Case Name: William F. Richards v. O. W. Bennett, Receiver of the Enterprise Lumber Co.
Court: Ohio Court of Appeals
Jurisdiction: Ohio
Decision Date: 1914-06
Citations: 21 Ohio C.C. (n.s.) 554
Docket Number: 
Parties: William F. Richards v. O. W. Bennett, Receiver of the Enterprise Lumber Co.
Judges: Jones (E. H.), J.; Swung, J., concurs; Jones (Oliver B.), J., dissents.
Reporter: Ohio Circuit Court Reports (new series)
Volume: 21
Pages: 554–556

Head Matter:
CONSTRUCTION OF THE MECHANICS’ LIEN ACT.
Court of Appeals for Hamilton County.
William F. Richards v. O. W. Bennett, Receiver of the Enterprise Lumber Co.
Decided, June, 1914.
Mechanic’s Liens — Good Faith on the Part of an Owner in Making Payments After Notice — Not a Defense Against the Claim of a Material-man.
An owner who fails to retain in his hands a sufficient amount to satisfy the claim of a material-man, who has given the proper notice, becomes liable on such claim notwithstanding the payments which he made after notice were made in good faith and embraced only actual' pay rolls and bills for material necessary to complete the building.
Dolle, Taylor ,c& O’Donnell, for plaintiff in error.
Hunt, Bennett & Utter, contra.
Jones (E. H.), J.; Swung, J., concurs; Jones (Oliver B.), J., dissents.
Affirmed by the Supreme Court without opinion, May 4, 1915.

Opinion:
This was an action brought below by a material-man against an owner, for money judgment, under Section 8324, et seq., of the General Code of Ohio.
The material-man in his petition claims that he furnished the head contractor certain materials for a building then being constructed for the plaintiff in error, Mr. Richards; that he gave the requisite notice in sufficient time, and that thereafter payments became due the head contractor from the owner, and that the owner neglected to retain a sufficient amount to cover, his claim and thereby under the statute the owner became liable for the payment of the claim.
The cause was tried beloiv by the court without the intervention of a jury. The court made separate findings of fact and law, giving the material-man, plaintiff below, a judgment for the full amount of liis claim with interest. The finding of fact shows that after the notice ivas served upon the owner, Mr. Richards, in compliance with the provisions of the mechanic's lien law, he made payments to_the head contractor upon estimates by the architect, as he had done before and as provided for in the contract. In so doing he failed to comply with the provision of Section 8325, which reads as follows:
"Upon receiving the notice required by the next preceding section, such owner, board or officer or public authority, or authorized clerk, agent or attorney thereof, shall detain in his hands all subsequent payments from the principal or sub-eon-tractor to secure such claims and the claims and estimates of other sub-contractors, material-men, laborers, mechanics or persons furnishing materials tó or performing labor for any contractor or sub-contractor who intervenes before the next subsequent payment under the contract, or within ten days thereafter. " .
.While it may be true that the payments'made in this case to the architect were made in good faith and only embraced the money necessary to meet the payroll and to pay for material necessary for the completion of the building, yet it constitutes an evasion or violation of the plain language of the section above quoted. To permit this to be done in any particular ease would open the door for collusion and fraud and result in nullifying the inhibition of said section.
We think, therefore, that the judgment below is correct and should be affirmed.