Intermountain Elec., Inc. v. GAT BROS. CONST., INC.

62 P.3d 548
CourtCourt of Appeals of Washington
DecidedFebruary 4, 2003
Docket20675-1-III
StatusPublished
Cited by24 cases

This text of 62 P.3d 548 (Intermountain Elec., Inc. v. GAT BROS. CONST., INC.) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Intermountain Elec., Inc. v. GAT BROS. CONST., INC., 62 P.3d 548 (Wash. Ct. App. 2003).

Opinion

62 P.3d 548 (2003)
115 Wash.App. 384

INTERMOUNTAIN ELECTRIC, INC., a Washington corporation, Appellant,
v.
G-A-T BROS. CONSTRUCTION, INC., a Washington corporation, Old Standard Life Insurance Co., an Idaho corporation, and Wilson-Coghlan LLC, a Washington limited liability company, Respondents.

No. 20675-1-III.

Court of Appeals of Washington, Division 3, Panel Six.

February 4, 2003.

*550 Joel C. McCormick, Herrig, Vogt & Stoll, Spokane, WA, for Appellant.

Michael H. Church, Stamper, Rubens, Stocker, Spokane, WA, for Respondents.

*549 SWEENEY, J.

This is an action to dismiss a construction lien as invalid and frivolous. The superior court ruled that the lien was invalid because it was filed beyond the 90-day time limit required by the statute. The court also ruled that, because the lien was filed beyond the 90-day time limit, it was also frivolous. The subcontractor, Intermountain Electric, Inc., then filed a second lien. We conclude that the first lien was indeed invalid, but not frivolous, and that the second lien, in the face of the court's ruling, was both invalid and frivolous. We therefore affirm the court's ruling dismissing the first lien, but reverse the ruling that it was frivolous. We affirm the rulings on the second lien. We remand for reconsideration of attorney fees in the trial court and on appeal in accordance with this opinion.

FACTS

Ameracare, Inc. develops retirement communities. It hired G-A-T Bros. Construction, Inc. as the general contractor to build the Evergreen Retirement Center. The project consisted of six buildings, A through F. G-A-T Bros. agreed, orally, with Intermountain Electric to do the electrical work.

Intermountain worked continuously starting in November of 1996. Intermountain billed G-A-T Bros. on a time and materials basis for work performed. In July 1999, two buildings were yet to be completed. John Tucker, a principal with both G-A-T Bros. and Ameracare, instructed Intermountain to suspend operations pending further financing. G-A-T Bros. owed Intermountain $98,320.72 for completed work.

The parties disagree as to whether Mr. Tucker told Intermountain to remain "on standby" to resume work. But Intermountain left its jobsite trailer on the project site and contacted Mr. Tucker every few weeks to determine when work would resume. Mr. Tucker repeatedly assured Intermountain that HUD funding was imminent and that work would resume soon. Intermountain continued to perform miscellaneous repair work at the site.

Intermountain last performed active work on June 6, 2000. Intermountain filed a materialmen's lien on the property 94 days later, on September 8, 2000. On the application form, Intermountain represents that: "Claimant is still currently working on the project. Claimant's work is suspended, and Claimant is on standby. Claimant's last active work was done June 6, 2000." Clerk's Papers (CP) at 12. Intermountain did not remove its jobsite trailer until August 9, 2001.

*551 Ameracare filed for Chapter 11 bankruptcy protection on January 5, 2001. Wilson-Coghlan (Coghlan) and Old Standard Life Insurance Company were secured creditors. Old Standard held first and second liens on the project site property. Coghlan held deeds of trust comprising liens three through five. All of these liens date to 1997. So to establish priority, Intermountain's lien had to relate back to work performed in 1996.

Intermountain sued G-A-T Bros. and Ameracare for breach of contract and foreclosure of lien on May 8, 2001.

On June 21, 2001, the bankruptcy court granted Coghlan relief from stay to proceed with the trustee's sale. The trustee's sale was set for August 10, 2001. On July 26, 2001, the bankruptcy court ordered Intermountain to desist from further action against Ameracare pursuant to the stay. Intermountain amended its complaint to dismiss Ameracare and join Coghlan and Old Standard.

On October 19, 2001, G-A-T Bros. stipulated to entry of judgment against it for $96,970.91, plus interest.

Intermountain moved for summary judgment to establish the validity and priority of its lien over those of Coghlan and Old Standard. Intermountain claimed, among other things, that leaving its trailer at the site constituted "furnishing equipment." CP at 377. And, therefore, the 90-day lien-filing period did not begin to run in June 2000, but in August 2001.

On October 4, 2001, Coghlan moved to show cause why the lien should not be stricken as invalid and frivolous for failure to file within the statutory 90-day limit. Again, the date of last active work was June 6, 2000, and the date the lien was filed was September 8, 94 days later. Following a hearing, the court entered findings and conclusions that the last day of work was June 6, 2000. And, since the lien was not filed within 90 days of that date, it was invalid on its face. The court also concluded that an invalid lien is, ipso facto, a frivolous lien. It then awarded Coghlan fees and costs under the frivolous lien provisions of RCW 60.04.081(4).

On November 5, 2001, Intermountain filed an amended lien, showing August 9, 2001, the date the jobsite trailer was removed, as the last date of labor. The court ruled that the second lien was invalid and frivolous also, and awarded fees and costs to Coghlan.

DISCUSSION

We are asked to review the court's interpretation of the construction lien statute. Chapter 60.04 RCW. Statutory interpretation is a question of law which we review de novo. W.R.P. Lake Union Ltd. P'ship v. Exterior Servs., Inc., 85 Wash.App. 744, 749, 934 P.2d 722 (1997). The mechanics' and materialmen's lien statute is in derogation of common law and is, therefore, strictly construed. Lumberman's of Wash., Inc. v. Barnhardt, 89 Wash.App. 283, 286, 949 P.2d 382 (1997). The trial court's findings of fact will be upheld if they are supported by substantial evidence. W.R.P., 85 Wash.App. at 750, 934 P.2d 722.

FIRST LIEN

Preliminarily, Intermountain contends in its brief (at oral argument counsel moved away from this position) that the court erred by ruling on the validity of the lien. The only issue before the court, Intermountain contends, was whether the lien was frivolous, i.e., whether its validity was even debatable. But the show cause hearing necessarily and inevitably resolved the validity issue also. Intermountain had also moved for summary judgment on the issue of validity. Coghlan's frivolous lien claim was based on the facial invalidity of Intermountain's lien. The court did not err in ruling on the validity.

90-Day Filing Period is Strictly Enforced. Every person claiming a lien under chapter 60.04 RCW must file a notice of claim of lien for recording in the county where the subject property is located not later than 90 days after the person has ceased to furnish labor, professional services, materials, or equipment. "The period provided for recording the claim of lien is a period of limitation and no action to foreclose a lien shall be maintained unless the claim of lien is filed for recording within the ninety-day. *552

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

Related

Jeffrey Riordan v. Matthew T. Vogt & April D. Vogt
Court of Appeals of Washington, 2026
Park South LLC v. Denali Construction LLC
Court of Appeals of Washington, 2024
Velazquez Framing, Llc, V. Cascadia Homes, Inc.
Court of Appeals of Washington, 2022
5229 University, Llc, V. Jialin Li
Court of Appeals of Washington, 2021
Lennar Multifamily Builders, Llc, V. Saxum Stone, Llc
492 P.3d 175 (Court of Appeals of Washington, 2021)
Denise Brackett Woodley v. Style Corporation D/b/a
Court of Appeals of Washington, 2019
Williams v. ATHLETIC FIELD, INC.
261 P.3d 109 (Washington Supreme Court, 2011)
Diversified Wood Recycling, Inc. v. Johnson
161 Wash. App. 859 (Court of Appeals of Washington, 2011)
Gray v. Bourgette Construction, LLC
160 Wash. App. 334 (Court of Appeals of Washington, 2011)
Colorado Structures, Inc. v. Blue Mountain Plaza, LLC
159 Wash. App. 654 (Court of Appeals of Washington, 2011)
Colorado Structures v. Blue Mountain Plaza
246 P.3d 835 (Court of Appeals of Washington, 2011)
Williams v. Athletic Field, Inc.
228 P.3d 1297 (Court of Appeals of Washington, 2010)
SD Deacon Corp. v. Gaston
206 P.3d 689 (Court of Appeals of Washington, 2009)
S.D. Deacon Corp. v. Gaston Bros. Excavating
150 Wash. App. 87 (Court of Appeals of Washington, 2009)
DKS Construction Management, Inc. v. Real Estate Improvement Co.
102 P.3d 170 (Court of Appeals of Washington, 2004)
McAndrews Group, Ltd., Inc. v. Ehmke
90 P.3d 1123 (Court of Appeals of Washington, 2004)
McAndrews Group, Ltd. v. Ehmke
121 Wash. App. 759 (Court of Appeals of Washington, 2004)
Pacific Industries, Inc. v. Singh
86 P.3d 778 (Court of Appeals of Washington, 2003)

Cite This Page — Counsel Stack

Bluebook (online)
62 P.3d 548, Counsel Stack Legal Research, https://law.counselstack.com/opinion/intermountain-elec-inc-v-gat-bros-const-inc-washctapp-2003.