Paul C. Helmick Corp. v. Lucky Chance Mining Co.

618 P.2d 252, 127 Ariz. 82, 1980 Ariz. App. LEXIS 586
CourtCourt of Appeals of Arizona
DecidedSeptember 30, 1980
DocketNo. 1 CA-CIV 4572
StatusPublished
Cited by1 cases

This text of 618 P.2d 252 (Paul C. Helmick Corp. v. Lucky Chance Mining Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Paul C. Helmick Corp. v. Lucky Chance Mining Co., 618 P.2d 252, 127 Ariz. 82, 1980 Ariz. App. LEXIS 586 (Ark. Ct. App. 1980).

Opinion

OPINION

FROEB, Presiding Judge.

The basic question in this case is whether and to what extent the lessor of mining equipment is entitled to a lien for the use of its equipment at a mining location known as the Vulture Mine.

The issues were tried to the court without a jury which resulted in extensive findings of fact and conclusions of law. A general outline of the facts, taken in a light most favorable to sustaining the judgment, follows, with details discussed later in the context of the legal questions which are raised.

Lucky Chance Mining Company (a nonap-pearing defendant in the suit whose default was entered by the trial court) had leased real property on the Agua Fria River near Blood Basin, Arizona, for a mining operation. On September 18 or 19, 1975, Lucky Chance entered into two written “equipment rental agreements” with the Paul C. Helmick Corporation (Helmick) for the rental of a lattice conveyor and a 100 KW generator, together with certain parts and appurtenances. The agreements included options to purchase the equipment. The monthly rental was $1,300.00, consisting of $650.00 per month for the conveyor and $650.00 per month for the generator. Wayne and M. Jeanette Beal, owners of the Vulture Mine and doing business as Vulture Mine Properties (referred to herein as Beal), were not as yet involved. Lucky Chance paid Helmick rentals due for the periods ending October 18 and November 18, 1975.

On November 11, 1975, Beal entered into a written contract with Lucky Chance [84]*84whereby Lucky Chance agreed to make available the conveyor and generator, together with other equipment for a mineral testing program at the Vulture Mine, giving Beal an option to purchase the equipment. Lucky Chance began moving the equipment to the Vulture Mine property on December 9, 1975, and it became operable on December 19, 1975. The testing program, however, did not begin until January 13, 1976, due to lack of water.

The agreement called for a thirty day program, but Beal unilaterally terminated the contract on February 8, 1976. Beal instructed Lucky Chance to leave the equipment at the Vulture Mine property since it was Beal’s intention to exercise the option to purchase the equipment. After Lucky Chance left, Beal continued to use the machinery for testing purposes.

It was not until sometime in January that Lucky Chance informed Helmick where the equipment was located. At that time, Lucky Chance was in arrears on the rental payments, not having paid any rent since approximately November 18.

Beal met with Paul C. Helmick at the Helmick office in Phoenix on February 24, 1976. At the meeting, Helmick notified Beal of the past due rentals owed by Lucky Chance. Beal represented to Helmick that the testing program was continuing and that Beal wished more time to determine whether to exercise the option to purchase from Lucky Chance.

On March 9, 1976, Beal telephoned Hel-mick and informed him that they did not wish to exercise the option and advised Helmick to pick up his equipment at the Vulture Mine. Helmick then directed a contract hauler, John F. Bradley and Sons, to pick up the equipment. During the effort to remove it from the property, some damage was done to the conveyor.

The past due rentals owed from Lucky Chance to Helmick never having been paid, Helmick recorded a Notice and Claim of Lien against the Vulture Mine property on April 19, 1976, which stated that Helmick had performed labor and furnished materials, equipment, and merchandise in the improvement and mining work on the Vulture Mine. On May 24, 1976, this suit was filed seeking judgment against Lucky Chance on Helmick’s ■ agreement of September 18-19, 1975, and to foreclose the lien. Beal now appeals the judgment in favor of Helmick.

WHICH LIEN LAW APPLIED?

There are two lien statutes involved. Beal argues neither one applies; Helmick argues both apply.

A.R.S. § 33-9811 is a general mechanic's and materialman’s lien law and A.R.S. § 33-9892 is a specific lien law relating to mining operations. Beal argues first that a specific statute governs over a general one and therefore if either statute applies, it can only be A.R.S. § 33-989. Helmick agrees that a specific statute controls over the general when the two are inconsistent, but argues that the two here involved are not inconsistent.

We need not address this issue, however, since we hold the specific mining lien stat[85]*85ute is broad enough to cover Helmick’s claim. It is not apparent, however, from the language of A.R.S. § 33-989 that machinery, or the rental thereof, is included. The statute states a lien may be claimed by “a person who labors or furnishes materials or merchandise of any kind, designed for or used in or upon a mine or mining claim.” Nevertheless, this language has been given a broad interpretation by the Arizona Supreme Court in Russell v. Central Commercial Co., 33 Ariz. 349, 264 P. 1081 (1928), holding that groceries consumed by miners were items of “merchandise” covered by the statute. Of greater significance, however, is the court’s exposition concerning the predecessor of the statute involved. The court pointed out that prior to the amendment adding the language “merchandise of any kind,” the law merely provided for a lien for those who furnished “material of any kind” for use at a mine. The court -then held:

As the statute originally existed, under the decisions it covered as lienable all sums for mining supplies, such as machinery, steel, powder, fuses', etc., designed or used in or upon the mines or mining claims being operated by the purchasers (citations omitted, emphasis ours). The amendment very much extended this meaning. It makes lienable, in addition, sums contracted for ‘merchandise of any kind, designed or used in or upon any mine or mining claim.’ . . . ‘Merchandise is a very broad word.’

Id. at 351, 264 P. 1082.

From this, we have no difficulty holding that Helmick’s equipment comes within the meaning of A.R.S. § 33-989. Two additional matters support this. First, lien laws are remedial in nature and are to be liberally construed. See Kerr-McGee Oil Industries, Inc. v. McCray, 89 Ariz. 307, 361 P.2d 734 (1961). Second, a judicial construction of the general mechanic’s and materialman’s lien statute supports it. In Arizona Gunite Builders, Inc. v. Continental Casualty Co., 105 Ariz. 99, 459 P.2d 724 (1969), the court interpreted the words “labor or materials” to include “machinery" in examining the interrelationship of the general mechanic’s lien law and the provisions of a related surety bond statute.

Finally, we find to be without merit Beal’s contention that the lien contemplated by A.R.S.

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
618 P.2d 252, 127 Ariz. 82, 1980 Ariz. App. LEXIS 586, Counsel Stack Legal Research, https://law.counselstack.com/opinion/paul-c-helmick-corp-v-lucky-chance-mining-co-arizctapp-1980.