M. Arthur Gensler, Jr., & Associates, Inc. v. Larry Barrett, Inc.

499 P.2d 503, 7 Cal. 3d 695, 103 Cal. Rptr. 247, 1972 Cal. LEXIS 222
CourtCalifornia Supreme Court
DecidedJuly 25, 1972
DocketS.F. 22863
StatusPublished
Cited by15 cases

This text of 499 P.2d 503 (M. Arthur Gensler, Jr., & Associates, Inc. v. Larry Barrett, Inc.) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
M. Arthur Gensler, Jr., & Associates, Inc. v. Larry Barrett, Inc., 499 P.2d 503, 7 Cal. 3d 695, 103 Cal. Rptr. 247, 1972 Cal. LEXIS 222 (Cal. 1972).

Opinion

Opinion

McCOMB, J.

This is an action to foreclose mechanics’ liens filed, by plaintiffs M. Arthur Gensler, Jr. & Associates, Inc., and Lambert & Wells Construction Company, an architectural firm and a general contractor, *698 respectively, in connection with services performed by them in remodeling the third floor of defendant’s building for its lessee, Tourist Information Program Service (“TIPS”). The issues raised on appeal were first raised in defendant’s trial briefs, filed after the evidence was in.

In late April 1968 Barrett leased 13 offices on the third floor of its premises located at 420 Taylor Street, San Francisco, for a period of five years to TIPS, a corporation which at that time was beginning to do business in the field of closed-circuit television broadcasting. Prior thereto TIPS had occupied two or three offices on this floor on a rental basis and the question of remodeling and painting had been discussed with Jack Barrett, an officer of defendant corporation. He had conveyed to- the other officers (his father and brothers) TIPS’ request that Barrett participate in this, but they had declined and the premises were leased on an “as-is” basis.

Shortly after the execution of the lease TIPS entered into an oral contract with Gensler under which the latter was to perform certain architectural and design services in connection with remodeling. On May 23, 1968, TIPS entered into a written contract with Lambert & Wells for the performance by it, and its subcontractors, of the actual remodeling. TIPS was “occupying” a portion of the premises when Lambert & Wells commenced work, and TIPS continued such use and occupation during all the time that plaintiffs were working on the premises.

The original contract between TIPS and Lambert & Wells specified a ceiling price for the work to be done by it and its subcontractors as $4,925. This was modified on May 26 to raise the ceiling price to $20,174.67. The building permit applied for by Lambert & Wells on May 24 stated that the value of the proposed work was $1,780. After reviewing the plans the building superintendent issued the permit for $2,100. Benjamin Wells testified that the building inspector thought that the job would go higher than $1,780 and had crossed out that amount. He did not apply for a new building permit when the ceiling price on the contract was raised. He testified that subcontractors applied for their own permits, that his permit was for labor and materials only and did not include overhead and profit, that normally he did not apply for a new building permit when a change order came in increasing the amount of the contract unless this was asked for by the inspector on the job, and that 95 percent of the time the inspector does not ask for a new permit unless the scope of the job is radically changed.

TIPS encountered financial difficulty while the work was in progress *699 and attempted to obtain additional financing without success. It was unable to pay Gensler anything and was unable to continue to pay Lambert & Wells. All anticipated that the work would be recommenced and finished as soon as financing was obtained and that the interruption would only be temporary. Mr. Wells testified that he was on the job once a week discussing the matter with TIPS and trying to get the job going again, and that right up to the time of filing the lien TIPS stated they “would get the ball rolling again.”

On November 13, 1968, each of the plaintiffs filed a notice of claim of lien on Barrett’s property at 420 Taylor Street pursuant to section 1193.1 of the Code of Civil Procedure. 1 On February 10, 1969, this action was commenced. No preliminary notice was given by plaintiffs; no notice of completion or cessation was given by Barrett as provided in sections 1193.1 and 1183.1.

The court found that TIPS was the “lessee and statutory agent” of Barrett in connection with the improvements and the contracts above described; that at all times during the remodeling Barrett had knowledge of the work being performed on its property; that it filed no notice of completion or notice of cessation and no notice of non-responsibility; that at all times during the remodeling TIPS was “occupying and using the premises,” that this occupation and use was partial and was pending completion of the work called for under plaintiffs’ contracts with defendant, that it continued in identical form following the interruption of the project, that it was at no time and in no way inconsistent with present or future work on the premises by plaintiffs; and that the work called for under the contracts was never substantially completed.

Finding 14 read: “Defendant’s briefs after trial presented three legal defenses, none of which was specifically alleged in its answer or other pleadings: (a) that Lambert & Wells was in violation of the building permit provision of the San Francisco Building Code; (b) that Barrett’s statutory agent, TIPS, was in use or occupation of the premises on which plaintiffs performed the agreed-upqn services; and (c) that neither plaintiff sent a preliminary notice of the type described in section 1193(a)[ 2 ] of the Code of *700 Civil Procedure. However, none of the three defenses is supported by the facts.

“(a) As to the first such defense, Lambert & Wells was not in violation of the provisions of the Building Code; even if it were, the Code does not contemplate voiding all causes of action based on construction performed in violation of the building permit requirements ;

“(b) TIPS was not in use or occupation of the premises, of a type inconsistent with further work on and completion of plaintiffs’ contracts on the premises; and

“(c) Plaintiffs both had direct contracts with Barrett’s lessee and statutory agent, TIPS, and Barrett knew of plaintiffs’ work on the premises from and before its inception and at all times thereafter.”

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Bluebook (online)
499 P.2d 503, 7 Cal. 3d 695, 103 Cal. Rptr. 247, 1972 Cal. LEXIS 222, Counsel Stack Legal Research, https://law.counselstack.com/opinion/m-arthur-gensler-jr-associates-inc-v-larry-barrett-inc-cal-1972.