Egan-Ryan Mechanical Co. v. Cardon Meadows Development Corp.

818 P.2d 146, 169 Ariz. 161, 74 Ariz. Adv. Rep. 18, 1990 Ariz. App. LEXIS 437
CourtCourt of Appeals of Arizona
DecidedNovember 20, 1990
Docket1 CA-CV 88-143, 1 CA-CV 88-427, 1 CA-CV 88-428 and 1 CA-CV 88-539
StatusPublished
Cited by4 cases

This text of 818 P.2d 146 (Egan-Ryan Mechanical Co. v. Cardon Meadows Development Corp.) 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
Egan-Ryan Mechanical Co. v. Cardon Meadows Development Corp., 818 P.2d 146, 169 Ariz. 161, 74 Ariz. Adv. Rep. 18, 1990 Ariz. App. LEXIS 437 (Ark. Ct. App. 1990).

Opinion

OPINION

BROOKS, Judge.

This is a multiple-claim lawsuit between parties to a group of construction contracts. The trial court granted summary judgments on portions of the complaint and counterclaim, certifying its rulings as final, appealable judgments pursuant to Rule 54(b), Arizona Rules of Civil Procedure. Appellant Cardón Meadows Development Corporation (Cardón Meadows) challenges the trial court’s substantive rulings and its Rule 54(b) certification of the judgment on the complaint. Cross-appellant Egan-Ryan Mechanical Company (Egan-Ryan) challenges this court’s jurisdiction to review the judgment entered upon the counterclaim.

FACTUAL OVERVIEW

Cardón Meadows is the owner and developer of eight commercial complexes located throughout the Phoenix metropolitan area. The complexes consist of one or more buildings, each building containing several commercial tenant suites. The complexes were constructed in multiple stages. First, shell buildings were erected. When each shell was completed, the municipality that issued the building permit issued a certificate of occupancy or equivalent certification of completion. Improvements to tenant suites were built as each separate suite was leased. As each tenant suite was completed, a separate certificate of occupancy or equivalent certificate of completion was issued. Improvement of many of the tenant suites occurred months or even years after the shell buildings were completed.

Egan-Ryan is a plumbing and heating/air conditioning contractor. EganRyan and Cardón Meadows entered into a series of subcontracts under which EganRyan installed the plumbing, heating, and air conditioning equipment for the shell buildings at these complexes. Eventually, Egan-Ryan also supplied the plumbing, heating, and air conditioning for many of the tenant suites. As construction of the various tenant suites got under way, Egan-Ryan and Cardón Meadows would agree on work to be performed and the price to be paid regarding each suite.

Cardón Meadows’ payment to EganRyan for the work that it was performing at the various complexes became seriously *164 in arrears. On September 16,1986, Cardón Meadows’ president wrote a letter to Egan-Ryan, stating that Cardón Meadows would pay Egan-Ryan at least $30,000 each week with the objective of having the balance, plus accruing interest, paid within 120 days. The letter indicated that steps were being taken to prevent any repeat of the current arrearage problem and requested Egan-Ryan’s “continued cooperation.” The record does not demonstrate that Egan-Ryan agreed to the payment plan. Cardón Meadows did make some of the payments referred to in its letter, but may have missed others. In the following weeks, other events caused the relations between the two companies to deteriorate completely. Cardón Meadows made no payments to Egan-Ryan after November 14, 1986. In December, Egan-Ryan began filing labor and materialmen’s liens on Car-don Meadows’ properties, recording a total of approximately seventy-seven liens covering each separate phase of the work performed at the eight complexes.

PROCEDURAL HISTORY OF THE LITIGATION

On December 22, 1986, Egan-Ryan commenced this litigation by filing a five-count complaint to recover more than $450,000 for labor and materials supplied to Cardón Meadows. In counts I through IV of the complaint, respectively, Egan-Ryan sought recovery under the alternate theories of contract, open account, account stated, and quantum meruit. In count V, it requested foreclosure of its labor and materialmen’s liens.

Cardón Meadows filed a four-count amended counterclaim for damages against Egan-Ryan, charging it with (I) interference with contractual relations, (II) recording false liens in violation of A.R.S. section 33-420, (III) breach of contract by performing defectively and failing to perform warranty work, and (IV) commonlaw slander of title in filing false liens.

Egan-Ryan first sought a partial summary judgment regarding its entitlement to money damages. The motion did not address any of Cardón Meadows’ counterclaims or Egan-Ryan’s lien foreclosure rights. Based upon the evidence presented, the trial court found that Egan-Ryan was entitled to judgment on count I of its complaint in the amount of $449,235.05. 1 The trial court entered a written judgment for that amount on August 7, 1987, but declined to include Rule 54(b) language, which would have made the judgment final and appealable.

Next, Egan-Ryan moved for partial summary judgment regarding Cardón Meadows’ false lien claims. Again, the trial court found in Egan-Ryan’s favor, ruling by minute entry that no material issues of fact existed and that Egan-Ryan was entitled to judgment as a matter of law on counts II and IV of Cardón Meadows’ counterclaim.

The following day, Egan-Ryan requested Rule 54(b) certification of the judgment on count I of the complaint. Stating that Car-don Meadows’ earlier opposition to Rule 54(b) language had been based upon its alleged entitlement to large offsets under its false lien claims, Egan-Ryan reasoned that because it had since obtained summary judgment on these counts, Rule 54(b) certification was now appropriate. Cardón Meadows opposed the request, urging that the judgment should not be made final while its other counterclaims remained unresolved. In the alternative, Cardón Meadows asked the trial court to set the amount of a supersedeas bond so that enforcement of the judgment could be stayed pending appeal.

On December 23, 1987, the trial court granted Egan-Ryan’s request, entering a “second amended judgment on count I of complaint,” which included Rule 54(b) language. The judgment awarded EganRyan $449,235.05 plus interest and attorney’s fees to be incurred in collecting the judgment. It further provided that “an evaluation of attorney’s fees to be awarded *165 Plaintiff hereunder will be made upon final resolution of this litigation.”

On the same day, the trial court entered orders setting the amount of the supersedeas bond and staying the enforcement of the judgment for ten days so that the bond could be filed. The court determined that Egan-Ryan was entitled to $584,000 in security for the judgment, but ordered that because Cardón Meadows had previously filed statutory discharge of lien bonds (see A.R.S. § 33-1004) in the amount of $201,-651, the supersedeas bond could be furnished in the reduced amount of $382,350. The trial court later approved a bond in that amount submitted by Cardón Meadows and its surety, Aetna Casualty and Surety Company (Aetna). Egan-Ryan was permitted to amend its complaint to include Aetna as a defendant and to add a sixth count, for recovery against Aetna on the statutory discharge of lien bonds.

On January 7, 1988, Cardón Meadows filed a motion for new trial regarding the summary judgment rulings against it on count I of the complaint and counts II and IV of the counterclaim, arguing that the trial court’s rulings were contrary to law and unsupported by the evidence. Cardón Meadows also objected to the inclusion of Rule 54(b) certification in the judgment on count I and to the award of future attorney’s fees in an undetermined amount.

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Bluebook (online)
818 P.2d 146, 169 Ariz. 161, 74 Ariz. Adv. Rep. 18, 1990 Ariz. App. LEXIS 437, Counsel Stack Legal Research, https://law.counselstack.com/opinion/egan-ryan-mechanical-co-v-cardon-meadows-development-corp-arizctapp-1990.