Howard A. Deason & Co. v. Costa Tierra Ltd.

2 Cal. App. 3d 742, 83 Cal. Rptr. 105, 1969 Cal. App. LEXIS 1463
CourtCalifornia Court of Appeal
DecidedDecember 17, 1969
DocketCiv. 9284
StatusPublished
Cited by17 cases

This text of 2 Cal. App. 3d 742 (Howard A. Deason & Co. v. Costa Tierra Ltd.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Howard A. Deason & Co. v. Costa Tierra Ltd., 2 Cal. App. 3d 742, 83 Cal. Rptr. 105, 1969 Cal. App. LEXIS 1463 (Cal. Ct. App. 1969).

Opinion

Opinion

HILLIARD, J. pro tem. *

Defendants appeal from a judgment decreeing the foreclosure of plaintiffs’ mechanic’s liens for work performed in connection with the construction of 34 apartments consisting of separate multiple units in a subdivided tract located in the City of Palm Springs.

This controversy involves two actions brought by various subcontractors to foreclose their mechanic’s liens. The actions were consolidated for trial and the appeals from the judgments in both cases have been consolidated.

*746 Defendant Costa Tierra Ltd., a corporation, constructed the apartment units which are the subject of these claims for mechanic’s liens. Defendant Palo Fierro Estates, a general partnership, in which defendants William Aiken and Herbert Rauch were partners, purchased the apartment units from Costa Tierra Ltd. prior to the institution of these actions. Defendants Coachella Valley Savings & Loan Association and Silver Gate Savings & Loan Association were construction lenders under a participating loan agreement. The appeal is from those portions of the judgment establishing the amount of the liens, holding them valid and ordering their foreclosure. No appeal has been taken from that portion of the judgment imposing an equitable lien against defendant Coachella Valley Savings & Loan Association and Silver Gate Savings & Loan Association.

Costa Tierra Ltd. as owner-builder, contracted individually with each of the various crafts and trades involved in the project, including the plaintiffs. The project was commenced in January 1964, and proceeded without interruption until it was completed. Notice of' completion was signed on September 14, 1964, and recorded September 18, 1964. Plaintiffs filed their respective liens between December 11, 1964, and April 26, 1965.

It is the contention of defendants that plaintiffs’ claims of lien were not timely filed after recording of the notice of completion by defendant Costa Tierra Ltd. Section 1193.1 of the Code of Civil Procedure 1 sets forth the time limits within which a claim may be filed. Subdivision (c) of this section provides that an original contractor shall have 90 days after completion of the “work of improvement” within which to file for record his claim of lien. However, if the owner shall “within 10 days after the completion of the work of improvement file for record a notice of completion” an original contractor must file his claim of lien within 60 days after the date of filing of the notice of completion. Since plaintiffs contracted directly with the original owner, they were original contractors as that term is used in the statute. (Scott, Blake & Wynne v. Summit Ridge Estates, Inc., 251 Cal.App. 2d 347, 357 [59 Cal.Rptr. 587].) The validity of defendants’ contention depends upon whether the work of improvement was completed in September of 1964, as urged by defendants, or whether completion was dependant upon, and determined by, acceptance of the improvement by the City of Palm Springs. Defendants also urge that there are separate works of improvement involved and the rights of the claimants must be determined upon that basis. More specifically, defendants argue that labor and material, consisting of structural electric requirements, cement work, roofing, plumbing, tile work and installation of swimming pools, should be considered as works of improvement in construction of the residential apartment units; that curbs, streets and gutters, yard lights and landscaping *747 are separate works of improvement under section 1189.1 subdivision (a) 2 ; that work done on the roof after notice of completion was the subject of a separate contract; that whether any separate work of improvement was subject to acceptance by public or governmental authority must be specifically determined; that, although special findings of fact and conclusions of law were requested, the trial court failed to make any finding regarding separate works of improvement and whether the work performed under such separate contracts affected the time of completion or validity of the notice of completion as to other lien claimants.

Plaintiffs argue that the entire work of improvement was subject to acceptance by the City of Palm Springs pursuant to the provisions of section 1193.1, subdivision (e); that acts constituting such acceptance did not occur prior to March 24, 1965, and the liens were each timely filed.

The trial court found that the entire project, including both construction of apartment units and on-site and off-site lot improvement, was a single work of improvement subject to acceptance by governmental or public authority under section 1193.1, subdivision (e).

The primary issue presented for our determination is whether the evidence sustains the finding that the entire project was subject to acceptance by the City of Palm Springs. A subsidiary question is whether there are separate works of improvement subject to acceptance by the City of Palm Springs. A further secondary issue is whether substantial work was done under any of the original contracts after September 18, 1964, thereby invalidating the notice of completion. The final problem for our solution is whether this appeal is from the proper judgment.

I

We first consider the contention that the entire work of improvement was subject to acceptance by a public or governmental authority. The trial court found that the entire project was “of the type falling within the provisions of 1193.1(e),” “was incomplete” until accepted by the city, and “was not accepted by the City . . . until March 24, 1965.” Section 1193.1 subdivision (e), prior to its amendment in 1963, read as follows: “If a work of improvement is of the character referred to in Section 1184.1 of this code *748 and is subject to acceptance by any public or governmental authority, the completion of such work of improvement shall be deemed to be the date of such acceptance.”

Completion was then dependent upon acceptance by public authority only if the work was of the character described in section 1184.1 which provides for imposition of a lien upon the lot or tract of land for grading, filling or otherwise improving the land itself, or the streets, highways or sidewalks fronting or adjoining the lots, the installation of sewers or other public utilities and construction of areas, vaults, cellars or rooms under the sidewalks. The 1963 amendment deleted the reference to section 1184.1 and added the words “the” immediately preceding “work” and “improvement” in the first reference in the section to that subject. As amended and in effect at the time these claims of mechanic’s liens were asserted, this section read as follows: “If the work of the improvement is subject to acceptance by any public or governmental authority, the completion of such work of improvement shall be deemed to be the date of such acceptance.”

Plaintiffs urge that the following evidence supports the conclusion reached by the trial judge:

First, the contracts of plaintiffs with the defendant owner-builder.

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Bluebook (online)
2 Cal. App. 3d 742, 83 Cal. Rptr. 105, 1969 Cal. App. LEXIS 1463, Counsel Stack Legal Research, https://law.counselstack.com/opinion/howard-a-deason-co-v-costa-tierra-ltd-calctapp-1969.