Mitchell v. Shoreridge Oil Co.

JENNINGS, J.

By their amended complaint filed in this action in the Superior Court of Orange County on August 7, 1935, plaintiffs sought to subject real property owned by the defendant Lucy B. Freeman, to mechanics’ liens for materials furnished by them to the defendant’s lessee, Shoreridge Oil Company, to foreclose such liens, and to obtain a decree that the land be sold for the purpose of satisfying the liens. In her answer filed to said amended complaint Lucy B. Freeman alleged that prior to the institution of this action plaintiffs -had assigned the claims and demands which they asserted to one D. Aarup, that said assignee on February 6, 1935, commenced an action in the Superior Court of Los Angeles County against the Shoreridge Oil Company and others on such demands, and that judgment was rendered in favor of the assignee against the defendants in said action on August 7, 1935, whereby it was adjudged that the assignee should have and recover from said defendants the amount demanded in said action on said demands. During the trial of the issues framed by the pleadings in the instant action evidence was produced which indicated that prior to the bringing of this suit plaintiffs had assigned their claims upon which the liens here sought to be foreclosed were based to the person named in the above-mentioned answer, that such assignment was oral and was for collection only, that the assignee had instituted an action on such claims in Los Angeles County and had recovered a money judgment against the Shoreridge Oil Company and the other defendants named in said action. On these facts the trial court in this proceeding found that plaintiffs had no interest in the liens which they asserted or in the subject-matter of the causes of action which they here alleged and rendered judgment in favor of the defendant, Lucy B. Freeman. From the judgment thus rendered plaintiffs appeal.

[384]

Appellants contend that, since the evidence showed that the assignment of their claims was oral and was made only for the purpose of collection and they received no consideration for such assignment, they retained the equitable interest in such claims and were therefore empowered to bring this proceeding to foreclose the liens in their own names.

With respect to the fact that the assignment of the claims for the purchase price of the materials furnished by appellants was oral it is settled that there is no legal requirement that such an assignment must be in writing. It is also settled that a mechanic’s lien is a mere incident of the debt which it secures and that the assignment of the debt carries with it the lien.