Back v. Reisterstown Lumber Co.

332 A.2d 30, 24 Md. App. 415, 1975 Md. App. LEXIS 583
CourtCourt of Special Appeals of Maryland
DecidedFebruary 13, 1975
Docket155, September Term, 1974
StatusPublished
Cited by1 cases

This text of 332 A.2d 30 (Back v. Reisterstown Lumber Co.) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Back v. Reisterstown Lumber Co., 332 A.2d 30, 24 Md. App. 415, 1975 Md. App. LEXIS 583 (Md. Ct. App. 1975).

Opinion

Moore, J.,

delivered the opinion of the Court.

This case, involving lien claims for building materials and supplies, arose out of the subdivision of a small parcel of real estate located at Hunt Road and Denby Road in Baltimore County and its development into seven improved lots. An appeal was taken from a decree of the Circuit Court for Baltimore County (Maguire, J.) ordering enforcement of lien claims for building materials and supplies against Lot 4, owned by appellants Back; Lot 5, owned by appellants Culotta and Lot 7, owned by appellants Mott. * 1 The appellants have paid the contractor for the materials and supplies. Their exposure to the lien claims of the supplier results from the forgery of the supplier’s signature to releases of liens.

On behalf of all appellants, it is contended that the supplier, the Reisterstown Lumber Company, may not claim entitlement to liens for items furnished prior to ninety days from the dates of its written notices of lien claims given pursuant to the Mechanics’ Lien Law then in effect, Art. 63, *417 § 11 (a). 2 In addition, on behalf of appellants Culotta only, it is argued that Reisterstown failed to prove delivery of certain materials on August 21, 1969, within the above ninety day period.

I

The entire parcel was originally owned by the appellants Mott. Prior to 1967 Mr. and Mrs. Mott decided to subdivide the land, to retain one lot for their own residence and to sell the others. Mr. Mott, a registered professional engineer, entered into a “50-50 partnership” with one John E. Wiser for the construction and sale of houses on the other lots. Both partners were engaged full time in other employment. Mr. Wiser was to handle advertising, selling and financing; Mr. Mott prepared the plans and specifications. The venture engaged as builder the firm of Winter Construction Co., Inc., of which Walter R. Winter, then 33, was president. The partners had known Mr. Winter for three or four months before signing an agreement with him for the construction of a house on Lot 3 in late May, 1967 and were familiar with his construction work in the nearby area. Each of the houses was to be custom built. The prospective buyer would first acquire title to the lot and obtain his own construction loan. Thus the partnership put up no funds for construction, its only expense being for engineering and surveying. For each house, a construction agreement was entered into between Mott and Wiser as “Developer” and Winter Construction Co., Inc. as “Contractor.” When work was commenced on the first house. (Lot 3) there was no purchaser. The house was bought, however, when half-completed and was then finished to the purchaser’s requirements. Thereafter, there was no predetermined schedule of construction. As Mr. Mott explained in response to a question from the chancellor:

“A. We normally, we were overlapping at the end of one — if I might answer it this way, Your *418 Honor, we were overlapping finishing one house and starting another. We had no set schedule. We were completely dependent upon when our client showed up.”

The eventual sequence of construction was as follows, the dates being the dates of commencement, not completion:

Lot 8 — May, 1967 Lot 2 — October, 1967 Loti — December, 1967 Lot 5 — March, 1968 Lot 4 — May, 1968 Lot 7 — July, 1968

Winter Construction Co., Inc. received its final draw payment for each house upon presentation of a mechanic’s lien release sheet, as required by the respective lenders. In November, 1968 the partnership and the home purchasers became aware of claims of Reisterstown Lumber Co., Inc. for unpaid deliveries of materials and supplies in fairly substantial sums. The president of Reisterstown, Charles R. Forbes, Jr., characterized as forgeries the signatures on behalf of his company appearing on the releases of liens. Mr. Winter could not be produced as a witness at the time of trial and the court received in evidence, at the instance of the appellants, his deposition taken on February 7,1969. 3

The material delivered by Reisterstown to the three properties in question together with the relevant dates, according to the supplier’s records and contentions, may be tabulated as follows:

*419 Lot 4 (Back) Lot 5 (Culotta) Lot 7 (Mott) Date of first delivery Date of last delivery Date of Notice Total claimed (less interest) Amt. in 90-day period prior to Lien Notice 5/3/68 3/36/68 7/2/68 9/16/68 8/21/68 11/1/68 11/18/68 11/13/68 1/9/69 $1,073.25 $7,563.59 $9,135.22 $ 116.66 $14.36 $1,316.94

Appellants Back and Mott do not contest the fact of delivery pursuant to the lien notice. Appellants Culotta, however, deny that the last delivery in the amount of $14.36 on August 21, 1967 was in fact madé. (The next preceding delivery to the Culottas was on August 9, 1968 and was thus outside the statutory ninety day period.) It is the position of all appellants that the liens properly attach only for specific deliveries made within ninety days of the lien notice, in the amounts above tabulated, and not for all prior unpaid deliveries. The chancellor concluded that the latter contention was unsupportable and that the delivery of the materials to the Culottas on August 21 had been established. He therefore decreed that the respective liens be enforced. For the reasons hereafter stated we do not find error. Maryland Rule 1086.

II

The issues raised call for a construction of Section 11 of the Maryland lien law which provides that if “the contract” for furnishing materials is made with any person except the owner of the lot on which the building may be erected, the supplier shall not be entitled to a lien unless, within ninety days after furnishing them, he shall give notice in writing to the owner of his intention to claim a lien. 4 “The purpose of *420 this notice is to inform the property owner of the nature and amount of the claim intended to be fixed as a lien upon his property, in order that he may be able to protect himself in his future dealings with the contractor.” District Heights Apartments v. Noland Company, Inc., 202 Md. 43, 95 A. 2d 90 (1953).

The principal controversy involving the parties (including the Culottas) centers on the fact that, as shown by the tabulation above, most of the materials and supplies were delivered to each of the sites more than ninety days prior to the dates of the respective notices of intention to file liens. In essence, the three appellants contend that each order and delivery constituted a separate “contract” as that term is employed in Section 11 and, therefore, that the lien claims must be limited to the amount of materials delivered in the 90-day period prior to the notice. 5 Reisterstown Lumber, on the other hand, contends in effect that there was a single open account contract and that the notices reach

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Bluebook (online)
332 A.2d 30, 24 Md. App. 415, 1975 Md. App. LEXIS 583, Counsel Stack Legal Research, https://law.counselstack.com/opinion/back-v-reisterstown-lumber-co-mdctspecapp-1975.