Lafayette Tennis Club, Inc. v. C. W. Ellison Builders, Inc.

406 N.E.2d 1211, 77 Ind. Dec. 129, 1980 Ind. App. LEXIS 1555
CourtIndiana Court of Appeals
DecidedJuly 14, 1980
Docket3-178A11
StatusPublished
Cited by13 cases

This text of 406 N.E.2d 1211 (Lafayette Tennis Club, Inc. v. C. W. Ellison Builders, Inc.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lafayette Tennis Club, Inc. v. C. W. Ellison Builders, Inc., 406 N.E.2d 1211, 77 Ind. Dec. 129, 1980 Ind. App. LEXIS 1555 (Ind. Ct. App. 1980).

Opinions

GARRARD, Presiding Judge.

In 1973 Sidney L. Berger, Harriett Berger and Sandor Lippai began plans for the construction of an indoor tennis facility to be located on real estate which they owned in the City of Lafayette. On April 7, 1973, a proposal was submitted by C. W. Ellison Builders, Inc. (Ellison) to provide materials, labor and equipment for the general construction of the facility. This proposal included site work, concrete, building systems, the storm drain system, masonry, and miscellaneous work for a total price of $103,000. Work was to commence within one week and be substantially completed within 112 days. Ellison also made additional proposals for other segments of the work which were accepted by the owners subsequent to the commencement of construction.

Plans for the building and a survey of the property were completed by the owners at the beginning of April and Ellison began construction on April 11, 1973. The erection of the steel building was sublet by Ellison to A & B Construction, Inc. Numerous problems developed which resulted in substantial delays in the construction. The responsibility for these delays and the additional proposals by Ellison form the basis of the dispute on appeal.

Ellison contends that its work was substantially completed on September 11,1973, and it filed a notice of mechanic’s lien on September 12, 1973 in the amount of $80,-000. The notice was properly filed, served and recorded. On October 19, 1973, A & B Construction, Inc. filed a notice of mechanic’s lien in the amount of $10,954.90. This notice was also properly filed, served and recorded. On November 19, 1973 Sidney Berger, as President of the Lafayette Tennis Club, sent a letter to Mr. Ellison which stated:

“In spite of repeated efforts on our part to obtain an itemized statement from you for the work, including extras which you claim to have been done by you on our property, we seem to be unable to get one.
Please file suit on your Mechanic’s Lien which you filed in order that the matter may be brought to a head.”

Mr. Ellison failed to respond to this letter and did not file suit.

[1213]*1213Litigation was initiated on July 18, 1974 by A & B Construction, Inc. to recover $11,202 from C. W. Ellison Builders, Inc. and to foreclose its mechanic’s lien against the real estate. Named as defendants in the suit were C. W. Ellison Builders, Inc., Lafayette Tennis Club, Sidney L. Berger, Harriett Berger, Sandor Lippai, Carolyn Lippai, Indiana National Bank and Indiana Mortgage Corporation, John Howe, Kemple Construction Company, and Berger Steel Company, Inc. Subcontractors John Howe and Kemple Construction Company disclaimed any interest in the real estate because they had received payment from the owners. After a motion to default, C. W. Ellison Builders, Inc. filed an answer to plaintiff’s complaint and a counter-claim against A & B Construction, Inc. The remaining defendants filed a joint answer in which Carolyn Lippai, Indiana Mortgage Corporation and Berger Steel Company, Inc. disclaimed all interests. Ellison also filed a cross-claim seeking judgment against the defendants, Sidney L. Berger, Harriett Berger, Sandor Lippai, Carolyn Lippai and Berger Steel Company, Inc. and requesting foreclosure of its mechanic’s lien. Subsequently, the cross-claim was amended to provide greater detail and statistics. An answer was properly filed by the cross-defendants which alleged, in Legal Paragraph II, that Ellison’s mechanic’s lien was filed on September 13, 1973; that the owners gave Ellison notice to sue on November 19, 1973; that no suit was brought on the mechanic’s lien until the original cross-claim was filed on June 14, 1974; and that by virtue thereof, Ellison lost its right to claim or foreclose its mechanic’s lien by failing to file suit within 30 days after notice.

Ellison then filed a motion to strike Legal Paragraph II of the cross-defendants’ answer. On April 29, 1975 the trial court granted this motion. Trial was held and on September 10, 1975 judgment was entered. Both Ellison and the cross-defendant owners filed motions to correct errors and on January 9, 1976 the court entered a second order amending and correcting the first order. C. W. Ellison Builders, Inc. was granted judgment entitling it to foreclose its mechanic’s lien against the real estate in the amount of $75,203.19. A & B Construction, Inc. was granted a judgment against Ellison in the amount of $13,224 plus interest and a foreclosure sale was ordered.

Four motions to correct errors were subsequently filed and a special judge was appointed. On October 20, 1977 the special judge overruled all pending motions to correct errors. This appeal was brought by the cross-defendant owners, Lafayette Tennis Club, Inc., Sidney L. Berger, Harriett Berger and Sandor Lippai (Tennis Club).

The first issue presented for review is whether the trial court erred in striking Legal Paragraph II from the cross-defendants’ answer to Ellison’s amended cross-claim, which asserted that Ellison had lost its right to assert and foreclose its mechanic’s lien by failing to file suit within 30 days after receiving notice to sue.

Tennis Club contends that the letter from Sidney Berger on November 19, 1973, ante, constituted notice to commence suit under the statute hereinafter set forth. The trial court held otherwise, and we agree.

The Indiana decisions have established twin principles applicable to the construction of mechanic’s lien laws. Provisions relating to the creation, existence or persons entitled to claim a lien are to be strictly construed since the lien rights created are in derogation of the common law. Provisions relating to enforcement of the lien, once it has attached, should be liberally construed to effect the remedial purposes of the statute. See 19 I.L.E. Mechanics Liens § 4 and cases cited therein.

We are thus asked to construe the provision of the statute that furnishes the landowner with a means for securing prompt determination of lien interests. IC 32-8-3— 10 provides:

“The owner of property upon which a mechanic’s lien has been taken, or any person or corporation having an interest therein, including mortgagees and lien-holders, may notify, in writing, the owner or holder of the lien to commence suit [1214]*1214thereon and if he fails to commence such suit within thirty (30) days after receiving such notice, the lien shall be null and void, but nothing contained herein shall prevent the claim from being collected as other claims are collected by law.
Any person who has given such notice by registered or certified mail to the holder of the lien at the address given in the notice of lien recorded may file an affidavit of service of said notice to commence suit with the recorder of the county in which said real estate is situated, which affidavit shall state the facts of said notice and that more than thirty (30) days have passed and no suit for foreclosure of said lien is pending and no unsatisfied judgment has been rendered on said lien; and it shall be the duty of the recorder to record said affidavit in the miscellaneous record book of his office and to certify on the face of the record of any such lien that the same is fully released and the real estate described in said lien shall thereupon be released from the lien thereof.”

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

Related

Gillespie v. Niles
956 N.E.2d 744 (Indiana Court of Appeals, 2011)
Wind Dance Farm, Inc. v. Hughes Supply, Inc.
792 N.E.2d 79 (Indiana Court of Appeals, 2003)
Weiss v. INDIANA FSSA
741 N.E.2d 398 (Indiana Court of Appeals, 2000)
Mendenhall v. SKINNER AND BROADBENT CO.
728 N.E.2d 140 (Indiana Supreme Court, 2000)
Barrington Management Co. v. Paul E. Draper Family Ltd.
695 N.E.2d 135 (Indiana Court of Appeals, 1998)
Edwards v. Bethlehem Steel Corp.
517 N.E.2d 430 (Indiana Court of Appeals, 1988)
Lee & Mayfield, Inc. v. Lykowski House Moving Engineers, Inc.
489 N.E.2d 603 (Indiana Court of Appeals, 1986)
Lafayette Tennis Club, Inc. v. C. W. Ellison Builders, Inc.
406 N.E.2d 1211 (Indiana Court of Appeals, 1980)

Cite This Page — Counsel Stack

Bluebook (online)
406 N.E.2d 1211, 77 Ind. Dec. 129, 1980 Ind. App. LEXIS 1555, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lafayette-tennis-club-inc-v-c-w-ellison-builders-inc-indctapp-1980.