¶1The present case is a suit by Allen, a mechanic and materialman, for the enforcement of his lien against certain real estate as against the owner and the contractor by whom the plaintiff was employed. When the case was here before, it was decided that the petition, as against the general and special demurrers thereto, set out a good cause of action under the act approved December 18, 1897 (Acts 1897, p. 30). The judgment of the court below, sustaining the demurrers, was' reversed. 110 Ga. 323. When the case was called, in the lower court, for trial upon its merits, the plaintiff showed that one McKeown had contracted to build a house for Schweigert upon a certain lot of land owned by the latter. The plaintiff made an agreement with the contractor, McKeown, to do certain work and furnish certain material to be used in the construction of the house. Under this agreement plaintiff was to be paid $550 for his services and material. Of this amount he had been paid $200, and had taken a promissory note of the contractor for the balance. He completed Ms contract and had his claim of lien recorded, and, on May 12, 1898, served the owner with the written notice required by the statute. He also proved that Schweigert had contracted to pay McKeown $4,210 for building the house, *71and that only about $3,000 of this had ever been paid to McKeown. The owner of the realty showed that, by the terms of the contract for the construction of the house, the contractor was to complete it not later than January 1, 1898, and that there was a stipulation that for every day thereafter to the time when the house was actually completed the contractor was to pay him ten dollars as liquidated damages. Also that, some time prior to May 4, 1898, he had paid McKeown $3,023.32; that McKeown was unable to complete the house, because of the refusal of certain materialmen to extend him further credit; that on May 4,1898,he and McKeown executed a contract or agreement of settlement, whereby McKeown surrendered the house, in its then condition, to Schweigert, and released the latter from the balance which would have been due had the contract of construction been completed, and whereby Schweigert, on his part, released McKeown from all obligation to complete the house or do any further work upon it and also from some $1,250 already due as liquidated damages for delay in the completion of the house. Schweigert also showed that the amount paid to Mc-Keown was full compensation for the work done; that to have the house completed he had to pay to another contractor exactly the amount which would have been due McKeown had the latter finished the job according to contract; and that the stipulation for liquidated damages was reasonable and the damages not susceptible of exact computation. The judge directed a verdict for the plaintiff. Schweigert made a motion for a new trial, based on several grounds. The motion was sustained and a new trial granted on the sole ground that the verdict was contrary to the evidence, under which the judge was then of opinion that the plaintiff could not recover. The plaintiff excepted.
¶2
¶3
¶4
¶5The act of 1897 provides for the recording of liens and the giving of notice by materialmen or mechanics, but expressly declares that “in no event shall the lien attach for a sum greater than such balance as the owner may be indebted to the person having the contract at the time of the service of such notice.” If, at the time of the service of the notice, the owner owed the contractor nothing, he would be liable for nothing. This notice is somewhat analogous to a summons of garnishment. If the garnishee is not caught with anything in his hands belonging to the defendant, and gets nothing before the time for answering, he should not be held liable. So, under the act of 1897, if the owner in good faith and before service of the notice pays the contractor all that is due, he can not be held liable. But, it may be argued, Schweigert had paid MeKeown some $1,180 less than the full contract price, and owed him that amount. This is in a sense true, but it is also true that the house was not completed according to contract so as to make the $1,180 due, and, further than that, the contractor owed the owner $1,250 liquidated damages. The house was never completed by' the contractor, but, under the terms of the contract, by the owner at a cost of $1,180. .'When the owner and the contractor made the agreement winding up and settling their contract relations and releasing each other, the owner releasing larger claims than he was released from, the owner was left with nothing in his hands belonging to *74the contractor. The notice was served after this settlement. had been made, and the owner can not be held liable in any amount to the plaintiff. This and similar statutes, enacted by the legislature for the benefit of laborers, mechanics and materialmen, operate harshly against the owner of the realty who wishes to improve Iris property, and, being in derogation of common law, must be construed strictly. Under the act of 1897, we can not'hold that this owner, after his settlement with the contractor, was indebted in any amount to the latter. The plaintiff was, therefore, not entitled to recover, and the grant of a new trial was proper.
¶6
¶7 Judgment affirmed.