Schroeder v. Waters

Citations

• 173 Pa. 422
• 34 A. 217
• 1896 Pa. LEXIS 723

Syllabus

<p>Payment — Receipt—Mechanic's lien — Estoppel.</p> <p>On the trial of a scire facias sur mechanic’s lien it appeared that plaintiff who had filed the lien was a subcontractor. One of the defendants, a trust company, was the surety of the contractor, and was the disbursing agent for the advanced money mortgagee, and had guaranteed to the latter the erection of the buildings clear of all mechanics’ liens. It also had charge of the moneys used in erecting the buildings. Plaintiff having a considerable sum due to him gave to D., who was interested in the building contract, a written receipt made out to the trust company, and signed by himself, and the company thereupon paid the money called for by the receipt to D. Subsequently the original owners of the contract conveyed their respective interests to the trust company, which company, in order to protect itself, completed the building of the houses. D. paid over to plaintiff a portion only of the money received by him, and claimed that he had applied the balance to the payment of debts due upon the houses. Plaintiff subsequently filed a mechanic’s lien for the amount which D. had failed to pay over to him. Held, (1) that the payment by the trust company to D. was the same as a payment to plaintiff in person; (2) that it was immaterial to what purposes D. had applied the money, or with what understanding the receipt had been given to him; (3) that the trust company was not required to make proof of actual loss; (4) that, as the trust company had guaranteed that the mortgagee should not be prejudiced by mechanics’ liens, it had a direct and immediate interest that the disbursements it was making should go to the parties entitled to them under the contract, and thus prevent the filing of liens; (5) that plaintiff was not entitled to recover anything upon the scire facias.</p>