Emmert Industrial Corp. v. Sanders

883 P.2d 1304, 131 Or. App. 113, 1994 Ore. App. LEXIS 1548
CourtCourt of Appeals of Oregon
DecidedOctober 26, 1994
Docket91-2039; CA A79600
StatusPublished
Cited by1 cases

This text of 883 P.2d 1304 (Emmert Industrial Corp. v. Sanders) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Emmert Industrial Corp. v. Sanders, 883 P.2d 1304, 131 Or. App. 113, 1994 Ore. App. LEXIS 1548 (Or. Ct. App. 1994).

Opinion

*115 LEESON, J.

Plaintiff appeals from a judgment in favor of defendants in this action for breach of contract, breach of implied contract, conversion 1 and foreclosure of a construction lien. Defendants 2 cross-appeal the denial of attorney fees. We affirm on the appeal and reverse on the cross-appeal.

Plaintiffs business is moving buildings. On May 14, 1986, it entered into a contract with defendant Sanders (defendant) to raise a house that she owns, construct a foundation under the house, and then lower the house. According to the contract, defendant was to pay plaintiff $27,910 at the time the contract was executed. Defendant did not pay. Plaintiff nonetheless began work and raised the house. In September, 1986, plaintiff stopped work, leaving the house on supporting beams without a foundation. More than four years later, on December 27,1990, plaintiff filed a construction lien under ORS 87.035 for the amounts owed by defendant under the contract.

In February, 1991, plaintiff brought this action. Two months later, in April, 1991, defendant filed a petition for relief under the Bankruptcy Code. Plaintiff was a named creditor and appeared in the bankruptcy case. In September, 1991, defendant received a release from liability for all dis-chargeable debts. In September, 1992, she filed affirmative defenses in this action, including discharge in bankruptcy.

Trial was to the court. The parties stipulated that the construction hen was not discharged in bankruptcy. The court held that defendant’s discharge “wiped out” plaintiffs claims for breach of contract, breach of implied contract and conversion and that plaintiff did not timely file its construction lien.

Plaintiff first assigns error to the trial court’s finding that defendant’s discharge in bankruptcy precluded it from *116 enforcing the contract against defendant’s property. It contends that, under provision 6 of the contract, it had a “contractual lien” on the property and that defendant’s release from personal liability did not avoid that hen. 3 As defendant succinctly summarizes plaintiffs argument:

“Plaintiff contends that by identifying a specific asset of defendant Sanders and limiting its claim to the value of that asset that it converts an action in personam against Sanders to an action in rem against the identified property. Plaintiff contends further that once it has converted its unenforceable personal action against Sanders into an action against Sanders’ property, plaintiff is free to enforce its prepetition debts against Sanders’ property.”

Defendant argues that we may not address plaintiffs argument, because it is based on a theory and on evidence that were not presented to the trial court.

We agree that the issue of plaintiffs right to proceed against the property on its “contractual lien” was not preserved. When a case is tried on a certain theory, a different theory cannot be pursued on appeal. Millers Mut. Fire Ins. Co. v. Wildish Const. Co., 306 Or 102, 107, 758 P2d 836 (1988). In determining whether a theory has been presented, courts look to the pleadings, the prayer and the arguments at trial. Friesen v. Fuiten, 257 Or 221, 231, 478 P2d 372 (1970). Nonetheless, plaintiff did not plead a claim for foreclosure of a contractual lien, and made no argument to the trial court on that ground. Plaintiff contends that its failure to pursue the remedy at trial does not preclude it from raising “this consistent remedy on appeal.”

Plaintiffs effort to frame its position as an “alternative remedy” does not change the fact that it did not assert a claim for foreclosure of a contractual lien or pray for that remedy. Plaintiff is asking us to reverse a judgment on the basis of a theory argued for the first time on appeal. We will *117 not address the argument. See Ailes v. Portland Meadows, Inc., 312 Or 376, 823 P2d 956 (1991). The trial court did not err in entering judgment against plaintiff on its claims for breach of contract and breach of implied contract.

Plaintiff next assigns error to the trial court’s finding that plaintiffs filing of the construction hen in December, 1990, was not timely. We review de novo. B & D Investment v. Petticord, 48 Or App 345, 617 P2d 276, rev den 290 Or 302 (1980). It is undisputed that, after the fall of 1986, plaintiff did not return to the job site, expend any labor on the project or supply any new materials. As pertinent under ORS 87.035(1),

“[e]very person claiming a lien created under ORS 87.010(1) or (2) shall perfect the lien not later than 75 days after the person has ceased to provide labor, rent equipment or furnish materials or 75 days after completion of construction, whichever is earlier.”

ORS 87.045 provides, in part:

“(1) The completion of construction of an improvement shall occur when:
“(c) The improvement is abandoned as provided by subsection (5) of this section.
<<* * * * *
“(5) Except as provided in subsection (6) of this section, an improvement is abandoned:
“(a) On the 75th day after work on the construction of the improvement ceases [.]”

The trial court held that there had been no abandonment, because the parties did not intend to abandon the venture. 4 It also held that provision 4 of the contract, which required defendant to pay $10 for each day that she defaulted on the contract, was a provision for liquidated damages, not a rental agreement. That provision reads:

*118 “If all the foregoing terms and conditions shall not have been complied with by Owner, Owner shall be deemed to be in default and shall pay Mover, TEN and NO/lOO DOLLARS ($10.00) for each day, or fraction thereof, following the_ (30) day period, as hereinabove described, that such default shall continue.”

Plaintiff argues that the court was correct in finding that there was no abandonment, and that that finding precluded the court from holding that the lien was not timely filed. It contends that because, under ORS 87.045, abandonment is equivalent to completion of construction, and completion initiates the filing period under ORS

Related

Roseburg Investments, LLC v. House of Fabrics, Inc.
995 P.2d 1228 (Court of Appeals of Oregon, 2000)

Cite This Page — Counsel Stack

Bluebook (online)
883 P.2d 1304, 131 Or. App. 113, 1994 Ore. App. LEXIS 1548, Counsel Stack Legal Research, https://law.counselstack.com/opinion/emmert-industrial-corp-v-sanders-orctapp-1994.