J. B. Shotwell & Son Excavating & Grading, Inc. v. Mercure Dulles, Inc.

29 Va. Cir. 36, 1992 Va. Cir. LEXIS 40
CourtLoudoun County Circuit Court
DecidedJune 14, 1992
DocketCase No. (Chancery) 13318
StatusPublished

This text of 29 Va. Cir. 36 (J. B. Shotwell & Son Excavating & Grading, Inc. v. Mercure Dulles, Inc.) is published on Counsel Stack Legal Research, covering Loudoun County Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
J. B. Shotwell & Son Excavating & Grading, Inc. v. Mercure Dulles, Inc., 29 Va. Cir. 36, 1992 Va. Cir. LEXIS 40 (Va. Super. Ct. 1992).

Opinion

By Judge Thomas D. Horne

On February 25, 1991, Complainant, J. B. Shotwell & Son Excavating & Grading, Inc. (hereinafter “Shotwell”) filed with this Court its Bill of Complaint for the enforcement of certain mechanic’s liens. It asserts that it entered into a contract with Parcon Construction Company, Inc., as general contractor, to furnish equipment and operators for the grading and earth removal work on Lots 4-A-l-A, 4-A-l-B, 6-A-l and 7-A-l of the Mercure Business Park properties. Lots 4-A-l-A and Lot 7-A-l are owned by Mercure Dulles, Inc. Lot 4-A-l-B is owned by Mercure Land, Inc. NV Mercure Limited Partnership is the owner of Lot 6-A-l.

This case came before the Court on the Pleas in Bar of the Defendants, Mercure Dulles, Inc., and Mercure Land, Inc., to Counts II and III of the Amended Bill of Complaint filed by leave of Court on April 8,1991. In Count II of the Amended Bill, Complainant articulates its claim for the enforcement of a mechanic’s lien against Lots 4-A-l-A and 4-A-l-B. It seeks in Count III to enforce its lien only against Lot 4-A-l-B.

On August 29, 1990, Shotwell recorded its memorandum of mechanic’s lien against Lots 4-A-l-A and 4-A-l-B. Named as owners in the memorandum were Potomac Kitchens/Mercure Limited Partnership (Lot 4-A-l-A) and Hermes Limited Partnership (Lot [37]*374-A-l-B). The work by Shotwell was on an open account and consisted of dump truck rental and site work, including hauling. Also on August 29, 1990, Shotwell filed another memorandum of mechanic’s lien against 4-A-l-B for “dump truck rental and site work, including hauling.”

On December 21, 1990, Lots 4-A-l-A and 4-A-l-B were sold at a foreclosure sale to Mercure Dulles, Inc., and Mercure Land, Inc., respectively, as assignees of Chase Manhattan Bank, N.A. Pursuant to the terms of the foreclosure sale, title was conveyed to Mercure Dulles, Inc., and Mercure Land, Inc., by separate Trustee’s Deeds dated January 22, 1991.

Mercure Land, Inc., was incorporated in the Commonwealth on December 6, 1990. Mercure Dulles, Inc., was incorporated on the same date. Their initial directors and incorporators are the same persons.

The original suit to enforce the mechanic’s lien was filed on February 25, 1991. Mercure Land, Inc., was not named as a party to that action. Mercure Dulles, Inc., was served with process on March 5, 1991.

The evidence introduced in the Plea in Bar demonstrated that as of November 26, 1990, no construction was observed on the property. However, Parcon’s construction trailer was observed on the property until late January, 1991.

Russell Gestl, president of Buchanan Construction Company, testified that his company contracted with Mercure Dulles, Inc., and Mercure Land, Inc., to complete construction of the project known as Mercure Business Park. On his visits of November 26, 1990, and January 17, 1991, he saw no work taking place on the property. While Buchanan contracted with various subcontractors who had worked on the project under Parcon, it specifically notified each of such subcontractors that, without waiving any rights for previous services, their work for Buchanan on the Mercure project was not to be considered a continuation of previous services under Parcon.

Defendants, Mercure Dulles, Inc., and Mercure Land, Inc., contend that as to Count II, the Amended Bill seeks to enforce an unapportioned blanket lien against Lots 4-A-l-A and 4-A-l-B. Both counsel have filed exhaustive memoranda of law on this point. While they rely upon the same authorities in support of their respective positions, they offer different conclusions.

Central to the debate between counsel is their differing interpretations of the holding in Addington-Beaman Lumber Co., Inc. v. Lin-[38]*38coin Savings & Loan, 241 Va. 436 (1991). Counsel for the Defendants would have the Court dismiss Count II because it states a claim on an open account which has not been properly apportioned between the two lots affected by the lien. Furthermore, he suggests that the instant lien does not arise from a single contract for the entire work to be performed on both properties as a whole without express provision for apportionment. Thus, it is not saved by the express terms of such a contract. See, Sargeant v. Denby, 87 Va. 206 (1890).

Counsel for the Complainant suggests that the holding in Addington-Beaman is supportive of its position in this case. That is, where apportionment is impossible or impractical, a failure to apportion is not fatal to the validity and enforcement of the lien. The Court disagrees with such an interpretation of the holding in the case, Addington-Beaman Lumber Co. was a supplier of lumber, roof trusses, etc., in connection with the construction of a townhouse development. These materials were supplied without apportionment on an open account. There was no evidence of a contract between the material supplier and contractor that such materials were furnished for work on the separate lots as a whole. (Emphasis added.) While the Court alluded to the finding of the commissioner that rejected the contention of the materials supplier that such apportionment “was impractical - if not impossible,” this reference must be read with the express holding of the court. That is, the failure to apportion was fatal to the lien, and the mere existence of an open account contractual relationship did not establish, expressly or by implication, an agreement to supply materials for the project as a whole without reference to the individual lots. Conversely, the fact that the materials could be allocated was another factor to be considered in finding that no agreement existed which would lessen the responsibility to allocate. Thus, the Court found:

[u]nder these circumstances where, as here, there were documents which can be identified with charges for individual units, those charges should have been aggregated for the filing of memoranda of lien on specific units. Addington-Beaman at 440.

This Court finds that its decision in this case must be governed by the express language of the Supreme Court that:

[T]he duty to apportion in this case is not diminished by the fact that the parties dealt on an open account basis. As the [39]*39commissioner explicitly found, and contrary to the supplier’s argument, the relationship here did not involve a Sergeant “single contract” for the entire work to be performed for a specified amount on the project as a whole, where there is no duty to apportion. Instead, there was a series of individual but related transactions reflected in the invoices, delivery tickets, and work orders. Under those circumstances, where as here, there were documents which can be identified with charges for individual units, those charges should have been aggregated for the filing of memoranda of lien on specific units. Addington-Beaman at 440.

The cases are legion concerning the duty of the mechanic’s lienor to apportion. This duty arises because the:

[mjechanics lien law in Virginia will not permit a claimant to file an over-inclusive lien and then leave it to the trial court to excise any excess property. It is the mechanic’s duty to place his lien upon the property on which he worked and no more. Woodington Electric v. Lincoln Savings, 238 Va. 623, 634 (1989).

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Related

Woodington Electric, Inc. v. Lincoln Savings & Loan Ass'n
385 S.E.2d 872 (Supreme Court of Virginia, 1989)
Mendenhall v. Douglas L. Cooper, Inc.
387 S.E.2d 468 (Supreme Court of Virginia, 1990)
Addington-Beaman Lumber Co. v. Lincoln Savings & Loan Ass'n
403 S.E.2d 688 (Supreme Court of Virginia, 1991)
Hadrup v. Sale
111 S.E.2d 405 (Supreme Court of Virginia, 1959)
Northern Virginia Savings & Loan Ass'n v. J. B. Kendall Co.
135 S.E.2d 178 (Supreme Court of Virginia, 1964)
JAMES T. BUSH CONST. CO., INC. v. Patel
412 S.E.2d 703 (Supreme Court of Virginia, 1992)
Sergeant v. Denby
12 S.E. 402 (Supreme Court of Virginia, 1890)

Cite This Page — Counsel Stack

Bluebook (online)
29 Va. Cir. 36, 1992 Va. Cir. LEXIS 40, Counsel Stack Legal Research, https://law.counselstack.com/opinion/j-b-shotwell-son-excavating-grading-inc-v-mercure-dulles-inc-vaccloudoun-1992.