Arizona Eastern Railroad v. Globe Hardware Co.

129 P. 1104, 14 Ariz. 397, 1913 Ariz. LEXIS 83
CourtArizona Supreme Court
DecidedFebruary 17, 1913
DocketCivil Nos. 1239 and 1264
StatusPublished
Cited by16 cases

This text of 129 P. 1104 (Arizona Eastern Railroad v. Globe Hardware Co.) is published on Counsel Stack Legal Research, covering Arizona Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arizona Eastern Railroad v. Globe Hardware Co., 129 P. 1104, 14 Ariz. 397, 1913 Ariz. LEXIS 83 (Ark. 1913).

Opinion

ROSS, J.

The appellant railroad company interposed to all the complaints general and special demurrers, and now insists that the trial court erred in overruling the demurrers.

One objection, and it applies to all the complaints, is that they fail to allege the appellant was served with a copy of the lien claims within sixty days after the completion of the line of railroad against which the lien is claimed, or to allege that same was completed at the time of making and serving of the statements of lien. The complaints show that the lien claims were served on defendant and filed with the county recorder within sixty days after rendering the services or [400]*400furnishing the material, and alleges that the contracting company “stopped said-work and abandoned said contract” on April 3, 1910.

Paragraph 2898, Eevised Statutes of 1901, provides that persons who furnish material or render service toward the erection, alteration, repairs, construction, or completion of any building erected or improvement made, under a contract between the owner and original contractor, shall deliver to the owner, within sixty days from the completion of such building or improvement, his statement of account; and that thereupon the owner may, for his protection, retain out of the amount due, or to become due, the original contractor, such account. The owner and the building or improvement, upon the service of such statement of account, become liable for the reasonable value of such labor done and material furnished.

The appellant insists upon a literal construction of this section, and argues that laborers and materialmen who render services or furnish material must await the completion of the structure before attempting to fix their liens; and that, inasmuch as the complaints in these cases fail to show a completed structure, the lien claims were filed prematurely, and must therefore fall.

The primary object of our lien law is to insure to the laborer and materialman the payment of their accounts, and incidentally to protect the owner against the filing of liens by such persons against his property for services, and material rendered and furnished the original contractor. The statement of lien provided for in paragraph 2898, supra, when served upon the owner, entitles him to withhold payment of the amounts claimed from the contractor, and thereby insures him against the delinquencies of the latter. This being so, it would seem that diligence on the part of those working for or dealing with the contractor should be encouraged; otherwise the owner might pay off the original contractor and later find his property plastered with liens of laborers and materialmen whose accounts had been left unpaid.

Our view of paragraph 2898 is, that it limits the time after which no lien may be filed against the property of the owner to sixty days after the completion of the structure. In other [401]*401words, we hold that the persons dealing with the original contractor may perfect their demands into a lien against the property of the owner at any time after they have ceased to labor or furnish material, whether the original contractor has completed the structure or not, providing it is done not later than sixty days after the completion of the structure. Such a construction is in harmony with paragraph 2889, which provides generally for persons performing labor or furnishing-material directly to the owner. Under the paragraph the per-' sons performing labor or furnishing material may fix and secure the lien within ninety days after the completion of such labor or furnishing material. They axe not required to await the completion of the structure before perfecting their lien. The limitation has reference to the completion of the performance of labor or the furnishing material, regardless of the completed or uncompleted condition of the structure at the time.

The construction contended for by appellant would often inflict great hardship and loss to the owner of the structure or improvement, and defer to unreasonable lengths the time of payment of laborers and materialmen dealing with the com tractor, or entirely defeat them • in the collection of their claims. The contractor might complete the structure and collect the contract price, leaving unpaid many bills for labor and material. The laborers and. materialmen could delay filing liens until the last day of sixty days after the completion of the structure and enforce their claims, notwithstanding the contractor had been fully paid the contract price. Or the laborer and materialman dealing with the contractor may have finished their contract in the performance of specified labor, or in furnishing definite and specified material, payments for which might be postponed for months or years because of suspension of work by contractor, or defeated entirely by abandonment on the part of the contractor.

In Baldridge v. Morgan, 15 N. M. 249, Ann. Cas. 1912C, 337, 106 Pac. 342, it was the contention of the appellant that the lien had been filed prematurely, because it was filed before the building was completed. The New Mexico statute is that “every person save the original contractor, claiming the benefit of this act, must, within sixty days after the completion of any building, file for record, ’ ’ etc. That court said: [402]*402“Here the question is squarely presented to us whether the legislature fixed a period of time during which a lien of a subcontractor must be filed, or did it fix a point of time after which such a lien could not be filed? ... We therefore hold that the clause that requires a subcontractor to file his claim of lien ‘within sixty days after the completion of any building, ’ etc., fixes a time after which such lien is not to be filed, and does not fix a period of time during which it must be filed; or, in other words, that the time for filing does not commence to run from or await the completion of the building. Hunter v. Truckee Lodge, 14 Nev. 24. ’ ’

This construction of paragraph 2898 dispenses with the necessity of determining what effect the abandonment of the work by the original contractor had upon the rights of the appellees, holding as we do that their right to fix and secure their liens dated from the time they quit .work or ceased to furnish material, and not from the completion of the structure or improvement, and that the limitation upon this right to fix and secure the lien is that it must be perfected not later than sixty days after the completion of the structure or improvement.

The appellant insists that the various complaints (except in the Globe Hardware Company ease) are vulnerable to the general demurrer, upon the ground that they fail to allege that the amounts claimed had not been paid at or prior to the times of filing complaints. Nonpayment is alleged in the Old Dominion Commercial Company case, in the First National Bank case, in the John Braceo case, in the Maxon-Nowlin Company case, and in the F. B. Long ease, and it therefore follows that the objection to these complaints is unfounded.

In the Augusti and Parker eases the claims of lien, as filed in the county recorder’s office, are set forth in the complaints in haec verba, and in these notices of lien is the statement that “said sums are now due and owing, over and above all offsets and counter claims,” and that such sums “are the net amounts now due and owing the said employees and lien claimants,” less setoffs.

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Cite This Page — Counsel Stack

Bluebook (online)
129 P. 1104, 14 Ariz. 397, 1913 Ariz. LEXIS 83, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arizona-eastern-railroad-v-globe-hardware-co-ariz-1913.