Dannemiller v. Amfac Distribution Corp.

566 P.2d 645, 1977 Alas. LEXIS 435
CourtAlaska Supreme Court
DecidedJuly 8, 1977
Docket2895
StatusPublished
Cited by4 cases

This text of 566 P.2d 645 (Dannemiller v. Amfac Distribution Corp.) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dannemiller v. Amfac Distribution Corp., 566 P.2d 645, 1977 Alas. LEXIS 435 (Ala. 1977).

Opinion

*646 OPINION

Before BOOCHEVER, C. J., and RABI-NOWITZ, CONNOR and BURKE, JJ., and DIMOND, J. Pro Tem.

DIMOND, Justice Pro Tem.

This case involves a claim of lien by AM-FAC against 34 modular units and against a leasehold estate of land in Valdez upon which the modular units are situated. The lien was asserted against appellants, Dan-nemiller, et al., who have the leasehold interest in the land and Labyrinth, Ltd., who owns the 34 modular units. The trial court found that AMFAC had a lien in the amount of $19,606.93 and that the 34 modular units and the leasehold estate were subject to the lien. Dannemiller, et al. and Labyrinth, Ltd. (hereafter referred to as appellants) appealed, claiming trial court error because:

(A) AMFAC sold on “open account,” without reliance on the liened property;
(B) AMFAC failed to adequately prove that $19,606.93 worth of its materials in fact ended up in the 34 modular units and;
(C) The 34 modular units were not sufficiently annexed to the land to subject the leasehold to a lien.

We affirm the trial court on all of the above issues.

FACTS

AMFAC Distribution Corporation, d/b/a AMFAC Supply of Alaska (AMFAC), is a construction supplier which supplies plumbing and electrical materials. AMFAC’s materials were sold to Lampert Automated Homes, Inc. (Lampert), who manufactured the modular units involved in this case.

After the 34 modular units were manufactured by Lampert in Anchorage, Alaska, they were shipped to Valdez, Alaska for housing related to the pipeline terminal. The materials supplied in this case were allegedly incorporated into the “Valdez project”, which was designated by AMFAC as Job No. 6900. After manufacturing and delivering the 34 units to the Valdez plant, Lampert, due to financial difficulties, went out of business. In September 1974, AM-FAC filed a lien against the 34 modular units as well as against the land they were placed upon. AMFAC then filed a complaint in superior court requesting a judgment against Lampert Automated Homes, as well as a claim on the lien against the 34 units and land. 1

The 34 modular units were manufactured by Lampert at the request of Alaska Valdez Development Company by a contract dated February 20, 1974 (six units) and modified by a contract on April 15, 1974 (60 units). Alaska Valdez paid Lampert in full for the 34 units delivered. Alaska Valdez is a limited partnership. Alaska Valdez sold 32 of these units to Labyrinth, Ltd. (Labyrinth). Title to 32 units ultimately vested in Labyrinth; title to two units ultimately vested in Alaska Valdez.

These units were delivered to Valdez and placed on the Valdez property. The fee simple title to the Valdez property belongs to defendant David Kennedy in his personal capacity. Kennedy’s land was leased to Rivers Construction Company. Rivers Construction assigned all of its interest to Keystone Development Company. Keystone, in turn, sublet the land to Dannemiller, et al.

Various trial stipulations significantly narrow the focus of this appeal. To begin with, it was stipulated that:

*647 . if there is a lien, that it is a lien against the subleasehold interest of the 4 individuals, Dannemiller, MacMahon, Steward and Kennedy and against the interest of Labyrinth, Limited, in the 34 trailer units. Not, however, against the fee interest of David H. Kennedy.

The parties further agreed as to the scope of the leasehold interest which was lienable as including a lease which runs “to 1978” with an “option to extend to 1984”. The parties further stipulated that:

. . . the claim of lien of AMFAC . accurately describes the property on which these 34 units are in fact sitting . . .. [the leasehold interest]. . We’re stipulating that the property that is the subject of the sublease . is the same property as tracts or lots ... as stated in the lien

Therefore, it is established that, should a lienable interest exist, the lien would include the 34 units or the leasehold interest of the land upon which the units are situated or both. Lampert failed to appear at trial, and default judgment was entered against Lampert. After several days of trial, the trial court entered a memorandum decision holding that AMFAC had a valid lienable interest in the 34 units as well as in the leasehold estate.

(A) WAS THERE A LIENABLE INTEREST?

The first question raised relates to whether AMFAC sold on an “open account”, or with reliance on the 34 modular units and leasehold estate. AMFAC sold materials to Lampert under a billing procedure which is indicated by the record as follows: Dieter Steinborn, credit manager for AMFAC, testified that, originally, Lampert had one general account, although within this one general account Lampert had “requisition numbers” determining the jobs where the materials went. These numbers were used “as their accounting function so they knew where the material was going . . .” Steinborn was not initially aware of the Valdez project until Lampert began falling behind on its payments, but then knew specifically about the project. At all times that products were sold, however, it appears that the products sold could be traced via the 6900 designation number of the Valdez project, and this number, according to Steinborn, was intended to be used strictly for the Valdez project. According to Steinborn, the counterman who made each sale to Lampert was to find out where the goods were to go and knew more of the specifics of the Valdez project than he did. Steinborn stated that he had no intent to ever waive any lien rights. The purpose of the Number 6900 was stated as follows:

The main reason that I tried to keep everything separate was in case it came up to where we did have to lien a job so we would have everything separated. We could account for all the materials. Our understanding was that the materials, you know, after they were being manufactured, they were going to Valdez.

Appellants argue that, while AMFAC had general knowledge that the goods were intended for Valdez, AMFAC never really verified that any of the materials sold actually made it into Lampert-built units, which went to Valdez. All goods were delivered to Lampert, and none was delivered directly to Valdez; AMFAC never inspected the units and doesn’t know if they were ever completed or not. There were other Lam-pert jobs simultaneously being worked on in Bethel, Barrow, Skookik, Koyuk and Oom-iak, and Steinborn stated that he did not know if they were being built by Lampert as pre-sold units or on speculation. Stein-born did not originally know of the specific place in Valdez where the goods ended up, and no legal property description was kept of the Valdez project. At trial, however, appellants, while alluding to “other projects”, did not introduce any evidence showing AMFAC materials actually went into “other projects”. On this issue, the trial court found that:

*648

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Bluebook (online)
566 P.2d 645, 1977 Alas. LEXIS 435, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dannemiller-v-amfac-distribution-corp-alaska-1977.