Western Electric Co. v. Iowa Falls Electric Co.

196 Iowa 19
CourtSupreme Court of Iowa
DecidedMay 15, 1923
StatusPublished
Cited by1 cases

This text of 196 Iowa 19 (Western Electric Co. v. Iowa Falls Electric Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Western Electric Co. v. Iowa Falls Electric Co., 196 Iowa 19 (iowa 1923).

Opinion

Preston, C. J.

The pleadings and evidence are voluminous. The printed record is nearly 600 pages. Summarizing the pleadings: It is alleged in the petition that the contract between the owner and the principal contractor, Kaul Construction Company, of which C. R. Kaul was the owner and manager, was in writing, and entered into on September 12, 1920; that plaintiff furnished the materials for which lien was claimed, at various dates from August to October, 1920, under and by virtue of an oral contract by the principal contractor, and at. his special instance and request. The line to be constructed was known as the Blairsburg-Kamrar line. The amount claimed to be due, after deductions and credits, was approximately $5,000. The bill of particulars, or itemized statement of materials claimed to have been furnished, bears no dates on which the various items alleged to have been furnished were delivered. By amendment to petition to conform to the proof, it was stated that the materials were furnished from and including the months of February to October, 1920, rather than August to October.

The defendant Kaul made no contest; but Eby, as trustee in bankruptcy for Kaul and the construction company, with [21]*21other defendants, denied plaintiff’s right to a lien; and the bank intervened.

The defenses urged by defendants and intervener may be summarized as follows: That, under the Iowa statute, a mechanics’ lien could not be had upon an improvement of this character, constructed in the public highway, the electric company not being the owner of any land; that the materials were not furnished for this particular improvement, but upon the general credit of Kaul or the Kaul Construction Company; that, at the time the materials were alleged to have been furnished, there was no contract between the electric company and Kaul for the construction of said line, and that the greater part of materials were delivered to the contractor before the contract for the construction of the line was signed, September 12th; that the plaintiff failed to show that the materials out of which the line was constructed were the. materials alleged to have been furnished by it to the construction company, or the dates upon which the materials were furnished; that the lien statement filed by plaintiff did not comply with the requirements of the statute; that the same is erroneous and excessive, and included nonlienable items; and that the. errors were so reckless and gross as to defeat the whole lien. One or two other 'defenses were pleaded, which were stricken from the pleadings on plaintiff’s motion.

Under the contract, the line was to be completed by January 1, 1921. The contract price was $8,000. It was constructed in substantial compliance with the contract, and was completed in November, except certain arresters, for which an allowance and adjustment were made. The contract provided that the line should be constructed according to certain specifications, along a right of way to be obtained by the owner from the Iowa Railway Commission, and in the highway.

We deem it unnecessary to discuss all the. several different propositions involved, since, in our view of the matter, there is one controlling and decisive proposition, and that is that the weight of the evidence shows that the materials were furnished to the Kaul Construction Company upon the general credit of that concern, and not for this particular improvement. This [22]*22is a question largely of fact. To state the facts in detail would unduly prolong the opinion.

The first and only contract entered into between Kaul and the owner was executed on September 12, 1920. It is shown by the testimony that the Kaul people had commenced doing business with appellant about April, 1919, and had purchased a large amount of material prior to the purchase of the material in question. During the year 1920, and subsequent to April, 1919, the Kaul Company was engaged in the electrical business at Iowa Falls. Kaul constructed a number of electric lines on contract, and had done house wiring in connection with these lines. He also maintained a large warehouse at Iowa Falls, wherein electrical supplies and equipment were stored, and from which sales were made. He conducted a business of retailing these supplies and equipment. The account of appellant with the construction company shows that, in February, 1920, there was a balance due appellant for material furnished, of substantially $14,000. Kaul kept in his warehouse at Iowa Falls a stock of electrical material and equipment, which had been purchased from a number of concerns and at different prices and at different times, and had a pole yard, for the storage of poles. The larger part of said materials was purchased from plaintiff. The materials, or a considerable quantity thereof, for which lien was claimed, were shipped by appellant from Chicago to Iowa Falls, and were there mingled in Kaul’s warehouse, with other materials of like character purchased elsewhere. The materials for which lien was claimed were shipped under a large number of different orders, as far back as December, 1919. A large quantity of materials was shipped in March, 1920. Appellant concedes in argument that approximately one half in amount and value of these materials was shipped prior to June, 1920. Appellant did not keep a record of the particular contract.or job for which materials were furnished, nor of what materials were furnished on any contract. It kept but one account with the Kaul people, and that was a general account, which included each and all the materials which had ever been sold to Kaul, and for whatever purpose. Appellant is claiming a mechanics’ lien in this case for materials, with some exceptions, which were actually used in the construction [23]*23of the transmission line for the Iowa Falls Electric Company, whether the materials were furnished by it or not. Kaul delivered to plaintiff trade acceptances covering his indebtedness to plaintiff, and whenever payments were received by plaintiff from Kaul, no attempt was made to credit the payments so received on any particular job. No inquiry was made as to the source of the money, but Kaul’s general account was given credit.

Some of the foregoing matters are conceded and shown by the plaintiff’s evidence. They are all .established by the xveight of the testimony. Appellant emphasizes the circumstances in regard to a conference between its credit man and Kaul in Chicago, about January, 1920. In the latter part of January, Kaul went to Chicago, and had a conference with plaintiff’s credit, manager, relative to placing orders for the coming year. Appellant emphasizes the importance of this conference and another conference between Kaul and plaintiff’s assistant credit manager, about June 8, 1920. Appellant’s claim for the evidence as to these two conferences is that, in the first one, a number of contracts were in prospect, for which materials xvould be needed, and that these were the matters discussed; that among these contracts was the line in question, which was being promoted early in 1920 by Kaul and the defendant electric company; that it xx’as understood that, xxdxen the line had been successfully promoted, Kaul xvould get the contract for its construction. After the first conference, plaintiff’s credit manager, Mr. Fredbloom, xxuote a letter, which, it is claimed, embodied the substance of the agreement betxveen them as to future credit.

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Bluebook (online)
196 Iowa 19, Counsel Stack Legal Research, https://law.counselstack.com/opinion/western-electric-co-v-iowa-falls-electric-co-iowa-1923.