Owen Lumber Co. v. Arthur Chartrand

998 P.2d 509, 27 Kan. App. 2d 72, 2000 Kan. App. LEXIS 25
CourtCourt of Appeals of Kansas
DecidedFebruary 18, 2000
Docket82,228
StatusPublished
Cited by2 cases

This text of 998 P.2d 509 (Owen Lumber Co. v. Arthur Chartrand) is published on Counsel Stack Legal Research, covering Court of Appeals of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Owen Lumber Co. v. Arthur Chartrand, 998 P.2d 509, 27 Kan. App. 2d 72, 2000 Kan. App. LEXIS 25 (kanctapp 2000).

Opinion

*73 Smith, J.:

This appeal involves the procedures necessary for a subcontractor to claim a lien upon real estate, specifically the notice of intent to perform required under K.S.A. 60-1103b(b), and the requisite notice, pursuant to K.S.A. 60-1103(c).

A summary recitation of the underlying facts is necessary for an understanding of the issues on appeal. Arthur and Carol Chartrand contracted with Design Build Group, Inc. (Design Build) for the construction of a new residence. The development where the real estate is located required that the contractor retain title to the real estate until the project was completed. Title, therefore, was held by Design Build during construction.

Construction was undertaken in late 1994 or early 1995 and problems soon developed. After reviewing the record, it appears that the Chartrands made change orders directly with subcontractors. Many of the subcontractors were not being paid. Numerous liens were filed. The Chartrands filed an affidavit of equitable interest in the Office of the Register of Deeds of Johnson County, Kansas on December 28, 1995. This was done in an apparent attempt to protect their investment in the property.

Owen Lumber Company, Inc. claimed a mechanic’s lien for lumber it had supplied for a portion of the project. Owen Lumber filed its hen on January 5, 1996. Design Build acknowledged receipt of the hen on January 8, 1996.

The Chartrands received a title report reflecting Owen Lumber’s hen. Mr. Chartrand researched the records of the Johnson County District Court pertaining to this real estate, including Owen Lumber’s hen.

After settlement negotiations with Design Build, the Chartrands accepted title to the property by way of quitclaim deed. This deed was filed February 5, 1996. All other hens have been resolved in various fashions not pertinent to this appeal.

The procedural history of this litigation is also pertinent to the appeal. A petition to foreclose the hen was filed by Owen Lumber on January 3,1997. Owen Lumber subsequently filed a motion for summary judgment. After hearing oral arguments on the motion for summary judgment, the district court ruled that Owen Lumber’s failure to comply with Supreme Court Rule 141 (1999 Kan. *74 Ct. R. Annot. 176) precluded summary judgment in its favor. The district court went on to say, though, that summary judgment is sometimes properly granted to a nonmoving party and granted the Chartrands partial summary judgment. The court ruled that Owen Lumber was not entitled to claim a lien because of its failure to comply with the requirements of K.S.A. 60-1103b and the only remaining issue was whether the Chartrands were good faith purchasers for value. That specific issue was for trial at a later date.

At trial, after hearing evidence on the issue of good faith, the district court ruled that the Chartrands were, in fact, good faith purchasers for value. The court added that the hen failed because of Owen Lumber’s failure to comply with the notice requirements of K.S.A. 60-1103(c). Owen Lumber appeals the rulings of the district court.

This appeal presents two issues. Both are questions of statutory construction over which our review is plenary. State v. Patterson, 25 Kan. App. 2d 245, 247, 963 P.2d 436, rev. denied 265 Kan. 888 (1998). The first issue is whether the district court erred in its determination that Owen Lumber was required to file a notice of intent to perform under K.S.A. 60-1103b. The second issue concerns Owen Lumber’s compliance with the notice requirement found in K.S.A. 60-1103(c).

It will be helpful to review the rules of statutory construction pertinent to both issues.

The fundamental rule of statutory construction is that the intent of the legislature, if it can be ascertained, controls interpretation. Kaul v. Kansas Dept. of Revenue, 266 Kan. 464, Syl. ¶ 2, 970 P.2d 60 (1998). When a statute is plain and unambiguous, the appellate courts will not speculate as to the legislative intent and will not read such a statute as to add something not readily found therein. In re Marriage of Killman, 264 Kan. 33, Syl. ¶ 3, 955 P.2d 1228 (1998). The legislature is presumed to have expressed its intent through the statutory scheme enacted. 264 Kan. 33, Syl. ¶ 2.

Where the face of the statute leaves its construction uncertain, the court may properly look into the historical background of its enactment, including the circumstances attending its passage. In re Tax Appeal of Univ. of Kan. School of Medicine, 266 Kan. 737, *75 Syl. ¶ 5, 973 P.2d 176 (1999). It is presumed that the legislature acted with full knowledge and information as to judicial decisions with respect to prior law. McGraw v. Premium Finance Co. of Missouri, 7 Kan. App. 2d 32, 35, 637 P.2d 472 (1981), rev. denied 231 Kan. 801 (1982). When the legislature revises existing law, it is presumed that the legislature intended to change the law as it existed prior to the amendment. Kaul, 266 Kan. 464, Syl. ¶ 3.

The first issue is whether Owen Lumber was required to file a notice of intent to perform under K.S.A. 60-1103b. That statute provides, in pertinent part:

“(b) A lien for the furnishing of labor, equipment, materials or supplies for the construction of new residential property may be claimed pursuant to K.S.A. 60-1103 and amendments thereto after the passage of title to such new residential property to a good faith purchaser for value only if die claimant has filed a notice of intent to perform prior to die recording of die deed effecting passage of title to such new residential property. Such notice shall be filed in the office of die clerk of die district court of the county where die property is located.”

The district court interpreted this provision as requiring Owen Lumber to file a notice of intent to perform even though it had filed the hen while title was still vested in Design Build, the owner/ contractor. The district court stated that the passage of the amendment to K.S.A.

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Related

Owen Lumber Co. v. Chartrand
73 P.3d 753 (Supreme Court of Kansas, 2003)

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Bluebook (online)
998 P.2d 509, 27 Kan. App. 2d 72, 2000 Kan. App. LEXIS 25, Counsel Stack Legal Research, https://law.counselstack.com/opinion/owen-lumber-co-v-arthur-chartrand-kanctapp-2000.