Mechanics' liens — Release — Property mortgaged on strength of release — Liens subsequently disclosed — Contractor not liable to mortgagee for amount of undisclosed liens purchased to protect mortgage.
In an action of assumpsit to recover the amount paid for two mechanics' liens by a mortgagee of the property, the evidence disclosed that plaintiff took the mortgage on the strength of a release of liens, among the signers of which were the defendants. Attached to the release was an affidavit of the contractor that it was executed by all persons who did work as contractors or subcontractors upon or furnished material for the building. Two liens of material men were later disclosed which became prior in lien to plaintiff's mortgage, and plaintiff was forced to purchase them in order to protect the mortgage from divestiture by sheriff's sale on a later mortgage.
The signing of a release was not a certification of the amount of materials furnished by defendants, nor a guarantee that materials were not furnished by other contractors.
The affidavit of the principal contractor that the release was executed by all persons who did work or furnished materials for the building did not create a contract relationship between the signers of the release and the mortgagee, nor did the release establish any privity of contract between the signers and the mortgagee which would sustain an action of assumpsit. There was no understanding or assurance by the defendants in the execution of the release that they did other than release their own rights to file liens against the property.
Argued April 27, 1928.
PER CURIAM, July 12, 1928:
The judgment is affirmed on the opinion filed by President Judge EVANS, of the Court of Common Pleas of Allegheny County.