Woodward & Lothrop, Inc. v. Union Trust Co. of Rochester

262 F. 627, 49 App. D.C. 173, 1920 U.S. App. LEXIS 1577
CourtCourt of Appeals for the D.C. Circuit
DecidedJanuary 5, 1920
DocketNos. 3260, 3261
StatusPublished
Cited by1 cases

This text of 262 F. 627 (Woodward & Lothrop, Inc. v. Union Trust Co. of Rochester) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Woodward & Lothrop, Inc. v. Union Trust Co. of Rochester, 262 F. 627, 49 App. D.C. 173, 1920 U.S. App. LEXIS 1577 (D.C. Cir. 1920).

Opinions

ROBB, Associate Justice.

These appeals involve a decree in the Supreme Court of the District sustaining certain exceptions and overruling other exceptions to the report of a special master in a case growing out of a suit to enforce mechanics’ liéns.

In June of 1913 Woodward & Rothrop contracted with F. T. Nesbitt Company, of New York, for the erection of a store building at Eleventh and F. Streets, Northwest, in this city, and at about the same time contracted with the John Hofman Company, of Rochester, N. Y., for the furnishing and installation, for $31,000, of the store fixtures in the new building and in parts of the adjoining old building. This installation was completed in December following.

During the month of September, 1913, and while the contract of the Hofman Company was being executed, that company borrowed sums of money from the Central Bank of Rochester aggregating more than $16,000, for which it gave its promissory notes and executed assignments of money due and to become due from Woodward & Ro-throp; the balance due under these assignments when the work was completed being $9,280. During the same month the Hofman Company borrowed from the Union Trust Company of Rochester $5,000 under the same conditions, and there was a balance due under that assignment to this bank of $2,170 at the completion of the contract.

Shortly after the execution of the above assignments 'the Hofman Company became financially embarrassed, and on November 8, 1913, the company notified its creditors that a petition for voluntary dissolution had been filed in New York, and that G. Albert Taylor had been appointed temporary receiver. On December 26th following the company was adjudged a bankrupt, and Mr. Taylor subsequently was appointed trustee. On November 11, 1913, the Union Trust Company notified Woodward & Rothrop of its assignment from the Hofman Company, and on November 14th following wrote Woodward & Ro-throp that it might disregard the former notice, and might make settlement “direct with the receiver, G. Albert Taylor.” The Central Bank first notified Woodward & Rothrop of its assignment from Hofman & Co. on January 13, 1914. On the same day the Union Trust Company wrote Woodward & Rothrop, requesting direct payment to the bank under its assignment.

Among -the subcontractors of the Hofman Company was the Pittsburgh Plate Glass Company, and on the 27th of December, 1913, it filed in the court, below its notice of lien in the sum of $3,286.53. On the 30th of December following an order was passed in the court below, authorizing Woodward & Rothrop to pay into the registry of the court [629]*629“the sum of $3,286.53 the amount of the claim of the lienor in these proceedings, together with the sum of $200 to cover interest and costs”; Ihe order further reciting that “upon the payment of said moneys into the court in accordance with the terms of section 1254 of the Code, the property shall be released, and the money so paid shall be subject to the final decree of the court.” On January 21, 1914, pursuant to 1he provisions of the Code, the Pittsburgh Company filed its bill of complaint in the court below to enforce the lien theretofore asserted. Service was made on the Hofman Company by publication and by notice to their last known place of residence in Rochester. Woodward & Lothrop made answer, stating, among other things, that it was without knowledge of the terms of the contract alleged to have been entered into between the Hofman Company and the Pittsburgh Plate Glass Company, claimed that certain adjustments would be necessary, owing-to defective work by the Hofman Company, and directed attention to the deposit it had made and to the bankruptcy of the Hofman Company. Op February 4, 1915, about a year after the filing of its bill, the court entered a decree confirming the lien of the plaintiff, the Pittsburgh Plate Glass Company, in the amount claimed, and directing that amount to be paid plaintiff or its attorney of record from the sum deposited in court, which payment thereupon was made.

Numerous other subcontractors of the Plofman Company filed notice of liens during December of 1913 and January of 1914, and on April 20, 1914, the Garden City Plating & Manufacturing Company, one of these lienors, filed a bill for the enforcement of its lien against Woodward & Lothrop and the Plofman Company, and also naming the other lienors, including the Pittsburgh Plate Glass Company, as defendants. In that bill were detailed the proceedings culminating in the decree in favor of the Pittsburgh Plate Glass Company.

On October 26, 1915, a decree pro confe§so was taken against the Plofman Company, and on November 10th following this decree was set aside on motion of counsel for the Plofman Company. On the same day the Hofman Company and the two hanks, by leave of court, filed intervening petitions in the suit of the Garden City Company, one of the banks claiming $9,280 and the other $2,170 under the assignments already mentioned. Leave to file a similar petition also was sought and obtained by the trustee in bankruptcy of the Hofman Company, but no petition was filed.

While the record does not definitely disclose who then represented the banks, it is fair to assume that the counsel who obtained the setting aside of the pro confesso decree, and thereby laid the foundation for the filing of the intervening petitions by the banks also represented them. This inference is supported by the fact that since that time he has represented the banks. The intervening petitions of the two banks are silent as to the averments in the main petition concerning the suit of the Pittsburgh Plate Glass Company; the allegation being merely that the claims of the interveners are paramount to those of the plaintiff or of any of the defendants. The cause was referred to a special master, to report findings of fact and conclusions of law.

At the first session before the special master on November 15, 1915. [630]*630which it will be observed was subsequent to the filing of the intervening petitions, it was stipulated between counsel for Woodward & Ro-throp and counsel for the lienors that the balance due from Woodward & Rothrop to the Hofman Company was $6,013.60, and that no claim would be made against Woodward & Rothrop for any sum in excess of the amount admitted to be due. Hearings were had before the special master, and on September 30, 1918, his report was filed. The master found that the furnishings supplied under the Hofman contract by the various subcontractors, asserting their claims in the proceedings, were not affixed to the realty, and hence were not fixtures within the meaning of the mechanic’s lien statute. He further found that the loans of the two banks were made in good faith and that the assignments were not affected by the bankruptcy proceeding; “that the payment into court in the mechanic’s lien case of the'Pittsburgh Plate Glass Company to discharge an alleged lien, which would have been a cloud upon the title of the said Woodward & Rothrop, Incorporated, having been paid by order of the court to the alleged lienor, Woodward & Rothrop, Incorporated, are not bound to pay the money over again.” The master further observed that “the assignees cannot complain of this result, because their failure to give notice of their assignments to Woodward & Ro-throp would be sufficient to protect the latter in making any lawful payment out of the fund.” The master accordingly found the amount due from Woodward & Rothrop to be the amount stipulated on November 15, 1915. The record does not disclose that any claim was made for interest.

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Related

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24 Ohio N.P. (n.s.) 361 (Court of Common Pleas of Ohio, Hamilton County, 1923)

Cite This Page — Counsel Stack

Bluebook (online)
262 F. 627, 49 App. D.C. 173, 1920 U.S. App. LEXIS 1577, Counsel Stack Legal Research, https://law.counselstack.com/opinion/woodward-lothrop-inc-v-union-trust-co-of-rochester-cadc-1920.