Metropolitan Water Company v. Hild

1966 OK 96, 415 P.2d 970
CourtSupreme Court of Oklahoma
DecidedMay 17, 1966
Docket40769
StatusPublished
Cited by9 cases

This text of 1966 OK 96 (Metropolitan Water Company v. Hild) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Metropolitan Water Company v. Hild, 1966 OK 96, 415 P.2d 970 (Okla. 1966).

Opinions

HODGES, Justice.

This action - was commenced by Metropolitan Water Company, the plaintiff, to establish and foreclose a mechanic’s and materialman’s lien against property owned by Harold H. Hild and Margaret E. Plild, the defendants. The defendants filed a demurrer to the amended petition of the plaintiff on the ground that it failed to state a cause of action against them. From the orders of the trial court sustaining the demurrer and overruling plaintiff’s motion for a new trial, the plaintiff appeals to this court on the original record. The parties will be referred to in this opinion by their trial court designation.

The basis of the plaintiff’s claim is a written contract with Harry E. Bray and the Oklahoma Finance Corporation, hereinafter referred to as the developers, which [972]*972contract was incorporated into plaintiff’s amended petition by reference. The contract provides that the plaintiff will construct and install water and sewer facilities, consisting of a sanitary sewage processing plant, water wells, pumps, outfall lines, lines, connections, and meters, for a development to be known as the Cleveland Heights Addition, located in ^ Cleveland County, Oklahoma. The contract grants the plaintiff, which is a public utility, the exclusive right to engage in the business of furnishing water and sanitary sewage service to the lots in the addition. The only provision in the contract concerning payment to the plaintiff for the cost of the construction and installation of the water and sewer facilities is provision 6(a) which states: ■

^“DEVELOPER covenants and agrees that it will require, in contracting the sale of each residential lot in said Cleveland Heights Addition, that the purchaser shall pay to METROPOLITAN, as compensation for the installation of water service to the lot line, including meter-setting charge, the sum of $150.00, and also the sum of $350.00 for the installation of sanitary sewage facilities in right-of-way adjacent to said lot, and in relation to business lots a sum equal to $10.00 per front foot for installation of both such sewer and water facilities, the aforesaid to be payable respectively immediately upon commencement of construction upon each said lot or upon delivery of title to the purchaser whichever time is the earlier. It is understood that the foregoing payments shall be solely for the purposes above stated and shall not relieve the lot purchaser of the payment of any deposits, rates or charges for utility services as prescribed or approved by governmental authorities having jurisdiction thereof.”

The plaintiff alleges in its amended petition that it constructed and installed the water and sewer systems in accordance with its contract with the developers; that eleven of the lots located in Cleveland Heights Addition were subsequently purchased by the defendants from the developers; that the procedural provisions of the statutes to perfect a mechanic’s and materialman’s lien have been complied with; and that there is due and payable to the plaintiff from the defendants the sum of $4,900.00 for material furnished and labor performed under the contract, and that its lien should be foreclosed upon the property to satisfy this indebtedness. There is no prayer for a personal judgment against the defendants.

The sole question presented is whether the plaintiff has stated a cause of action for a mechanic’s (and materialman’s) lien against the defendants. The parties in their briefs have argued two main propositions: (1) Is the contract between the plaintiff and the then owners of the land (the developers) sufficient to give rise to a mechanic’s lien; and (2) Are water and sewer systems improvements upon the land of the defendant within the meaning of our mechanic’s lien statute. Under the view we take of this case, we need consider only the first proposition.

Our lien statute, 42 O.S.1961, Section 141, provides in pertinent part as follows:

“Any person who shall, under oral or written contract with the owner of any tract or piece of land, perform labor, or furnish material for the erection, alteration or repair of any building, improvement or structure thereon * * * shall have a lien upon the whole of said tract or piece of land, the buildings and appurtenances. * * * ”

This statute makes the right to a mechanic’s lien dependent upon a contract with the owner and without a contract no such lien can be created. Berry v. Barbour, Okl., 279 P.2d 335; Birmingham v. Houston-McCune Lumber Co., 171 Okl. 88, 41 P.2d 856; Wm. Cameron & Co. v. Beach, 44 Okl. 663, 146 P. 29.

While the plaintiff makes no allegation of any contract with the defendants, [973]*973the acquisition of the property by the defendants from the developers was subject to any mechanic’s lien existing thereon. Elm Oil Co. v. Clark Lumber Co., 179 Okl. 341, 65 P.2d 1221; Claude Ricker Lumber & Paint Co. v. Barger, 195 Okl. 504, 158 P.2d 1021. We must therefore determine if the plaintiff possessed a mechanic’s lien upon this property by virtue of its contract with the developers at the time the property was purchased by the defendants.

A mechanic’s lien secures the payment of a debt and if there is no debt created by the contract to which the lien can attach there can be no lien. The rule is expressed in Phillips, Mechanics’ Liens, Section 112 (2d ed.), as follows:

“The creation of the lien, though arising by virtue of express legislative enactment, is essentially dependent upon the existence of contract, express or implied, and the obligation of debt arising out of the performance of its stipulations by the mechanic. * * * As the lien security is an incident that follows the legal liability to pay, whenever that obligation does not arise, or ceases, this security docs not exist. * * * ” (Emphasis supplied).

And see to the same effect: Mann v. Schnarr, 228 Ind. 654, 95 N.E.2d 138; Cole v. Clark, 85 Me. 336, 27 A. 186, 21 L.R.A. 714; Bangor Roofing & Sheet Metal Co. v. Robbins Plumb. Co., 151 Me. 145, 116 A.2d 664; Choteau v. Thompson, 2 Ohio St. 114; Rockel, Mechanics’ Liens, Section 241; 2 Jones, Liens, Section 1235 (3d ed.).

This court has held in several cases involving the right to an oil and gas well lien that subcontractors, being entitled to a lien to the same extent as the original contractor, have no lien where there is no liability to the original contractor under the terms of the contract. Haggard v. Sunray Oil Co., 176 Okl. 81, 54 P.2d 662; Josey Oil Co. v. Ledden, 162 Okl. 262, 20 P.2d 582; Cameron Refining Co. v. Jerman, 110 Okl. 272, 238 P. 437; Christy v. Union Oil & Gas Co., 28 Okl. 324, 114 P. 740.

Any doubt that the same rule applied to mechanics’ liens should have been dispelled by the decision of this court in Consolidated Cut Stone Co. v. Seidenbach, 181 Okl. 578, 75 P.2d 442. In that case it was held, among other things, that a subcontractor’s recovery upon a mechanic’s lien was limited to the price stipulated in the contract between the owner and the original contractor reduced by actual damages caused by the contractor which were within the contemplation of the parties when the contract was made. In reaching its conclusion the court stated:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

H2K TECHNOLOGIES v. WSP USA
2021 OK 59 (Supreme Court of Oklahoma, 2021)
Bell v. Tollefsen
1989 OK 149 (Supreme Court of Oklahoma, 1989)
Frontier Rock & Sand, Inc. v. Heritage Ventures, Inc.
607 P.2d 364 (Alaska Supreme Court, 1980)
T & S Investment Co. v. Coury
1979 OK 53 (Supreme Court of Oklahoma, 1979)
Metropolitan Water Company v. Hild
1966 OK 96 (Supreme Court of Oklahoma, 1966)

Cite This Page — Counsel Stack

Bluebook (online)
1966 OK 96, 415 P.2d 970, Counsel Stack Legal Research, https://law.counselstack.com/opinion/metropolitan-water-company-v-hild-okla-1966.