Fraser Engineering Co. v. Franchi Group Associates, Inc.

8 Mass. L. Rptr. 595
CourtMassachusetts Superior Court
DecidedJuly 7, 1998
DocketNo. 956651
StatusPublished

This text of 8 Mass. L. Rptr. 595 (Fraser Engineering Co. v. Franchi Group Associates, Inc.) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fraser Engineering Co. v. Franchi Group Associates, Inc., 8 Mass. L. Rptr. 595 (Mass. Ct. App. 1998).

Opinion

Hamlin, J.

Plaintiff, Fraser Engineering Company (Fraser) initiated this action to recover money due under a subcontract with Franchi Group Associates, Inc. (Franchi). The surety and co-defendant, United States Fire Insurance Co. (U.S. Fire) opposes Fraser’s motion for summary judgment to collect on the surety bond. For the following reasons, Fraser’s motion for summary judgment is ALLOWED.

BACKGROUND

On January 23, 1995, Fraser and Franchi entered into a contract relating to the erection, alteration and repair of a building (subcontract). Franchi was the general contractor for the project owner Olga Franchi, trustee of Dear Hill Nursery Center Realty Trust (Project Owner). Seeking to establish a lien on the labor and materials supplied in relation to the subcontract, Fraser filed a Notice of Contract on August 7, 1995. Fraser duly provided both Franchi and the Project Owner with the Notice of Contract and the Statement of Claim.

Fraser subsequently commenced this action to enforce its lien. In its Complaint, Fraser claimed Franchi owed $133,236.10 under the subcontract. Franchi denied liability and litigation was stayed pending arbitration. On June 3, 1997, the arbitrator determined that Franchi owed Fraser $75,459.00.2 The award included $55,055.00 in principal for labor and materials and $20,404.00 in interest. On August 11, 1997, this Court allowed Fraser’s application to affirm the award.

Employing U.S. Fire as its surety, Franchi secured a “lien bond” and dissolved the Fraser lien pursuant to G.L.c. 254, 14. No notice was sent to Fraser as provided in §14. When Fraser became aware of the existence of the bond, Fraser moved to amend its Complaint to include U.S. Fire. This Court allowed the amendment.

Fraser now argues that U.S. Fire has “stepped into the shoes” of Franchi and must pay Fraser the full arbitrator award. U.S. Fire opposes the motion for summary judgment on the basis that disputed facts exist.

DISCUSSION

I. Standard of Review

This Court grants summary judgment where there are no genuine issues of material facts and where the summary judgment record entitles the moving party to judgment as a matter of law. Mass.R.Civ.P. 56(c); Cassesso v. Commissioner of Correction, 390 Mass. 419, 422 (1983); Community Nat’l Bank v. Dawes, 369 Mass. 550, 553 (1976). The moving party bears the burden of demonstrating affirmatively the absence of a triable issue. Pederson v. Time, Inc., 404 Mass. 14, 16-17 (1989). A party moving for summary judgment who does not bear the burden of proof at trial must demonstrate the absence of a triable issue either by submitting evidence negating an essential element of the nonmoving party’s case or by showing that the nonmoving party is unlikely to submit proof regarding that element at trial. Flesner v. Technical Communications Corp. 410 Mass. 805, 809 (1991); Kourouvacilis v. General Motors Corp., 410 Mass. 706, 716 (1991).

The nonmoving party cannot defeat the motion for summary judgment by resting “on his or her pleadings and mere assertions of disputed facts . . .’’ LaLonde v. Eissner, 405 Mass. 207, 209 (1989). The nonmoving party’s failure to prove an essential element of his case “renders all other facts immaterial” and mandates summary judgment in favor of the moving party. Celotex Corp. v. Catrett, 477 U.S. 317, 322 (1986); Kourouvacilis, 410 Mass. at 711.

II. U.S. Fire’s Grounds for Opposition

U.S. Fire first contends that the lien which Fraser seeks to enforce is invalid because Fraser did not comply with all of the requirements under G.L.c. 254, §4. Second, U.S. Fire argues that Fraser’s suit to enforce the bond is untimely. Lastly, U.S. Fire asserts that the amount it owes Fraser, if any, does not include the interest awarded by the arbitrator.

[596]*596A. Whether Fraser Complied with G.L.c. 254, §4

U.S. Fire argues that Fraser may have erred when applying for its mechanic’s lien. Specifically, U.S. Fire argues that Fraser used the wrong completion date on the Notice of Contract. If an error exists, it could result in a finding that Fraser’s mechanic’s lien is defective. Further, if the mechanic’s lien is defective, Fraser could not seek protection under the same to win a judgment against U.S. Fire.

To secure a lien, a subcontractor must file a Notice of Contract. G.L.c. 254, §4. If the subcontract contains a completion date for the work, then the subcontractor must include in the Notice of Contract that date. Blout Brothers Corp. v. Lafayette Place Assocs., 399 Mass. 632, 637 (1987) (holding that Notice of Contract must state contract completion date). A subcontractor’s failure to include the completion date stated in the subcontract on the Notice of Contract could result in a defective lien. East Coast Steel Erectors, Inc. v. Ciolfi, 417 Mass. 602, 605 (1994).

If the project owner objects to the date specified in the Notice of Contract or subsequent extensions, then the owner must file that objection with the registry and give the subcontractor actual notice of the objection within five days of receiving the Notice.3 G.L.c. 254, §4; East Coast Steel Erectors, Inc. v. Ciolfi, 417 Mass. 602, 607 (1994). If the contract has no date, then the subcontractor may estimate a completion date, subject to objection by the owner. G.L.c. 254, §4; East Coast Steel Erectors, Inc., 417 Mass. at 607. The owner must object to this estimated date within five days after receiving the Notice of Contract. G.L. 254, §4.

No dispute exists as to whether Fraser duly complied with the notice requirements stated in §4 for establishing its lien. Also undisputed is the fact that neither Franchi nor the Project Owner objected to the completion date stated in the Notice. U.S. Fire contends, however, that Fraser stated in the Notice of Contract a completion date different than the completion date found in the subcontract. In support of its argument, U.S. Fire relies on Article 20 of the subcontract.4 Article 20 of the subcontract states the completion date of the contract between Franchi and the Project Owner and not a completion date between Fraser and Franchi.

Fraser argues that the failure to object precludes U.S. Fire from now arguing the lien is defective. The case law, however, makes clear that if a date exists in the subcontract, then the subcontractor must include that particular date on the Notice of Contract. Fraser can not rely on the Project Owner’s failure to object if Fraser did not include the correct completion date when establishing its lien.

Nonetheless, the Court concludes the lien was valid. As stated, Article 20 expresses only the completion date for the original contract between Franchi and the Project Owner. The parties did not include a completion date for work done under the subcontract. Therefore, Fraser could estimate a completion date in the Notice of Contract. As Fraser’s estimated date in the Notice of Contract extended beyond the date of the original contract, the Project Owner should have duly objected within five days after receiving the Notice of Contract. The Project Owner’s failure to do so allowed for a valid lien.

B. Whether Actual Notice Suffices under G.L.c. 254, §14

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Related

Pederson v. Time, Inc.
532 N.E.2d 1211 (Massachusetts Supreme Judicial Court, 1989)
LaLonde v. Eissner
539 N.E.2d 538 (Massachusetts Supreme Judicial Court, 1989)
East Coast Steel Erectors, Inc. v. Ciolfi
632 N.E.2d 397 (Massachusetts Supreme Judicial Court, 1994)
Community National Bank v. Dawes
340 N.E.2d 877 (Massachusetts Supreme Judicial Court, 1976)
Mullen Lumber Co. v. Lore
537 N.E.2d 123 (Massachusetts Supreme Judicial Court, 1989)
Kasper v. Board of Appeals of Watertown
326 N.E.2d 915 (Massachusetts Appeals Court, 1975)
Kourouvacilis v. General Motors Corp.
575 N.E.2d 734 (Massachusetts Supreme Judicial Court, 1991)
Flesner v. Technical Communications Corp.
575 N.E.2d 1107 (Massachusetts Supreme Judicial Court, 1991)
Cassesso v. Commissioner of Correction
456 N.E.2d 1123 (Massachusetts Supreme Judicial Court, 1983)
Blount Brothers Corp. v. Lafayette Place Associates
506 N.E.2d 499 (Massachusetts Supreme Judicial Court, 1987)
Di Fruscio v. New Amsterdam Casualty Co.
231 N.E.2d 560 (Massachusetts Supreme Judicial Court, 1967)
Chiuccariello v. Building Commissioner
562 N.E.2d 96 (Massachusetts Appeals Court, 1990)

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Bluebook (online)
8 Mass. L. Rptr. 595, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fraser-engineering-co-v-franchi-group-associates-inc-masssuperct-1998.