Bob Blake Builders, Inc. v. Gramling

18 P.3d 859, 2001 Colo. J. C.A.R. 530, 2001 Colo. App. LEXIS 56, 2001 WL 41085
CourtColorado Court of Appeals
DecidedJanuary 18, 2001
Docket99CA2423
StatusPublished
Cited by19 cases

This text of 18 P.3d 859 (Bob Blake Builders, Inc. v. Gramling) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bob Blake Builders, Inc. v. Gramling, 18 P.3d 859, 2001 Colo. J. C.A.R. 530, 2001 Colo. App. LEXIS 56, 2001 WL 41085 (Colo. Ct. App. 2001).

Opinion

Opinion by

Judge CASEBOLT.

In this breach of contract action concerning construction work performed upon a home, defendants, William D. and Carmen M. Gramling, appeal the judgment in favor of plaintiff, Bob Blake Builders, Inc. (BBB). We affirm in part, reverse in part, and remand for further proceedings.

Defendants contracted to purchase a modular home from a company selling such homes (seller) but wanted modifications and a room to be added. Seller suggested defendants use BBB, a Wyoming corporation, which was the company that seller regularly employed to do "stitch work," ie, combining the various components of a modular home. Members of the same extended family owned and ran seller and BBB.

Defendants signed a construction contract with BBB, agreeing to pay it on a cost-plus basis with the work to be performed according to architectural drawings and on-site instructions that defendants would provide. Defendants gave BBB $6,000 when work began.

Disputes arose as to what modular home options and stitch work were included under defendants' contract with seller and what modifications and additions were to be made pursuant to the separate contract with BBB. When the relationship between BBB and defendants deteriorated, BBB billed defendants $36,836 for work performed, which defendants refused to pay. Consequently, BBB placed a mechanic's lien on defendants' property, claiming $30,836, the difference between the amount billed and the $6,000 previously paid.

BBB then commenced this proceeding for breach of contract and to enforce its lien. Defendants asserted various affirmative defenses and counterclaims. Seller was also joined in the action.

The trial court granted BBB's motion for summary judgment and its motion for a directed verdict dismissing the counterclaims. On claims other than the lien foreclosure, the jury found in favor of BBB as against defendants and partially in favor of defendants as against seller. Only the judgment in favor of BBB is at issue in this appeal.

I.

Defendants first contend that BBB was not a "person" entitled to claim a mechanic's lien because, at the time it recorded its lien, it was a foreign corporation not authorized to do business in Colorado. We disagree.

Under § 38-22-101(1), C.R.S.2000, a "person" may file a mechanic's lien for the value of services, labor, and materials furnished to another's property. The statute explicitly defines a "person" to include a corporation. Section 38-22-101(6), CR.S. 2000.

When interpreting a statute, we adopt the construction that best gives effect to the legislative scheme. Slack v. Farmers Insurance Exchange, 5 P.3d 280 (Colo.2000). In doing so, we must look to the plain meaning of the words employed. Section 24-101, C .R.S$.2000; Park County Sportsmen's Ranch LLP v. Bargas, 986 P.2d 262 (Colo.1999). All general terms must be liberally construed, taking into account the context of the entire title or article See § 24-212, C.R.S.2000; Trinity Universal Insurance Co. v. Hall, 690 P.2d 227 (Colo.1984); In re Marriage of Davisson, 797 P.2d 809 (Colo.App.1990).

Under the plain language of the statute, "person" includes a corporation, without limitation. Nothing in the statute imposes a residency requirement, whether upon individuals or corporations. We perceive nothing in the context of the mechanic's lien statutes as a whole that indicates a legislative intent to exclude foreign corporations, whether authorized to do business in the state or not, from the class of "persons" that may claim a lien.

Defendants rely upon § 7-115-102, C.R.S$.2000. Under that statute, a foreign *863 corporation transacting business in this state may not maintain a proceeding in any court until an application for authority to transact business is filed. However, the assertion and filing of a lien is not a "proceeding in court" within the meaning of this statute. Furthermore, the prohibition against maintaining any action may be removed by applying for and obtaining an appropriate certificate. Roldan Corp. v. District Court, 716 P.2d 120 (Colo.1986). Obtaining such a certificate does not make a corporation a "person," as defendants contend. Rather, it merely removes a temporary corporate disability.

In addition, the failure of a foreign corporation to have authority to transact business in this state does not impair the validity of its corporate acts. Section 7-115-102(5), C.R.S. 2000. Filing a lien qualifies as a "corporate act" within the meaning of the statute.

A contrary interpretation would be nonsensical. Onee properly formed, a corporation has existence and becomes a "person." See Micciche v. Billings, 727 P.2d 367 (Colo.1986). To hold that a corporation loses such status because it is not qualified to do business in a particular state would elevate a corporate disability to a death-an unwarranted expansion.

Defendants nevertheless ask us to apply a limited definition of "corporation" to the mechanic's lien statute. They point to § 7-101-401(11), C.R.S.2000, which defines a "corporation or domestic corporation" as "a corporation for profit which is not a foreign corporation."

We note first that the introductory clause of § 7-101-401 makes the definitions therein applicable to articles 101 to 117 of Title 7 of the Colorado Business Corporations Act. Hence, by its terms, this definition does not apply to § 88-22-101 of the mechanic's lien statute. In addition, we should not indiscriminately adopt definitions contained in one statute to apply to an unrelated statute. See: Bertrand v. Board of County Commissioners, 872 P.2d 223 (Colo.1994). And, nothing in the plain language or the context of § 7-101-401(11) supports the use of this definition in determining the meaning of "person" under the mechanic's lien statutes.

Moreover, this definition is one of five general definitions concerning corporations contained in Title 7. See §§ 7-49.5-108(2), T-90-102(10), 7-118-101(2) & 7-121-401(9), C.R.9.2000. This definition, like the others in that title, applies to statutory provisions dealing with the certification, formation, structure, and dissolution of Colorado corporations. A foreign corporation, already in existence by definition, would naturally not be included in such matters.

Here, it is undisputed that BBB was an existing corporation at the time it filed its lien. As such, it qualifies as a "person" entitled to file a lien under § 38-22-101.

IL.

Defendants next assert that the lien was void because the amount claimed was excessive. We disagree.

Section 38-22-128, C.R.S.2000, provides that anyone who knowingly files a lien for an amount greater than is due, without a reasonable possibility that the amount claimed is due, forfeits all rights to such lien.

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Bluebook (online)
18 P.3d 859, 2001 Colo. J. C.A.R. 530, 2001 Colo. App. LEXIS 56, 2001 WL 41085, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bob-blake-builders-inc-v-gramling-coloctapp-2001.