Lundstrom Construction Co. v. Dygert

94 N.W.2d 527, 254 Minn. 224, 1959 Minn. LEXIS 543
CourtSupreme Court of Minnesota
DecidedJanuary 30, 1959
Docket37,450
StatusPublished
Cited by29 cases

This text of 94 N.W.2d 527 (Lundstrom Construction Co. v. Dygert) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lundstrom Construction Co. v. Dygert, 94 N.W.2d 527, 254 Minn. 224, 1959 Minn. LEXIS 543 (Mich. 1959).

Opinion

Matson, Justice.

Appeal from an order denying defendants’ motion for a new trial.

This is an action by plaintiff, a building contractor, to foreclose a mechanics lien. Plaintiff and defendants entered into a written contract on January 9, 1953, for the construction of a private residence for defendants. Six blueprints (or plans) and a four-page “Description of Materials” (specifications) were also prepared. The contract price was $45,000. Work began at the Lake Minnetonka site in January 1953 and continued sporadically until December 1953, although the job was substantially completed in August 1953. As required by the contract, defendants made large monthly payments. By September it was clear that defendants were dissatisfied with several aspects of the work. Defendants, by letter of September 1, 1953, informed plaintiff that they would not pay the August bill “until complete [lien] waivers are received * * Plaintiff furnished defendants with several lien waivers *226 of subcontractors, and on October 6, 1953, plaintiff also executed his own mechanics lien waiver. Four days after receiving plaintiff’s lien waiver, defendants made a payment of $5,494; leaving a balance of $6,322.73 still owing under the contract. Defendants have made no further payments. Plaintiff brought this action to recover not only such contract balance but also $3,056.39 for “extras.”

Contrary to defendants’ contention, the trial court held that plaintiff’s lien waiver was not a complete waiver and that he was entitled to a mechanics lien upon the premises for the entire balance due him, and further held that plaintiff’s action was not barred by his failure to pay the subcontractors as required by the building contract provision authorizing defendants to withhold payment until he had done so. The trial court, after allowing defendants a credit of $923.24 for expenses incurred in correcting defects in plaintiff’s work, awarded plaintiff the sum of $7,595.80 which sum included $2,196.34 for extras. The court also allowed plaintiff attorneys’ fees and costs and adjudged plaintiff’s lien be foreclosed by a sale of the premises.

Upon this appeal from an order denying defendants’ motion for a new trial, we have these issues: (1) Was plaintiff’s October 6, 1953, lien waiver a complete waiver of his mechanics lien rights? (2) Did the trial court err in excluding defendants’ exhibit 16, a memorandum which was used in the preliminary negotiations to indicate the budding details to be included in the subsequently drawn budding specifications, when such memorandum was offered for the sole purpose of clarifying ambiguities in the budding specifications? (3) Was plaintiff’s action barred because of a budding contract provision authorizing defendants to withhold payment untd ad subcontractors had actuady been paid even though they had signed den waivers? (4) Was plaintiff entitled to recover for “extras” when he at no time compded with a contract provision requiring that ad costs of “extras” be first agreed upon in writing? (5) Are the trial court’s findings as to plaintiff’s “extras” and defendants’ “credits” supported by the evidence?

We turn to the first issue as to whether plaintiff’s den waiver was a complete waiver of ad his mechanics den rights or only a partial waiver. The waiver consisted of a standard form containing blanks which plain *227 tiff had filled in on a typewriter. 1 In the receipt portion of the form plaintiff acknowledged full payment of all “Carpenter labor, dishwasher & disposal.” The final three lines of the form, which remained unchanged, stated explicitly that plaintiff “waives all rights * * * to file mechanics’ liens against said premises for labor, skill or material furnished to said premises prior to the date hereof.” (Italics supplied.)

There is no merit in plaintiff’s contention that the lien waiver was a partial one limited to the specified items of “Carpenter labor, dishwasher *228 & disposal.” Partial waivers of mechanics liens are recognized,* 2 but to be effective as such they must be properly drawn. In Decatur Lbr. Co. v. Crail, 350 Ill. 319, 324, 183 N. E. 228, 230, the court said:

“* * * While a waiver of lien for a clearly expressed special purpose will be confined by the courts to the purpose intended, yet where a general waiver is executed and there is nothing in the context to show a contrary intention there is nothing left for the court to do but enforce the contract as the parties have made it.” (Italics supplied.)

Here the plaintiff in clear and express terms waived all his lien rights for labor or materials furnished prior to the date thereof, despite the fact that the waiver provision was preceded by an acknowledgment of receipt of payment for specific items. Even if we assume that the preceding receipt provision in some way modified the explicit and unqualified lien waiver which immediately followed, the resulting modification at most created an ambiguity. An ambiguity as to the scope or completeness of a lien waiver is to be resolved by taking into consideration the purpose for which the lien waiver was executed. 3 In this case plaintiff executed the waiver in response to defendants’ demands for complete waivers as a condition to the making of further payments. We also have the significant circumstance that plaintiff used a printed form which on its face carried the admonition, “If payment is not in full to date, so state. Show unpaid balance, and strike out last *229 three lines.” (Italics supplied.) Despite this admonition, plaintiff did not strike out the last three lines but let them stand as an absolute renunciation of all his lien rights.

In Crane Co. v. Advance Plumbing & Heating Co. 177 Minn. 132, 224 N. W. 847, where a materialman’s letter releasing certain lien rights was construed to determine if a third-party lender was justified in relying upon the release in advancing mortgage loan money, the decision holding the release to be a complete waiver was in part based on estoppel. In construing the lienor’s letter of release, we appropriately pointed out that the lienor’s expressed intent and not bis actual intent controls. In so doing we said (177 Minn. 135, 224 N. W. 848):

“* * * Such releases are ordinarily furnished contractors to enable them to get money from somebody. * * * So when money is paid upon the faith thereof, as the parties must expect it to be, the releasor cannot then qualify or limit the reasonable purport of his own language by some mental reservation of his own, or some remote and far-fetched implication to which his language is susceptible only when read with no reference to the circumstances of its origin and intended use.”

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Bluebook (online)
94 N.W.2d 527, 254 Minn. 224, 1959 Minn. LEXIS 543, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lundstrom-construction-co-v-dygert-minn-1959.