FIRST NAT. BANK IN FT. COLLINS v. Sam McClure & Son, Inc.

431 P.2d 460, 163 Colo. 473, 1967 Colo. LEXIS 910
CourtSupreme Court of Colorado
DecidedSeptember 11, 1967
Docket21771
StatusPublished
Cited by12 cases

This text of 431 P.2d 460 (FIRST NAT. BANK IN FT. COLLINS v. Sam McClure & Son, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
FIRST NAT. BANK IN FT. COLLINS v. Sam McClure & Son, Inc., 431 P.2d 460, 163 Colo. 473, 1967 Colo. LEXIS 910 (Colo. 1967).

Opinion

Opinion by

Mr. Justice Pringle.

This is a writ of error brought by The First National Bank in Fort Collins, from a judgment of the District Court of Weld County foreclosing a mechanics’ lien in favor of Sam McClure & Son, Inc. on farm property owned by Victor L. Denny. The parties will hereafter be referred to as the bank, McClure and Denny.

The action was brought in the court below to enforce a mechanics’ lien claimed by Everitt Lumber Co., Inc., naming as defendants Denny, various mechanics’ lien claimants, including McClure, the bank as holder of a second deed of trust, an insurance company holding a first mortgage, and the public trustee. A default was entered against Denny. All other parties except the bank and McClure were dismissed before the court’s decree was entered. The court stated in its decree that the bank had acquired Denny’s interest in the real estate, but found that Denny was the owner and in possession “at all times pertinent to the issues herein.” The bank asserts the rights of the owner of the real estate described as:

The Southeast Quarter (SE1/4) of Section Twenty-seven (27) and that part of the Northeast Quarter *476 (NE1/4) of Section Thirty-four (34), which lies North of the Canal of Larimer and Weld Irrigation Company, all in Township Seven (7) North, Range Sixty-seven (67) West of the 6th P.M., Weld County, Colorado.

Denny ordered cement and materials from McClure, totalling $2,503.66, from March 12, 1963, until March 6, 1964, for various improvements on the farm. He paid $1,500.00 on account in January 1964. There were no deliveries between December 27, 1963, and March 5, 1964. On May 11, 1964, McClure filed a lien statement for the full balance of $1,003.66 in the office of the Clerk and Recorder of Weld County, which described the property to be charged as:

The Southeast Quarter (SE1/4) of Section Twenty-seven (27), Township Seven (7) North, Range Sixty-seven (67) West of the 6th P.M., Weld County, Colorado, but which failed to include within its description the part of the farm which was in Section 34. The statement described McClure as a subcontractor. A Notice of Lis Pendens was recorded July 15, 1964.

Trial was to the court, resulting in a judgment against Denny for $1,067.56, the full amount of the claim, plus interest and costs. The court further held the judgment was a lien against the entire property and ordered foreclosure, subject to the prior interest of the bank as assignee of the first mortgage.

The bank alleges four errors. Three of these attack the validity of the lien, on the following grounds: (1) The lien statement was not timely filed; (2) No copy of the lien statement was served on Denny, and (3) The claim was not based on a specific contract. The bank’s fourth contention is that the trial court erred in ordering foreclosure against lands not listed in the lien statement.

I.

The bank first contends that the cessation of deliveries between December 27, 1963, and March 5, 1964, con *477 stituted a completion under C.R.S. 1963, 86-3-9 (8), which provides:

“* * * For the purposes of this article cessation from labor for thirty days upon any unfinished contract or upon any unfinished building, improvement or structure, or the alteration, addition to, or repair thereof, shall be deemed equivalent to a completion thereof.”

Under the bank’s theory, the improvements would be deemed completed on January 27, 1964, and McClure’s lien statement filed May 11, 1964, would be beyond the three-month limit set for principal contractors in C.R.S. 1963, 86-3-9(6). McClure would then have a valid claim only for deliveries made March 5 and 6, in the total amount of $112.61.

The trial court found as a fact that the improvements on the Denny farm “were in the process of construction at all times between March 12, 1963, and March 6, 1964.” The trial court, in effect, treated cessation from labor as an affirmative defense and put the burden of going forward on the bank. This was not error.

It is true that this Court has held the burden is on the lien claimant to show that his claim was filed within the statutory period. Graham v. Brenden, 142 Colo. 88, 349 P.2d 702; Foley v. Coon, 41 Colo. 432, 93 P. 13. However, these cases do not require an affirmative showing on the part of the lien claimant that there was no cessation from labor of 30 days or more. They did not involve C.R.S. 1963, 86-3-9(8) which creates a conclusive presumption of completion on proof of 30 days’ cessation from labor. If the owner wishes to take advantage of this statutory presumption in order to be relieved of liability, the burden is upon him to come forward with sufficient evidence to justify raising the presumption. In analogous cases, where the owner has sought to avoid liability by virtue of other statutory provisions, this Court has placed the burden on the owner. See Fisher v. McPhee & McGinnity Co., 24 Colo. App. 420, 135 P. 132 and Clark Hardware Co. v. Cen *478 tennial Tunnel Mining Co., 22 Colo. App. 174, 123 P. 322 (both involving posting of notice of non-liability for materials furnished to a lessee); Kennicott-Patterson Transfer Co. v. Modern Smelting & Refining Co., 26 Colo. App. 135, 141 P. 144 (recording contract for more than $500); Seely v. Neill, 37 Colo. 198, 86 P. 334 (burden on owner to show quantity of land covered by lien was not necessary for tibe convenient use and occupancy of the buildings).

The record shows that the cement and materials involved were furnished by McClure under a continuous account, and the trial court found they were incorporated into improvements on the Denny farm. The fact that several mechanics’ liens besides McClure’s were- involved in this litigation is some indication at least that something more than cement work was involved in these improvements. On these facts, the mere cessation of cement deliveries between December 27, 1963, and March 5, 1964, is not sufficient to show a cessation from labor and raise the presumption created by C.R.S. 1963, 86-3-9(8). Whenever any labor, whatever its character, is performed on a building (or improvement) in furtherance of its completion, there is no cessation from labor. Joralmon v. McPhee, 31 Colo. 26, 38, 71 P. 419, 423. A contrary result is not compelled by our holding that C.R.S. 1963, 86-3-9(8) constitutes a limitation on the time for filing liens. Boise-Payette Lumber Co. v. Longwedel, 88 Colo. 233, 295 P. 791. In order for this section to operate as a limitation, the owner must first adduce sufficient evidence to bring himself within its operation.

II.

The bank next argues that, although McClure filed its lien as a subcontractor, it failed to serve a copy of the lien statement on the owner, or file an affidavit of non-availability for service, as required by C.R.S-. 1963, 86-3-9(3). This contention is without merit. A *479

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Bluebook (online)
431 P.2d 460, 163 Colo. 473, 1967 Colo. LEXIS 910, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-nat-bank-in-ft-collins-v-sam-mcclure-son-inc-colo-1967.