Louisiana Glass & Mirror Works, Ltd. v. Irwin

52 So. 765, 126 La. 555, 1910 La. LEXIS 696
Supreme Court of Louisiana·Decided June 6, 1910·No. No. 18,234·Published·Cited by 14 cases

Opinion

LAND, J.

The case for review is clearly stated by the judge of the First city court as follows:

“In this suit judgment is sought to be obtained against Mrs. Irwin, with lien and privilege on her property, plaintiff claiming that in the year 1909 plaintiff furnished, sold, and delivered certain materials, etc., which were used by the contractor Shaddinger, in the construction, repair, building, or reconstruction of a house on property owned by Mrs. Irwin.
. “There is no contention as to the facts; the case as presented to the court showing as follows:
“That the contract exceeded $100; that there was no written contract, and that there was no bond; that the material sued for in this case was used in the construction of the building referred to in the petition herein; that no attested account was served on Mrs. Irwin, within 45 days from the completion of the contract; and that no sworn account of plaintiff was recorded in the mortgage office of this parish.”

The judge held that the plaintiff had no lien or privilege for want of the registry of its claim as required by law, and had no recourse against the owner personally, because of plaintiff’s failure to file a sworn statement of its claim with the owner, and to record a similar sworn statement in the mortgage office within 45 days after the completion of the building, as required by paragraph 4, § 1, of Act 134 of 1906.

From a judgment dismissing the suit as to Mrs. Irwin, the plaintiff appealed to the Court of Appeal, where the cause was heard and determined by one of the judges of said court.

Without assigning any reasons in writing the judgment was amended by condemning Mrs. Irwin, in solido, with the contractor, to pay the full amount sued for, with interest [557] and costs, and by recognizing the lien and privilege as claimed by the plaintiff on Mrs. Irwin’s lot and building. The case comes before us on a writ of review.

The decision of this cause hinges on the proper construction of Act No. 134, p. 223, of 1906, relative to building contracts in cities of over 50,000 inhabitants.

The provisions of said statute may be succinctly stated as follows:

The first section provides that all building contracts for $1,000 or more shall be in writing and signed by the parties, and shall be duly recorded in the office of the recorder of mortgages, wherein the work is to be executed, before the day fixed on which said work is to commence, and not later than seven days after the date of the contract; and that such recordation shall create a lien and privilege on the building and ground or other work, in favor of the contractor, subcontractor, workman, furnisher of materials, etc., as their interests may appear.

The second paragraph provides that the owner shall require of the contractor a good and solvent bond for not less than one-half of the amount of the contract price, to be recorded with the contract, and conditioned for the true and faithful performance of the contract, and the payment of all subcontractors, workmen, laborers, mechanics, and furnishers of materials, etc., said bond to be made in favor of the owner, subcontractors, etc.

The third paragraph provides that every person having a claim against the contract- or, etc., shall file a sworn statement thereof with the owner, and shall record a sworn statement thereof in the office of the recorder of mortgages for the parish where the work has been done within 45 days after the completion of the contract.

The fourth paragraph provides that, if at the expiration of said 45 days there are no such recorded claims, the recorder of mortgages shall, at the request of any party in interest, cancel and erase all inscriptions of the contract and bond.

The fifth paragraph relates to proceedings on objection to the solvency of the surety on the contractor’s bond.

The sixth and seventh paragraphs read as follows, to wit:

“If objection is made to the sufficiency or solvency of the surety, this objection shall be tried summarily, and if the surety is found to be not solvent or insufficient to cover the full amount for which he is bound, or if the owner fails to exact said bond, or if he fails to have the same recorded in the office of the recorder of mortgages in the manner and within the time hereinabove provided, the owner shall be deemed in default, and shall be liable to the same extent as the surety would have been. The surety herein shall be limited to such defenses only as the principal on the bond could make.”
“The purpose of this act is to require owners to secure bond with solvent and sufficient surety from the undertaker, contractor, master mechanic or engineer, for the protection of all parties interested in the contract, as their interests may appear, and which said surety is to stand in the place and stead of a defaulting undertaker, contractor, master mechanic or engineer.”

If the owner be bound under the statute he is “liable to the same extent as the surety would have been.” The owner who has failed to exact bond and surety is on the same plane with the owner who has permitted the contractor to give an insolvent or insufficient surety.

It is very clear, in the case of an insufficient or insolvent surety, that a person, who has failed to file a sworn statement of his claim with the owner, and to duly record the same, within the delay of 45 days, has no right of action on the bond, which may be summarily erased and canceled upon the written demand of any party in interest. In case no bond be furnished, nothing prevents the workman or furnisher of materials from filing his sworn statement with the owner, and recording his claim within the legal delay, for the purpose of holding the owner as surety.

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Louisiana Glass & Mirror Works, Ltd. v. Irwin, 52 So. 765, 126 La. 555, 1910 La. LEXIS 696 (La. 1910).

52 So. 765 (Louisiana Glass & Mirror Works, Ltd. v. Irwin) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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