Columbia Group, Inc. v. HOMEOWNERS ASS'N

727 P.2d 352, 151 Ariz. 299, 1986 Ariz. App. LEXIS 592
CourtCourt of Appeals of Arizona
DecidedMay 1, 1986
Docket2 CA-CIV 5612
StatusPublished
Cited by5 cases

This text of 727 P.2d 352 (Columbia Group, Inc. v. HOMEOWNERS ASS'N) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Columbia Group, Inc. v. HOMEOWNERS ASS'N, 727 P.2d 352, 151 Ariz. 299, 1986 Ariz. App. LEXIS 592 (Ark. Ct. App. 1986).

Opinion

OPINION

FERNANDEZ, Judge.

Appellants Columbia Group, Inc., and two of its subsidiaries, Columbia Building Materials, Inc., and Columbia Sand & Grav *300 el Co., Inc. (hereafter “Columbia”), sought foreclosure of a materialman’s lien, and damages for breach of contract and unjust enrichment against numerous defendants. The action was tried to the court with an advisory jury. At the conclusion of the evidence, the court entered a directed verdict in favor of all defendants. Columbia has appealed. We reverse and remand.

Darion Development (“Darion”), developed a subdivision called Finisterra in Pima County. Title to the subdivided lots was held by two trusts. The trusts deeded Common Areas A and B to the Homeowners Association of Finisterra, Inc. (“Homeowners”). Darion continued as the representative of the trusts and the Homeowners Association during the construction and development of three categories of improvements to the common areas.

The first category of improvements was the construction of the recreation center, an office building and a guard house. D.F. Fraker Design & Building Corp. (“Fraker”) was the contractor for these improvements. Among the subcontractors used by Fraker on this and other Finisterra work was Catalina Concrete Contracting Co., Inc. (“Catalina”). Catalina obtained materials from Columbia. Fraker completed the guard house and separate office buildings more than 60 days prior to the filing of Columbia’s lien. Columbia stipulated that it had been paid for the Fraker improvements.

The second category of improvements was construction of retaining walls, work performed by engineers and architects, and grading work. Darion contracted with Danco, Inc. (“Danco”), for the grading work and construction of the retaining walls. Danco subcontracted with Catalina Concrete for a portion of this work. Catalina Concrete used Columbia building materials on the job. An engineer’s uncontradicted testimony was that only a small portion of two of the large concrete block retaining walls was situated on the liened property.

The third category consisted of improvements to the tennis courts, including bleachers and sidewalks. Darion contracted directly with Catalina Concrete for work performed in this category, and Columbia supplied some materials for the job.

Throughout the construction, Catalina Concrete had other jobs near Finisterra and, occasionally, Columbia’s cement trucks which were headed for Finisterra were diverted to other Catalina projects.

On October 22, 1981, Columbia served two preliminary 20-day notices, both of which listed Fraker as the relevant general contractor and Catalina Concrete as the relevant contracting party. Those notices designated the legal description of the property as Common Areas A and B of Finisterra. The first notice was in the amount of $470.88 for block furnished at 5620 E. Paseo Del Fuente, which is the address of the guard house. The second notice was in the amount of $4,469.59 for sand and concrete furnished to Common Areas A and B of Finisterra. The amounts shown on the 20-day notices were taken from the two initial invoices Columbia sent to Catalina Concrete for work done under the Fraker contracts. Those amounts were not part of the amounts claimed at trial since Columbia stipulated it had been paid for the Fraker work. No attempt was made by Columbia to send an amended notice or to estimate the total of material anticipated to be provided to Finisterra.

The two preliminary notices were served on the construction lender and on the owners, Homeowners Association of Finisterra and both trusts. The proof of service also shows that service on the original or general contractor was made to D.F. Fraker and Darion Development.

On June 24, 1982, Columbia recorded a notice and claim of lien for $86,907.56 upon Common Areas A and B. The lien did not distinguish amounts for materials supplied to improvements on Common Area A from those supplied for Common Area B. The lien also did not specify the general contractor for whom the materials were supplied.

At trial Columbia failed to show where the materials were delivered or for which improvement they were delivered, or the *301 general contractor to whom the materials were supplied. There was also no evidence as to the dollar amount of materials supplied to any particular common area.

Columbia and Fraker settled their dispute before trial. Columbia was granted a $60,247.48 default judgment against Danco after trial as well as a $60,247.48 judgment against Catalina. A directed verdict was granted to the remaining defendants, Homeowners Association, Commonwealth Land Title Agency, Darion and Fireman’s Fund Insurance Co. (appellees).

Columbia contends the court erred in finding the materialman’s lien invalid, that it erred in its conclusions of law and that it erred in directing a verdict on the claim of unjust enrichment. We find the court was correct in directing a verdict on the claim of unjust enrichment but not in finding the preliminary notice invalid or in its conclusions of law. We reverse and remand.

LIEN VALIDITY

Although the primary purpose of the materialmen’s lien statutes is to protect those who furnish material for improvements, the statutes also serve to protect the property owner by requiring that he be given proper notice and an opportunity to protect himself. James Weller, Inc. v. Hansen, 21 Ariz.App. 217, 517 P.2d 1110 (1973). Materialmen’s lien statutes are to be liberally construed and substantial compliance which is not inconsistent with the legislative purpose of the statutes is sufficient. Lewis v. Midway Lumber, Inc., 114 Ariz. 426, 561 P.2d 750 (App.1977); Advanced Living Center v. T.J. Bettes Co. of California, 11 Ariz.App. 336, 464 P.2d 656 (1970); Peterman-Donnelly Engineers & Contractors Corp. v. First National Bank of Arizona, 2 Ariz.App. 321, 408 P.2d 841 (1965).

Portions of the relevant mechanic’s lien statutes, A.R.S. §§ 33-992.01 and 33-993, have been amended since Columbia’s lien arose. The statutes in effect at the time Columbia perfected its lien govern its validity. O’Malley Lumber Company v. Riley, 126 Ariz. 167, 613 P.2d 629 (App.1980).

In finding the two preliminary 20-day notices defective, the court found that Darion was an agent of the owner, not an original contractor, pursuant to A.R.S. § 33-992.01(A)(3). It also found that Fraker and Danco were original contractors under A.R.S. § 33-992.01(A)(2).

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Bluebook (online)
727 P.2d 352, 151 Ariz. 299, 1986 Ariz. App. LEXIS 592, Counsel Stack Legal Research, https://law.counselstack.com/opinion/columbia-group-inc-v-homeowners-assn-arizctapp-1986.