Metco, Inc. v. Moss Creek, Inc.

601 A.2d 802, 529 Pa. 53, 1992 Pa. LEXIS 21
CourtSupreme Court of Pennsylvania
DecidedJanuary 16, 1992
Docket27 and 28 W.D. Appeal Dockets, 1990
StatusPublished
Cited by1 cases

This text of 601 A.2d 802 (Metco, Inc. v. Moss Creek, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Metco, Inc. v. Moss Creek, Inc., 601 A.2d 802, 529 Pa. 53, 1992 Pa. LEXIS 21 (Pa. 1992).

Opinion

OPINION OF THE COURT

FLAHERTY, Justice.

This is an appeal from orders of the Superior Court which affirmed trial court orders striking mechanics’ lien claims filed against condominium units. 385 Pa.Super. 542, 561 A.2d 808. The issue is whether the Mechanics’ Lien Law at 49 P.S. § 1306(b) (“Apportionment of Claims”) precludes the enforcement of liens filed against multiple units of a new condominium where the amount claimed in each lien represents the total claim for all work done on all the common *55 elements and separate units. The lower courts held that it does.

Appellant Metco, Inc., is a general contractor. In May, 1987, it entered a contract with appellee Moss Creek, Inc., a developer, to build a new condominium. In the course of the contract, three of the eight units were sold, and Metco received payments in return for releases as to any mechanics’ liens filed or pending. Metco later filed mechanics’ liens against the five remaining units, which were owned by the two appellees in this case. The amount of each lien was stated as $322,512.00, the entire amount Metco claimed to be due on the contract, involving eight condominium units and common elements. The amount of the lien had no direct relation to the work done or materials supplied on the five units not subject to release from mechanics’ liens.

On July 21, 1988, Metco filed complaints for judgment on the liens. Appellees filed preliminary objections which led the trial court to strike the lien claims and the complaints for judgment. The court held that Metco’s failure to apportion its claim to reflect the value of work done and materials provided for each separate unit subject to the lien was a fatal defect. The Superior Court affirmed.

Metco claims that the lower courts erred in that mechanics’ liens against condominiums should be governed by 68 Pa.C.S. § 3409(b), a section of the Pennsylvania Uniform Condominium Act, rather than 49 P.S. § 1306(b), a provision of the Mechanics’ Lien Law of 1963. Section 3409(b) provides:

(b) Lien against multiple units. — Whether perfected before or after creation of the condominium, if a lien other than a deed of trust or mortgage, including a lien attributable to work performed or materials supplied before creation of the condominium, becomes effective against two or more units, the unit owner of an affected unit may pay to the lienholder the amount of the lien attributable to his unit and the lienholder, upon receipt of payment, promptly shall deliver a release of the lien covering that unit and its common element interest. The *56 amount of the payment must be proportionate to the ratio which that unit owner’s common expense liability bears to the common expense liabilities of all unit owners whose units are subject to the lien. After payment, the association may not assess or have a lien against that unit owner’s unit for any portion of the common expenses incurred in connection with that lien.

Section 1306(b) provides:

(b) Apportionment of Claims. Where a debt is incurred for labor or materials furnished by the same claimant for work upon several different improvements which do not form all or part of a single business or residential plant, the claimant shall file separate claims with respect to each such improvement, with the amount of each claim determined by apportionment of the total debt to the several improvements, and in such case, the amount of each separate claim may be less than five hundred dollars ($500), provided that the total debt exceeds five hundred dollars ($500). In no other case shall an apportioned claim be allowed.

Metco argues that a condominium is a “single residential plant” as that phrase is used in section 1306(b), and a condominium is therefore not subject to the apportionment of claims requirement. It maintains that condominiums are unique and distinguishable from townhouse developments and other planned residential developments. Metco further argues that the specific provisions of section 3409(b) provide the correct rule for the apportionment of liens against condominium units, and constitutes an exception from the more general provisions of section 1306(b).

The lower courts rejected these arguments. They relied on Meyers Plumbing and Heating Supply Co. v. Caste, 350 Pa.Super. 482, 504 A.2d 942 (1986). Meyers Plumbing involved a townhouse development which was not a condominium. There the Superior Court held that a row of townhouses is not a “single residential plant” within the meaning of section 1306(b). It therefore invalidated a single lien which had been filed against the entire project. The *57 Meyers Plumbing case rested on the statutory language and several trial court decisions interpreting the word “plant.”

In this case, the Superior Court held that the condominium development was not a single residential plant. It next held that the separate liens filed against the individual units were not legally perfected under section 1306(b) because they were not apportioned. The court concluded that the separate provision concerning condominium liens, 68 Pa.C.S. § 3409(b), did not apply because it presumed the existence of a validly lodged lien.

The Superior Court was in error. The remedy of invalidating a mechanics’ lien should only be resorted to under a clear statutory mandate or in cases of clear necessity, neither of which is present here.

1 Pa.C.S. § 1933 provides that when different statutory provisions are in conflict, as is clearly the case here, the particular controls the general so that “the special provisions shall prevail and shall be construed as an exception to the general provision.” The more specific section in this case is 68 Pa.C.S. § 3409(b), a provision relating to mechanics’ lien claims against condominium units for work performed prior to creation of the condominium, the precise situation presented by this case. The statutory section, then, is to be construed as an exception to the more general rule of 49 P.S. § 1306(b), which normally requires that lien claims “for work upon several different improvements which do not form all or part of a single business or residential plant,” must be filed separately “with respect to each such improvement, with the amount of each claim determined by apportionment of the total debt to the several improvements.” Thus it was proper, under 68 Pa.C.S. § 3409(b), to file “a lien ... against two or more units,” whereupon, to release the claim, “the unit owner of an affected unit may pay to the lienholder the amount of the lien attributable to his unit____ The amount of the payment must be proportionate to the ratio which that unit owner’s common expense liability bears to the common *58

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Cite This Page — Counsel Stack

Bluebook (online)
601 A.2d 802, 529 Pa. 53, 1992 Pa. LEXIS 21, Counsel Stack Legal Research, https://law.counselstack.com/opinion/metco-inc-v-moss-creek-inc-pa-1992.