Newport Wharf & Lumber Co. v. Drew

Citations

• 125 Cal. 585
• 58 P. 187
• 1899 Cal. LEXIS 907

Syllabus

<p>Mechanics’ Liens—Notice by Materialmen—Garnishment—Stoppage of Future Payments.—A notice given by materialmen to the trustees of an asylum demanding payment of their claims out of the balance remaining due to a contractor who had agreed to furnish materials and perform labor upon a ward building for the asylum, is equivalent to a garnishment of the moneys then payable to the contractor, the effect of which is to be determined by the rights of the contractor as to payments already matured, and also operates as a notice that the payment of any moneys thereafter becoming payable under the terms of the contract, otherwise than-to the claimants, would be at the peril of the trustees.</p> <p>Id.—Effect of Notice upon Matured Instalments—Assignment by Contractor.—If the contractor is still entitled to demand payment of instalments already matured at the time of the notice, payment to him is intercepted by the notice; but, if he has already assigned them to a third party, the notice will be inoperative to prevent their payment to such party.</p> <p>Id.—Agreement for Satisfaction of Trustees—Estimates by Superintendent—Approval and Direction for Payment—Assignability of Estimates—Under a contract providing that the work should be done to the satisfaction of the trustees of the asylum, and that ninety per cent of the value of the work and materials should be paid in monthly instalments as the work progresses, upon estimates made by the superintendent of construction, the approval of an estimate by the trustees, and their direction for its payment, without any formal declaration of their satisfaction, vests in the contractor the right to the immediate payment of the monthly instalment of ninety per cent. Sucli estimates of value are assignable by the contractor prior to their approval; and the subsequent approval thereof, prior to notice from a materialman, inures to the benefit of the assignee.</p> <p>Id.—Peovision for Controller’s Warrants.—The maturity and assignability