J. J. Clarke Co. v. Petivan

109 So. 913, 161 La. 1095, 1926 La. LEXIS 2184
CourtSupreme Court of Louisiana
DecidedOctober 5, 1926
DocketNo. 27980.
StatusPublished
Cited by7 cases

This text of 109 So. 913 (J. J. Clarke Co. v. Petivan) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
J. J. Clarke Co. v. Petivan, 109 So. 913, 161 La. 1095, 1926 La. LEXIS 2184 (La. 1926).

Opinion

THOMPSON, J.

This is a suit against the owner and contractor for the price of materials furnished to the contractor and used by him in constructing a building for the owner. The contractor made no defense,' and judgment was rendered against him by default.

The owner of the building alleged, as a defense, that no contractual relations existed between her and the furnisher of materials, and hence she was not bound personally for such materials.

She further alleged that the evidence of plaintiff’s claim was not recorded until moré than 45 days after the building was completed and accepted by her, and hence plaintiff had no privilege on her property.

There was judgment of the district court rejecting plaintiff’s demand against the owner, and that judgment was affirmed by the Court of Appeal.

It appears that the building contract was entered into between the owner and contractor on July 11, 1921.

The contract was in writing, fixed the price to be paid the contractor at $5,400, and. the contract was duly recorded. The owner, however, failed to obtain a bond from the contractor for the protection of the laborers and furnishers of material. The building was completed and accepted by the owner on. or before October 1, 1921, and within 15 days thereafter the owner settled with the contractor in full.

Oix January 3, 1922, the owner made and caused to be recorded in the mortgage office an affidavit in which she declared “that the contract has been completed, and the work has this day been accepted, and notice given to the recorder of mortgages of the parish of Orleans of the acceptance and record the same in his office, according to law.”

Following the record of notice of acceptance, the plaintiff filed and caused to be recorded -in the mortgage office proper evidence of its claim and served the same upon the owner. This record was made on January 14, 1922.

The question presented is whether, in these circumstances, the liability of the own *1097 er and the' rights of the furnisher of material are to he determined by Act No. 229 of 1916, or by Act No. 262 of the same year, both of said acts being approved on the same day.

If the rights of the parties are to be regulated by Act No. 229, then the plaintiff has no privilege for the materials furnished, since the claim was not recorded within 45 days after the completion of the building and its acceptance by the owner, which acceptance, as we have seen, was on October 1, 1921, and the record of plaintiff’s claim was not .made until January 14, 1922. The acceptance, under Act No. 229 of 1916, was not required to be in writing, and no notice of such acceptance was required to be registered.

On the other hand, if Act No. 262 is controlling, then the plaintiff is entitled to recover because that act requires a notice by the owner of his acceptance to be recorded in the mortgage office and the privilege of the furnisher of materials, which is created by registry of the contract, is preserved, if recorded within 45 days after the registry of the notice of acceptance.

The Court of Appeal held that Act No. 229 applies to all building contracts where the parties have not complied with all of the provisions and requirements of Act No. 262 of 1916'

As a basis for the decision, the Court of Appeal cited a number of its own decisions and the following decisions of this court; Glass & Mirror Works v. Irwin, 126 La. 555, 52 So. 765; Musey v. Prater, 147 La. 71, 84 So. 498; Gleissner v. Hughes, 153 La. 133, 95 So. 529; Rose v. Eunice Electric Theatre, 154 La. 81, 97 So. 322.

In the first-cited case of this court, it appears that the theory on which the owner was declared not liable personally was that, under Act No. 134 of 1906, the owner was only bound “to the saíne extent as the surety would have been,” and the surety was not bound except as to claims duly recorded within the legal delay.

Under the act of 1906 with which the court was then dealing, lien claimants were required not only to record sworn statements of their accounts, but to file duplicates with the owner within 45 days after the completion of the building. The court found that the claimants had not complied with the requirement, and hence correctly held that the claimants had no lien, and, being without right against the surety if one'had been required by the owner, no liability could be attached to the owner.

In the Musey Case the materialmen had not served attested accounts on the owner, but had filed their accounts with the recorder of mortgages.

The issue presented was whether the accounts should have been served on the owner.

The contract in that case had not been recorded, and the bond was not taken in favor of the materialmen and laborers, and, moreover, was not recorded.

For these reasons the court, on rehearing, held that the owner could not claim the benefits of Act No. 262. The court said:

“These two acts, when construed together, would seem to make it unnecessary for the materialmen, * * * etc., in order to preserve their liens and privileges on the property of the owner, to file sworn statements with the owner.
“We are of the opinion that Act No. 229 refers to all building contracts, regardless of amount, whether verbal or in writing, where no bond, or defective bond, is given by the contractor, and the contract and bond are not recorded in the manner provided for in Act No. 262; and, as none of these things were done by plaintiff in this cause, the materialmen, defendants, have the right to assert their liens and privileges given them, under Act No. 229.”

The court in that case found that, as the owner had not complied with any of the provisions of Act No. 262, he could not claim the benefit of any of the provisions of that act, and, as the materialmen had complied with Act No. 229, they were entitled to the privileges claimed under said act, notwithstanding *1099 such materialmen had not complied with Act No. 262 by filing their claims with the owner.

In the Gleissner Case, the building was constructed by the owner under an agreement with a superintendent on a cost plus basis. The principal issue involved was as to whether the claims had been recorded in time to take priority over mortgages existing on the property.

■The court held that, under Act No. 229, the filing and registry of the claim for materials was timely, if made within 45 days from the last delivery of materials. The case was clearly governed by Act No. 229, for the building was constructed by the owner through a superintendent.

The provisions of Act No. 262 were not at issue and were not even referred to in either the original opinion or the one on rehearing.

In the last case cited, the theater company undertook the work of constructing a brick building through a firm of architects who employed a purchasing agent.

The foreman of the work made a contract with Rose to furnish the material and labor to install the plumbing, heating, and electrical work for the building.

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Bluebook (online)
109 So. 913, 161 La. 1095, 1926 La. LEXIS 2184, Counsel Stack Legal Research, https://law.counselstack.com/opinion/j-j-clarke-co-v-petivan-la-1926.