smcxrm, HA1mLsoN & Howaan mon co. v. counou. BLUFFS W. W. co. 13
am of opinion that what was done in that direction was not operative to
divest her of her right, and the amount of the death loss which has been
paid into court by the association should be paid to Mrs. Brown, less
the costs of this suit.
Smcxnn, Hlumrsou & Howluzn Inou Co. v. Couucrr. Bnurrs Warmt-
Womzs Co. and others.
`(Uircuit Oqurt, S. D. Iowa. December 12, 1887.)
MECHANICS. LrnN——Loss 0F··—ACCEP'1‘ANCE or Connarmnn. Snconrrv.
A sum of money deposited as security for the performance, on the part of a
construction company, of a contract with a material-man, and out of which
the latter is to be paid on default of the other party. is such collateral security
as will, under Acts 16th Gen. Assem. Iowa, c. 100, § 2, divest the materia1—man
of his right to a mechanics' lien. ,
In Equity. A
In substance, the bill in this cause sets forth that the complainant, ‘
the Shickle, Harrison & Howard Iron Company, made a contract with
the American Construction Company, of New York, and the Council
Bluffs City Water—Works Company, whereby complainant agreed to fur-
nish material for the construction of the water—wor1Es at Council Bluffs,
the construction company agreeing to pay therefor the prices fixed in
the contract, and the water-works company guarantying the faithful per-
formance by the construction company of the obligations imposed upon
it by the contract; and to that end the water·works company bound it-
self "to deposit, as security therefor, the sum of $10,000 in the hands
of the Commercial Bank of St. Louis, the sum to be applied in payment '
to said iron company" of any sum the said construction company may
fail to pay," etc. The complaint further alleged that the American
Construction Company had procured its right to construct the water-
works under thevprovisions of certain ordinances passed by the city
council, and averred that in fact all the materials furnished were fur-
nished to the city water—works company, to whom the construction com-
pany had sold its interest. Complainant prays for judgment against the
water-works company, and for the enforcement of a mechanic’s lien.
Defendants demurred, and the demurrer was sustained. Plaintiff
amended, and the case was again submitted.
Sapp &: Puse, for complainant.
Wright, Baldwin do Halda.·n.e,’for defendants. _ `
» Smarts, J. This cause has already been before the court upon a de-
murrer to the bill, and upon that hearing it was held that if a deposit
of $10,000, provided for in the contract under which complainant fur-
nished thepipeand other materials used in the construction of the water-
works at Council Bluffs, was_ in fact deposited for the benefit of complain-