National Surety Corp. v. Highland Park Country Club, Inc.

125 So. 2d 151, 240 La. 747, 3 A.L.R. 3d 567, 1960 La. LEXIS 1070
CourtSupreme Court of Louisiana
DecidedDecember 12, 1960
Docket44735
StatusPublished
Cited by10 cases

This text of 125 So. 2d 151 (National Surety Corp. v. Highland Park Country Club, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Surety Corp. v. Highland Park Country Club, Inc., 125 So. 2d 151, 240 La. 747, 3 A.L.R. 3d 567, 1960 La. LEXIS 1070 (La. 1960).

Opinion

HAMLIN, Justice.

National Surety Corporation invoked this concursus proceeding on December 23, 1957, and deposited in the Registry of the Fourth Judicial District Court the sum of $14,502.-54, the full amount of a performance bond for the construction of a swimming pool by Bradley Foreman for the Highland Park Country Club, Inc. Plaintiff cited the owner, the contractor Foreman who had defaulted, and all known creditors of said contractor-including Southern Equipment & Tractor Company of Monroe, Inc., a lessor of machinery and equipment—whose claims arose in connection with the contract.

The trial court rejected the demand of Southern Equipment & Tractor Co., Inc. (substituted as party defendant for Southern Equipment & Tractor Company of Monroe, Inc. and hereinafter designated as Southern Equipment) against Highland Park Country Club, Inc. and National Surety Corporation for recognition of a materialman’s lien and privilege and participation in the fund deposited in the registry of the court, but rendered judgment in its favor against Bradley Foreman, Contractor, in the sum of $882.70 and interest.

Southern Equipment appealed from the denial of its alleged right to participate in the fund to the extent of its claim. All other parties to the suit acquiesced in the trial court’s judgment which ordered the payment of numerous claims and the return to the plaintiff of the balance of the fund deposited. The Court of Appeal, Second Circuit, (111 So.2d 811) amended the judgment of the trial court, to the extent of recognizing and allowing the claim of Southern Equipment in the full sum of $896.97, 1 and ordered the Clerk of Court, Fourth Judicial District Court, to pay the amount out of the fund deposited in the registry of that court by National Surety Corporation. On the application of National Surety Corporation, certiorari was granted to the Court of Appeal, Second Circuit, for review of its judgment. Article VII, Section 11, Louisiana Constitution of 1921, LSA.

The stipulated facts of record 2 are to the effect that on May 15, 1957, Highland Park Country Club, Inc. entered into a written contract with Bradley Foreman, as contractor, for the construction of a large swimming pool on its property. National Surety Corporation, as surety for the contractor, furnished a bond ($14,502.54), dated May 13, 1957, to the Highland Park Country Club, Inc. Foreman began construction of *752 the swimming pool, and during the course of this construction Southern Equipment rented to him certain pieces of construction machinery, including pumps, hoses, an air compressor, pneumatic breakers and hammers, a cement mixer, a motor mixer, and a backfill tamper'—the charges amounting to $882.70. The machinery and equipment were actually used by Foreman in the construction of the swimming pool. At a stage of partial completion, the pool was damaged by heavy rains accompanying Hurricane Audrey in June, 1957; the contractor defaulted; the owner finished the construction of the pool, recording formal notice of default in the Mortgage Records of Ouachita Parish, Louisiana, on December 23, 1957. After failing to receive payment for the rental of its equipment, Southern Equipment filed an affidavit evidencing its claim in the Mortgage Records of Ouachita Parish on November 6, 1957. This concursus was instituted by National Surety Corporation, and on January 23, 1958, Southern Equipment filed an answer asserting a right to participate in the fund deposited by plaintiff to the extent of its claim.

The stipulation stated that the issues, alleged as follows, were legal ones:

“(1) Is appellant’s claim a lienable claim under the Private Works Act (La.R.S. of 1950, 9:4801 et seq.); and as such chargeable against and recoverable from the fund deposited by the surety ?
“(2) In the alternative, can appellant’s claim against the contractor be asserted against the contractor’s surety and the fund deposited by the surety in this concursus, even if no lien or privilege could be asserted against the owner’s property in connection with appellant’s account?”

The Court of Appeal considered LSA-R.S. 9:4801, as amended, 3 which recites:

“Part I. Private Works
“Privilege on immovables for labor and materials; rank
“A. Every contractor, sub-contractor, architect, engineer, master-mechanic, mechanic, cartman, truckman, workman, laborer, or furnisher of material, machinery, or fixtures, who performs work or furnishes material for the erection, construction, repair, or improvement of immovable property, or who furnishes material or supplies for use in machines used in or in connection with the erection, construction, repair or improvement of any building, structure or other immovable property, with the consent or at the request of the owner thereof, or his authorized agent or representative, or of any person with whom the owner has contracted for *754 such work, has a privilege upon the land and improvements on which the work or labor has been done, or the materials, machinery or fixtures furnished, for the payment in principal and interest of the work or labor performed, or materials, machinery or fixtures furnished, and for the cost of recording such privilege.” (Emphasis ours.)

The Court of Appeal stated that after an examination of authorities bearing upon the issue, it found persuasive analogy in •cases involving the construction of lien rights in connection with the drilling of wells in search of oil, gas, or water. It then found that it was impelled to the same conclusion as was reached in the case of Sutton-Zwoile Oil Co. v. Barr Petroleum Corp., La.App., 197 So. 432, to the effect that the leasing—(rental)—of equipment •constituted a “furnishing” within the meaning and intent of the statute (Act 145 of 1934). 4 The Court of Appeal further found in the instant matter that under LSA-R.S. 9:4801 one may furnish machinery which is used in the improvement of immovable property by leasing such machinery to the contractor or owner as the case may be.

Relator, National Surety Corporation, urges that the Court of Appeal failed to construe LSA-R.S. 9:4801, a lien statute, strictly, and that it failed to apply proper judicial interpretation of the intent of the Legislature in LSA-R.S. 9:4801 et seq.

Respondent argues that LSA-R.S. 9:4801 and the statute under consideration in the Sutton-Zwoile case, supra, are in pari materia, and that therefore the decision of the Court of Appeal in the instant matter should be affirmed. It contends that a construction machine furnishes labor, not material, for a construction project; and the fact that *756 the machine was not incorporated into the improvements does not mean that it was not used in their construction. On the basis of this contention, respondent asserts that it is entitled to a lien under LSA-R.S. 9:4801.

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125 So. 2d 151, 240 La. 747, 3 A.L.R. 3d 567, 1960 La. LEXIS 1070, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-surety-corp-v-highland-park-country-club-inc-la-1960.