Oklahoma Hardware Company v. Townsend

1972 OK 27, 494 P.2d 326, 50 A.L.R. 3d 936, 1972 Okla. LEXIS 286
Supreme Court of Oklahoma·Decided February 22, 1972·No. 43549·Published·Cited by 2 cases

Opinion

IRWIN, Justice:

This appeal involves the foreclosure of materialman’s lien for materials furnished to an owner of a building lot (an executo-ry vendor) who contracted with another (an executory vendee) to build a house on the lot according to certain plans and specifications and to convey the improved premises to the executory vendee free and clear of all encumbrances.

B & B Home Builders, Inc., (B & B) owned a building lot and entered into an executory contract with Harold S. Townsend and Verdell B. Townsend, defendants in error, to build a house on the lot according to certain plans and specifications and to convey the improved premises to the Townsends free and clear of all encumbrances. Pursuant to an agreement with B & B, plaintiff in error’s assignor furnished materials for the construction of the building. The lien statement was filed but written notice of the lien was not served upon the Townsends.

Plaintiff in error commenced proceedings to foreclose its materialman’s lien. No question is presented concerning plaintiff’s right to maintain this action and we will assume that it furnished the materials. The trial court found that Townsends, the purchasers of the property, were the “owners” within our lien laws; that the materi-alman, plaintiff in error, failed to give written notice to the “owners” as required by 42 O.S.1961, § 143; and that the property was not subject to the materialman’s lien. The materialman, plaintiff in error, appealed.

The rights of the other defendant in error, City National Bank & Trust Company, are not an issue.

The record is not too clear concerning when the executory contract was entered into between B & B, the owner of the lot, and Townsends, the executory purchasers. Townsends alleged in their answer and cross-petition that the contract was entered into on February 24, 1966, which was after B & B started construction of the house and after plaintiff first furnished materials for the construction. At the trial, Town-sends introduced into evidence a contract to purchase which described property not involved in this proceeding. This contract is somewhat illegible, but appears to be dated December 27, 1965, which was prior to the time construction began and prior to the time plaintiff furnished any materials. The record contains no explanation why there is a discrepancy between the alleged date of the contract to purchase as set forth in Townsends’ answer and cross-petition, which was February 24, 1966, and the December 27, 1965, date relied upon at the trial, or why the contract to purchase that was relied upon by Townsends described property not involved in this foreclosure action.

We find it unnecessary to discuss the force and effect of the above discrepancies. In disposing of this case, we will assume arguendo, that prior to the time plaintiff entered into the agreement with B & B to furnish materials or had furnished any materials, that B & B and Townsends had entered into their executory contract for the sale and purchase of the property and plaintiff had actual knowledge thereof. *328 In considering these assumed facts in connection with the other facts disclosed in the record, our determination of this cause will be based upon the following factual circumstances:

B & B, the owner of a tract of land, entered into an executory contract with Townsends on December 27, 1965, to construct a building on the premises in accordance with certain plans and specifications, and to convey the improved premises to Townsends free and clear of any taxes, liens or encumbrances, and the agreed purchase price for the premises and completed improvements was $22,500.00. Thereafter, B & B entered into an agreement with plaintiff for plaintiff to furnish materials for the construction of the building. Plaintiff had actual knowledge of the executory contract between B & B and Townsends prior to its agreement with B & B and prior to the time it furnished any materials. Plaintiff first furnished materials for the construction of the building on January 27, 1966. B & B conveyed the premises to Townsends by warranty deed and the deed was filed of record on June 13, 1966. On June 15, 1966, plaintiff furnished $11.97 worth of materials which were the last material furnished by plaintiff. On July 26, 1966, plaintiff timely filed its mechanics lien statement pursuant to 42 O.S.1961, § 142, but did not serve written notice of the filing of the lien upon Townsends.

By assuming the above factual circumstances, the primary issue presented is whether B & B, the executory vendor, or Townsends, the executory vendee, was the “owner” of the property, as that term is employed in our lien laws, at the time plaintiff furnished the materials for the construction of the improvements.

Plaintiff contends that since B & B, the executory vendor, had record title to the property and remained in possession of the property during the time the materials were furnished, that B & B was the “owner” under 42 O.S.1961, § 141; that it furnished materials by agreement with the “owner”; and it was not necessary to serve written notice of the filing of the lien upon Townsends.

Townsends contend that they were the “owner” of the property; that B & B was the original contractor under § 141, supra; that plaintiff furnished the materials as a subcontractor under 42 O.S.1961, § 143, and being a subcontractor it was necessary that plaintiff serve written notice upon them of the filing of the lien.

42 O.S.1961, § 141, provides that any person who shall, under oral or written contract with the owner of a tract of land, furnish materials for the construction of improvements thereon, shall have a lien upon the land and the improvements. Sec. 142, provides for the filing of the lien statement and neither section requires that written notice be given to the owner. In Claude Ricker Lumber and Paint Company v. Barger, 195 Okl. 504, 158 P.2d 1021, we held that one who acquires property which is subject to a materials lien created under 42 O.S.1961, § 141 and § 142, continues to hold such property subject to the lien claimant’s right to foreclose the same, provided the lien is properly perfected and preserved.

42 O.S.1961, § 143, provides that any person who shall furnish materials as a subcontractor may obtain a lien upon the land and the improvements, or both, in the same manner and to the same extent as the original contractor. This proviso further sets forth the time in which the subcontractor must file his lien, and the serving of “notice in writing of the filing of such lien upon the owner of the land, or improvements, or both; * *

In Alfrey v. Richardson, 204 Okl. 473, 231 P.2d 363, this Court held that a contract for the sale of land, bona fide, made for a valuable consideration vests the equitable interest or title in the land in the vendee and such title is sufficient to predicate an action to quiet title.

In Kerfoot v. Salyer, 146 Okl. 194, 293 P. 1033, we held that a purchaser of realty under an executory contract who purchases material for the construction of a building *329 thereon is “owner” within lien statute, not “contractor” within subcontractor lien statute. One of the issues in Kerfoot was whether the executory vendor’s mortgage was superior to a materialman’s lien.

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Oklahoma Hardware Company v. Townsend, 1972 OK 27, 494 P.2d 326, 50 A.L.R. 3d 936, 1972 Okla. LEXIS 286 (Okla. 1972).

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