Hansen-Snyder Co. v. General Motors Corp.

124 N.W.2d 286, 371 Mich. 480
CourtMichigan Supreme Court
DecidedNovember 4, 1963
DocketCalendar 36, 37, Docket 49,810, 49,811
StatusPublished
Cited by90 cases

This text of 124 N.W.2d 286 (Hansen-Snyder Co. v. General Motors Corp.) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hansen-Snyder Co. v. General Motors Corp., 124 N.W.2d 286, 371 Mich. 480 (Mich. 1963).

Opinion

Dethmers, J.

These cases, consolidated for trial and this appeal, involve foreclosures of mechanics’ liens arising out of the same construction work.

Defendant General Motors Corporation entered into a contract for construction on its land of hardening furnaces with defendant Mechanical Equipment & Service Corporation as general contractor. The latter corporation engaged Hugh Laundra Electric, Inc., plaintiff in 1 case, as subcontractor to do the electrical work on the job. It hired Hansen-Snyder Company, plaintiff in the other case, as subcontractor to do the piping work.

Neither subcontractor was paid in full. Both filed bills for foreclosure of mechanics’ liens. G-eneral Motors still has on hand a sizeable balance due the general contractor. That balance intervening defendants and appellants insist should be paid *483 to them and not to plaintiffs. The intervening defendants are a hank which loaned money to the general contractor and took as security an assignment of claims due the latter from General Motors on the contract and an individual who indorsed, as surety, the note given by the general contractor to the bank as evidence of the indebtedness. They deny that plaintiffs acquired valid liens. They appeal from decrees of foreclosure of the same, and ask that the decrees he set aside and that the mentioned balance in the hands of General Motors he awarded to them under the assignment.

Stipulated pertinent facts are: That plaintiff Laundra Electric served its notice of intention to claim a lien more than 60, but less than 90 days after its first furnishing of labor and materials and recorded its statement and account of lien and served copy thereof on General Motors more than 60 but less than 90 days from its last furnishing of labor or materials; that plaintiff Hansen-Snyder served its notice of intention to claim a lien more than 60 and also more than 90 days after its first furnishing of labor and materials, hut before the general contractor furnished its contractor’s statement to the property owner, and recorded its lien and served copy thereof on General Motors more than 60 hut less than 90 days after its last furnishing of labor and materials.

Both plaintiffs contracted for and began their work while the statute (CL 1948, § 570.1, as amended by PA 1958, No 213 [Stat Ann 1959 Cum Supp §26.281]), still required that subcontractors serve notice of intent to claim lien on propei’ty owners within 60 days of the date of first furnishing labor and material. While plaintiffs were still in process of furnishing labor and materials and within 60 days after first furnishing them PA 1960, No 75, became effective, amending the statute to extend from 60 *484 days to 90 days the period for serving notice of intent to claim lien and for filing or recording the lien.

Questions relating to validity of plaintiffs’ liens and foreclosure thereof are, (1) as to both plaintiffs, whether the mentioned amendment of the mechanics’ lien act extending time for serving and filing from 60 to 90 days has retrospective effect, and (2) as to plaintiff Hansen-Snyder only, whether the term “solely as to labor” in CL 1948, § 570.1, as amended by PA 1958, No 213 (Stat Ann 1959 Cum Supp § 26.281), should be interpreted to mean that a subcontractor, who has contracted to supply labor and materials and who has served 1 notice of intent to claim a lien, covering both labor and materials, but who served the same after the prescribed period of time but before the general contractor gave its contractor’s statement, has a valid lien for the amount of his contract which covers labor?

Intervenors quote from 50 Am Jur, Statutes, § 478, and 50 Am Jur, Statutes, § 482, for the general proposition that absent a clearly expressed legislative intent to the contrary it is to be presumed that the legislature intended an enactment to have prospective effect only. It is to be observed, however, that this is stated therein to be especially true when giving a statute retroactive operation will interfere with an existing contract, destroy a vested right, create a new liability in connection with a past transaction, or invalidate a defense which was good when the statute was passed. A retrospective law is therein defined as one which takes away or impairs vested rights, creates a new liability, imposes a new duty or attaches a new disability in respect to transactions or considerations already past. Such is not the situation at bar. Applicable rather, is the language from the latter American Jurisprudence citation that “remedial statutes, or *485 statutes related to remedies or modes of procedure, which do not create new or take away vested rights, hut only operate in furtherance of a remedy or confirmation of rights already existing, do not come within the legal conception of retrospective law, or the general rule against retrospective operation of statutes. To the contrary, the statutes or amendments pertaining to procedure are generally held to operate retrospectively, where the statute or amendment does not contain language clearly showing a contrary intention. Indeed, in the absence of any savings clause, a new law changing a rule of practice is generally regarded as applicable to all cases then pending. * * * Sometimes the rule is stated in the form that, when a new statute deals with procedure only, prima facie, it applies to all actions —those which have accrued or are pending and future actions.” Here plaintiffs already had the statutory right to acquire a lien. No right vested in intervenors or anyone else to have the time for serving notice of intent or filing the lien limited to 60 rather than 90 days. The amendment in that regard did not affect vested or substantive rights hut pertained solely to procedure for effectuating the statutory right already existing. No vested right can exist to keep statutory procedural law unchanged and free from amendment.

In Nash v. Robinson, 226 Mich 146, this Court, in giving a statutory amendment retroactive effect, quoted (p 150) with approval from 25 ECL, Statutes, § 38, p 792, as follows:

“A statute which furnishes a new remedy, hut does not impair or affect any contractual obligations, nor disturb any vested rights, is naturally applicable to proceedings begun after its passage, though relating to acts done previously thereto.”

*486 Cited are Burman v. Ewald, 192 Mich 293, and McClear v. McCain, 227 Mich 622, as holding that the mechanics’ lien act, being in derogation of the common law, is to be strictly construed up to the point where the lien attaches. From this it does not follow, as intervenors suggest, that any amendment thereof, affecting procedure only, must be construed, in the absence of an expressed intent to the contrary in the amendment, to be prospective only. The right to have it attach was created by statute, without common-law basis; the procedure for having it attach, however, is mechanical and cannot be said to be in derogation of anything in the common law in which there was no comparable provision for either a 60- or 90-day period. The doctrine of strict construction is of no aid in determining whether the amendment applies to contracts already in be-ing.

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Bluebook (online)
124 N.W.2d 286, 371 Mich. 480, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hansen-snyder-co-v-general-motors-corp-mich-1963.