Industrial Tile Co. v. Home Federal Savings & Loan Ass'n of Tulsa

1958 OK 149, 331 P.2d 918, 1958 Okla. LEXIS 445
CourtSupreme Court of Oklahoma
DecidedJune 10, 1958
Docket37901
StatusPublished
Cited by9 cases

This text of 1958 OK 149 (Industrial Tile Co. v. Home Federal Savings & Loan Ass'n of Tulsa) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Industrial Tile Co. v. Home Federal Savings & Loan Ass'n of Tulsa, 1958 OK 149, 331 P.2d 918, 1958 Okla. LEXIS 445 (Okla. 1958).

Opinions

CORN, Vice Chief Justice.

This is an action to foreclose certain material and mechanics’ liens, a first and [919]*919second mortgage and a vendor’s lien contract against an owner builder, Florence B. Hoot, Inc. From a judgment, determining two of the liens of co-equal priority and superior to first mortgage of the Home Federal Savings & Loan Association of Tulsa and the lien of the Industrial Tile Company, plaintiff in error and the other liens of equal priority, and junior to first two liens, now owned by said mortgage company, and said first mortgage, the plaintiff in error appeals.

The matter was submitted upon an agreed statement of facts. Florence B. Hoot, Inc. was the' owner-builder, and in a continuous building operation by it, ' commencing on the 24th day of January, 1955, each lien claimant performed labor and/or furnished materials under his or its own separate agreement with the owner-builder at the times stated and in the amounts stated in their liens duly filed.

Crews Lumber Company furnished -material from January 24, 1955 to July 27, 1955, lien filed on September 6, 1955. Ted Spangenburg Company Inc., furnished material from January 28, 1955 to November 23, 1955, lien filed January 16, 1956. Both of these liens are now owned by the defendant in error.

The note and mortgage in favor of Home Federal Savings & Loan Association of Tulsa, defendant in error, was dated January 31, 1955, mortgage filed on record February 2, 1955.

i- The plaintiff in error,- Industrial -Tile Company performed labor and furnished material from August 1, 1955 to September 20, 1955, lien filed January 18, 1956.

The other lien claimants performed labor and/or furnished materials over various periods of time from March 11, 1955 to February 14, 1956; lien filed by each at various times within the time required by law. The defendant in error now owns these liens. No contention is here made that the court erred in determining these liens, including lien of the plaintiff in'- error, to be equal in priority, regardless of the date the labor was first performed and materials first furnished. ,

The plaintiff’in error appeals contending that when the erection of a building is one continuous project, all liens on the real estate and improvements for labor performed and materials furnished for such building, have their priority dating from the commencement of the building and are co-equal and that all such items are superior to a mortgage placed thereon subsequent to its commencement and up to the end of the lien filing period after its completion.

The converse, the contention of defendant in error and the judgment of the -trial court, is where material is furnished and labor performed by several parties, under separate contracts with the owner-builder even though one continuing project, the liens attach to said property as of the date the first material was furnished by him or it or the first labor performed by him or it and not as of the date- of the commencement of the building, the determining factor being whether there is one general contractor and not whether there is one building project.

The liens involved herein were created by 42 O.S.1951 § 141. Their effect on and priority to other encumbrances placed on the property must be ascertained from a construction thereof.

Referring only to the provisions applicable, 42 O.S.1951 § 141, provides:

“Any person who shall, under oral or written contract with the owner of any tract or piece of land, perform' labor, or furnish material for the erection * * * of any building, * * * thereon or perform labor in putting up any fixtures, * * * in * * * any. such building, * * * or who shall build * * . * or furnish labor or materials for building * * *, shall have a lien upon the whole of said tract or. piece of land, the buildings and appurtenances. * * * Such liens shall be preferred to all other liens or encumbrances which may attach to or upon such land, buildings or improve-. ments or either of them subsequent to. [920]*920the commencement of such building, * * * and compliance with the provisions of this Article shall constitute constructive notice of the claimant’s lien to all purchasers and encumbrances of said property * * * subsequent to the date of the furnishing of the first item of material or the date of the performance of the first labor.”

The clear import of the words used in Sec. 141, supra, is that any person who shall, under contract with the owner of the land, perform labor or furnish material for the erection of any building thereon shall have a lien upon the land and building; and that such liens shall be preferred to all encumbrances which may attach to or upon such land, buildings or improvements or either of them subsequent to the commencement of the building. There are no words of limitation restricting the effect thereof. The requirements are that a person have a contract with the owner to furnish material or perform labor on the building. This section has nothing to do with a general contractor and his subcontractors which is covered by 42 O.S.1951 § 143. The determinative factor, therefore, is that the owner have one project. How many persons he enters into contracts with to complete the project is of no concern. The lien of such person for the portion of the project performed by him, or it, is preferred and prior to all encumbrances which attach upon the land and building after the commencement of the building. In other words the lien in such case attaches as of the date of the commencement of the building, not as of the particular date of the furnishing of the material or performance of the labor of each.

In conformity with this construction Sec. 141, supra, then provides if the claimant complies with the provisions of the Act as to perfecting of the lien, it is constructive notice to all encumbrances of said property subsequent to the date of the furnishing of the first item of material or the date of the performance of the first labor in the construction of such building project. The date of the furnishing of the first material and the performance of first labor on the project is the determining factor of the priority of lien arising under this section over subsequent encumbrances or purchases.

Although it has not always been so set forth in as many words, it is our opinion that this court has so applied and construed Sec. 141, supra, in various cases in which the question of the interpretation of said section was presented.

In the case of Key v. Hill, 93 Okl. 64, 219 P. 308, 309 this court held:

“By section 7461, Comp.Stat. 1921 [42 O.S.19S1 § 141], such liens are given a priority over all subsequent in-cumbrances, and where a loan company takes a mortgage and makes a loan upon lots, while buildings to be placed thereon are in course of construction, such loan company acquired its rights with full notice of lien claims of laborers, mechanics, and materialmen, accrued and accruing, until the construction of the buildings is completed.”

In the body of the opinion at page 311 of 219 P., it was said:

“The mortgagee would take notice of the rights and liens of laborers, mechanics, and materialmen existing at the time the mortgages were taken.

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Industrial Tile Co. v. Home Federal Savings & Loan Ass'n of Tulsa
1958 OK 149 (Supreme Court of Oklahoma, 1958)

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Bluebook (online)
1958 OK 149, 331 P.2d 918, 1958 Okla. LEXIS 445, Counsel Stack Legal Research, https://law.counselstack.com/opinion/industrial-tile-co-v-home-federal-savings-loan-assn-of-tulsa-okla-1958.