assignment. Whether under the evidence which was produced in this cause or under evidence which might have been produced with a somewhat different view of the nature of the case from that which was accepted by counsel, the amount to be adjudged due to the bondsmen might have been altered, I shall not undertake to inquire. This is a case where in my judgment it is particularly the duty of the court .to decide the case which has been argued and not construct [97]*97some other ease out of the testimony which was not introduced by any party for that purpose.

In dealing with the contentions between the complainants as lien claimants -and. the defendant Brogan as assignee, I shall also take the case as it stands with the admissions which counsel for these parties respectively have made. It certainly might be argued that there never was any money which was due or became due to the contractor, Maloney, after he broke his’contract and abandoned the same, and that therefore no lien could be created tinder the statute by notice, and no instrument could operate as an equitable assignment, there being nothing now in existence which potentially was the subject-matter of the assignment when the same was made. If Maloney never earned anything, except what he received in cash — if Maloney, neither at the time he absconded and. abandoned his contract, or at any future time after the board of education had succeeded in procuring the completion of-the building which he had wrongfully neglected and refused to complete in violation of his contract, could have maintained any action at law or in equity for the recovery of this $589.59 in question, it certainly is difficult to see how the complainants’ statutory notice or the defendant Brogan’s equitable assignment could in any way attach to this fund.

These two contestants, however, through -their counsel insist that this $589.59 is tó be treated as money due to Maloney under his contract, and, in view of the attitude of the board of education about which their answer filed in this cause leaves no question, and the attitude of the bondsmen which is equally clear, it cannot be said that the viewr of these rival defendants is without equitable support. The board of education, this public body, in effect, lays down the fund in court, making no claim to it, and I consider it the duty of this court to regard the fund as the property of Maloney subject to the claims of these contesting parties under their respective assignments, the one a voluntary assignment and the other an involuntary assignment under the provisions of the statute. It cannot be doubted that if this money belonged to Maloney it was earned by him under the contract, and hence wras assignable and lienable. If the money never belonged to Maloney it remains the money of the board [98]*98of education and constituted a convenient fund out of which the board could pay what was due to the bondsmen under their contract with the board for the completion of the building. The board of education, however, makes no claim to any part of the fund, but in effect pays it into court. The court therefore lias proceeded first to satisfy all claims of the bondsmen set up in their answer and urged in the argument of their counsel, which it finds dire to them under their contract for the completion of the building, and may then very properly •treat any residue as the property of Maloney and subject therefore to assignment and lien under the statute.

Counsel for the complainants limits his claim to the sum of $400, an item allowed finally upon settlement of all accounts on account of certain extra work in the way of excavation done by Maloney before he abandoned his contract. As to the remainder of the fund now under examination ($189.59) counsel admits that the assignment of the defendant Brogan has priority.

Treating the entire fund ($589.59) as lienable under the statute and as subject to transfer under an equitable assignment, the whole controversy turns upon the question whether the assignment proved in this ease operated to effect a transfer of the whole fund or only part of it, viz., $189.49.

My conclusion from the premises assumed by both these contending parties is that the equitable assignment carried the whole fund, and the same must be awarded in its entirety to the defendant Brogan, and I shall here endeavor briefly to set forth the reason for this view. We have in hand what is essentially the construction of the assignment under which the defendant Brogan claims, and the assignment cannot be construed without also construing a part of the contract to which the assignment relates.

' The fallacy which I think underlies the argument of counsel for the complainants grows out of the distinction madg between what is called the contract price and any amounts earned and paid for extra work. I think it is quite clear that all moneys which Maloney earned or possibly could earn in the erection of this building for the board of education were, and necessarily would be, earned under the contract so as to become lienable [99]*99under the statute and the same of course would also be assignable.

According to the original contract between Maloney and the board of education, the former agreed in consideration of $33,-886 to do all the mason work upon a certain school building according to certain “plans, specifications and proposals” and furnish sufficient materials therefor. Certain specified work and material were to be done and furnished for a certain specified sum.

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Bluebook (online)
88 A. 326, 81 N.J. Eq. 94, 1911 N.J. Ch. LEXIS 49, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomas-v-board-of-education-of-paterson-njch-1911.