Greenblatt v. Goldin

94 So. 2d 355, 59 A.L.R. 2d 877
CourtSupreme Court of Florida
DecidedApril 10, 1957
StatusPublished
Cited by12 cases

This text of 94 So. 2d 355 (Greenblatt v. Goldin) is published on Counsel Stack Legal Research, covering Supreme Court of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Greenblatt v. Goldin, 94 So. 2d 355, 59 A.L.R. 2d 877 (Fla. 1957).

Opinion

94 So.2d 355 (1957)

Morris J. GREENBLATT, and Anna B. Greenblatt, his wife, and Lavinia Waldbaum, a widow, Petitioners,
v.
Richard GOLDIN, d/b/a Metro Tile Co., Respondent.

Supreme Court of Florida, En Banc.

April 10, 1957.

Feibelman & Friedman, Miami, for petitioners.

Leo M. Alpert, Miami, for respondent.

Bucklew & Ramsey, Tampa, Wm. A. McRae, Jr., William O.E. Henry, and Holland, Bevis, McRae & Smith, Bartow, as amici curiae.

On Rehearing Granted.[*]

ROBERTS, Justice.

We are here concerned with Chapter 28243, Laws of Florida, Acts of 1953 — its meaning and its validity. This Act amended Sec. 84.05(11), Fla. Stat. 1951, of the Mechanics' Lien Law, by adding a subsection (a) thereto and now appears as Sec. 84.05(11) (a), Fla. Stat. 1955, F.S.A. It is applicable to building contracts of $3,000 or more and was described in its title as "provid[ing] for surety bond or alternative method of payment for performance under a contract for the protection of owner, laborer, lienor, subcontractor, materialman and contractor; and properly made payments." It provides in part as follows:

"(a) In the event a direct contract calls for the expenditure of three *356 thousand dollars or more, the owner may require and in such event the contractor shall furnish the owner a surety bond * * * payable to the owner in at least the amount of the original contract price, conditioned to pay all laborers, subcontractors and materialmen. If for any reason the contractor fails to furnish the bond and notwithstanding the provisions of any other section of this chapter, the owner shall not pay any money on account of the direct contract prior to the visible commencement of operations and any amounts so paid shall be held improperly paid, and the owner shall withhold twenty percent of each payment when it becomes due under the direct contract. And in no event shall the owner pay more than eighty percent of the contract price if the bond is not furnished until the contract has been fully performed and final payment is due and the contractor has furnished the owner statement under oath required by § 84.04(3). * * * If for any reason the owner fails to comply with the requirements of this section, he shall be liable for, and the property improved shall be subject to, a lien in the full amount of any and all outstanding bills for labor, services, or materials furnished for such improvement regardless of the time elements set forth in this chapter."

The petitioners, as owners, entered into a written contract with a general contractor for the construction of a residence on their premises. The contract did not require a surety bond and authorized the owner to pay to the contractor 90 percent of the contract price prior to the time when final payment was due. After the owners had paid this amount, the contractor abandoned the contract. The owners then discovered that the contractor had falsified receipted bills in order to obtain progress payments from them and that there were many outstanding bills for materials and services supplied to the contractor for the job. The instant suit was filed by the owners against the contractor and all subcontractors and materialmen claiming a lien against the property, to obtain a decree declaratory of their rights under Sec. 84.05(11)(a), supra, (sometimes referred to as "the Act" hereafter).

The owners contended in the lower court and argue here that the Act should be interpreted as requiring the withholding of 20 percent of the progress payments and contract price only if an owner actually incorporates a bond requirement in his direct contract, and that, in the absence of such a bond requirement, its provisions are not activated. They also attacked the validity of the Act. The lower court held that the Act is applicable to the direct contract here involved and that it is constitutional. A summary decree was entered in favor of one of the lienors, who is the respondent here, for the full amount of his lien "irrespective of the amounts of other liens and irrespective of the amounts of such sums as the Plaintiffs may have paid to the General Contractor." We here review this decree on petition for certiorari filed by the owners.

As to the applicability of Sec. 84.05(11) (a) to the contract here involved, we agree with the lower court that the Act was intended to apply to a contract of $3,000 or more even though no bond requirement was incorporated therein. When read in the light of the purpose expressed in its title, quoted above, it is clear that the Legislature must have intended to give the owner the alternative of (1) seeing to it that his building contract was covered by a performance bond or (2) withholding from his contractor 20 percent of the progress payments and contract price. If the Legislature had intended to require compliance by the owner with the "alternative method of payment" prescribed in the Act only if the owner required and the contractor refused to give a performance bond, as here contended, it would have been a simple matter to add a provision to that effect. The Legislature did not do so and we find *357 nothing in the language of the Act that requires this court to read into it such a provision. Accordingly, we find no error in the lower court's ruling as to the applicability of the Act to the contract here involved.

We now come to the question of the validity of Sec. 84.05(11) (a). As has been noted, the Act provides that "[i]f for any reason the owner fails to comply with the requirements of this section, he shall be liable for, and the property improved shall be subject to, a lien in the full amount of any and all outstanding bills for labor, services, or materials furnished for such improvement regardless of the time elements set forth in this chapter." While some ambiguity is generated by the punctuation, all parties interpret this provision as providing for personal liability on the part of the owner and for a lien on the improved property in the full amount of the outstanding bills for labor or materials, limited only by whatever statutory limitations period would be applicable to such actions. It is the contention of the owners that a statute that compels them to secure a performance bond or in the alternative to withhold 20 percent of the payments as they become due under the contract, and that subjects them to the personal and property liability noted above if they fail to do either, impairs their liberty of contract and subjects them to a penalty that is so unreasonable and unconscionable as to deprive them of their property without due process of law. This contention must be sustained.

Mechanics' lien laws "find sanction in the dictates of natural justice" and in the equitable principle that "every one who, by his labor or materials, has contributed to the preservation or enhancement of the property of another, thereby acquires a right to compensation." Jones v. Great Southern Fireproof Hotel Co., 6 Cir., 1898, 86 F. 370, 385. By the application of this equitable principle, it has become settled law that "[m]aterialmen and laborers may be secured by mechanics' liens upon land improved or affected by their material or labor, and this without reference to technical and ancient concepts of privity of contract. * * * For like reasons they may be secured as against the owner by a lien upon any moneys due to the contractor, and secured as against the contractor by a lien upon any moneys collected from the owner * * *." Hartford Accident & Indemnity Co. v. N.O. Nelson Mfg. Co., 1934, 291 U.S. 352

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Bluebook (online)
94 So. 2d 355, 59 A.L.R. 2d 877, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greenblatt-v-goldin-fla-1957.