Owen Lumber Co. v. Chartrand

14 P.3d 395, 270 Kan. 215, 2000 Kan. LEXIS 987
CourtSupreme Court of Kansas
DecidedDecember 8, 2000
Docket82,228
StatusPublished
Cited by3 cases

This text of 14 P.3d 395 (Owen Lumber Co. v. Chartrand) is published on Counsel Stack Legal Research, covering Supreme Court 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. Chartrand, 14 P.3d 395, 270 Kan. 215, 2000 Kan. LEXIS 987 (kan 2000).

Opinion

The opinion of the court was delivered by

Abbott, J.:

The plaintiff, Owen Lumber Company (Owen Lumber), lumber suppliers and subcontractors on a home in which *216 homeowners Arthur and Carol Chartrand were defendants, filed a petition to foreclose on a lien. The Chartrands had contracted with Design Build Group, Inc. (Design Build) for the construction of a new home. Because of apparent problems with Design Build’s payment to subcontractors, the Chartrands filed an affidavit of equitable interest in the office of the Register of Deeds in Johnson County, Kansas, on December 28, 1995. Owen Lumber filed a mechanic’s hen on the home on January 5, 1996. The Chartrands eventually took title to the property by way of quitclaim deed filed on February 5, 1996.

Owen Lumber filed an action to foreclose the hen. Owen Lumber then filed a motion for summary judgment, arguing that it did not need to give the Chartrands notice of its intent to file a hen. The district court denied Owen Lumber’s motion for summary judgment. The district court, however, granted partial summary judgment in favor of the Chartrands, even though the Chartrands had not filed a motion for summary judgment. The district court found in pertinent part that Owen Lumber failed to file a “notice of intent to perform” pursuant to K.S.A. 60-1103b and therefore was not entitled to the hen. The district court determined that the only remaining issue under K.S.A. 60-1103b was whether the Chartrands were good faith purchasers for value. The court then heard evidence on this question and found that the Chartrands were good faith purchasers for value because Owen Lumber failed to comply with the notice requirements of K.S.A. 60-1103(c), as Owen Lumber had constructive notice of the Chartrands’ interest when the affidavit of equitable interest was filed prior to the date Owen Lumber filed a Hen. See Toler v. Satterthwaite, 200 Kan. 103, 109-10, 434 P.2d 814 (1967) (owner of interest in real property includes equitable interest).

The Court of Appeals reversed the district court. Owen Lumber Co. v. Chartrand, 27 Kan. App. 2d 72, 998 P.2d 509 (2000). First, the Court of Appeals found that the district court had mistakenly found that K.S.A. 60-1103 and 60-1103b were passed in response to Star Lumber & Supply Co. v. Capital Constr. Co., 238 Kan. 743, 715 P.2d 11 (1986), when the timing of the legislation and lack of mention of the Star Lumber case suggests it was a coincidence. *217 Next, the Court of Appeals interpreted the language of 60-1103b(b) and read it as inapplicable where Owen Lumber filed its lien before passage of title to the Chartrands, and therefore the issue of whether the Chartrands were good faith purchasers was irrelevant.

Next, the Court of Appeals disagreed that service on the Chartrands was required under 60-1103(c). The Court of Appeals noted that in 1978 K.S.A. 60-1103 was amended from requiring service of a copy of the lien upon “the owner” to service on “any one owner.” The Court of Appeals also found the Chartrands were not obligated to pay the lien, as Design Build was the responsible party and therefore the Chartrands were not “obligated to pay the hen” as provided in K.S.A. 60-1103(c).

The court granted the Chartrands’ petition for review. On review, the Chartrands raise three issues. We only address the first two issues, however, as they resolve the case completely.

(1) Whether Owen Lumber as a subcontractor may claim a lien upon new residential property after the passage of title only if the requisite notice of intent to perform was filed prior to the recording of the deed effecting passage of title to the Chartrands. (K.S.A. 60-1103b.)

(2) Whether Owen Lumber, a subcontractor which filed a mechanic’s hen, was required to give notice to the Chartrands as a “party obligated to pay the hen” pursuant to K.S.A. 60-1103(c).

I. NOTICE OF INTENT TO PERFORM

The Chartrands argue that Owen Lumber failed to perfect its mechanic’s hen when it failed to file a “notice of intent to perform” as suggested by K.S.A. 60-1103b(b).

K.S.A. 60-1103 governs subcontractors’ hens and states in pertinent part:

“(a) Procedure. Any supplier, subcontractor or other person furnishing labor, equipment, material or supplies, used or consumed at the site of the property subject to the lien, under an agreement with the contractor, subcontractor or owner contractor may obtain a lien for the amount due in the same manner and to the same extent as the original owner except that:
*218 (3) a notice of intent to perform, if required pursuant to K.S.A. 60-1103b, and amendments thereto, must have been filed as provided by that section.” (Emphasis added.)

K.S.A. 60-1103b was enacted January 1,1987, amended in 1996, and governs subcontractors’ liens for residential property. See L. 1986, ch. 217, § 3; L. 1996, ch. 233, § 1. K.S.A. 60-1103b states in pertinent part:

“(b) A lien for 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 the claimant has filed a notice of intent to perform prior to the recording of the deed effecting passage of title to such new residential property.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

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

Cite This Page — Counsel Stack

Bluebook (online)
14 P.3d 395, 270 Kan. 215, 2000 Kan. LEXIS 987, Counsel Stack Legal Research, https://law.counselstack.com/opinion/owen-lumber-co-v-chartrand-kan-2000.