Roofing & Sheet Metal Supply Co. of Tulsa v. Golzar-Nejad Khalil, Inc.

1996 OK 101, 925 P.2d 55, 67 O.B.A.J. 2952, 1996 Okla. LEXIS 118, 1996 WL 537218
CourtSupreme Court of Oklahoma
DecidedSeptember 24, 1996
Docket82159
StatusPublished
Cited by7 cases

This text of 1996 OK 101 (Roofing & Sheet Metal Supply Co. of Tulsa v. Golzar-Nejad Khalil, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Roofing & Sheet Metal Supply Co. of Tulsa v. Golzar-Nejad Khalil, Inc., 1996 OK 101, 925 P.2d 55, 67 O.B.A.J. 2952, 1996 Okla. LEXIS 118, 1996 WL 537218 (Okla. 1996).

Opinion

SUMMERS, Justice:

The question is whether the Plaintiff, a subeontractor/supplier of roofing materials, has a valid hen for supphes used in repair of Defendants’ building. We find that Plaintiff has been more than paid for henable materials it furnished, and reverse the lower court’s judgment foreclosing hen and awarding attorney fees. A novel question of law is involved.

Roofing and Sheet Metal Supply Co. Of Tulsa, Inc. (Suppher) is the plaintiff. Golzar-Nejad Khalil, Inc., owner of a business known as “Carpet City”, is the landowner and Defendant (Owner or Carpet City). Owner contracted with Hurst, d/b/a Hurst & Son Roofing Co., to repair its roof. Hurst was a Defendant below but is not a party to the appeal.

Hurst and Suppher had an oral agreement whereby Suppher agreed to supply the material for the Carpet City job. Because Owner and Suppher were not convinced of Hurst’s financial soundness, they agreed that ah payments for supphes would be in the form of a joint payee check, naming as joint payees Hurst and Suppher.

In February, 1991, Hurst ordered supphes, presumably for the roof of Owner. Owner paid $6000.00 in the form of a joint payee check to Suppher and Hurst. Suppher agrees that it got that money. The supphes were dehvered to Carpet City’s place of business, but Hurst diverted approximately $5000.00 worth of the supphes to another job. In March 1991, Hurst ordered additional materials, totaling $8004.75. These materials were dehvered to Carpet City’s business, and were used in the re-roofing as per the contract. Owner, having discovered Hurst’s earlier diversion, refused to pay.

Suppher filed a materialman’s hen for the price of the March order, alleging that payment had not been made, and that Owner bore the responsibility of paying for the sup-phes to clear title to its property. Owner defended, alleging that because it paid $6000.00 for the first order and only $1000.00 worth of those supphes were used to roof his business, Suppher had been more than paid in full for ah supphes used on Owner’s roof. In other words, Owner had received $4,000 worth of materials from Suppher but had overpaid Suppher by some $2,000.00. Sup-pher responded that the February transaction is irrelevant to the March transaction, and that regardless of whether the first shipment of supphes was used on Owner’s property, Owner is responsible for the payment of the second order under 42 O.S. 1991, §§ 141 and 143.

A non-jury trial was held, and Suppher was awarded judgment of $3004.75 plus foreclosure of the materialman’s hen. Suppher requested that it be awarded attorneys fees and costs in the amount of $19,885.20. A hearing was held, in which Owner’s main argument was that the fees requested were unreasonable and excessive in hght of the amount in controversy. Although the trial court was concerned with the amount of attorneys fees, and the fact that Owner’s attorneys had done no more than raise available defenses to the foreclosure, the trial court awarded the entire amount of fees and costs. From this Owner appealed.

The Court of Appeals, Division 1, in an opinion designated for pubhcation, affirmed. We have granted certiorari. Although the magnitude of the attorney’s fee award in relation to the amount in controversy certain *58 ly caught our attention in the certiorari process, we find a novel and important question preserved and briefed on which the case must turn. It is whether a landowner may, for the purpose of responsibility to a supplier, treat the materials he receives and uses from that supplier as being under one single contract. We hold that he can, and reverse.

Materialman’s liens are purely statutory. Title 42 O.S. 1991 Sections 141 and 143 govern the right to a materialman’s lien.

141. Right to lien — Priority—Enforceability against property — Constructive notice
Any person who shall, under oral or written contract with the owner of any tract or piece of land, perform labor, furnish material or lease or rent equipment used on said or the erection, alteration or repair of any building, improvement or structure thereon ... shall have a' lien upon the whole of said tract or piece of land, the buildings and appurtenances ... and such lien shall follow said property and each and every part thereof, and be enforceable against the said property wherever the same may be found ... subsequent to the date of the furnishing of the first item of material .... (emphasis added)

Title 43 O.S. 1991 Section 143 applies to subcontractors, and reads in relevant part:

Any person who shall furnish any such material ... may obtain a lien upon such land, or improvements, or both, from the same time, in the same manner, and to the same extent as the original contractor, for the amount due him for such material, equipment and labor; ... by filing with the county clerk of the county in which the land is situated, within ninety (90) days after the date upon which material or equipment used on said land was last furnished or labor last performed ... The risk of all payments made to the original contractor shall be upon such owner until the expiration of the ninety (90) days herein specified, and no owner shall be liable to an action by such contractor until the expiration of said ninety (90) days, and such owner may pay such subcontractor the amount due him from such contractor for such labor, equipment used on said land and material, and the amount so paid shall be held and deemed a payment of said amount to the original contractor, (emphasis added)

These statutes work together to provide protection from financial loss to contractors, subcontractors and materialmen, as well as to the owners of real property.

When a materialman agrees to furnish materials, knowing of a contract between the owner and the contractor, the materialman is entitled to a lien if the material is used in the construction. Ryndak v. Seawell, 13 Okl. 737, 76 P. 170 (1904). A materialman makes a prima facie case by showing (1) the material was sold to the contractor with knowledge of a contract between the owner and the contractor, (2) de livery of the materials to the site and (3) use of the materials in the project. McGlumphy v. Jetero Constr. Co., 593 P.2d 76, 80 (Okla. 1978); DeBolt v. Farmers’ Exch. Bank, 51 Okla. 12, 151 P. 686 (1915). According to Section 143, if the owner pays the contractor within 90 days, the owner suffers the risk of loss, i.e. the risk that the contractor will not pay the materialman. See Cashway Lumber Co. v. Langston, 479 P.2d 582 (Okla.1970). The owner may protect himself by withholding payment for 90 days, or by making a joint payee check to the contractor and the materialman. See Frank Wheatley Ind., Inc. v. Owens-Corning Fiberglas Supply Div., 470 P.2d 986, 988 (Okla.1970). In order for the materialman to obtain a lien, he must show that the material sold to the contractor was used in the construction project. Delivery of the material to the construction site is one way to show that the material was used in the project. Id. at 585; McGlumphy,

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

Related

Jones v. Purcell Investments, LLC
2010 OK CIV APP 15 (Court of Civil Appeals of Oklahoma, 2009)
Stevens v. Harris
2002 OK 35 (Supreme Court of Oklahoma, 2002)
Meredith v. Smith
2001 OK 132 (Court of Civil Appeals of Oklahoma, 2001)
GRP of Texas, Inc. v. Eateries, Inc.
2001 OK 53 (Supreme Court of Oklahoma, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
1996 OK 101, 925 P.2d 55, 67 O.B.A.J. 2952, 1996 Okla. LEXIS 118, 1996 WL 537218, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roofing-sheet-metal-supply-co-of-tulsa-v-golzar-nejad-khalil-inc-okla-1996.