Cont'l Supply Co. v. Geo. H. Greenan Co.
| Decision Date | 11 September 1928 |
| Docket Number | Case Number: 18178 |
| Citation | 140 Okla. 221,282 P. 598,1928 OK 519 |
| Parties | CONTINENTAL SUPPLY CO. v. GEO. H. GREENAN CO. |
| Court | Oklahoma Supreme Court |
¶0 1. Oil and Gas-Right to Lien for Labor on Pipe Line and Right of Way.
Where labor is performed in the laying of a pipe line, under a contract with the owner of said pipe line, who also owns the right of way, the laborer is entitled to a lien on such pipe line and right of way for his labor under section 7461, C. O. S. 1921, as amended by the 1923 Session Laws.
2. Same--Time for Filing Lien--Building of Pipe Line Regarded as Single Undertaking Though Constructed in Separate Sections under Contracts of Different Dates.
A private pipe line for the purpose of transporting oil to a refinery, although separate sections of said line were constructed under contracts entered into at different times, but between the same parties, will be considered as one structure or undertaking for the purpose of filing a lien where the work under all contracts was performed without material interruption, and conduct of the parties and circumstances of the case indicate an intention to complete the same as a single enterprise, and a lien filed within the statutory period, after the whole line is completed, is within the time prescribed by law
Commissioners' Opinion, Division No. 1.
Error from District Court, Kay County; Claude Duval, Judge.
Action by George H. Greenan Company to foreclose a mechanic's lien on a right of way and pipe line laid along the same under a contract with Moore Refining Company. The Continental Supply Company claims a lien under a mortgage given by Moore Transportation Company for the purchase price of the pipe used in the construction of the pipe line above mentioned. A judgment foreclosing the Greenan Company's lien was rendered by the trial court, who also declared the Greenan Company's lien superior to the mortgage lien of the Continental Supply Company. From this judgment, the Continental Supply Company appeals. Affirmed.
Bryan, Williams & Cave, Cline & Cline, and R. W. Kellough, for plaintiff in error.
Sam K. Sullivan, Neal A. Sullivan, R. J. Shive, and P. H. Moroney, for defendant in error.
¶1 This is an action by George H. Greenan Company to foreclose a mechanic's lien against an oil pipe line, a right of way and a pump station, said pipe line and right of way running across Kay county, Oklahoma.
¶2 Greenan sought to recover a judgment for $ 24,408 against the Moore Refining Company under two written and one oral contract, one written contract executed January 8, 1924, and the other March 4, 1924.
¶3 The contract of January 8, 1924, provided for a 4-inch pipe line from the Oklahoma-Kansas line in a southeasterly direction across Kay county and into Osage county for the sum of 15 cents per lineal foot; and the contract of March 4th provided for a 3-inch line from a pump station located about one mile from the Osage and Kay county line, and to extend into Burbank oil field in Osage county for the sum of 13 cents per lineal foot.
¶4 The oral contract provided for the laying of a 4-inch line from the Oklahoma-Kansas line to a refinery located in Arkansas City, which the Moore Refining Company was operating under a lease.
¶5 The labor performed for laying the pipe lines under the provisions of the contract, as above set out, was listed in the statement attached to the mechanic's lien sued upon herein in the following manner: (1) For work done on 129,772 feet of 4-inch line at 15 cents per foot; (2) for work done on 28,335 feet of 3-inch line at 13 cents per foot; (3) for work done on 15,000 feet of 4-inch line at 13 cents per foot. In addition to these items, there was also the following: (4) For painting 20 miles of 4-inch line at $ 52.80 per mile: and (5) extras, repairing leaks, hold up for right of way.
¶6 The five items, as above set out, made the only itemized list attached to Greenan's lien statement on which suit is brought in this case. The lien statement, which was in the total sum of $ 26,746, showed a credit of $ 2,338, which was the balance of a $ 3,000 payment made by Moore Refining Company after deducting $ 663, which was due to George H. Greenan personally for work previously done.
¶7 The Continental Supply Company, in its answer and cross-petition, after denying that Greenan had any lien on the property and denying that Moore Refining Company owned the pipe line, alleged that there was paid to Greenan the sum of $ 10,000 not shown in the lien statement, and also denying the right to apply the $ 663 as above set out.
¶8 The Continental Supply Company asked for and obtained a judgment against the Moore Transportation Company in the sum of $ 127,000, which was due for the sale of the pipe laid by Greenan Company along the said right of way, and obtained a foreclosure of a mortgage executed by the Moore Transportation Company in said sum, which mortgage was given for the purchase price of the pipe and was filed for record on August 1, 1924, it being filed as a chattel mortgage, although the Continental Supply Company attempted to file it as a real estate mortgage also but was refused by the county clerk.
¶9 The amount due to Greenan Company was entirely for labor, it being agreed under the terms of the contracts that the Moore Refining Company was to furnish all the pipe. The pipe was purchased from the Continental Supply Company and sold to Moore and Perry, as trustees for Moore Transportation Company.
¶10 It appears that when the Moore Refining Company made application to purchase the pipe, the Continental Supply Company refused to extend the credit, and there was an agreement that a new company should be formed, known as the Moore Transportation Company, to which the right of way should be assigned and by which the title to the right of way and pipe line should be held. This company was organized without the knowledge of Greenan Company. The title to the right of way was never transferred, but was hold by the Moore Refining Company. Greenan did not know of the organization of this company, nor of the arrangements between the Continental Supply Company and Moore and Perry, who were the managing officers of both companies, until long after its labor was performed.
¶11 The contracts under which Greenan's work was performed provided that the line should be tested, and that any leaks occasioned by poor material should be repaired at the expense of Moore Refining Company.
¶12 The $ 10,000 item mentioned above was paid on or about March 16, 1924, but no credit was given for this check until the day of the trial of this case, some two and a half years later. At the time Greenan Company received this $ 10,000 payment, the Moore Refining Company was indebted to it in a like sum for the construction of a pipe line to the Burbank oil field, which was completed before entering into the contracts here involved. The Moore Refining Company had given its note to Greenan, and Greenan had assigned it to Exchange National Bank at Tulsa, but had endorsed same and was still liable thereon. Greenan held the $ 10,000, intending to apply it on this note, if Moore Refining Company did not pay the same. This note was paid after the filing of the lien in this case, and on the day of trial the court permitted Greenan to apply the $ 10,000 on amounts due for work performed in Kansas and Osage counties, Okla., as shown by the lien statement, leaving all the balance due for work performed in Kay county. There was a dispute as to when the work was completed, but the court found that the work was completed on or about April 10, 1924, and the lien in this case was filed on July 19th.
¶13 A Judgment was entered in favor of Greenan Company for the sum of $ 14,408.06 (the amount sued for less the $ 10,000 credit), together with an attorney's fee of $ 2,000 and a foreclosure of the lien on the right of way and pipe line laid across Kay county as above described, and also on the pump station located in Kay county.
¶14 The court also granted judgment for the Continental Supply Company against the Moore Transportation Company for the full amount sued for, and a foreclosure of its mortgage against the pipe line above described, but held that the lien of Greenan was superior to the mortgage in favor of the Continental Supply Company.
¶15 The defendants, Moore Transportation Company, Moore Refining Company, E. H. Perry and George N. Moore, do not deny any of the amounts claimed by either party. The appeal in this case is taken from the judgment in favor of Greenan Company against Moore Refining Company, and for a foreclosure of its lien and the order declaring it to be a superior lien to that of the Continental Supply Company. No appeal was taken from the judgment in favor of the Continental Supply Company.
¶16 The principal question presented in this appeal is whether or not the lien, if any, of Greenan Company is superior to that of the Continental Supply Company. There are many assignments of error alleged by the Continental Supply Company, but we believe they may be condensed into the following propositions:
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