Maricopa Turf, Inc. v. Sunmaster, Inc.

842 P.2d 1370, 173 Ariz. 357, 127 Ariz. Adv. Rep. 17, 1992 Ariz. App. LEXIS 314
CourtCourt of Appeals of Arizona
DecidedDecember 3, 1992
Docket1 CA-CV 91-0061
StatusPublished
Cited by3 cases

This text of 842 P.2d 1370 (Maricopa Turf, Inc. v. Sunmaster, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Maricopa Turf, Inc. v. Sunmaster, Inc., 842 P.2d 1370, 173 Ariz. 357, 127 Ariz. Adv. Rep. 17, 1992 Ariz. App. LEXIS 314 (Ark. Ct. App. 1992).

Opinion

OPINION

TOCI, Judge.

A general contractor and its surety appeal from the grant of summary judgment enforcing a materialman’s claim against the general contractor’s payment bond. The general contractor posted the payment bond in connection with a school district construction project. The principal issue is whether a reference in the payment bond to the Little Miller Act incorporates the notice provisions of that Act and supersedes the otherwise applicable notice provisions of the State Board of Education Procurement Rules. A related issue is whether a materialman’s notice of claim against a payment bond, mailed within the ninety-day claim period but received by the contractor after the expiration of such period, substantially complies with the State Board of Education Procurement Rules.

The trial court granted summary judgment for the materialman after finding the notice of claim given by the materialman, Maricopa Turf, Inc., dba Western Sod (“Turf”), complied with the Little Miller Act. Appellants Sunmaster, Inc. dba Sun General Construction (“Sunmaster”) and The Hartford Accident and Indemnity Company (“Hartford”) argue that the trial court erred in applying the notice provisions of the Little Miller Act to Sunmaster’s payment bond. They argue that the payment bond is governed by the Arizona Procurement Code (“the Procurement Code”) 1 and not the Little Miller Act. Appellants also assert that the trial court erred in denying their motion for summary judgment and in awarding attorney’s fees to Turf.

We hold that: (1) the bond reference to the Little Miller Act is not controlling; instead, the State Board of Education Procurement Rule applies, and (2) Turf did not substantially comply with the notice provisions of the Procurement Rule because the general contractor did not receive either the twenty-day or the ninety-day notice within the applicable time periods. Therefore, Turf’s claim against Sunmaster’s payment bond is not valid. Accordingly, we reverse the summary judgment for Turf and remand for entry of summary judgment for Sunmaster and Hartford.

*359 I.

Sunmaster was the general contractor on a construction project for the Deer Valley Unified School District. Sunmaster posted a payment bond through its surety, Hartford, to insure payment to materialmen who supplied labor and materials for the project.

Turf provided materials to a subcontractor, Dewitt General Contracting, Inc. (“Dewitt”), for use in landscaping the construction project. Dewitt performed the landscaping and installed all of these materials on the project on June 20, 1988. Dewitt failed to pay Turf, and Turf looked to Sun-master’s payment bond for satisfaction of the debt. Turf had sent both a twenty-day and a ninety-day notice of its claim rights to Sunmaster by certified mail.

For reasons unexplained by the parties to this action, the payment bond provided by Hartford referred to Title 34, Chapter 2, Article 2 of the Arizona Revised Statutes which contains Arizona’s Little Miller Act bond provisions. Ariz.Rev.Stat.Ann. (“A.R.S.”) §§ 34-222 and 34-223. 2 The Little Miller Act applies to construction projects of “any county, city or town, or officer, board or commission thereof, and irrigation, power, electrical, drainage and flood control districts, tax levying public improvements districts, and county or city improvement districts____” A.R.S. § 34-222(A). The Act requires a general contractor to post a payment bond. A.R.S. § 34-222(A)(1).

Sunmaster’s construction contract, however, was with a school district, and school districts are political subdivisions of the state. See A.R.S. § 15-101(14). Although the Little Miller Act originally applied to state construction projects, when the legislature enacted the Arizona Procurement Code, the Procurement Code replaced the Little Miller Act for these state projects. See 1984 Ariz.Sess.Laws, Ch. 251, § 2 at 942 and § 17 at 964.

The Procurement Code in A.R.S. section 41-2501(B) provides in part, “[t]his chapter applies to every expenditure of public monies ... by this state, acting through a state governmental unit ... under any contract.” The Procurement Code requires payment bonds “for the protection of all persons supplying labor and material to the contractor or its subcontractors for the performance of the work provided for in the [construction] contract.” A.R.S. § 41-2574(A)(2). 3 Section 41-2574(D) of the Code provides for both a twenty-day and a ninety-day notice of claim in order for a materialman to recover against the general contractor’s payment bond.

Section 41-2501(C) of the Procurement Code provides that political subdivisions of the state, including school districts, may adopt all or any part of the Procurement Code provisions. Another statute directs the State Board of Education to adopt rules governing procurement practices for school districts that are consistent with the practices set out in the Procurement Code, Title 42, Chapter 23. A.R.S. § 15-213(A)(1). 4

The Arizona Board of Education has followed this mandate and adopted rules and regulations requiring general contractors to supply payment bonds on construction projects for school districts. A.C.R.R. R72-1111. More specifically, Rule 7-2-1112(D) (the “Procurement Rule”) describes the payment bond notice requirements in language identical to that found *360 in A.R.S. section 41-2574(D) of the Procurement Code. Subsection D of the Rule states:

[A]ny person who has a contract with a subcontractor of the contractor, but no express or implied contract with the contractor furnishing the payment bond, has a right of action on the payment bond on giving the contractor, only, a written preliminary twenty-day notice as provided for in A.R.S. § 33-992.01, Subsection (C), ... and upon giving written notice to the contractor within ninety days from the date on which the last of the labor was performed or material was supplied by the person for whom the claim is made____

Thus, although the Procurement Code and the Procurement Rule are identical, Rule 7-2-1111 clearly applies here and required Sunmaster, as a contractor for a public school construction project, to provide a payment bond. The Procurement Rule also provides that in order for Turf to claim against the payment bond, it must give “written notice to the contractor within 90 days from the date on which the last of the labor was performed or material was supplied.” The notices must “be personally served or sent by registered mail.” A.C.C.R. R7-2-1112(D).

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Bluebook (online)
842 P.2d 1370, 173 Ariz. 357, 127 Ariz. Adv. Rep. 17, 1992 Ariz. App. LEXIS 314, Counsel Stack Legal Research, https://law.counselstack.com/opinion/maricopa-turf-inc-v-sunmaster-inc-arizctapp-1992.