Electrical Specialties, Inc. v. Siemens Building Technologies, Inc.

837 N.E.2d 1052, 2005 Ind. App. LEXIS 2194, 2005 WL 3188035
CourtIndiana Court of Appeals
DecidedNovember 30, 2005
DocketNo. 49A02-0407-CV-596
StatusPublished
Cited by2 cases

This text of 837 N.E.2d 1052 (Electrical Specialties, Inc. v. Siemens Building Technologies, Inc.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Electrical Specialties, Inc. v. Siemens Building Technologies, Inc., 837 N.E.2d 1052, 2005 Ind. App. LEXIS 2194, 2005 WL 3188035 (Ind. Ct. App. 2005).

Opinion

OPINION

DARDEN, Judge.

STATEMENT OF THE CASE

Oberle & Associates, Inc. (hereinafter "Oberle") and Travelers Casualty and Surety Company of America (hereinafter "Travelers") appeal from the trial court's denial of their joint motion for summary judgment against Siemens Building Technologies, Inc. (hereinafter "Siemens").

We affirm.

ISSUE

Whether the trial court erred by granting Siemens' motion for summary judgment and denying Oberle and Travelers' joint motion for summary judgment.1

[1054]*1054FACTS

In early 2001, Oberle entered into a contract with the State of Indiana for the improvement of the Clinical Treatment Center of Richmond State Hospital (hereinafter "Project"). Oberle was to serve as the general contractor. Oberle, in compliance with Indiana Code section 4-18.6-7-6(a)(2)2, obtained a contractor's payment bond through Travelers, to ensure its statutory payment obligation.

In April 2001, Oberle entered into a subcontract agreement with Electrical Specialties, Inc. (hereinafter "ESI"). ESI was to provide electrical work on the Project. ESI, in turn, hired Siemens as its subcontractor to install fire alarm, intercom, CCTV, and music systems for the Project. On October 10, 2002, Siemens performed its last work on the Project and notified ESI of its completion by sending it a job completion form. Siemens' labor and materials totaled $107,964.00 for the Project and was invoiced to ESI. ESI paid Siemens $2,999.66, resulting in a balance due and owing of $104,834.34. ESI made no further payment to Siemens. However, from May 21, 2001 through January 23, 2008, ESI submitted to Oberle partial waiver of lien, wherein ESI averred "no other person or party has any right to a lien or claim on account of any labor or work performed or material, supplies, or equipment furnished by, to or through [ESI], on or before the date hereof," essentially stating that all work performed on ESI's behalf had been fully compensated. (App.99, 100, 101). Oberle included ESI's Partial Waiver of Lien forms in its application for payment to the State. The State paid Oberle, and Oberle paid ESL

Subsequently, on June 9, 2008, pursuant to Indiana Code section 4-18.6-7-10, Siemens filed a Subcontractor's Verified Claim with the State. The claim contained the following:

Bond: The sum of $107,964.00 is due the undersigned on account of such labor, materials, or services. This notice is being sent within 60 days after any contractor, subcontractor, materialman, etc. last provided any materials or performed any labor or services in conformance with the decision of the court in Indiana Carpenters Pension Fund v. Seaboard, 601 N.E.2d 352 (Ind.App.1992) trans. denied.

(App.123). The claim stated that neither ESI, Oberle, nor Travelers had paid the amount owed to Siemens.

On July 21, 2003, Siemens filed an action against ESI, Oberle, and Travelers. Sie mens' claim against Oberle was based upon Oberle's statutory obligation, as the general contractor, to pay "all persons, subcontractors, and corporations furnish ing materials or performing labor for the Project;" and, against Travelers, as surety on Oberle's payment bond, to pay Siemens for services performed on the Project, if Oberle were to default. (App.14). Siemens' prayer for relief was for judgment against Travelers.

Oberle and Travelers filed a joint motion for summary judgment, and Siemens filed a cross motion for summary judgment. Briefs were filed in support of each mo[1055]*1055tion, and on June 18, 2004, a hearing was held. The matter was taken under advisement, and on June 24, 2004, the trial court entered an order granting summary judgment in favor of Siemens and holding Travelers and Oberle jointly and severally liable in the amount of $113,046.97. This appeal ensued.

DECISION

"On appeal, the standard of review of a grant or denial of a motion for summary judgment is the same as that used in the trial court: summary judgment is appropriate only where the designated evidence shows that there is no genuine issue of material fact and that the moving party is entitled to a judgment as a matter of law." Fifth Third Bank v. Comark, Inc., 794 N.E.2d 433, 437 (Ind.Ct.App.2003); see also Ind. Trial Rule 56(C). We give careful serutiny to the pleadings and designated materials, construing them in a light most favorable to the non-movant. Id. Finally, a trial court's decision on a motion for summary judgment enters the process of appellate review clothed with a presumption of validity. Rodrigues v. Tech Credit Union Corp., 824 N.E.2d 442, 446 (Ind.Ct.App.2005).

The facts in this matter are undisputed. Therefore, the questions on appeal are questions of law.

Indiana Code section 4-18.6 governs state public works projects costing $150,000 or more, though it can be applied to projects of lesser amounts. IC. §§ 4-13.6-7-7, 4-13.6-7-1. General contractors involved in projects under Indiana Code section 4-13.6, with an estimated cost of $150,000 or more, are required by statute to execute a payment bond for the benefit of subcontractors and suppliers working on such projects. Additionally, the statute requires the division 3 to include within the general contractors' contracts a provision for retainage4 of a portion of payments made by the division to the contractor. I1.C. § 4-13.6-7-2. The payment bond and the retainage provisions establish two sources of funds from which a subcontractor or supplier, who has not been paid, can file a claim for payment with the division against those funds. I.C. § 4-13.6-7-10.

Oberle/Travelers argues that the trial court erred in granting Siemens' motion for summary judgment because their claim for payment was untimely filed. We disagree.

In general, when subcontractors have provided labor, materials, or have supplied services on private projects, they are entitled to file mechanic's liens against the private property and subsequently foreclose on the property, if not paid. See 1C. § 32-28-3-1. However, liens cannot be filed against public property. J.S. Sweet Co., Inc. v. White County Bridge Com'n, 714 N.E.2d 219, 223 (Ind.Ct.App.1999). Thus, Indiana has codified specific protections for the benefit of subcontractors and suppliers who perform labor or provide material or service on a public works project. There are statutes that protect these individuals when they are involved in state highway projects, municipal projects, or state public works projects and these statutes share a common purpose and origin. See I.C. § 8-23-9-10; 1.C. § 36-1-12-13.1; 1.C. § 5-16-5-2; I.C. § 4-13.6-7-6, respectively.

[1056]*1056The forerunner of Indiana's public works payment bond statutes and other states that have similar statutes is The Miller Act, originally enacted in 19855; state statutes are often referred to as Little Miller Acts.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
837 N.E.2d 1052, 2005 Ind. App. LEXIS 2194, 2005 WL 3188035, Counsel Stack Legal Research, https://law.counselstack.com/opinion/electrical-specialties-inc-v-siemens-building-technologies-inc-indctapp-2005.