LHC, INC. v. Alvarez

2007 MT 123, 160 P.3d 502, 337 Mont. 294, 2007 Mont. LEXIS 229
CourtMontana Supreme Court
DecidedMay 30, 2007
DocketDA 06-0407
StatusPublished
Cited by18 cases

This text of 2007 MT 123 (LHC, INC. v. Alvarez) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
LHC, INC. v. Alvarez, 2007 MT 123, 160 P.3d 502, 337 Mont. 294, 2007 Mont. LEXIS 229 (Mo. 2007).

Opinions

JUSTICE LEAPHART

delivered the Opinion of the Court.

¶1 Plaintiff LHC, Inc., filed a construction lien against defendant Roberto Alvarez and defendant First National Bank of Montana, Inc. The Bank was later dismissed pursuant to the stipulation of the parties. LHC, a concrete and gravel supplier, had supplied concrete to John Young, d/b/a D Bar J Logging, Inc., and D Bar J Asphalt (Young), a contractor employed by Alvarez to do paving work. Young failed to pay LHC the total due for the supplied material. LHC then filed a construction hen against Alvarez’s property. Alvarez admitted that concrete supplied by LHC was used in the construction of its mini-storage facility, but disputed the dates and amount supplied, as well as the validity of the construction lien. After a bench trial, the District Court enforced the construction lien and awarded prejudgment interest as well as attorney fees and costs. Alvarez appeals from the judgment. We affirm.

¶2 Alvarez raises four issues on appeal:

¶3 I. Did the court err when it considered deliveries outside of the timeline established in LHC’s construction lien?

¶4 II. Did the court err in finding that LHC’s concrete was delivered to Alvarez’s mini-storage facility on August 11, 12 and 13?

¶5 III. Did the court err in awarding prejudgment interest?

¶6 IV. Did the court err in awarding attorney fees?

BACKGROUND

¶7 In 2003, Alvarez engaged Young to perform paving services in [296]*296connection with the construction of a mini-storage facility. Young purchased concrete and other materials from LHC for use at the Alvarez property. At the time, Young had outstanding debts to LHC from past projects unrelated to the work he was doing for Alvarez.

¶8 LHC delivered concrete to the Alvarez property from August 5 to 8,2003, as recorded in invoice 6521 (in the amount of $20,119). Invoice 24470 is for concrete delivered to the Alvarez property on August 14, 2003 (in the amount of $400.50). Invoice 6576 is, according to LHC’s records, for delivery on August 11, 12, and 13, 2003 (in the amount of $3356.10). The fourth invoice, 6612, is for flowboys and water trucks delivered on July 29 and 30 and August 5, 7, and 8, 2003 (in the amount of $4,475).

¶9 LHC did not maintain separate accounts for Young’s different projects. At the time Young began purchasing materials for use on Alvarez’s property, he had an outstanding balance of between $28,000 and $29,000 with LHC. When Young made payments to LHC, LHC applied those payments to Young’s oldest outstanding invoices.

¶10 Alvarez paid Young a total of about $60,000 for his work. On August 25, 2003, Young paid LHC $30,000. Only about $4,000 of this went to the Alvarez invoices. The rest went to other job invoices incurred prior to the Alvarez project. On October 9, 2003, Young paid LHC $10,000. LHC directed portions of this payment to invoices incurred by Young after the Alvarez project.

¶11 On November 10,2003, LHC filed a construction lien on Alvarez’s property. The lien stated that the balance remaining unpaid was $16,568, together with interest and costs. Additionally, the lien stated that the “materials were first furnished on August 9, 2003, and were last furnished on August 14, 2003.” On September 7, 2004, Alvarez filed a complaint against LHC. On October 1, 2004, LHC filed a separate claim against Alvarez. The two cases were consolidated. After a bench trial, the court found for LHC, granting judgment on the lien in the amount of $24,241.40, including $5,945 in attorney fees, $620 in costs, and $3,474.82 in prejudgment interest from the date of the filing of the lien.

¶12 Alvarez appeals the District Court’s enforcement of the lien as well as its grant of attorney fees and prejudgment interest.

STANDARD OF REVIEW

¶13 We review conclusions of law, including statutory interpretation, de novo. James Talcott Const. v. P & D, 2006 MT 188, ¶ 26, 333 Mont. 107, ¶ 26, 141 P.3d 1200, ¶ 26.

[297]*297¶14 We review findings of fact to determine whether the findings Eire clearly erroneous using a three-part test. First, we review the record to determine if the findings are supported by substantial evidence; second, if the findings are supported by substantial evidence, we will determine if the trial court has misapprehended the effect of the evidence; and third, if substantial evidence exists and the effect of the evidence has not been misapprehended, the Court may still conclude that a finding is clearly erroneous when a review of the record leaves the Court with the definite and firm conviction that a mistake has been made. James Talcott Const., ¶ 26 (citations omitted).

¶15 We review a district court’s award of prejudgment interest de novo. James Talcott Const., ¶ 28 (citations omitted).

¶16 We review a district court’s order granting or denying attorney fees and costs to determine whether the court abused its discretion. James Talcott Const., ¶ 27 (citations omitted).

DISCUSSION

¶17 I. Did the court err when it considered deliveries outside of the timeline established in LHC’s construction lien?

¶18 Alvarez contends that the court should not have granted judgment for deliveries made outside of the dates listed in LHC’s construction lien. The lien states that it is for materials furnished between August 9 and August 14,2003. Section 71-3-535(3)(g)(i) and (ii), MCA, requires that a lien state the dates materials were furnished. Thus, according to Alvarez, the claimed lien should not be enforced for the amounts documented in invoice 6521 (August 5 to 8) and invoice 6612 (July 29 and 30 and August 5, 7 and 8), because these invoices are for delivery dates not stated in the lien.

¶19 The District Court, however, refused to consider this argument because Alvarez raised it for the first time in his post-trial findings of fact and conclusions of law. Alvarez disputes this and asserts that he argued the issue in his pretrial order by stating: “[t]he LHC Lien was filed without right whatsoever.” Similarly, Alvarez stated in the complaint that “[t]he LHC lien is without right whatsoever.”

¶20 It is well-established that we will not address issues on appeal that were not properly raised in the district court. Nason v. Leistiko, 1998 MT 217, ¶ 11, 290 Mont. 460, ¶ 11, 963 P.2d 1279, ¶ 11 (citations omitted). We concluded in Marsh v. Overland, and reaffirmed in Nason, that where a party fails to raise an issue in the pleadings, does not present argument on the issue during the hearing on the merits of the case, does not move to amend the pleadings to conform to any [298]*298evidence presented and raises the issue for the first time in a post-hearing memorandum that the district court does not address in its order, the issue has not been timely raised and may not be raised on appeal. Nason, ¶ 18 (citing Marsh v. Overland, 274 Mont. 21, 29, 905 P.2d 1088, 1093 (1995)).

¶21 Here, Avarez’s general assertion, in his complaint and in the pretrial order, that the lien was filed “without right whatsoever,” failed to specifically raise the argument that delivery dates not listed in the lien should not be enforced.

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LHC, INC. v. Alvarez
2007 MT 123 (Montana Supreme Court, 2007)

Cite This Page — Counsel Stack

Bluebook (online)
2007 MT 123, 160 P.3d 502, 337 Mont. 294, 2007 Mont. LEXIS 229, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lhc-inc-v-alvarez-mont-2007.