First National Bank of Martinsville v. Roy N. Ford Co.

252 S.E.2d 354, 219 Va. 942, 1979 Va. LEXIS 193
CourtSupreme Court of Virginia
DecidedMarch 2, 1979
DocketRecord 771148
StatusPublished
Cited by17 cases

This text of 252 S.E.2d 354 (First National Bank of Martinsville v. Roy N. Ford Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First National Bank of Martinsville v. Roy N. Ford Co., 252 S.E.2d 354, 219 Va. 942, 1979 Va. LEXIS 193 (Va. 1979).

Opinion

*944 POFF, J.,

delivered the opinion of the Court.

This appeal raises questions regarding the validity of a mechanic’s lien and several purported waivers.

Roy N. Ford company, Inc. (hereinafter, Ford in proper person), a subcontractor, performed certain demolition, excavation, and paving work for the general contractor, Eagle Construction Company, Inc. (Eagle), on three projects known as King’s Court, Tech Mod, and Robin Court. King’s Court was an apartment complex developed by Pittsylvania County Christian Housing, Inc. The First National Bank of Martinsville and Henry County held liens aggregating $728,300 under certain deeds of trust on King’s Court.

Ford filed his memorandum of mechanic’s lien on King’s Court in June, 1972, claiming $25,229.52 for labor and materials. On October 2, 1972, he filed a bill of complaint to enforce his lien. Named as parties defendant were the developer, the general contractor, the bank, and Charles E. Carter, trustee under the deeds of trust. In their answers, the defendants alleged that Ford had waived his lien.

The cause was referred to a commissioner in chancery who took evidence and filed a report upholding Ford’s lien. Later, the cause was submitted to a second commissioner who also upheld the lien but deducted from the amount claimed the sum of $1,641.18 for labor and materials furnished on the Robin Court and Tech Mod projects. By final decree entered June 3, 1977, the chancellor confirmed the second commissioner’s report and ordered the property sold. The bank and the trustee (collectively, the bank) assign three errors on appeal, and Ford assigns cross-error to the reduction in the quantum of his lien.

In support of its first assignment, the bank argues that, by including in his memorandum debts due on projects other than King’s Court, Ford forfeited his right to any lien under the language of Code § 43-23.1. At the time the memorandum was filed, the statute provided:

Any person who shall knowingly include in his memorandum of lien work not performed upon or materials not furnished for the property described in his memorandum shall there *945 by forfeit any right to a lien under this chapter (emphasis added).

The bank maintains the word “knowingly” means nothing more than “with knowledge”. So construed, however, the word is merely an antonym of “accidentally”. The law does not favor forfeitures, and looking to the context in which the word is cast in this statute, we read “knowingly” as an antonym of “innocently” and a synonym of “designedly” and “with intent to mislead”. See State v. Toombs, 324 Mo. 819, 835, 25 S.W.2d 101, 108 (1930) and State v. Halida, 28 W. Va. 499, 504 (1886). During the pendency of the cause below, the General Assembly amended the statute by substituting the words “with intent to mislead” for the word “knowingly”. Acts. 1976, c. 253. We do not agree with the bank’s argument that the amendment constituted a substantive change in the statute. Rather, we believe the amendment was enacted simply to reinforce the original legislative intent by clarifying an after-discovered semantical ambiguity.

Here, the commissioner found there was no evidence of an intent to mislead. Ford’s memorandum was based upon a statement of account supplied at Eagle’s request only four days before the memorandum was filed. That account summarized in separate columns all the invoices (as corrected) billed to the three projects, credits for payments as received, and the net amount due. These data corresponded fully with the invoices received by Eagle and with the amount claimed in the memorandum of lien. In light of this detailed disclosure and absent evidence of an intent to mislead, we affirm the chancellor’s ruling against forfeiture.

Yet, a lienor may not enforce a lien against one project for the cost of labor or materials furnished on another, and, rejecting Ford’s contention on cross-error, we hold that the chancellor correctly excluded the claims attributable to the Tech Mod and Robin Court projects. See Mills v. Moore’s Super Stores, 217 Va. 276, 281, 227 S.E.2d 719, 723 (1976).

Ford acknowledged his signature on several printed forms entitled “Partial Waiver and Release of Lien”. The last document was signed after all invoices (except one for $500) had been submitted. Each document recited, as a “partial payment”, a specific sum paid Ford on the King’s Court project. Confirming the commissioner’s finding, the chancellor held that the waiver applied only to the extent of the sum recited in each document. Challenging this holding, the bank construes each document as a *946 waiver of Ford’s “right to file a lien for any sums due as of the date each waiver was signed” and argues, therefore, that the waiver extended to all claims except the $500 invoice.

Each document provided that “this is a Partial Waiver and Release of Lien... only to the extent of the payments specified and only for materials furnished or work done up until Date____” Ford testified that, when asked to sign “a general waiver... I would not sign it”, but when handed a “partial waiver ... I signed for what money he actually paid me.” The first portion of the language quoted from the documents tends to support Ford’s interpretation. The second portion tends to support the bank’s interpretation. But in the second portion, there was a significant omission; in each document, the date space was left blank.

The omission of a particular covenant or term from a contract reduced to writing shows an intent to exclude it. See 17 Am. Jur.2d Contracts § 255 (1964). Moreover, even if, as the bank contends, the date contemplated was “the date each waiver was signed”, still the language as a whole arguably supports two antithetical interpretations. Under familiar rules of construction, this ambiguity must be construed against the bank, the party who supplied the printed forms.

Applying these principles to the circumstances of this case, we cannot say that the chancellor erred in his ruling on this question.

Finally, the bank contends that the chancellor erred in upholding the commissioner’s refusal to hear additional evidence proving the authenticity of Ford’s signature on two other documents entitled “Waiver of Liens”. These documents provided that Ford waived his right to a lien “for all services rendered, work done and material furnished heretofore and hereafter” on the King’s Court project.

The bank introduced these two documents at the first commissioner’s hearing on June 25,1975. Asked to verify the handwriting, Ford testified, “It doesn’t look like my signature. ... I am not denying it. I don’t remember signing it.” The commissioner then granted a motion offered by counsel for Eagle “to continue the hearing ...

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Bluebook (online)
252 S.E.2d 354, 219 Va. 942, 1979 Va. LEXIS 193, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-national-bank-of-martinsville-v-roy-n-ford-co-va-1979.