Denmead v. Bank of Baltimore

Le Grand, C. J., delivered the opinion of this court. This appeal is from an order of the chancellor overruling exceptions to the report, and accompanying accounts distributing a fund which had been created by a sale of property on which there were various liens. It is only necessary to notice two of them, as they are all that are involved in the present inquiry. It appears from the record, that, on the 4th of March 1841, the Powhattan Manufacturing Company being indebted to the Bank of Baltimore in a large sum of money, executed a mortgage of certain lands in Baltimore county, “together with all the buildings and improvements thereon,” including “the mill, factoiy, dwelling and other houses; and all the machinery and fixtures, in said mill or factory,” <fcc., as a security for said indebtedness.

On the 15th November 1845, the mortgage debt being unpaid, the company conveyed the premises to William Mason, who, in the year 1847, commenced the erection of a large mill on the property called the Pocahontas mill. In the year 1848, he caused suitable machinery to be constructed by different mechanics to be placed therein; and among others, by the appellants, who manufactured and furnished the mill with a steam engine, with boilers, tanks, and other usual appurtenances. About this túne, Mason formed a co-partnership with William Mason, Jr., and H. A. Barling, who with him carried on the manufactory until 1849, when they were compelled to suspend their business. On the 8th of September of that year, they conveyed to Messrs.

McKim and Kennedy, on certain trusts, the lands, the two factories, and all the machinery, fixtures, &c., belonging to them. On the application, by bill of complaint of these trustees, the property was sold, reserving for future adjudication all questions of priority. ¹⁸³ It appears, from the testimony, that some time in 1848, the appellants sent the machinery, which they had made in the city of Baltimore, to the country to be put up in the factory; that they filed their lien on the 18th of March 1848, on which scire facias issued in July 1849, and obtained judgment in September of the same year. The question which we have now to determine is, winch of these claimants is entitled to priority? A great number of important question were suggested when the argument commenced, but all, save one, abandoned before it was concluded.

It was conceded by the appellants. 1. That the machinery put up by them, so soon as it was attached to the building, became fixtures. 2. That it might be conceded that the judgment obtained by them was not in strict conformity with the acts of Assembly giving liens to mechanics and others, and therefore, that the judgment did not, of its own force, give a prior lien to the appellants. The counsel for the appellants desiring the case to be decided in view of these concessions, in regard to the propriety of which we wish to be understood as pronouncing no opinion, the case was submitted on the ground that, “even if the judgment is not held conclusive, the original hen itself is of sufficient force to bind the proceeds of the steam engine, &c., in favor of the appellants.” This being so, the whole case is narrowed down to this: does the claim of the appellants, filed