Mack Industries, Inc. v. Donald W. Nelson, Inc.

134 So. 2d 821
CourtDistrict Court of Appeal of Florida
DecidedNovember 15, 1961
DocketNo. 2308
StatusPublished
Cited by4 cases

This text of 134 So. 2d 821 (Mack Industries, Inc. v. Donald W. Nelson, Inc.) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mack Industries, Inc. v. Donald W. Nelson, Inc., 134 So. 2d 821 (Fla. Ct. App. 1961).

Opinion

ALLEN, Acting Chief Judge.

This appeal is brought from a final decree of foreclosure of a mortgage given to secure a construction loan. Appellee corporation, the mortgagee, filed its complaint to foreclose. Named as defendants were the mortgagor, a second mortgagee and [822]*822various mechanics’ lien claimants, one of which was appellant. Appellant filed an answer, a counterclaim, and a cross-claim against co-lien claimants alleging essentially that its lien was entitled to priority over the mortgage and other claims. The mortgage had been recorded on January 7, 1960. Appellee replied to the counterclaim and later filed a motion for summary final decree supported by the affidavit of its president setting forth the indebtedness due on the mortgage note and appellee’s entitlement thereto. Also filed in support of this motion were the affidavits of two attorneys as to reasonable attorneys’ fees. In its complaint appellee had alleged that it had obligated itself to pay its attorneys of record a reasonable fee. In opposition to the motion for summary decree appellant filed an affidavit of one Charles E. Smith, an officer of Carter Landscape Co., Inc., which was to the effect that the first actual work on the premises in question began prior to the date the mortgage was recorded. Since this affidavit apparently created a controverted issue of fact, the lower court denied the motion for summary decree and set the case for trial. Although the lower court did not so limit its pre-trial order on the motion, the trial was conducted on the sole issue of priority. Prior to the hearing, defendant-second mortgagee, 'filed an answer of general denial to appellant’s cross-claim.

Sometime after the hearing, the lower court entered its final decree of foreclosure. In the portions of said decree that are germane to this appeal, the lower court decreed that the equities were with the plaintiff-appellee, which entitled it to the full effect of its first mortgage; dismissed appellant’s counterclaim with prejudice; allowed interest from the date of the decree at the rate provid’ed for in the note and mortgage; awarded appellee attorneys’ fees in an amount equal to the lower of the two figures stated to be reasonable in the aforementioned two affidavits; and retained jurisdiction for making further orders necessary to the disposition of appellant’s cross-claim. At the hearing counsel stipulated that they would agree to a reasonable attorneys’ fee to be awarded by the court.

Appellant has raised six points in its appeal and we will deal with them in the order of their apparent importance.

The most salient point is presented as appellant’s Point Four which raises the question of priority, adjudicated at the hearing below. In order for appellant to prevail in his contentions it must be determined that such work as was performed on the premises in the cause prior to the recordation of appellee’s mortgage constituted visible commencement under the Mechanics’ Lien Law, § 84.03, F.S.A. The work done prior to the mortgage being recorded consisted mainly of excavating and filling to prepare the land for building purposes. From the evidence presented, the lower court found that said excavation and fill were not visible commencement of building activities. It therefore becomes necessary to allude to significant portions of the testimony on the question.

As aforesaid, the mortgage was recorded on January 7, 1960. Witness Henjum, who testified on behalf of plaintiff-appellee stated that he had gone on the property in March of 1959 and set out excavation flags to mark an area where muck and marl were to be dragged out and filled with sand. This witness, who was in some way connected with the building of houses in the subdivision, again visited the premises on January 9, 1960, two days after the mortgage was recorded. He stated that he went out to the property to make out a no-work certificate and to set out batter boards for the construction of a building. On cross-examination he defined “no-work” as meaning no actual construction of a building had yet been started. He further testified that there were no building materials of any kind present on the lot and that the only foreign matter noticeable was “a pile of debris, dirt of some kind” which later testimony identified as excess fill to be used [823]*823in landscaping. Witness Henjum also testified that from six to twelve inches of weeds or grass were growing on the filled excavation and that the filling would have had to have taken place long enough in the past to permit this amount of vegetation growth. He further stated that normally about one month is allowed for compaction of fill before starting to put in a foundation. On being questioned by the court this witness testified that a no-work certificate did not include preparation of the land for building but that there was nothing on the lot to indicate that a construction job had been started.

Witness Varnum, who was also attorney for defendant-second mortgagee, testified for plaintiff-appellee that he visited the premises on January 7th, 8th, 9th and 10th and a few weeks thereafter. On direct examination he stated that he saw no evidence of any construction or fill, and that weeds and grass at least a foot high were growing. On recross examination he testified as follows:

“Q. When you referred to no construction was going on what do you define construction as? A. Anything in the nature of improvement, or enhancement of vacant property to me is construction. Anything that would have any bearing on the improvement of any piece of property.
******
“Q. Does that include excavation and grading and filling the lot when you say no work was going on ? A. I definitely included excavation, yes sir, because I * * * am very familar with the excavating being a portion of the main construction.
“Q. Do you know whether any fill had been placed on this property prior to January 1960? A. You asked me that question before and you said immediately prior.
“Q. Prior to January, 1960? A. Not immediately prior, but my recollection is that there may have been some in June or July * * *
******
“Q. Do you know that the fill was placed upon the lot, but you just don’t remember what particular time it was, except the summer of 1959 ? A. That’s right, that is my belief.
“Q. Any fill that was on there at that time then you had excluded from your word definition no construction is that correct ? A. I have not excluded, I have included excavation. I know that construction includes fill.
“Q. It includes excavation? A. Yes sir.
“Q. Do you know whether any excavation was made upon this property at any time? A. No.”

A reasonable inference to be drawn from this testimony is that witness Varnum did know that fill had been placed on the property no later than the summer of 1959; that of his own knowledge he did not actually know of any excavation having been made prior thereto; and, at the time of his observation in January, the property did not appear to have been excavated and filled even though the same may have taken place.

Witness Smith, an officer of the firm which did the actual excavation and filling on the property testified on behalf of appellant.

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Bluebook (online)
134 So. 2d 821, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mack-industries-inc-v-donald-w-nelson-inc-fladistctapp-1961.