Albert and Harlow Inc. v. Great Northern Oil Co.

167 N.W.2d 500, 283 Minn. 246, 1969 Minn. LEXIS 1142
CourtSupreme Court of Minnesota
DecidedApril 18, 1969
Docket41092
StatusPublished
Cited by9 cases

This text of 167 N.W.2d 500 (Albert and Harlow Inc. v. Great Northern Oil Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Albert and Harlow Inc. v. Great Northern Oil Co., 167 N.W.2d 500, 283 Minn. 246, 1969 Minn. LEXIS 1142 (Mich. 1969).

Opinion

Sheran, Justice.

Appeal by American Oil Company from an order of the district court denying its motion for amended findings or in the alternative, for a new trial.

Respondent, Great Northern Oil Company, a Delaware corporation with its principal place of business in Dakota County, refines petroleum and its byproducts. In April 1964, it contracted with Pipeline Technologists, Inc., to plan, design, and supervise the construction of a pipeline to be used for transporting petroleum products from Great Northern’s refinery near Pine Bend, Minnesota, to a terminal at Junction City, Wisconsin. Pipeline Technologists, in turn, engaged Osage Construction Company, an Oklahoma corporation, to construct the pipeline. The line, in place, spans a distance of approximately 171 miles. Seventeen miles of it is in Minnesota; the balance, in Wisconsin.

While engaged in the performance of the construction contract, Osage obtained the petroleum products it needed from the American Oil Com *248 pany on credit. The total value of these materials was about $35,000. Of this amount about $8,000 was used during construction of the segment of the line located in Minnesota, with the balance of the bill being for materials used during the course of constructing the Wisconsin segment.

American Oil filed a notice of lien claim upon the Great Northern pipeline on January 29, 1965, for the full amount of its bill. This notice was filed approximately 41 days after the last item of material was furnished by American Oil to Osage for use on that part of the pipeline which is located in Wisconsin, but approximately 127 days after the last item used in connection with the construction in Minnesota was furnished.

In proceedings to foreclose the lien, the trial judge found in favor of Great Northern upon the ground that the lien rights of American Oil were limited to the price or value of the material furnished in Minnesota, and, as to this portion of the claim, the notice of intent to claim a lien was ineffectual because filed more than 90 days after the last item of material was furnished for use in Minnesota.

Chapter 514 of the Minnesota Statutes affords a lien to those who contribute to the improvement of the property of others. It is specifically provided by Minn. St. 514.04 that if the contribution be made for the construction of any line of pipe, the person furnishing the material shall have a lien upon the line so improved, and upon all the “rights, franchises, and privileges of the owner appertaining thereto.” It has been held in Minnesota that one supplying material such as petroleum products to a builder who uses such products while engaged in the construction of the improvement is a person furnishing lienable materials within the meaning of our statute. Johnson v. Starrett, 127 Minn. 138, 149 N. W. 6, L. R. A. 1915B, 708. However, it is provided by the terms of § 514.08 that “[t]he lien shall cease at the end of 90 days after * * * furnishing the last item of such * * * material * * * unless within such period a statement of the claim therefor, be filed for record * * * with the secretary of state.” It is required by § 514.08(4) that the notice disclose the dates when the first and last items of the claimant’s contribution to the improvement were made. An action to foreclose pursuant to § 514.10 may be brought in any county through or into which the line *249 extends. Section 514.12, subd. 3, provides that no lien shall be enforced in any case unless the holder thereof shall bring action to foreclose within 1 year after the date of the last item of his claim as set forth in his recorded lien statement. Where the material is furnished as a part of one continuous transaction, the time limitations run from the date on which the last item was furnished. 36 Am. Jur., Mechanics’ Liens, §§ 138, 139.

There is no provision of our statute which deals specifically with the problems which arise when a single pipeline construction contract results in the installation of a line located partly within the territorial limits of the State of Minnesota and partly within the territorial limits of a sister state.

The decision of the trial judge that American Oil was not entitled to a lien to secure payment for any of the materials furnished during the course of the construction project brings to this court three questions raised by the appeal:

(1) Is a notice of intent to claim a lien filed within 90 days after the last item of material was furnished on account of a single, unitary construction contract timely even though more than 90 days had elapsed from the date on which the last item of such material was furnished for use in the State of Minnesota?

(2) If the answer to this question is in the affirmative, is the supplier entitled to claim a lien under our statutes against that part of the pipeline located outside Minnesota?

(3) If the answer to the last question is in the negative, is the lien claimant entitled to a lien on that part of the pipeline located in Minnesota for the full price or value of the materials furnished on the entire project, or must the extent to which his lien claim is enforceable as against the property located in Minnesota be limited to the price or value of the materials used on the portion of the project located here?

Because appellant furnished the petroleum products involved under a single, unitary contract which was not performed until the last item of material was furnished in Wisconsin, we believe the 90-day period to which reference is made in § 514.08 commenced to run when that last item was furnished even though this event occurred in the State of Wisconsin.

*250 Although the rights of the parties must be governed by the language of the mechanics lien statute (M. E. Kraft Excavating & Grading Co. Inc. v. Barac Const. Co. 279 Minn. 278, 156 N. W. [2d] 748, and Rueben E. Johnson Co. v. Phelps, 279 Minn. 107, 156 N. W. [2d] 247), we have consistently held that the lien laws, being remedial in nature, should be liberally construed so as to protect those who furnish material or services for the improvement of the property of another. Emery v. Hertig, 60 Minn. 54, 61 N. W. 830; O. B. Thompson Elec. Co. v. Milliman & Larson, Inc. 268 Minn. 299, 128 N. W. (2d) 751; Armco Steel Corp. v. Chicago & N. W. Ry. Co. 276 Minn. 133, 149 N. W. (2d) 23.

The arrangement involved called for deliveries both in Minnesota and Wisconsin. The lien statement of January 29, 1965, was filed approximately 41 days after the last delivery in Wisconsin on December 18,1964. Had this delivery been made in Minnesota, the timeliness of the filing of the notice would be clear. Kahle v. McClary, 255 Minn. 239, 96 N. W. (2d) 243.

A principal purpose of the requirement that the notice of intent to claim a lien be filed by a supplier within a specified time is to put the owner on notice that the contractor is not paying his bills. So notified, the owner can protect himself by withholding final payments or resorting to a performance bond if one was required and furnished. So considered, it is immaterial whether the last item was furnished in Minnesota or elsewhere. We do not encroach upon any governmental interest of the State of Wisconsin by referring to an event occurring in that state for the commencement of the 90-day limitation period. In Thompson v.

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Bluebook (online)
167 N.W.2d 500, 283 Minn. 246, 1969 Minn. LEXIS 1142, Counsel Stack Legal Research, https://law.counselstack.com/opinion/albert-and-harlow-inc-v-great-northern-oil-co-minn-1969.