Eclipse Architectural Group, Inc. v. Lam

814 N.W.2d 692, 2012 WL 1520878, 2012 Minn. LEXIS 170
CourtSupreme Court of Minnesota
DecidedMay 2, 2012
DocketNo. A10-1607
StatusPublished
Cited by32 cases

This text of 814 N.W.2d 692 (Eclipse Architectural Group, Inc. v. Lam) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Eclipse Architectural Group, Inc. v. Lam, 814 N.W.2d 692, 2012 WL 1520878, 2012 Minn. LEXIS 170 (Mich. 2012).

Opinion

OPINION

GILDEA, Chief Justice.

This case involves two mechanic’s liens foreclosed against a hotel property. An agent of the respondent lien claimants, Hunter Construction, Inc., and Verde General Contractor, Inc., personally served mechanic’s lien statements on the property owner. Appellant, Briekwell Community Bank, challenges the validity of this service. Briekwell argues that service of a mechanic’s lien statement under Minn. Stat. § 514.08, subd. 1(2) (2010), is subject to the provision in Minn. R. Civ. P. 4.02 that prohibits a party to the action from serving “a summons or other process.” Because a disinterested person did not effectuate service of the respondents’ mechanic’s lien statements, Briekwell argues the service was improper. As a result, Briekwell contends that respondents’ mechanic’s liens are invalid and cannot be foreclosed. The district court determined that service was proper and entered judgment in favor of respondents. The court of appeals affirmed. We granted review. [694]*694Because we conclude that a lien claimant may personally serve a mechanic’s lien statement, we affirm.

The mechanic’s liens at issue in this case arose out of a project to renovate a 7-story La Quinta Inns & Suites (“the hotel”) situated on real property located in Ramsey County (“the property”). Wing-Heng, Inc. owned and operated the hotel. Kevin Lam is the owner of Wing-Heng.

In 2007, in order to finance the renovation of the hotel that had begun in 2006, Wing-Heng entered into a loan agreement with Briekwell that was secured by two mortgages on the property. After a series of general contractors left the hotel project, Wing-Heng retained Hunter Construction to take over as general contractor on the renovation. Midwest Building Maintenance, LLC, and Verde also performed work on the project.

In November 2007, Eclipse Architectural Group, Inc., a company that had performed architectural services related to the hotel’s renovation, brought an action to foreclose the mechanic’s lien it had filed against the property. While the Eclipse action was pending, Hunter Construction, Midwest, and Verde each filed a mechanic’s lien statement with the Ramsey County Registrar of Titles in the amount of $124,458.97, $100,000, and $80,500, respectively. Hunter Construction, Midwest, and Verde then filed cross-claims as additional defendants in the Eclipse action, seeking to foreclose their mechanic’s liens. In their pleadings, the hen claimants alleged that they had served their mechanic’s lien statements on Lam and Wing-Heng by certified mail.

The Eclipse action proceeded to trial. After a number of claims resolved through voluntary agreements and stipulations, the issues at trial were limited to the validity and amount of the mechanic’s lien claims of Hunter Construction, Midwest, and Verde.1

At trial, Ken Hunter testified about service of the respondents’ mechanic’s lien statements. Hunter, who worked extensively on the hotel renovation, was the sole owner of Midwest. Hunter had no ownership interest in Hunter Construction but was an officer and employee of Hunter Construction and authorized to bind the company. Hunter also testified that he had the authority to enter into binding agreements on behalf of Verde.

During his testimony, Hunter contradicted the assertion in respondents’ pleadings that the mechanic’s lien statements had been served on Lam and Wing-Heng by certified mail. When asked how he served the mechanic’s lien statements, Hunter responded that he had served Lam and Wing-Heng’s on-site project manager “[i]n-person” by “walk[ing] up to them and handling] it to them,” and “leavfing] a copy of the document with them.” Hunter maintained during cross-examination that he had personally served the mechanic’s lien statements and was unaware that the pleadings indicated that service of the statements had been made through certified mail.

Lam disputed Hunter’s testimony. Lam claimed that he was never served with the mechanic’s lien statements. Specifically, Lam testified that Hunter had not delivered the mechanic’s lien statements to him and that Lam had not received the statements by certified mail. Lam also denied that he had testified during an earlier [695]*695bankruptcy proceeding that Hunter had personally served him with the statements.

At the close of respondents’ case, Brick-well moved for a directed verdict, arguing that the mechanic’s liens were invalid because respondents, in using Hunter to serve their mechanic’s lien statements, had failed to comply with Minn. R. Civ. P. 4.02. Brickwell argued that Minn. R. Civ. P. 4.02 applied and prohibited personal service of respondents’ lien statements by an agent of respondents, whom Brickwell contended was a “party to the action” for purposes of the rule. The district court denied the motion.

In its findings of fact, conclusions of law, and order for judgment, the district court found “that the better evidence is that Ken Hunter served the February 21, 2008 mechanic’s lien statements of Hunter Construction, Verde and Midwest personally on Kevin Lam, owner of Wing-Heng, and upon Mr. Mailatyar, Wing-Hong’s on-site project manager, on or shortly after February 21, 2008.” The court then determined that Minn.Stat. § 514.08, subd. 1(2), requiring a mechanic’s lien statement to be “served personally or by certified mail on the owner or the owner’s authorized agent,” is inconsistent with the requirement in Minn. R. Civ. P. 4.02 that “a summons or other process” be served by a nonparty. The court reasoned that “a mechanic’s lien statement does not constitute a ‘summons or other process’ ” and “service of a lien statement does not commence an action or confer jurisdiction on the Court.” Because the requirement of personal service by a nonparty “does not apply to service of a mechanic’s lien statement,” the court concluded that respondents’ service of the mechanic’s lien statements was proper. Alternatively, the court concluded that even if Minn. R. Civ. P. 4.02 was applicable to service of a mechanic’s lien statement, “Hunter — as a natural person — is not a party to this mechanic’s lien foreclosure.”

The district court awarded mechanic’s liens to Hunter Construction and Verde in the amounts of $86,808.55 and $72,500, respectively. The court subsequently denied Brickwell’s motion for amended findings of fact, conclusions of law, and order for judgment, or in the alternative, a new trial. Brickwell appealed.

The court of appeals affirmed. Eclipse Architectural Grp., Inc. v. Lam, 799 N.W.2d 632 (Minn.App.2011). The court determined that Minn. R. Civ. P. 4.02 governs only “service of a ‘summons or other process’” and was therefore inapplicable to service of a mechanic’s lien statement, which “does not require any court appearance or answer.” 799 N.W.2d at 637. Accordingly, the court concluded that “service of the mechanic’s lien statement was proper.” Id. We granted Brickwell’s petition for review.

I.

The question presented in this case is whether the service of respondents’ mechanic’s lien statements was proper. To determine whether service of the statements by respondents’ agent was proper, we examine the language and requirements of the mechanic’s lien statutes. See Riverview Muir Doran, LLC v. JADT Dev. Grp., LLC, 790 N.W.2d 167, 170 (Minn.2010); M.E. Kraft Excavating & Grading Co. v. Barac Constr. Co., 279 Minn. 278, 283, 156 N.W.2d 748

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Cite This Page — Counsel Stack

Bluebook (online)
814 N.W.2d 692, 2012 WL 1520878, 2012 Minn. LEXIS 170, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eclipse-architectural-group-inc-v-lam-minn-2012.