Bailey v. Call

767 P.2d 138, 1989 WL 1529
CourtCourt of Appeals of Utah
DecidedJanuary 12, 1989
Docket870203-CA
StatusPublished
Cited by10 cases

This text of 767 P.2d 138 (Bailey v. Call) is published on Counsel Stack Legal Research, covering Court of Appeals of Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bailey v. Call, 767 P.2d 138, 1989 WL 1529 (Utah Ct. App. 1989).

Opinions

OPINION

BILLINGS, Judge:

Appellant Ciaron Bailey (“Bailey”) appeals the trial court’s refusal to enforce his mechanic’s lien against real property owned by respondents William and Gene Call (“Call”). Bailey also challenges the trial court’s award of only $1,800 in damages pursuant to Utah Code Ann. §§ 14-2-1 and -2 (1986),1 for Call’s failure to obtain a bond. Finally, Bailey challenges the court’s refusal to award him attorney fees. We reverse and remand.

PACTS

In April 1985, Call was repairing the roof of his carpet and furniture store. A customer, Mr. Leroy Gurule (“Gurule”), claimed he could supply the ceiling tiles, grids and other materials required for repairs at a very low cost. Call and Gurule entered into an agreement whereby Gurule would supply the materials. Call claims he understood the materials were to be supplied from Gurule’s stock, or brought in by bulk delivery to save Call money.

Instead, Gurule ordered the materials on open account from Bailey. All invoices stated the materials were for “Mastercraft Warehouse,” Call’s carpet and furniture store, and that is where the materials were delivered. Call claims he personally was not aware the materials were purchased from Bailey until the job was completed and Call had partially paid Gurule. However, an employee of Call testified he knew the materials were coming from Bailey. The trial court found the reasonable value of the materials sold to Gurule and installed as improvements to Call’s real property was $3,327.90.

When Bailey did not receive payment for the materials, he filed a valid mechanic’s lien pursuant to Utah Code Ann. § 38-1-3 (1986), and subsequently brought this action to foreclose the lien or, alternatively, impose liability on Call pursuant to the bond provision of Utah Code Ann. § 14-2-1 (1986). The trial court held that Gurule, as Call’s agent, had no authority to order the materials from Bailey and thus Bailey could not foreclose his mechanic’s lien. However, the trial court entered judgment for $1,800 together with costs and interest against Call since Call had not required Gurule to provide a bond to protect materi-almen, as required under Utah Code Ann. § 14-2-1 (1986).

STANDARD OP REVIEW

The standard of review for findings of fact entered by a trial court in a non-jury proceeding is set forth in Utah R.Civ.P. 52(a), which provides, in pertinent part:

Findings of fact, whether based on oral or documentary evidence, shall not be set aside unless clearly erroneous, and due regard shall be given to the opportunity of the trial court to judge the credibility of the witnesses.

However, we review a trial court’s conclusions of law under a correction of error standard. Stewart v. Coffman, 748 P.2d 579, 580-81 (Utah Ct.App.1988) (quoting Scharf v. BMG Corp., 700 P.2d 1068, 1070 (Utah 1985)).

[140]*140MECHANICS’ LIENS

The trial court found Call and Gu-rule had agreed that all materials would be provided from Gurule’s inventory. Based on this finding, the court concluded that Gurule was acting in excess of his authority when he purchased materials from Bailey, precluding foreclosure of Bailey’s mechanic’s lien. On appeal, Bailey contends neither the facts nor the law support such a limitation on Gurule’s authority. We agree.

The controlling statutory provision provides, with our emphasis:

Contractors, subcontractors, and all persons performing any services or furnishing or renting any materials or equipment used in the construction, alteration, or improvement of any premises in any manner ... shall have a lien upon the property upon or concerning which they have rendered service, performed labor, or furnished or rented materials or equipment for the value of the service rendered, labor performed, or materials or equipment furnished or rented by each respectively, whether at the instance of the owner or of any other person acting by his authority as agent, contractor, or otherwise.

Utah Code Ann. § 38-1-3 (1986). The issue is whether Bailey provided materials “at the instance of the owner (Call) or of any other person acting by his authority as agent, contractor or otherwise.”

The mechanics’ lien statute “is intended and designed to prevent the owner of land from taking the benefits of improvements placed on his property without paying for the labor and material that went into them.” Frehner v. Morton, 18 Utah 2d 422, 424 P.2d 446, 447 (1967). The statute is to protect laborers and materialmen who enhance the value of the property, and to effectuate that purpose, we construe the statute broadly. Interiors Contracting Inc. v. Navalco, 648 P.2d 1382, 1386 (Utah 1982).

The Utah Supreme Court, discussing an agent’s authority to bind the owner/principal under the mechanics’ lien statute, has stated “the facts of the transaction must be explored.... [T]he courts have often gone beyond the agreement and into the whole circumstances ... in order to find the answer.” Interiors Contracting Inc., 648 P.2d at 1387 (quoting Utley v. Wear, 333 S.W.2d 787, 792-93 (Mo.App.1960)). In making this evaluation, “[s]o long as it can be found that the [contractor] performed the work at the instance of [the owner] under an express or implied contract ... the lien is valid.” Dugger v. Cox, 564 P.2d 300, 302 (Utah 1977). If it appears the improvements are for the benefit of the owner, and performed at the instance of the owner’s agent, “then it can be said with justice that the [contractor] in such case is acting for the [owner].” Zions First Nat’l Bank v. Carlson, 23 Utah 2d 395, 464 P.2d 387, 390 (1970).

In Interiors Contracting Inc., the Utah Supreme Court addressed the liability of a lessor for contracts made by a lessee for improvements to the lessor’s real property. 648 P.2d at 1386-87. The written lease between the lessor and lessee expressly required all improvements to be made at the lessee’s expense and required the lessee to promptly pay all contractors and materialmen. The issue, as in this case, was whether the limitation on the lessee’s agency precluded lien liability on the lessor’s/owner’s fee interest. The Court found this express limitation of authority in the lease agreement “cannot override the effect of the mechanics’ lien law as to persons not a party to the lease.” Id.

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Bailey v. Call
767 P.2d 138 (Court of Appeals of Utah, 1989)

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Bluebook (online)
767 P.2d 138, 1989 WL 1529, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bailey-v-call-utahctapp-1989.