Oakdale Equipment Corp. v. Meadows Landing Assoc.

Superior Court of Pennsylvania·Decided July 8, 2015·No. 1573 WDA 2014·Unpublished

Opinion

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37

OAKDALE EQUIPMENT CORPORATION, IN THE SUPERIOR COURT OF PENNSYLVANIA

Appellant

v.

MEADOWS LANDING ASSOCIATES, LP, Appellee No. 1573 WDA 2014

Appeal from the Order August 22, 2014 In the Court of Common Pleas of Washington County Civil Division at No(s): 2013-3524

RICHARD LAWSON EXCAVATING, INC., IN THE SUPERIOR COURT OF PENNSYLVANIA

Appellant

v.

MEADOWS LANDING ASSOCIATES, LP, Appellee No. 1866 WDA 2014

Appeal from the Order Entered October 17, 2014 In the Court of Common Pleas of Washington County Civil Division at No(s): 2013-2053

BEFORE: PANELLA, SHOGAN, and OTT, JJ. FILED JULY 08, 2015 MEMORANDUM BY SHOGAN, J.:

Oakdale Equipment Corporation (“Oakdale”) and Richard Lawson Excavating, Inc. (“Lawson”) appeal from orders sustaining the preliminary

objections of Meadows Landing Associates, LP (“MLA”) to complaints for judgment on mechanics’ liens.1 We affirm.

MLA is a real estate development company. In March of 2012, MLA contracted with Lawson for work on MLA’s 200-acre subdivision in Washington County called Meadows Landing (“the Project”). The work included “Mobilization, Earthwork, Topsoil, Grading, Excavating, Erosion and Sedimentation, Pond Construction, Stormwater and Sanitary, Keyways/Benching and Utilities per the Phase 1 drawing of Gateway Engineers and Victor-Wetzel Associates.” American Institute of Architects Document A107, 3/29/12, at 1. In turn, Lawson contracted with Oakdale for the rental of heavy equipment to be used on the Project.

On April 2, 2013, MLA sent a notice of termination to Lawson for failure to achieve substantial completion of its subcontracted work by August 31, 2012. As of the termination, Oakdale asserted it was owed $239,414.14 for the rental of heavy equipment used on the Project. Mechanics’ Lien Claim, 6/17/13, at ¶ 6. Lawson contended it was owed $632,102.00 for work it performed on the Project. Mechanics’ Lien Claim, 4/17/13, at ¶ 6.2

1 The trial court had consolidated the above-captioned cases for pre-trial discovery purposes. Given the commonality of the record, we have consolidated the cases for disposition on appeal. 2 The two underlying cases on appeal are part of a “family” of six cases, two assumpsit actions and four mechanics’ liens, filed among Oakdale, Lawson, (Footnote Continued Next Page)

Oakdale’s Mechanics’ Lien Claim and Appeal Oakdale filed a mechanics’ lien against MLA on June 17, 2013. Four days later, counsel entered an appearance for MLA. Upon defense counsel’s request, Oakdale filed a complaint to obtain judgment on the mechanic’s lien on June 26, 2013. Thereafter, on July 18, 2013, MLA filed a consented-to petition to discharge the mechanics’ lien upon payment into court. The same day, the trial court granted the petition and ordered Oakdale’s mechanics’ lien discharged upon payment of $239,414.14 into court. On July 24, 2013, MLA filed preliminary objections (“POs”) to Oakdale’s complaint, alleging that Oakdale failed to comply with the notice requirements of the Mechanics’ Lien Law, 49 P.S. §§ 1101–1902, and, therefore, the complaint should be dismissed. Two days later, MLA paid the full sum into court, thereby discharging Oakdale’s mechanics’ lien. More than one year later, the trial court sustained MLA’s POs and dismissed Oakdale’s complaint on August 22, 2014. This timely appeal followed. Oakdale and the trial court complied with Pa.R.A.P. 1925.

On appeal, Oakdale presents the following questions for review:

1. Did [MLA’s] payment into Court pursuant to 49 P.S.

1510 to discharge the lien result in the waiver of the right to file preliminary objections?

(Footnote Continued)

MLA, and Harmony Medical Center, the owner of Meadows Landing Lot 9A. See Trial Court Opinion, 12/2/14, at 1 (listing names, court terms, and docket numbers of six cases).

2. Did [MLA], by its attorneys, waive service of the Mechanics’ Lien Claim by its active participation in the case, thereby removing any requirement to file an affidavit of service?

3. Did [Oakdale’s] filing on June 26, 2013, of its Complaint to Obtain Judgment on Mechanics’ Lien Claim satisfy [Oakdale]’s obligation to file an affidavit of service of a written notice of its underlying mechanics’ lien claim within 20 days of serving such claim, where: 1) the mechanics’ lien claim was filed on June 17, 2013; 2) the mechanics’ lien claim was referenced in and attached to the Complaint; and 3) the Complaint contained a certificate of service confirming that it was served on [MLA] on June 25, 2013?

4. Where [MLA], through its attorneys, had actual notice of both the Mechanics’ Lien Claim and the Complaint to Obtain Judgment on Mechanics’ Lien Claim and suffered no prejudice as the result of [Oakdale’s] failure to file a separate affidavit of service for the Mechanics’ Lien claim itself, does dismissal of the case based on such a technicality constitute reversible error?

Oakdale’s Brief at 5–6.

Our standard of review for an order dismissing a mechanics’ lien claim based upon a preliminary objection in the nature of a demurrer is as follows:

When reviewing the dismissal of a [mechanics’ lien claim] based upon preliminary objections in the nature of a demurrer, we treat as true all well-pleaded material, factual averments and all inferences fairly deducible therefrom. Where the preliminary objections will result in the dismissal of the action, the objections may be sustained only in cases that are clear and free from doubt. To be clear and free from doubt that dismissal is appropriate, it must appear with certainty that the law would not permit recovery by the plaintiff upon the facts averred. Any doubt should be resolved by a refusal to sustain the objections.

Moreover, we review the trial court’s decision for an abuse of discretion or an error of law.

Neelu Enterprises, Inc. v. Agarwal, 58 A.3d 828, 830 (Pa. Super. 2012) (citation omitted).

Oakdale first argues that MLA’s payment of funds into court to discharge the mechanics’ lien foreclosed MLA’s right to file POs. Therefore, Oakdale contends, the trial court erred in considering MLA’s POs. Oakdale’s Brief at 12. In support of its position, Oakdale relies on section 1510 of the Mechanics’ Lien Law, which provides as follows:

§ 1510. Discharge of lien or reduction of lien

(a) Cash deposit. Any claim filed hereunder shall, upon petition of the owner or any party in interest, be discharged as a lien against the property whenever a sum equal to the amount of the claim shall have been deposited with the court in said proceedings for application to the payment of the amount finally determined to be due.

49 P.S. § 1510(a).

The trial court rejected Oakdale’s challenge with the following rationale:

A lien cannot be discharged without the payment.4 As explained above, the payment was made after the filing of Amended [sic]

Preliminary Objections.

4 “Any claim filed hereunder shall, upon petition of the owner or any party in interest, be discharged as a lien against the property whenever a sum equal to the amount of the claim shall have been deposited with the court in said proceedings for application to the payment of the amount finally determined to be due.” 49 P.S. § 1510(a).

Trial Court Opinion, 10/21/14, at 3.

Our review of the record reveals support for the trial court’s finding that MLA filed POs on July 24, 2013, two days before it paid funds into court to discharge the mechanic’s lien. Because MLA’s POs were timely, we conclude the trial court did not abuse its discretion or commit an error of law in considering MLA’s POs.

Oakdale’s remaining three issues are interrelated and concern the notice requirements for perfecting a mechanics’ lien; therefore, we shall address them concurrently. In doing so, we recognize that the Mechanics’ Lien Law sets forth the following requirements which are essential to perfecting a lien:

§ 1502. Filing and notice of filing of claim

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Oakdale Equipment Corp. v. Meadows Landing Assoc., (Pa. Ct. App. 2015).

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