Omaha National Bank v. Continental Western Corporation

274 N.W.2d 867, 202 Neb. 238, 1979 Neb. LEXIS 1003
CourtNebraska Supreme Court
DecidedJanuary 30, 1979
Docket41812
StatusPublished
Cited by1 cases

This text of 274 N.W.2d 867 (Omaha National Bank v. Continental Western Corporation) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Omaha National Bank v. Continental Western Corporation, 274 N.W.2d 867, 202 Neb. 238, 1979 Neb. LEXIS 1003 (Neb. 1979).

Opinion

Ronin, District Judge.

This is a real estate mortgage foreclosure action commenced by the appellee, The Omaha National Bank, by filing its petition to foreclose its mortgage upon two tracts of real estate in Sarpy County, Nebraska. The Continental Western Corporation (Continental) was the owner of the tract of land involved in this appeal. Both Continental and Antilles Corporation, the owner of the other tract, along with Dave Bennett, Inc., a corporation, (Bennett) and M & S Grading, Inc., a corporation (M & S) as mechanic’s lien holders, were named defendants in the foreclosure action. Both Bennett and M & S answered appellee’s petition and separately cross-petitioned for the foreclosure of their mechanic’s liens which had been filed on the subject real estate.

After conferences and hearings in the District Court for Sarpy County, Nebraska, the parties en *240 tered into a stipulation which was filed on December 13, 1976, and which became binding on all the parties. This stipulation resolved many of the issues, but left the remaining issues as to the validity and priority of the mechanic’s liens of Bennett and M & S. Trial was held on March 15, 1977, and, after final submission of the issues, the court, on May 31, 1977, entered its memorandum opinion finding:

1. That the lien claim of Bennett was filed outside the statutory time limit and should be disallowed, and

2. That the contract of M & S was “too indefinite in its terms and requirements to be binding and is insufficient to support a mechanic’s lien herein,” and the lien claim should be disallowed.

On September 13, 1977, the District Court entered its decree of foreclosure which included the provisions of its memorandum opinion. Bennett and M & S filed motions for new trial, which were overruled. Appellants and cross-petitioners, Bennett and M & S, filed separate appeals from the decree of the District Court disallowing their separate mechanic’s lien claims.

The facts relating to the Bennett mechanic’s lien claim are these. On September 9, 1971, appellee, The Omaha National Bank, made a loan in the amount of $1,000,000 to the landowners, Continental and Antilles Corporation, evidenced by a promissory note secured by a mortgage executed by them on each of their tracts of farmland real estate. The documents were duly recorded on September 10, 1971, and that property is the subject of this foreclosure action. The intended use of the tract owned by Continental was for development of a residential subdivision with two 18-hole golf courses, known as the Coronado subdivision of Sarpy County, Nebraska.

Continental employed the engineering firm of Lamp, Rynearson (Lamp) to design and lay out the entire Coronado subdivision. In July 1972, Lamp contacted Bennett, whose primary business was to *241 design golf courses. Bennett started work as a subcontractor for Lamp in October 1972, under an oral agreement which was later reduced to writing on January 27, 1973. Bennett prepared complete preliminary plans for both golf courses and detailed construction specifications for the north golf course. The grading work with M & S started in June 1973, and the irrigation system work was inspected by Bennett until all construction work was finally stopped in December 1973, because Continental was unable to continue to make payments.

In March 1974, a new written contract was entered into between Bennett and Continental. This contract replaced the previous contract between Lamp and Bennett. All the construction work on Coronado had been performed under the Lamp contract. The only services performed by Bennett after execution of the new written contract with Continental were rendered in April 1974, amounting to $577.28, and a separate bill for services and expenses for a trip to Nebraska in June 1974, in the sum of $187.27. Bennett filed its mechanic’s lien on September 17, 1974, in the sum of $17,970.55 on the Coronado subdivision based on the written contract with Continental of March, 1974.

The law in Nebraska is clear that an architect who furnishes plans and specifications for an improvement on real estate is entitled to a mechanic’s lien upon such real estate. VonDorn v. Mengedoht, 41 Neb. 525, 59 N. W. 800 (1894).

The time for filing a mechanic’s lien cannot be extended by tacking two or more contracts together. In Henry & Coatsworth Co. v. Halter, 58 Neb. 685, 79 N. W. 616 (1899) our court stated: “Where labor or material has been furnished by a party under distinct contracts, the claim for a mechanic’s lien under each contract must be filed within the time limited by the statute for that purpose.” See, also, La Puzza v. Prom Town House Motor Inn, Inc., 191 *242 Neb. 687, 217 N. W. 2d 472 (1974); § 52-102, R. R. S. 1943. Bennett’s mechanic’s lien makes no reference to any contractual relationship with Lamp. All the services of Bennett, except the two billings for April and June of 1974, were rendered under the contract of January 23, 1973. No lien claim of Bennett for services under the Lamp subcontract was filed under that contract in accordance with the statutory requirements of section 52-102, R. R. S. 1943, and therefore it cannot be allowed on a lien claim based on the later separate and distinct written contract of March 1974, with Continental.

Services were performed by Bennett in June 1974, which were separately billed in the sum of $187.27 because Continental desired Bennett to consult with another subcontractor who had refused to continue working since payments were not made to him on his billings and Continental was in financial difficulties. This service was not related to the March 1974 contract and was not a proper item to be included in its mechanic’s lien. The record is clear that there was no construction work of any kind on the Coronado project after December 1973. There is a presumption that where more than 60 days intervene between the performance of work items in a mechanic’s lien account, the last item performed was furnished under a separate contract. See Gatchell v. Henderson, 156 Neb. 1, 54 N. W. 2d 227 (1952). Our court held in Occidental Savings and Loan Assn. v. Cannon, 184 Neb. 659, 171 N. W. 2d 166 (1969) that: “The time for filing a lien cannot be delayed by performing minor labor or furnishing minor items of materials.” The court finds that the separately billed item of $187.27 for services rendered by appellant Bennett did not sufficiently relate to the written agreement of March 1974, and that the trial court was correct in its finding that the entire lien claim of appellant Bennett was filed outside the statutory time limit and must be disallowed.

*243 All the remaining parties have stipulated that appellee, The Omaha National Bank, is the first mortgage holder, including its later advancement of $87,800. The judgment of the District Court is also affirmed in determining that the remaining balance due appellee, The Omaha National Bank, has priority over all other liens of the parties in this action.

The facts relating to the mechanic’s lien of M & S for grading of the Colorado subdivision are generally not in dispute. The sole and only issue is whether, under these undisputed facts, M & S has a valid mechanic’s lien.

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Related

Omaha National Bank v. Continental Western Corp.
278 N.W.2d 339 (Nebraska Supreme Court, 1979)

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Bluebook (online)
274 N.W.2d 867, 202 Neb. 238, 1979 Neb. LEXIS 1003, Counsel Stack Legal Research, https://law.counselstack.com/opinion/omaha-national-bank-v-continental-western-corporation-neb-1979.