Richard Knutson, Inc. v. Westchester, Inc.

374 N.W.2d 485, 1985 Minn. App. LEXIS 4528
CourtCourt of Appeals of Minnesota
DecidedSeptember 17, 1985
DocketC7-85-516
StatusPublished
Cited by3 cases

This text of 374 N.W.2d 485 (Richard Knutson, Inc. v. Westchester, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Richard Knutson, Inc. v. Westchester, Inc., 374 N.W.2d 485, 1985 Minn. App. LEXIS 4528 (Mich. Ct. App. 1985).

Opinion

OPINION

HUSPENI, Presiding Judge.

United Financial Savings, F.A. (United) appeals a trial court judgment which determined that mechanics’ liens of respondents Richard Knutson, Inc. (Knutson) and Minnesota Tree, Inc. (Minnesota Tree) were valid and superior to United’s mortgage on the subject property. Knutson seeks review of its award of attorney’s fees. We affirm in part and reverse in part.

FACTS

The subject property is a parcel of realty (parcel) used for construction of a townhouse development. During the relevant time period, March 7, 1983 through June 7, 1984, the parcel was owned by non-appealing defendant Westchester, Inc. (Westches-ter). On March 7, 1983, Westchester executed a first mortgage on the parcel running in favor of United. That mortgage was recorded on March 8, 1983, the entire amount of the mortgage money was disbursed, and Westchester defaulted on the mortgage payments.

The parcel is bound by 122nd Street on the west. This street provides the only road access to the site. The adjacent property to the north is owned by non-appealing defendant Holloway Co., Ltd. (Holloway). 122nd Street makes a ninety degree turn at the northwest corner of the Holloway property.

Boundary and topographical survey work were performed on the parcel during the fall of 1982. As a result of this survey work, fifteen surveyor’s stakes were placed on the parcel. The record indicates that at least two of the stakes were interior stakes. Others were placed along the boundary of the parcel. Soil boring was also done in the fall of 1982.

Knutson did the grading, sewers and streets for the parcel development, and asserts that it delivered a bulldozer and a truck to the parcel site on March 7, 1983. The testimony is in dispute regarding where the equipment was placed.

*487 Minnesota Tree is a landscaping firm. They furnished the last item of labor and materials to the site on June 7, 1984.

Donald Staley, president of Westchester, testified that he saw no equipment on the site when he was there on March 14, 1983. He also testified that he saw no surveyor’s stakes at that time, and that the grading and staking did not begin until March 16, 1983. He did indicate that there may have been a few soil boring stakes on the property from the 1982 soil boring work.

The project’s civil engineering manager testified that surveyor’s stakes were placed on the property on October 22, 24, and November 17, 1982, and that when he returned to the site on March 14, 1983 two stakes were positioned “on the street side of the project.” He had no recollection whether other stakes were still in place.

Richard Knutson, sole shareholder of Knutson, testified that the equipment was delivered on March 7 to a location within the boundaries of the parcel east of 122nd Street. He testified that he was certain of the date because it was noted in his business diary, and he was certain of the location because the delivery site had been predetermined. He testified that he was present when the bulldozer was delivered, but not the scraper.

Knutson filed three liens against the parcel. The first lien statement indicated that the first item of work was performed March 21,1983. The second lien statement indicated that the first item of work was performed March 7, 1983. Knutson asserts that the change in the second statement was made after his driver’s time cards were found. A driver for Knutson, apparently present in court during Richard Knut-son’s testimony, corroborated Knutson’s testimony regarding placement of the equipment.

Darla Bauer, an employee of the realtor with whom a listing agreement for the development was signed, testified that the surveyor’s stakes were visible from the road on Thanksgiving Day, 1982.

James Raway, a professional title inspector for Dakota County Abstract Company, testified that he inspected the parcel on March 8, 1983 by walking about 100 to 250 feet into the property. He did not walk around the perimeter of the site. A photo taken by him showed a vacant lot. On cross-examination, Raway testified that a photo taken from where he said he took this particular photo should have shown large power poles in the background. The power poles were not visible in the photo. Raway did not look for surveyor’s stakes. The standard form which he was required to complete did not include surveyor’s stakes as a factor for which he was to check.

Francis Holloway, a non-appealing defendant and the fee owner of the parcel at the time of trial, has second and third mortgages on the property. Holloway testified that when he drove by the site during the first week of March 1983, he saw the equipment at issue on the property he owned directly north of and adjacent to the subject parcel. He did not observe any surveyor’s stakes as he drove by the property at that time.

The loan closing for the parcel was conducted by attorney Reese Chezick, who represented United in the mortgage transaction. Chezick had previously been involved in clearing the title to the parcel for West-chester. Chezick secured Staley’s consent prior to representing United at the loan closing. Chezick testified that he viewed the property both on March 7 prior to the closing and immediately after the mortgage was recorded on March 8, and he observed no surveyor’s stakes or equipment on the site on either date. He testified at trial that he walked fifty to seventy-five feet into the property on March 7. However, in his deposition, he testified that he only walked a few feet into the property. On March 8, Chezick merely drove by the property. At trial he located on a map the position of the equipment on Holloway’s property south of 122nd Street and north of the parcel. This location was close to that indicated by Holloway and *488 different from the location that Chezick indicated during his deposition.

A letter to Staley regarding United’s disbursements to Westchester indicates that those disbursements were made to a trust fund on March 8 to pay for various services relevant to the project, including engineering and surveying services.

Relevant to this appeal, the trial court found that:

Between March 7, 1983 and June 7, 1984 the * * * lien claimants furnished labor and material to the * * * premises.
* * * * * *
During the month of October, 1982 Clark Engineering Co. at the instance and request of * * * Westchester, Inc. performed engineering services on the premises and in so doing placed visible interior and boundary survey stakes at a value exceeding the minimum required by law. In addition thereto two pieces of large equipment were placed on or near the subject property prior to the date any of the mortgages were registered, giving everyone notice of possible lien claims and suggesting further investigation.

The trial court also determined that Knutson and Minnesota Tree filed timely mechanics’ liens. Knutson was awarded a $92,575 judgment against Westchester and attorney’s fees of $2,500. Minnesota Tree was awarded a $3,860 judgment and attorney’s fees of $750. United appealed and Knutson filed a notice of review on the issue of attorney’s fees.

ISSUES

1.

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Cite This Page — Counsel Stack

Bluebook (online)
374 N.W.2d 485, 1985 Minn. App. LEXIS 4528, Counsel Stack Legal Research, https://law.counselstack.com/opinion/richard-knutson-inc-v-westchester-inc-minnctapp-1985.