Coombs v. Green Mill, Inc.

290 P. 620, 107 Cal. App. 204, 1930 Cal. App. LEXIS 405
CourtCalifornia Court of Appeal
DecidedJuly 11, 1930
DocketDocket Nos. 4119, 4160.
StatusPublished
Cited by3 cases

This text of 290 P. 620 (Coombs v. Green Mill, Inc.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coombs v. Green Mill, Inc., 290 P. 620, 107 Cal. App. 204, 1930 Cal. App. LEXIS 405 (Cal. Ct. App. 1930).

Opinion

THOMPSON, (R. L.), J.

Separate appeals were taken from judgments foreclosing mechanics’ liens in these actions, which were consolidated for trial.

The appellant is the owner of eight lots in Los Angeles County which are described in the complaint. November 30, 1922, he executed a ten-year lease of the property to Green Mill Catering Company, a corporation. The lease recited that it was the intention of the lessee to promptly erect a building thereon to he used for restaurant and entertainment purposes. Before this structure was commenced and on December 11, 1922, the appellant posted and recorded notices under the provisions of section 1192 of the Code of Civil Procedure for the purpose of exempting the real property from liability for a failure to pay for this structure. A few days later the lessee constructed a concrete foundation for the proposed building. No further work was ever performed on this building. The Catering Company became financially embarrassed. The construction *206 of the building was abandoned. The lease was transferred to another corporation called the Green Mill, Inc. The appellant resided on the premises and knew of the abandonment of the structure on the part of the Catering Company. About five months later the Green Mill, Inc., contracted with the plaintiff Coombs to construct a restaurant on the same premises at a cost of $75,000. Work upon this new building was immediately commenced. The foundation which had been previously constructed by the original lessee was demolished. The new structure was completed in due time. The original lessee had nothing to do with its construction or the contract therefor. The building was entirely distinct from the one which was planned by the Catering Company. The appellant had full knowledge of the progress and completion of this restaurant. No notices of nonliability for the cost of this structure were ever posted or recorded. No such notices were ever given except the ones heretofore referred to which were posted by the owner of the land on December 11, 1922. Neither the contractor nor the materialmen were entirely paid for their contribution to this building. Liens were accordingly filed to secure the unpaid portion thereof. Payment was refused and these actions were instituted. The indebtedness was conceded. The appellant contends that the posting and recording of his original notices of nonliability relieve him from responsibility for this indebtedness. The evidence which was adduced in both cases is exactly alike with the exception of the amount and character of the indebtedness.

The court found that the Green Mill Catering Company and the Green Mill, Inc., company are separate and distinct corporations, having no privity of interest in the property involved; that the last-mentioned corporation constructed the building and that the Catering Company had no part or interest in the same; that in the process of constructing said building, which was commenced May 15, 1923, the plaintiffs performed labor and furnished materials as alleged in the complaints, specifying the proportion thereof which remained unpaid; that liens therefor were duly filed; that the appellant is the owner of said property; that no notices of nonresponsibility therefor were posted or recorded pursuant to section 1192 of the Code of Civil Procedure and that the appellant is liable for said sums and *207 plaintiffs are entitled to a decree of foreclosure of said liens to satisfy the judgments. Judgments and decrees of foreclosure were accordingly entered, from which these appeals were perfected.

The respondents contend that the notices of nonliability which were posted and recorded by the appellant on December 11, 1922, had no application to the structure subsequently erected which is involved in these actions and therefore do not serve to relieve him from said obligations and liens; that the notices which were formerly posted were fatally defective in that the recorded copy thereof was not verified as required by law, and that the building was constructed under the direct agency of the appellant pursuant to a provision of his lease, to the effect that the building which was to be constructed by the lessee “shall at the end of said term, or the sooner termination of this lease, become the property of said parties of the first part [appellant and wife, and] constitutes a part of the consideration for the granting of this lease.”

In view of our construction of section 1192 of the Code of Civil Procedure requiring the affirming of the judgments, it becomes unnecessary to pass upon the last two contentions of the respondents.

The notices of exemption from liability which were posted and recorded by the appellant pursuant to section 1192 of the Code of Civil Procedure had no application to the particular building for the cost of construction of which the liens were filed, and they were, therefore, ineffectual to relieve him from the statutory burden of the liens.

The land was leased November 30, 1922, to the Green Mill Catering Company. The lease gave notice that the Catering Company intended to construct a building on the premises. To escape from the liability of paying for the cost of that particular building, the owner, having “obtained knowledge of such construction” from the lease, anticipated the commencement of the structure and posted and recorded notices pursuant to law, on December 11, 1922, to the effect that he “would not be responsible for the same.” Assuming that these notices were not premature and were in all respects in absolute conformity with the statute, they were intended only to relieve the owner from liability for the cost of a specific structure to be built by his lessee, of which *208 proposed erection he had knowledge. This building was never constructed. The cement foundation was laid. It was then entirely abandoned and subsequently destroyed. The Catering Company became financially embarrassed. The lease appears to have been subsequently transferred to another company, called the Green Mill, Inc. About five months later, in the month of May, this new corporation, of which the appellant had no knowledge, commenced and in due time completed an entirely different structure to be used as a restaurant, at a cost of over $75,000. It was called the Green Mill. No new or other notices of exemption were posted or recorded by the appellant applicable to this building. At the trial the appellant was asked in regard to the identity of the building with respect to which he did post notices in December, 1922. He testified: “Q. It was not the same building that is known as the Green Mill, is it? A. It was not the same building. . . . Q. But the new building was started on or about the 15th of May, 1923, wasn’t it? The new building that is now known as the Green Mill? A. The building that is there now, ... I should judge about that time. ... I was living there, so I was there pretty near every day. . . . Q. Did you ever rerecord this notice [after December 11, 1922] at all? Did you ever record it the second time? A. No sir.” There is substantial evidence to support the finding that no notices were posted on the premises while the building was in the process of construction. Mr. Coombs, the contractor, testified in that regard: “Q. At the time you started this construction did you see any notice posted on that land? A. No sir. Q. If there had been any would you have been able to observe it? A. Yes. Q.

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Bluebook (online)
290 P. 620, 107 Cal. App. 204, 1930 Cal. App. LEXIS 405, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coombs-v-green-mill-inc-calctapp-1930.