I. Cox Construction Co. v. CH2 Investments, LLC

296 P.3d 1202, 129 Nev. 139, 129 Nev. Adv. Rep. 14, 2013 WL 856442, 2013 Nev. LEXIS 19
CourtNevada Supreme Court
DecidedMarch 7, 2013
DocketNo. 58393
StatusPublished
Cited by51 cases

This text of 296 P.3d 1202 (I. Cox Construction Co. v. CH2 Investments, LLC) is published on Counsel Stack Legal Research, covering Nevada Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
I. Cox Construction Co. v. CH2 Investments, LLC, 296 P.3d 1202, 129 Nev. 139, 129 Nev. Adv. Rep. 14, 2013 WL 856442, 2013 Nev. LEXIS 19 (Neb. 2013).

Opinion

[141]*141OPINION

By the Court,

Pickering, C.J.:

Mechanics’ hens provide a security interest in property for those who contribute labor or materials to construction projects. A lien must be timely filed, within 90 days of the completion of the “work of improvement,” to be valid. We have not interpreted “work of improvement” since before the Legislature revised the mechanic’s lien statutes. Here, the primary questions are whether the district court erred in relying on Vaughn Materials v. Meadowvale Homes, 84 Nev. 227, 438 P.2d 822 (1968), to define the scope of a contract for a work of improvement and in determining a lien was untimely. Because the district court did not err in relying on Vaughn, and its findings were not clearly erroneous, we affirm.

I.

Respondents Jim Harwin and Safe Shot, LLC (together, Harwin) hired appellant I. Cox Construction Company, LLC, to construct a shooting range. Cox originally estimated the cost at approximately $37,000 but informed Harwin that that number would change as Cox ascertained actual costs and additional expenses. Harwin approved construction, and Cox prepared plans, which included a number of additional items not included in the original cost estimate, and then began work. The parties did not have a written agreement.

Harwin paid Cox’s bills as the construction continued through the summer and fall of 2009. By September, Cox had billed $48,810. Harwin paid $46,000 by October 8 without complaint, but then refused to pay anything further. Cox worked through October, then left the project. By this point the project was largely finished, and Harwin opened Safe Shot for business soon after. Harwin received complaints from other tenants about the noise and, in late 2009 and early 2010, installed soundproofing and made other improvements to the building.1

In March 2010—more than 90 days after Cox had left the project but less than 90 days after Harwin installed the soundproofing— Cox recorded its mechanic’s lien. In August, Cox filed a complaint against Harwin and Harwin’s landlord, respondent CH2 Investments, LLC, claiming the project had cost in excess of $86,000 and seeking to foreclose on the property to recover over $40,000 [142]*142in damages and costs. Harwin petitioned the court to remove the lien, and Cox opposed removal. The district court heard argument on December 21, 2010, and January 11, 2011. Relying on Vaughn, the district court held that Cox could not “tack” the soundproofing to the “work of improvement” of constructing a shooting range. Accordingly, the district court held the lien was not timely and was therefore frivolous, and that the lien was excessive, and it ordered the lien released. Cox appealed.

n.

Cox argues that it was improper for the district court to consider the timeliness issue because Harwin did not raise that issue prior to the hearing; that the district court erred in determining, under Vaughn, that the soundproofing was not part of the “work of improvement”; and that the district court erred in finding the lien was both frivolous and excessive.

This court reviews questions of statutory construction and the district court’s legal conclusions de novo. Buzz Stew, LLC v. City of N. Las Vegas, 124 Nev. 224, 228, 181 P.3d 670, 672 (2008); California Commercial v. Amedeo Vegas I, 119 Nev. 143, 145, 67 P.3d 328, 330 (2003). In interpreting a statute, this court will look to the plain language of its text and construe the statute according to its fair meaning and so as not to produce unreasonable results. Harris Assocs. v. Clark County Sch. Dist., 119 Nev. 638, 641-42, 81 P.3d 532, 534 (2003).

The mechanic’s lien statutes are remedial in nature and should be liberally construed to protect the rights of claimants and promote justice. Peccole v. Luce & Goodfellow, 66 Nev. 360, 370-71, 212 P.2d 718, 723-24 (1949). However, claimants must substantially comply with the statutes’ requirements. Id. at 370, 212 P.2d at 723. The scope of an “improvement” is a question of fact for the trial court to determine, Schultz v. King, 68 Nev. 207, 214, 228 P.2d 401, 404 (1951), and this court will not set aside the district court’s factual findings unless those findings are clearly erroneous, J.D. Construction v. IBEX Int’l Group, 126 Nev. 366, 381, 240 P.3d 1033, 1043 (2010).

A.

As a preliminary matter, Cox argues that the district court erred by determining the lien’s timeliness because Harwin did not raise the issue prior to hearing and then misled the court by stating the [143]*143issue had been previously raised as an affirmative defense when it had not.

NRCP 15(b) allows a court to hear an issue not raised in the pleadings when the issue is tried with the express or implied consent of the parties. E.g., Elliot v. Resnick, 114 Nev. 25, 30, 952 P.2d 961, 964-65 (1998). Here it can be fairly inferred that the district court found Cox had impliedly consented to the issue being heard. Cox broached the issue first, early in the December 21 hearing, by questioning Harwin regarding the scope of the “work of improvement.” Furthermore, although Cox later questioned whether timeliness had been waived, it did not press the point, instead arguing the issue extensively on the merits at both hearings. Cox therefore gave implied consent and the district court did not err in addressing timeliness.

Harwin’s inaccurate statement that he challenged timeliness in his answer does not change this analysis. Cox joined issue on timeliness before Harwin made the statement, and it was incumbent on Cox, if it intended to claim waiver, to verify the record. A party cannot raise an issue, argue it on the merits at two separate hearings, and then, after the party loses on the issue, claim that it should not have been heard.

B.

Cox disputes the district court’s reliance on Vaughn Materials v. Meadowvale Homes, 84 Nev. 227, 438 P.2d 822 (1968), to determine the soundproofing was not part of the “work of improvement.” The district court found that the “work of improvement” had been completed before the need for soundproofing arose and relied on Vaughn to determine Cox could not enlarge the time for filing a lien by “tacking” the soundproofing to the work of completing a shooting range.2 Because it found the “work of improvement” concluded more than 90 days before Cox filed the lien, it held the lien was untimely and therefore dismissed it as frivolous.

Vaughn

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Cite This Page — Counsel Stack

Bluebook (online)
296 P.3d 1202, 129 Nev. 139, 129 Nev. Adv. Rep. 14, 2013 WL 856442, 2013 Nev. LEXIS 19, Counsel Stack Legal Research, https://law.counselstack.com/opinion/i-cox-construction-co-v-ch2-investments-llc-nev-2013.