The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1895-08-21
CARTER LIEN FIRST.
r,seision in Seattle National
Bank Building Case.
<,no,Nos BY SPECIAL JUDGE.
.~..,~. Griffith and the Bondholders Are
Next In Order-The Liens and
priorities-

-. - the maze OF suits against the
$50 National Bank Building Com
= - s,raly{ng ariy half a million dol
-, vorsa o. property. was delivered
s1..tsr,fay. The net result Is that the es-
- az n. a Il. Carter Is AWARDED SUD
,sr, for sss0ge, su addition TO the
ss'.s ~ the bonds neia by IL In common
w.. ne other bondhol6ers; the claims
w. = DIVER & Bros, II. NJ Fiele.
-. carbon Hardware Company and
szrss.sse- FULLER & Co, are recognized
,,a,s ard are given priority over tho
s,.ssa of the bondholders, and the claims
- .ne Mechanics NH and Lumber Com
~.ny ct al are recognized also as Hens
s.s are nos given priority.
r. court held first, that the question
- the rights CT bondholders as par
s.szr~ az the bonds Is irrelevant and not
:. ss..a Reeardlng the charge that 1T.
p Carter vas a promoter OF the build
= ear-snanv a.id that he entered into
- .,.psrahts, agreement with q. W. +.
@s,trg,h. the decision maintains that Carter
,.s no, n promoter IN the legal sense.
80 that there is no evidence OF part
~a-assn and was interested in the sale
~ al the bonds only IN the same way IN
.hi@a All the other bcndholders were in
..-<,,es u is held that he was not TO
.,.ss, sr any special way by the sale OF
~ remainder Of the bonds.
raxt raising the question as 10 whether
r.,ssr was sabrogated TO the rights OF
Tesler In the site so far as regards the
ravnasnt Of ss9. 90 TO yesler as the balance
- n. purchase money. the court holds
chs. s,rh SEGREGATION should be enforced
.4ss.ss n should appear that Carter be-
esn,s eatoppcd 10 insist upon such right.
Zach es:oppsi must be proved, not pre-
saned By the court.
This eonr, .lads that Il was Carriers In
,enfson IN the payment Of the $4,000 20
teeone wholly subrogated 10 the rights OF
vesler. and that his security therefor
shaali be a first and prior lien upon the
proosrty to Insure to him the repayment
shereof. The opinion maintains that even
: Ioan Is in nowlse in conflict with the
,,rh, az subrogasion. From these and
esss- considerations the court holds that
s.sarra r. Carter holds the legal title 20
shn premises in trust for the building
rarananv. subject, however, TO the pay
rsn, 10 him OF the So. 900 and interest,
,n,n uayuent OF which the company is
entitled 10 a conveyance from Carter.
the op.nion further recognizes what it
eorceives TO be the settled law of the
state. that the right of a vendor Of realty
takes precedence of that OF subsequent
Ilsn-holders and claimants. and that the
rights OF mortgage are prior to those
of all lien claimants who furnish material
or labor In the erection of improvements
subsequent 10 the filing of such mort
sage 1t also holds that all purchases OK
,he bonds, even those subsequent to con-
tracts for material or labor, have prece-
cesce over the claims of the latter.
Judge Battle then takes up the ohjec-
lions which have been urged against the
lien notices of Xieie & Co, Whittier, Full
er& Co, Dwyer Bros. the Gordon Hard
ware Company, the Mechanics Mill &c
Lumber Company. and argues at great
length that they are not well founded. lie
takes the same position with reference to
The attack by Lyons on the Dwyer affidav-
H. As to the question OF directing bond
holders who also hold stock TO pay the
same In full before sharing in the funds
arising from sale. he holds that he is not
called upon for decision, and that credi-
tiers who wish such an order have other
recourse He holds that the trustees
claim for service constitutes an additional
lien upon the premises beside the bonds
secured thereby.
The decision concludes by weighing
carefully the claims OF the various liti-
sants. and dividing them into groups in
the order OF the priority OF their claims
makes the following distribution:
First-The estate of II. y. +. Garter.
$500. with interest from July "a. 1891, at
the rate Of per cent. and also the sum
Of Ssae,S. with interest from July Is. 1892.
at the rate OF per cert. and costs.
second-H NJ viele, s3.11l. with legal
interest from February 9. 1892, and the
Gums OF ST and 500 and costs; Whittier,
Fuller & Co. the sum of sS,7e34 10. with
interest from March Z. 1882. and the sums
OF &0 and 500 and costs: the Gordon
Hardware Company. s2,so2.S6 with inter
est from March Is. 1897, and costs: +.
V DRyar G. RrOq Il Sfi o. with
interest from December /. 1891. and
the sums OF So and $500 and
costs. In the event sufficient
amount Is not realized from the sale of
the premises 10 pay the claims OF all the
parties mentioned in the second division.
the court orders that the same be pro-
rased
Third-The plaintiff. G.. w. T.. Griffith,
rs trustee. $1,000. and his attorneys $500.
Fourth-To the holder OF each OF the
Ia.ea bonds issued. the principal and in
teFest due on each bond. and in the event
oi deficiency 20 pay the same in fun. the
court orders that the same be prorated
srsorr such hondholders
ffth-The Stifrson Mil Company si257f.
Win interest from February .. 1892 and
ne SUMS Of s. and 500 costs OF recording
,,s lien notice and attorneys fee. The
Mechanics Mill and Lumber Company.
sts4-SS, with interest on $3.50 thereof from
oeeember :. 1891. at the rate OF 10 per cent,
$50 with legal interest on the remainder
,fem December .. 1891. and the sums Of
siA ard ss1 costs OF recording Hen no.
,ise aat attorneys fee The same rule
- pro rata distribution is ordered in ref
eence 20 these claims
slxth-Ctls Bros & Co. s. Co. with in
flest ircn September q. 1872. and the
som or S,S21 The Traders National
.ahS OF Rochester. y. Y. $3.50 %. with in
.s1est from June =. 1892. and the sum Of
go. smith & Wyman. s5isi2. with in
ssseSt from September So 1899. and the
.um OF slGsl. the Seattle National hank.
~ :. the sum or So S2I.2S. with interest from
.Aafeh - fSgG. and the sum OF S5.15 and
= sase o. an amount not sum Gent 20 paw
saea claims IN full, the same shall be pro-
rated