Home Carpet, Inc. v. Bob Antrim Homes, Inc.

210 N.W.2d 652, 1973 Iowa Sup. LEXIS 1116
CourtSupreme Court of Iowa
DecidedSeptember 19, 1973
Docket55820
StatusPublished
Cited by2 cases

This text of 210 N.W.2d 652 (Home Carpet, Inc. v. Bob Antrim Homes, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Home Carpet, Inc. v. Bob Antrim Homes, Inc., 210 N.W.2d 652, 1973 Iowa Sup. LEXIS 1116 (iowa 1973).

Opinion

RAWLINGS, Justice.

Appeals by plaintiff Home Carpet Inc., and defendant cross-petitioner Weston, Inc., doing business as Weston Lighting, from judgment dismissing their respective mechanic’s lien enforcement actions. We reverse. •

July 24, 1967, defendant Bob Antrim Homes, Inc. (Antrim), then record titleholder of a lot located in Polk County, entered into an agreement with defendant Elmer F. Heckinger (Heckinger) for sale to him of the aforesaid real estate. Antrim was thereby obligated to construct a house on the lot according to specifications embodied in the agreement. He was further required to obtain a construction loan, secured by a mortgage which Heckinger would assume on completion of the improvement. At that time Antrim was to deliver a warranty deed to Heckinger and in turn receive the contractual balance due. The above mentioned loan was obtained by Antrim in August of 1967.

Construction commenced the following month. During the latter stages thereof, at Antrim’s request, Heckinger and his wife (Heckingers) went to Home Carpet and chose floor covering for the house. The selected carpeting was delivered January 31, 1968. At about the same time Heckingers were directed to select fixtures to be furnished by Weston, Inc., doing business as Weston Lighting (Weston). With the exception of a replacement fixture installed March 19th, all materials provided by Weston were delivered and installed by mid-February 1968.

Heckingers took possession of the house late in February, and March 22, 1968, assumed the aforesaid construction mortgage obligation. Contemporaneously Heckinger paid Antrim $1500 of $2580 remaining due on the contract. Unknown to Heckinger, Antrim had not paid Home Carpet or Weston for materials supplied by them.

Mechanics’ liens were filed by Weston and Home Carpet August 12th and 16th respectively in 1968. During the interval between completion of the house and filing of the liens Antrim declared bankruptcy, precluding contract recovery against it.

March 30, 1970, Home Carpet, by the instant equitable action against Antrim, Heckingers, Weston and other lienholders, asserts Antrim was at all material times the realty owner, and seeks to establish and obtain satisfaction of its lien claim.

Weston answered, then cross-petitioned against Antrim, Heckingers, Home Carpet and other lienholders, likewise seeking to establish and enforce its lien claim.

In answer to each such claimant Heckin-ger asserts sole ownership of the realty, and alleges the instantly involved liens were not timely filed.

Trial court concluded (1) from inception of the purchase agreement Heckinger was the sole owner under applicable mechanic’s lien law; (2) Home Carpet and Weston were therefore subcontractors; (3) neither Home Carpet nor Weston filed their lien claims in a timely manner; and (4) neither Home Carpet nor Weston gave Heck-inger requisite statutory notice of lien. Both lien claims were accordingly dismissed.

In support of a reversal these appealing claimants contend, trial court erred in fail *654 ing to hold (1) material was sold and furnished by them to an owner; or in any event, (2) claimants sold and furnished materials to an agent of an owner.

I. Since this case stands in equity it is accordingly entertained de novo on appeal. See Northern Natural Gas Company v. Forst, 205 N.W.2d 692, 694 (Iowa 1973). Trial court’s findings are therefore given weight although not binding upon us. See Iowa R.Civ.P. 344(f) (7).

II. Before addressing ourselves to the issues instantly presented it is appropriate we note, in essence, the differentiated treatment accorded contractors and subcontractors by chapter 572.

Contractors are those persons engaged directly by an owner, his agent, or trustee to furnish material for or perform labor upon any building or other improvement. See The Code 1966, Section 572.1(2).

All others furnishing labor or material for a building or other improvement are subcontractors. See Code § 572.1(2).

While contractors have ninety days after last furnishing materials or labor within which to file their liens, subcontractors must do so within sixty days after such completion of performance. See Code § 572.9.

Contractors who fail to file within the statutorily allotted time are substantially unaffected as to their rights against an owner, although they lose priority as to purchasers, encumbrancers or other persons who acquire an interest in good faith, absent notice and for valuable consideration after expiration of the time for filing of lien claims. See Code § 572.18.

On the other hand, subcontractors failing to comply with § 572.9 must, in addition to filing their claim, give written notice to the owner, his agent, or trustee. See Code § 572.10. And a subcontractor’s lien, perfected under § 572.10, can only be enforced to the extent of the balance due a contractor by the owner at time notice of lien filing is served. See Code § 572.11.

III. Mindful of the foregoing we must now determine whether trial court erred in failing to inceptionally find Antrim was an owner.

In defining owners, under mechanic’s lien law The Code 1966, Section 572.1 provides :

“For the purpose of this chapter:
“1. ‘Owner’ shall include every person for whose use or benefit any building, erection, or other improvement is made * *

To the same effect is this statement in Society Linnea v. Wilbois, 253 Iowa 953, 959, 113 N.W.2d 603, 606 (1962) :

“We have often discussed the statutory definition of ‘owner’. Section 572.1, Code, 1958. It has been said the term embraces the ordinarily accepted meaning of the word, and also includes every person ‘for whose use or benefit' the improvement is made.”

Reduced to bare essentials, the question posed is whether a title retentive vendor of realty, who retains possession thereof and improves same under an executory contract with his vendee, has ownership status within the purview of our mechanic’s lien laws.

In that regard Heckinger contends, through application of the doctrine of equitable conversion, he was sole owner of the realty from date of purchase contract execution. We disagree.

It must be conceded that under ordinary circumstances an executory contract for sale of land works an equitable conversion whereby the vendor’s interest becomes personalty and the vendee is actually seized of the estate. See H. L. Munn Lumber Company v. City of Ames, 176 N.W.2d 813, 816 (1970).

That theory was considered and discussed at length in Knapp v. Baldwin, 213 *655 Iowa 24, 27, 238 N.W. 542 (1931), and other related mechanic’s lien cases in which the vendee possessed and improved the realty. But in neither Knapp nor its progeny did this court hold an improving vend-ee of realty is, through equitable conversion, made “the” owner thereof.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Automated Building Components, Inc. v. New Horizon Homes, Inc.
514 N.W.2d 826 (Court of Appeals of Minnesota, 1994)
Louie's Floor Covering, Inc. v. DePhillips Interests, Ltd.
378 N.W.2d 923 (Supreme Court of Iowa, 1985)

Cite This Page — Counsel Stack

Bluebook (online)
210 N.W.2d 652, 1973 Iowa Sup. LEXIS 1116, Counsel Stack Legal Research, https://law.counselstack.com/opinion/home-carpet-inc-v-bob-antrim-homes-inc-iowa-1973.