Consolidated Electrical Distributors, Inc. v. Jepson Electrical Contracting, Inc.

537 P.2d 80, 272 Or. 376, 1975 Ore. LEXIS 439
CourtOregon Supreme Court
DecidedJune 26, 1975
StatusPublished
Cited by5 cases

This text of 537 P.2d 80 (Consolidated Electrical Distributors, Inc. v. Jepson Electrical Contracting, Inc.) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Consolidated Electrical Distributors, Inc. v. Jepson Electrical Contracting, Inc., 537 P.2d 80, 272 Or. 376, 1975 Ore. LEXIS 439 (Or. 1975).

Opinion

*378 HOLMAN, J.

Plaintiff filed individual suits to foreclose separate liens against two owners and the cases were consolidated for trial and upon appeal. Plaintiff appeals from decrees holding both liens invalid.

Defendants Thunderbird-Klamath Falls, Inc. (Thunderbird), and Nyback Flower Fair (Nyback), each constructed an individual building upon respectively owned adjacent pieces of property. The construction of both improvements was undertaken by a common general contractor with whom each defendant entered into a separate contract. Plaintiff, a materialman, furnished a subcontractor with electrical supplies which were used in the construction of the improvements on both properties.

Plaintiff filed one lien document against both pieces of property. It segregated the amounts of materials which were furnished the respective jobs, as follows, “* * * the contract price and reasonable value of said materials furnished by the claimant as aforesaid was and is the sum of $12,962.21 for Thunderbird Motel, Inc., and $1,841.88 for Nyback’s Flower Fair,” and subsequently included the following recapitulation :

“Thunderbird Motel, Inc. $12,962.21
Nyback’s Flower Fair 1,841.88
Balance to Claimant $14,804.09”

Although the real property of each defendant was described separately in the lien, there was no designation of the respective ownership. The printed statement on the standard lien form indicated only that “* * * claimant claims a lien for the amount of the above claim upon the building and/or improvement hereinbefore described and upon the land upon which said building and/or improvement is located, *379 * * Therefore, it was impossible for one unfamiliar with the description of the property of either owner to determine which parcel of property belonged to which owner. Thereafter, and within the time to file a lien, plaintiff filed a partial satisfaction in the snm of $1,028.58 without designating which defendant was being credited, or, if both were being credited, the amount credited to each.

However, in accordance with ORS 87.020(3), plaintiff gave notice of foreclosure to Thunderbird, as follows:

* * # #
“The lien was recorded in Volume M72, page 2707, in the Klamath County Courthouse on March 13, 1972, comprised of $12,962.21 for materials expended for Thunderbird Motel.
“This lien has been partially paid, satisfied and discharged in the amount of $1,028.58 as recorded in the Klamath County Courthouse, Volume M72, page 2953, on March 20, 1972.
“The total amount remaining due and owing for the Thunderbird Motel portion is $11,678.82.
ÍÍ# * # * # »

The notice to Nyback contained the following:

* # * *
“The lien was recorded in Volume M72, page 2707, in the Klamath County Courthouse on March 13, 1972, comprised of $1,841.88 for materials expended for Nyback’s Flower Fair.
“The total amount remaining due and owing is on the Nyback Flower Fair portion of the job and is $1,721.18.
Í6*

The first question concerns the propriety of using a single document to file liens on two pieces of property of different owners which were improved under separate contracts. In Beach v. Stamper, 44 Or *380 4, 72 P 208, 102 Am St R 597 (1903), a contractor entered into four separate contracts with a single owner to build four dwellings. The contractor then entered into a single contract with a subcontractor, the lien claimant, to furnish labor and materials in painting the four houses. The subcontractor’s contract specified a single amount for all four houses but also showed the amount for each house. He stated generally in his claim that his labor and materials were furnished all the buildings but specified therein the individual outstanding amounts for each house. The court held the lien invalid because the primary contractor, as the statutory agent under the lien, did not have the authority to make a broader contract with the subcontractor (one for all four houses) than the contract he made with the owner (one for each house). Therefore, the subcontractor, the lien claimant, could file one lien not on all four houses but only on each house for which work and materials were furnished.

If Beach is good law, it disposes of the present case. The only distinction between Beach and the present case is that here, the land upon which the two structures were built was owned by two different parties, whereas in Beach all the property was owned by one party. Because of this difference the instant case presents more difficulty for the lien claimant than did Beach’s situation.

Lien law, for the sake of certainty, is subject to somewhat arbitrary rules. However, the modern trend is to dispense with arbitrary rules which have no demonstrable value in a particular factual situation. The rationale of Beach seems entirely artificial and based on an assumption that the lien must be treated as one for the entire amount on each and every property improved despite the segregation of the labor and materials furnished to each property. This raises the question of why it is necessary to *381 so treat the lien document and to hold it invalid when it shows on its face the amount of materials and/or labor attributable to each piece of property. It must be so treated only if this court deems it necessary. If we hold, in a situation like the present one, where the face of the lien shows the amount attributable to each piece of property, that each piece can be released by paying the amount of labor and materials shown as having been furnished to it, such will be the case, and we see no harm that could result therefrom.

Whether the lien document purports to encumber each piece of property for the combined amount of all liens is a matter of interpretation, and we believe a construction of the entire document leads to a contrary conclusion. There would be no object in meticulously setting forth the separate amounts attributable to each piece of property if a lien was being claimed for the total on every piece. This information would be irrelevant. We hold such a statement constitutes a separate lien for each amount on each separate piece of property.

It is also argued that the lien document does not show the amount attributable to each piece of property because it does not designate which piece of property belongs to which owner. Five separate parcels were described in the lien document; the first four belonged to Thunderbird and the fifth to Nyback, although they were not so designated.

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Cite This Page — Counsel Stack

Bluebook (online)
537 P.2d 80, 272 Or. 376, 1975 Ore. LEXIS 439, Counsel Stack Legal Research, https://law.counselstack.com/opinion/consolidated-electrical-distributors-inc-v-jepson-electrical-or-1975.