Climate Control Co. v. Bergsieker Refrigeration Inc.

640 P.2d 442, 196 Mont. 405, 1982 Mont. LEXIS 720
CourtMontana Supreme Court
DecidedFebruary 1, 1982
DocketNo. 81-81
StatusPublished
Cited by1 cases

This text of 640 P.2d 442 (Climate Control Co. v. Bergsieker Refrigeration Inc.) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Climate Control Co. v. Bergsieker Refrigeration Inc., 640 P.2d 442, 196 Mont. 405, 1982 Mont. LEXIS 720 (Mo. 1982).

Opinion

Mr. Justice Weber

delivered the opinion of the Court.

Climate Control brought an action for debt and for foreclosure of a mechanic’s lien. Following a motion for summary judgment, Climate Control presented an extensive writ[406]*406ten offer of proof with proposed exhibits. The District Court of Flathead County awarded summary judgment to Arrowhead, Inc., holding that Climate Control did not create or have a valid mechanic’s lien, and Arrowhead, Inc., was awarded reasonable attorney’s fees and costs of suit to be determined by the District Court. We affirm the holding that a valid mechanic’s lien was not created.

The key issue which determines the case is whether the District Court erred in holding that the claimed mechanic’s lien was invalid because the affidavit in the claim of lien was not legally sufficient. We will briefly refer to the other issues which are not controlling.

Climate Control is a distributor of airconditioning equipment. Bergsieker is a dealer in airconditioning equipment. Climate Control entered into an agreement with Bergsieker for the sale of various airconditioning equipment to be installed by Bergsieker in the Outlaw Inn owned by third party defendant, Arrowhead, Inc.

Climate Control contends it received no payment from Bergsieker for such equipment furnished to the Outlaw Inn, and contends there is in excess of $30,000.00 owing. On November 6, 1974, Climate Control filed a claim of lien and statement of account in the office of the Flathead County Clerk and Recorder. In pertinent part, the claim of lien and statement of account said:

“That Climate Control, Co., Inc., a Washington corporation duly authorized to transact business within the State of Montana, did, between September, 1973 and the 7th day of August, 1974, furnish certain cooling and heating equipment and supplies and related and associated materials . . . That there is due, owing and unpaid to this claimant the sum of $29,868.00 on account of the equipment, supplies and materials so furnished . . .
“That a statement of account of said equipment, supplies and materials is hereto annexed as exhibit ‘A’ and by this reference made a part hereof . . .
“That the sum of $29,868.00, together with interest at the legal rate is now justly due and owing to this claimant after allowing all offsets and credits ... (a description of real pro[407]*407perties included).”

The verification by affidavit stated in pertinent part:

“State of Montana) ss.)
“County of Flathead)
“Donald J. LaPlante, being first duly sworn deposes and says: That he is the Treasurer of Climate Control Company, Inc., the claimant named in the foregoing claim of lien and statement of accounts; that said account contains a just and true account of the amount due said claimant for equipment, supplies and materials furnished, after allowing all credits and offsets; that said claimant’s statement contains a correct description of the property to be charged with said lien; and that all of the facts stated in said claim and statement are true to the best of his knowledge, information and belief ” (Italics added.)

Attached to the claim are copies of invoices from Climate Control. From the invoices it appears that various described equipment was furnished between September, 1973 and August 7, 1974. The filing date of November 6, 1974, is the 91st day following the stated final date for furnishing of air-conditioning equipment. Section 71-3-511, MCA, requires that a mechanic’s lien be filed within 90 days after the materials have been furnished.

In ruling on the motion for summary judgment by defendant, Arrowhead, the District Court concluded that summary jdugment should be entered inasmuch as Climate Control’s notice of lien was not filed within 90 days of the end of the period in which the notice asserts that the materials were furnished, that the notice was not amended within the time period during which a lien could be filed, and that the affidavit incorporated in such lien is not legally sufficient, and, therefore, stated in its judgment:

“1. That Arrowhead is awarded summary judgment that plaintiff (Climate Control) did not create a valid lien and does not have a lien against the described real property.
[408]*408“3. Arrowhead is entitled to reasonable attorney’s fees and its costs of suit to be paid by plaintiff Climate Control and court reserves jurisdiction to conduct a hearing to determine such fees.”

The issue as to the sufficiency of the affidavit attached to the mechanic’s lien claim is determined by Saunders Cash-Way, etc. v. Herrick (1978), 179 Mont. 233, 587 P.2d 947. Climate Control attempts to distinguish Saunders by arguing that the affiant did positively state that the account contains a just and true account of the amount due and that it also contains a correct description of the property, which are the essential requirements under section 71-3-511, MCA. A careful reading of the verification answers this contention. It is true that the affiant states that the account contains a just and true account and that the statement contains a correct description of the property. However, those positive statements are qualified by the last portion of the verification in which the affiant stated: “. . . and that all of the facts stated in said claim and statement are true to the best of his knowledge, information and belief.” That qualifying statement clearly limits the preceding “positive” statements so that we must determine the sufficiency of a verification which states that the facts are true to the best of an affiant’s knowledge, information and belief.

Saunders is directly comparable to the present case. The verification in Saunders, which was determined by this Court to be insufficient, stated in pertinent part:

“. . . that the matters and things therein set forth are true (to the best) of his knowledge, (information and belief).”

With the exception of the use of parenthesis, which is not significant, the wording is almost identical to the verification in the present case.

In explaining why a positive affidavit is essential, this Court in Saunders, 179 Mont. at 236, 587 P.2d at 949, stated:

“Such a requirement is necessary because of the extraordinary right imposed by the mechanic’s lien. Once the lien is perfected, it has priority over any prior lien, encumbrance or mortgage upon the land. Section 45-506, R.C.M. 1947. [Now 71-3-502(3), MCA.] This extraordinary claim should not be placed on the property of another unless the facts out of which [409]*409the lien arises are vouched for on oath by some person who knows them to exist. Globe Iron Roofing & Corrugating Co. v. Thatcher (1889), 87 Ala. 458, 6 So. 366, 367. The sanction of perjury insures the veracity of the statements made by the person with knowledge. Thus a test of the sufficiency of the affidavit to a mechanic’s lien is whether perjury is assignable upon the verification to it. Gregg v. Sigurdson (1923), 67 Mont. 272, 215 P. 662, 663.”

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Bluebook (online)
640 P.2d 442, 196 Mont. 405, 1982 Mont. LEXIS 720, Counsel Stack Legal Research, https://law.counselstack.com/opinion/climate-control-co-v-bergsieker-refrigeration-inc-mont-1982.