Gill Sav. Ass'n v. International Supply Co. Inc.

759 S.W.2d 697, 1988 WL 124130
CourtCourt of Appeals of Texas
DecidedAugust 11, 1988
Docket05-87-01007-CV
StatusPublished
Cited by60 cases

This text of 759 S.W.2d 697 (Gill Sav. Ass'n v. International Supply Co. Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gill Sav. Ass'n v. International Supply Co. Inc., 759 S.W.2d 697, 1988 WL 124130 (Tex. Ct. App. 1988).

Opinion

THOMAS, Justice.

Appellee, International Supply Company, Inc., instituted this action seeking the establishment and foreclosure of its statutory mechanic’s and materialman’s lien against property owned by appellant, Gill Savings Association. After the trial court granted judgment in favor of International, Gill brought this appeal complaining generally in four points of error that the trial court erred: 1) in ruling the mechanic’s and ma-terialman’s lien to be valid; 2) in holding that International had proved the amount of its claim; 3) in awarding attorney’s fees *699 to International; and 4) in not awarding attorney’s fees to Gill. For the reasons given below, we affirm the trial court’s judgment except for the award of attorney’s fees, which we reverse. We sever International’s cause of action for attorney’s fees and remand same to the trial court for determination of the reasonable amount of attorney’s fees, if any, that International should recover from Gill.

FACTUAL BACKGROUND

Gentry Place, Ltd., a limited partnership, owned and constructed the Gentry Place Apartments. Gill held a first lien on the project as the construction lender. H & M, Ltd., the original contractor and a general partner of Gentry Place Ltd., entered into a contract with T.P. Mechanical, whereby T.P. Mechanical agreed to provide a complete plumbing system throughout the project which included the obligation to furnish and install all of the plumbing fixtures. T.P. Mechanical purchased the majority of the plumbing supplies, including such items as lavatories, water heaters, bar sinks and toilets, from International.

In order to perfect its lien to secure payment, International filed its mechanic’s and materialmen’s lien affidavit on June 21, 1985. Unable to collect the money which it was owed, International filed this suit on January 31, 1986, naming as defendants Gentry Place, Ltd., Martin K. Eby Construction, T.P. Mechanical, and Gill. 1 On or about October 7, 1986, Gill foreclosed its first lien on Gentry Place and purchased the apartments at the foreclosure sale.

VALIDITY OF THE LIEN

In the first point of error, Gill argues that the trial court erred in finding that International had a valid mechanic’s and materialman’s lien because the lien affidavit: (a) was signed by the attorney; (b) stated an amount far in excess of what was owed; and (c) included charges for items beyond the applicable notice and filing deadlines.

A. International’s attorney signed the lien affidavit without having personal knowledge of the matters stated in the affidavit.

In urging that the lien affidavit is void because it was signed by International’s attorney, Gill argues that the holding in Energy Fund of America, Inc. v. G.E.T. Service Co., 610 S.W.2d 833 (Tex.Civ.App. —Eastland 1980), rev’d on other grounds sub nom. Ayco Development Corp. v. G.E.T. Service Co., 616 S.W.2d 184 (Tex.1981), is erroneous. 2 We disagree with Gill’s arguments and hold that the mere fact that International’s attorney signed the lien affidavit does not invalidate the lien for re-movables.

The Texas Property Code requires that the materialman’s lien affidavit “must be signed by the person claiming the lien or by another person on the claimant’s behalf. ...” TEX.PROP.CODE ANN. § 53.054(a) (Vernon 1984). Section 53.054 sets out the contents required to be in a lien affidavit but does not specifically state whether such affidavit must be made on the personal knowledge of the one who signs it. Corporations, such as International, can act only through persons, 3 and it is undisputed that International designated its attorney, Martin Lehman, as being duly authorized to represent it for purposes of signing the lien affidavit.

In International’s lien affidavit, the affi-ant Lehman states that he is “duly qualified and authorized to make [the] affidavit,” and that he is acting as the “autho *700 rized representative” for International. The record demonstrates that Lehman’s law firm had represented International for at least five years. John Vogt, the president of International, testified that Lehman prepared the lien affidavit at his [Vogt’s] direction, that International authorized Lehman to sign the lien affidavit on its behalf, and that International had provided Lehman with various records prepared in the regular course of business prior to the time the affidavit was signed.

Because the property code contains no affirmative personal knowledge requirement, and because the record which reveals that Lehman had the means to, and could have become personally informed, as desired by Gill, we hold that the execution of the lien affidavit by International’s attorney does not render it invalid. See Energy Fund, 610 S.W.2d 836-37; Henry S. Miller Co., 573 S.W.2d at 555 (corporations can only act through persons); Gex v. Texas Company, 337 S.W.2d 820, 828 (Tex.Civ.App. — Amarillo 1960, writ ref’d n.r.e.) (the affiant-attorney swore in the affidavit that he was duly authorized to make the affidavit, had read the motion, knew its contents, and knew that the facts therein were true and correct).

B. International’s lien affidavit stated an amount far in excess of what it was owed.

Section 53.054(a)(1) of the property code requires that the lien claimant file “a sworn statement of the claim, including the amount.” Vogt testified that the $75,-986.03 amount in International’s lien affidavit, filed on June 21, 1985, failed to take into account a $15,678.00 credit received by International in early May, 1985, which credit was not applied to the account until sometime in August, 1985. An additional correction of approximately $3,000.00 was also made. Vogt admitted that the amount shown in the lien affidavit was incorrect; however, he testified at trial that the account had since been reconciled and that the sum due and owing amounted to $57,-365.32 after all credits and corrections.

Gill asserts that “[i]t is not unreasonable for the law to require that amount be correct, or at least much closer to correct than the amount stated in International’s affidavit.” Gill does not elaborate further on this complaint and neither party cited any authority beyond the statute itself. The statute, however, aids little in solving the issue of whether a lien affidavit that states more than the amount actually owed invalidates the lien. We hold that it does not.

Gill, as lender on the project, purchased and became the owner of Gentry Place through a foreclosure sale in October 1986, over one year after International filed its lien affidavit and over seven months after Gill made its appearance in this law suit. Further, Thomas Shockey, a vice-president of Gill, testified that when Gill bought Gentry Place, Gill knew International was claiming a lien.

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Bluebook (online)
759 S.W.2d 697, 1988 WL 124130, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gill-sav-assn-v-international-supply-co-inc-texapp-1988.