Gene McVety, Inc. v. Don Grady Homes, Inc.

581 P.2d 1132, 119 Ariz. 482, 1978 Ariz. LEXIS 231
CourtArizona Supreme Court
DecidedJune 7, 1978
Docket13608-PR
StatusPublished
Cited by14 cases

This text of 581 P.2d 1132 (Gene McVety, Inc. v. Don Grady Homes, Inc.) is published on Counsel Stack Legal Research, covering Arizona Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gene McVety, Inc. v. Don Grady Homes, Inc., 581 P.2d 1132, 119 Ariz. 482, 1978 Ariz. LEXIS 231 (Ark. 1978).

Opinion

STRUCKMEYER, Vice Chief Justice.

This is an action by Gene McVety, Inc. to foreclose a mechanic’s lien. The Superior Court granted the appellees’ motions for summary judgment. The Court of Appeals affirmed, 119 Ariz. 265, 580 P.2d 726 (App. 1977). We accepted review. Opinion of the Court of Appeals vacated. Judgment of the Superior Court reversed.

Don Grady Homes, Inc. was the owner-developer of the Green Meadows Subdivision No. 4. The Sun Valley Pipeline, Inc. contracted to furnish and install off-site sewer and water improvements for the subdivision. Appellant, Gene McVety, Inc., supplied materials to Sun Valley which were used in furtherance of Sun Valley’s contract with Don Grady Homes. On January 27, 1975, McVety recorded a lien for materials, allegedly in an amount owed by Sun Valley. The appellees’ principal position, and that which was seemingly adopted by the lower court, was that on November 26, 1974, sixty-two days prior to McVety’s recording its lien, the water and sewer improvements were accepted and approved by the City of Phoenix and that, since A.R.S. § 33-993 A provides every person other than an original contractor must claim the benefits of the materialman’s statute *484 “within sixty days after the completion of a building, structure or improvement,” the recording of the materialman's lien was untimely. It is admitted, however, that 146 water meter boxes required to be installed under the contract had not been installed.

By A.R.S. § 33-993 B:

“For the purposes of subsection A, ‘completion’ means actual completion of the work.”

This statutory language is plain, simple and precise and does not permit of uncertainty. Inconstancy arises, however, from the appellees’ interpretation of the language of our prior decision, Morgan v. O’Malley, 39 Ariz. 400, 7 P.2d 252 (1932). Appellees read that case to mean that “[i]n 1932 the Arizona Supreme Court adopted the doctrine of substantial completion as ‘the correct rule of our statute’ relating to Mechanics’ Liens.”

In Morgan v. O’Malley, the owner took possession of the improvements on May 15. Thereafter, on three separate occasions the contractor returned and performed work and labor. (1) He made a cover for a pump house which was not part of the original contract. As to this, the opinion says, “[S]uch work was an afterthought.” Id. at 402, 7 P.2d at 253. (2) The “contractor changed the night latch on the front door of the main dwelling because the owner wanted a different kind of latch.” Id. (3) “[I]n October he adjusted the doors by taking a little off the top or bottom and ‘trued’ the hinges to make them work properly.” Id. The Court stated that obviously the right of lien was lost unless the work done after the owner took possession of the improvements had the effect of reviving the liens. The Court quoted with approval this statement from the syllabus of Fox & Company v. Roman Catholic Bishop, 107 Or. 557, 215 P. 178 (1923):

“A building as respects time for filing liens, is completed when the contractor has substantially complied with the terms of his contract, and the later work or supplying trifling items omitted or repairing defects or remedying inferior workmanship will not be considered as postponing the time limitation for filing liens.” Morgan v. O’Malley, supra, 39 Ariz. at 404, 7 P.2d at 253.

Appellees equate the words “substantially complied” with “substantially completed.” So that by linguistic transmutation, the statutory language “completion means actual completion of the work” becomes “completion means substantial completion of the work.”

We do not think such a departure from the legislative language is legally defensible. Aside from the obvious rewriting of the statute if such a construction were adopted, there would be no fixed point in time to which a materialman could point so that he could know when the statutory lien period began to run. Consequently, the legislative rule which was once relatively uncomplicated becomes a wilderness of confusion simply because of the impossibility of saying with certainty, even from hindsight, whether the remaining work was at any given time substantial.

Moreover, it is clear that the meaning of the words “substantially complied with” as this Court construed Fox & Co. v. Roman Catholic Bishop, supra, in Morgan v. O’Malley, were circumscribed and delineated in the next sentence of the quotation as “supplying trifling items omitted,” “repairing defects” and “remedying inferior workmanship.” The installation of the 146 water meter boxes required by the contract cannot be categorized as supplying trifling items which had been omitted. Work actually called for by the contract will permit the filing of the lien within sixty days after the doing of the last work. Peerless Unit Vent. Co. v. D’Amore Const. Co., 283 Mass. 121, 186 N.E. 280 (1933). If work is done or materials furnished to complete the original contract, the time for filing the lien runs from the last furnishing of labor and materials. Kirk v. Rohan, 29 Wash.2d 432, 187 P.2d 607 (1948).

The appellees argue that the sixty days had expired because the City of Phoenix accepted the water and sewer improvements sixty-two days before appellant filed *485 its lien. However, while the approval and acceptance of the work by the City of Phoenix on November 26, 1974 might, lacking other facts, be an acceptable means of establishing that the work was completed by that date, such acceptance cannot prevail against a showing that the work on appellant’s contract had actually not been completed at the time of acceptance.

Appellees argue that there were here two contracts entered into between Don Grady Homes and Sun Valley Pipeline, one for the furnishing and installing of off-site sewer lines and the other for the furnishing and installing of off-site water mains and fire hydrants for the subdivision; that the materials for which appellant filed its lien were materials which had been delivered and used on the sewer line improvements; whereas the installation of 146 water meter boxes was part of the water improvement contract. Appellant argues that the record does not conclusively show there were two contracts at the time the work started or that appellant knew there were two contracts.

It is, of course, the rule that two or more contracts cannot be tacked together so as to extend the time within which a lien notice must be filed. See, e. g., Potter v. Cline, 161 Ind.App. 349, 316 N.E.2d 422 (1974); Settle Builders v. Frankel-Shore, 42 Ohio Misc.

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Bluebook (online)
581 P.2d 1132, 119 Ariz. 482, 1978 Ariz. LEXIS 231, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gene-mcvety-inc-v-don-grady-homes-inc-ariz-1978.