Bell v. Lieber

125 So. 871, 169 La. 731, 1930 La. LEXIS 1730
CourtSupreme Court of Louisiana
DecidedJanuary 6, 1930
DocketNo. 29851.
StatusPublished
Cited by4 cases

This text of 125 So. 871 (Bell v. Lieber) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bell v. Lieber, 125 So. 871, 169 La. 731, 1930 La. LEXIS 1730 (La. 1930).

Opinion

LAND, J.

The appeal -in this case was taken by the owner, the contractor, and the surety company from a judgment in solido rendered against them in a coneursus proceeding in favor of plaintiff and other furnishers of materials.

Appellees have answered the appeal, and pray that the judgment in their favor be affirmed, with 10 per cent, damages against appellants for a frivolous appeal.

The coneursus proceeding in this case was provoked by plaintiff, under the provisions of Act No. 298 of 1926.

On February 21, 1927, the owner, Ben Lie-ber, entered into a contract with O. E. Andrews for the construction of a reinforced concrete and brick garage building on Grand street, Monroe, La., in accordance with certain plans and specifications, but which were not attached to the contract.

A bond, executed on February 25, 1927, by the contractor, as principal, and by the United States Fidelity & Guaranty Company, as surety, was annexed to the contract, and both were recorded in the mortgage office of Oua-chita parish on June- 25, 1927.

The original plans and specifications' called for a two-story building, but were not filed in the mortgage office. On April 5, 1927, an amendment or supplement to the original contract was made for the purpose of adding a third story to the building at an increased cost to the owner of $20,600. No additional bond was taken by the owner, and the amended contract was not recorded.

On July 5, 1928, formal acceptance of the building was filed for record by the owner.

1. It is contended by the owner that, as two distinct and separate building contracts were entered into between him and the contractor, he was relieved, as owner, of all personal liability to the materialmen, as the first contract and the bond furnished' thereunder to secure the payment of their claims were recorded.

The owner also contends that, as the materials were furnished under the two contracts, and were used confusedly in the construction of the building, and as the evidence does not show the amount used under each contract, there can be no judgment against him, or the surety, and no lien can be enforced' against the property.

We do not consider the two contracts as separate and distinct, as they are not contracts for two separate and distinct buildings on the same lot. The entire building stands upon the same foundation. Only one roof covers it overhead. The second contract calls for a mere addition of a third story to the original two-story building, and is therefore a supplemental contract.

As the owner has formally accepted the building, it is immaterial, so far as he is concerned, whether or not materials furnished under the two contracts were used confusedly in the building.

Nor can the surety be heard to urge such complaint in the present case, as a release from liability, because of the compromise agreement entered into by the surety, the owner, and the contractor on October 8, 1928.

Under the express terms of this agreement, the surety received the sum of $17,009 from the owner, and bound itself to discharge all recorded liens o,n the building for claims for labor and material, as well as the lien filed by the contractor for the amount due him by the owner, and “to hold and save the said owner *737 completely harmless from any of said herein-above mentioned liens and the debts on which said liens are based.”

The contractor also assigned to the surety all of his claim against the owner, and released the owner from all liability to him.

The surety is liable to the appellees, the furnishers of materials used in the building, whether such materials were used confusedly or not under the two contracts, since the surety has so bound itself under the special compromise agreement.

The owner, having received the value of these materials in the building, cannot escape payment for same, in so far as the ma-terialmen are concerned, under the pretext of separate contracts or confused use of such materials, since the owner brought about this situation through his own voluntary act. The laborers and materialmen cannot suffer by the acts of the owner to which they have not consented. Fidelity Homestead Ass’n v. Kennedy & Anderson, 158 La. 1059, 105 So. 64.

Neither the failure of the owner to record timely the contract and bond, nor the failure of the furnisher of labor and material. to preserve his lien against the property, can deprive him of his action against the surety on the bond. Act No. 298 of 1926, §§ 7, 14; Audubon Homestead Association v. A. Stef Lumber Co., 158 La. 1054, 105 So. 62; Madison Lumber Co. v. Bachemin, 166 La. 1066, 118 So. 141.

2. We shall take up next the issue as to whether appellees’ liens were validly recorded for material used in' the construction of the building.

This is a matter that does not concern either the contractor or the surety, as the owner alone is affected by the recordation of the liens.

Under section 2 of Act No. 298 of 1926, when a building contract has been reduced to writing, a surety furnished, and the contract and bond recorded, furnishers of labor and material have 30 days after the recordation of acceptance of the building by the owner within which to record their liens.

In our opinion, there is but one contract in the case that is binding upon the furnishers of material, as far as the recording of their liens is concerned, and that is the contract of February 21,1927, for a two-story, reinforced concrete and brick garage. This contract, with the bond annexed, was duly recorded on June 25, 1927. The acceptance of the building by the owner was recorded on July 5, 1928. The recordation of the contract and bond was full legal notice to the furnishers of material that they had’30 days after the reeordátion of the acceptance of the building by the owner within which to record their liens, and, acting upon the faith of the public records, each of the appellants recorded his lien within 30 days after the acceptance of the building. Therefore these are valid liens, under section 2 of Act No. 298 of 1926.

As the building was completed after the supplemental contract of April 25, 1927, which was not recorded, and as the liens were not all recorded in this case within 60 days after the date of the last delivery of material upon the property, appellants contend that they are invalid, under section 12 of Act No. 298 of 1926.

Such contention by the owner cannot be permitted to affect, either in law or in equity, the validity of the liens, since appellees have acted upon the faith of the only contract and bond recorded in the case. The surety, on the other hand, is not concerned in such recordation.

3. Appellants complain that the lower court erred in awarding judgment in favor of the appellee, Dixie Roofing Company, Inc., for the item of §487.40, the item being “sheet *739 metal contract on Ben Lieber job located on South Grand Street, Monroe,” as the contract does not show the amount or character of the material, or the price.

Ordinarily, this claim would not be sufficiently detailed, under Act No.

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125 So. 871, 169 La. 731, 1930 La. LEXIS 1730, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bell-v-lieber-la-1930.