Cedar Rapids Sash & Door Co. v. Heinbaugh

183 Iowa 1236
CourtSupreme Court of Iowa
DecidedJune 27, 1918
StatusPublished
Cited by8 cases

This text of 183 Iowa 1236 (Cedar Rapids Sash & Door Co. v. Heinbaugh) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cedar Rapids Sash & Door Co. v. Heinbaugh, 183 Iowa 1236 (iowa 1918).

Opinion

Gaynor, J.

l. mechanics’ trartói-’f1 puniré within C301!aays. I. The defendant Nehls entered into a contract with the defendant Heinbaugh to erect for him a building on a certain lot owned by Nehls. The building was constructed by Heinbaugh under the contract, Material was purchased by.Heinbaugh from the plaintiff, and used in the building. This was never paid for, and plaintiff brings this action against Heinbaugh to recover the amount due for the material so furnished, and to establish and foreclose a lien on the ‘lot and on the building so erected. The amount due plaintiff for the material is not in dispute. The last item was furnished on August 11, 1916. [1238]*1238No claim fop lien was filed until the 23d day of October, 1916, nor was any written notice of plaintiff’s claim served on the defendant Nehls, prior to- that time;. The defendant Nehls settled with Heinbaugh and paid him in full, on the 18 th of September, 1916. During the time intervening between August 11th and September 18th, defendant Nehls had more than enough money due Heinbaugh, under the contract, to' satisfy all claims against the building. More than 30 days elapsed between the furnishing of the last of the material and the time when Nehls settled with Heinbaugh, and more than a month passed after Nehls had settled with Heinbaugh before plaintiff filed his claim for a mechanics’ lien, and before he served .on Nehls any written notice of the filing. If nothing further appeared, plaintiff clearly has lost his right, as a subcontractor, to enforce his claim against the owner and his property. It is claimed, however, and admitted, that defendant Nehls had actual notice of the fact that plaintiff was furnishing material for the building, on credit, during the time it was being furnished; and knew, after it had been furnished, and before he settled with Heinbaugh, that it had not been paid for. Does this fact change the situation, it appearing that no statement for a lien was filed, and no notice .served upon the owner within 30 days from the date of the last item?

.The statute provides (Section 3089, Code, 1897) :

“Every person who shall * * * furnish any materials * * for any building, * *. * upon complying with the provisions of this chapter, shall have for his labor done, or material * * '"' furnished, a lien upon such building * * * and upon the land belonging to such owner on which the same is situated.”

Under this statute, the lien is dependent upon a compliance with the statute.

Section 3092 of the Code provides:

[1239]*1239“Every person, whether contractor or subcontractor, who wishes to avail himself of the provisions of this chapter, shall file with the clerk of the district court of the county in' which the building * * * to be charged with the lien is situated a verified statement * i:" * of the demand'due him, * * * setting forth the time when such material was furnished, * * * and when completed, and containing a correct description of the property to be charged with the lien.”

By the terms of this statute, this, statement must be filed by a subcontractor within 30 days from the date on which the last of the material was furnished. But a failure to file the same within that period does not defeat the lien, except-as against purchasers or incumbrancers in good faith, without notice, whose rights accrued after the 30 or 90 days, and before any claim for the lien was filed.

Section 3093, Code, 1897, provides that, to preserve his lien against the owner, and to prevent payments by the latter to the principal contractor, or to intermediate subcontractors, but for no other purpose, the i subcontractor must, after commencing such labor or furnishing such material, and within 30 days after the completion thereof, serve upon such owner a written notice of the filing of such claim.

From these statutes it is apparent that one who furnishes material for any building is entitled to a lien for the material so furnished. This lien in favor of the principal contractor continues for 90 days, and in favor of the subcontractor, for 30 days, without any filing and without any notice. After the expiration of the 90 or 30 days, as the case may be, the lien is not available to him against purchasers or incumbrancers in good faith, without notice, unless he has filed a statement for a lien, as provided in Section 3092. If the principal contractor fails to file his claim for a lien, as provided, then his lien as against innocent purchasers, etc., is not enforcible. In the case of a subcontractor, if he fails to' file a statement for- a lien, as provided in the above, sec[1240]*1240tion, lie, too, loses Ms lien as against innocent purchasers, etc. So, in either case, a failure to file the statement for a lien subordinates any lien to the rights of innocent purchasers whose rights accrued after 30 or 90 days, as the case may be. The lien is given for 90 and 30 days', respectively, without any action, and is protected by the statute; and after that time, some action is necessary in order to preserve the lien as against certain other people.

Section 3093 suggests another condition in case of subcontractors. The lien being preserved by the statute for 30 days, the owner, if he would protect himself against the lien, must reserve sufficient of the contract price to discharge the lien. • After 30 days, he is at liberty to pay the sums agreed to be paid for the construction of the building to those who are entitled to- receive the same, without regard to any claims of subcontractors, unless the subcontractors take the steps necessary to preserve their lien beyond that period; and to this end, they are required to serve a written notice upon the owner. This written notice serves a double purpose. It continues the lien of the subcontractor, and at the same time enables the owner to protect himself against the lien by withholding from the principal contractor sufficient of the contract money to discharge the lien. Therefore, it would seem that, after the 30 days, no written notice having been served upon the owner, as required by Section 3093, the owner is at liberty to settle with the principal contractor, or to dispose of the contract money in any lawful way, without regard to the claims of the subcontractor. He is justified in assuming that the subcontractor does not desire to preserve his lien further against the property, and has elected to look to some other source for the satisfaction of his claim. So the law has made this just provision that, to preserve the subcontractor’s lien, he must serve the owner, within 30 days after the • completion of the work, with notice in Avriting that he has filed a lien, and will insist upon a lien against the prop[1241]*1241erty. This is a warning to the owner not to pay any more money to the principal contractor until this debt is settled; otherwise, the property will be liolden for it. If the owner does then pay the principal contractor the balance due, or any sum of money, the owner’s property may be subjected to the payment of the claim. Now, in this case, the plaintiff did not serve this written notice. After 30 days, settlement was made with the principal contractor. Not having had any notice in writing, such as the statute contemplates, — no statement for a lien having been filed, — the owner was justified in assuming that the subcontractor did not desire to preserve his lien against the building; that he was looking to some other source for the satisfaction of his claim.

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Bluebook (online)
183 Iowa 1236, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cedar-rapids-sash-door-co-v-heinbaugh-iowa-1918.