Larson Concrete Co. v. Stroschein

353 N.W.2d 354, 1984 S.D. LEXIS 357
CourtSouth Dakota Supreme Court
DecidedAugust 15, 1984
Docket14187
StatusPublished
Cited by5 cases

This text of 353 N.W.2d 354 (Larson Concrete Co. v. Stroschein) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Larson Concrete Co. v. Stroschein, 353 N.W.2d 354, 1984 S.D. LEXIS 357 (S.D. 1984).

Opinions

MORGAN, Justice.

Larson Concrete (supplier) brought a foreclosure action against the Stroscheins’ (owners) property based on a valid mechanic’s lien that was filed on February 18,1980 and modified on March 10, 1980. A trial was held on November 9, 1982, and in a judgment entered March 1, 1983, the trial court denied supplier a recovery on its mechanic’s lien and ordered supplier to reimburse owners for the amount of attorney fees for defense of this action in the amount of $500.00. Notice of appeal from final judgment, pursuant to SDCL 15-26A-3(1) and (4), was filed April 26, 1983, and subsequently amended on April 27, 1983. We affirm in part, reverse and remand in part.

Supplier sold ready-mixed concrete to Mike Stucky, d/b/a Double Diamond Construction (contractor), on an open account from July 1979 to December 1979. Concrete supplied to contractor was delivered to owners’ farm between October 26, 1979, and November 21, 1979, and was billed to contractor’s open account at $5,222.09. The concrete was poured and left in place [356]*356on owners’ farm pursuant to a contract between owners and contractor.

On November 26, 1979, owners paid contractor $13,600.75, the amount billed, as total payment for the improvements, including all materials and labor. Owners’ check for $13,600.75 was made payable to contractor only. On December 1, 1979, contractor deposited the check, together with a check from another job, into his checking account and brought that account’s balance to $20,183.23. No other deposits were made to contractor’s account between December 1 and December 17, 1979. On December 17, contractor wrote a check to the supplier for $10,000.00 in partial payment of the balance due on his open account. Payment was made to supplier without instructions regarding its application to the various items comprising the open account. Contractor’s December 17 payment was credited to his open account on December 18 and applied to the oldest items on that account. The supplier’s standard procedure was to apply all payments on open accounts to the oldest items first. A balance of $7,500.60 remained due on contractor's open account after application of the December 17 payment. Further collection efforts failed and on January 30, 1980, the balance due on the open account was $8,376.42. On February 14, 1980, supplier filed mechanic’s liens against all of the improved real property to which concrete had last been delivered on the contractor’s account within the 120-day lien period. The lien at issue here was reserved and re-filed on March 10, 1980, in order to clarify the description of the owners. Owners were notified of supplier’s lien claim and the lien was properly filed with the register of deeds within 120 days of the last delivery to owners’ farm; its validity is not questioned.

The debt at issue here was owed by contractor to supplier. Owners had paid contractor in full. Contractor, in turn, transferred a portion of that payment to supplier in partial payment of the balance due on his open account without designating application of the open account payment to any specific item as per SDCL 20-4-7. Supplier’s application of contractor’s partial payment to the oldest items on the account complied with its rights as a creditor under SDCL 20-4-8 and the schedule for applying payments made on open accounts set out in SDCL 20-4-9.

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Larson Concrete Co. v. Stroschein
353 N.W.2d 354 (South Dakota Supreme Court, 1984)

Cite This Page — Counsel Stack

Bluebook (online)
353 N.W.2d 354, 1984 S.D. LEXIS 357, Counsel Stack Legal Research, https://law.counselstack.com/opinion/larson-concrete-co-v-stroschein-sd-1984.