Saunders v. Lawson

982 So. 2d 1091, 2006 WL 3457616
CourtCourt of Civil Appeals of Alabama
DecidedDecember 1, 2006
Docket2041111
StatusPublished
Cited by5 cases

This text of 982 So. 2d 1091 (Saunders v. Lawson) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Saunders v. Lawson, 982 So. 2d 1091, 2006 WL 3457616 (Ala. Ct. App. 2006).

Opinion

982 So.2d 1091 (2006)

Angela M. SAUNDERS and Philip Saunders
v.
Theresa LAWSON.

No. 2041111.

Court of Civil Appeals of Alabama.

December 1, 2006.
Rehearing Denied January 12, 2007.

*1092 Patrick O. Miller and Timothy P. Pittman of Dick, Riggs, Miller & Stem, L.L.P., Huntsville, for appellants.

Gregory A. Reeves of Edwards, Mitchell & Reeves, Decatur, for appellee.

PER CURIAM.

Angela M. Saunders and Philip Saunders appeal from a judgment ordering their residence to be sold to enforce a materialman's lien purportedly perfected by Theresa Lawson.

Brian Homes, Inc. ("Brian Homes"), a homebuilding company, developed certain parcels of property in Madison County by building single-family residences on those parcels. During the spring of 2003, Brian Homes obtained a construction loan secured by a mortgage upon those parcels ("the senior mortgage"). Lawson installed various types of flooring materials and lighting fixtures in numerous residences, including the residence built on Lot 35 — the residence purchased by the Saunderses. In the fall of 2003, the construction loan secured by the senior mortgage was paid in full with the proceeds of loans made to the ultimate occupiers of the residences, including moneys obtained by the Saunderses from Chase Manhattan Mortgage Corporation ("Chase").[1] At the time that the construction loan was paid in full, Lawson had not perfected or recorded a materialman's lien as to the residence on Lot 35. In fact, it is undisputed that neither Chase nor the Saunderses had any notice of a junior or secondary lien at the time the Saunderses purchased the residence built on Lot 35.

After Brian Homes had failed to pay Lawson with proceeds from the sale of the completed residence, Lawson filed an action against Chase and the Saunderses in March 2004 seeking the declaration of the existence of a lien in the amount of $8,054.72 as to the residence on Lot 35. The recording of that lien occurred several months after the Saunderses had paid Brian Homes in full and after the recording of Chase's mortgage to the Saunderses. Nonetheless, Lawson asserted that her *1093 lien took priority over Chase's mortgage pursuant to § 35-11-211, Ala.Code 1975, and she requested that the trial court order a sale of the Saunderses' residence in order to pay Lawson the amount due on her lien. The trial court entered a summary judgment declaring that Chase's mortgage took priority over any lien Lawson might claim, and pursuant to Rule 54(b), Ala. R. Civ. P., it determined that there was no just reason for delay in entering a final judgment as to its determination of the priority of liens.[2] However, the trial court reserved for trial the issue whether Lawson could prove the existence of a valid materialman's lien against the Saunderses' residence on Lot 35.

The trial court conducted an ore tenus proceeding on the remaining issue in this case on April 26, 2005, and it entered a judgment on May 4, 2005. The trial court declared that Lawson held a valid lien against the Saunderses' property and entered a money judgment in the amount of $8,054.72 plus interest. The trial court ordered that the Saunderses' property be sold to satisfy Lawson's judgment unless the total amount of the lien was not paid within 30 days. The trial court's judgment concluded with the following paragraph:

"The court believes this decision is manifestly unfair to the homeowner who is an innocent party. However, the court is required to enforce the law as enacted by the legislature. By this decision, the court urges the Alabama Legislature to change the law in question to provide that materialmen, subcontractors, suppliers, etc. be required to file their liens before closing, rather than 6 months after closing."[3]

In this appeal, the Saunderses challenge the trial court's determination that Lawson properly perfected a materialman's lien as to the their property. Ala. Code 1975, § 35-11-210, provides for two types of materialman's liens: "(1) a lien for the full price of the materials furnished and (2) a lien for the amount of the unpaid balance due the contractor from the owner." Abell-Howe Co. v. Industrial Dev. Bd. of Irondale, 392 So.2d 221, 224 (Ala. Civ.App.1980). To establish the right to a full-price lien, the supplier must either (1) have an express contract with the property's owner or the owner's agent to supply the materials or labor, or (2) have given notice to the owner in writing of the cost of the materials or labor to be supplied before beginning work or delivering materials and the owner must not have responded in writing that the owner will not be liable for payment. See Ala.Code 1975, § 35-11-210; Davis v. Gobble-Fite Lumber Co., 592 So.2d 202, 206 (Ala.1991); see also Keith C. Kantack, A Guide to Mechanics' Liens in Alabama, 61 Ala. Law. 202 (2000).

The Saunderses contend that Lawson did not meet the statutory requirements of § 35-11-210, and specifically they assert that Lawson was unable to prove the existence of a contract with Brian Homes. In this case, Lawson was unable to present *1094 evidence of an express contract between her business and Brian Homes; at most, she was able to prove that the two concerns had an on-going course of business.[4]

At trial, Lawson testified and offered the invoices that she had sent Brian Homes after providing lighting, flooring, and installation services at the house under construction on Lot 35. Instead of a written contract, Lawson produced the default judgment that she had obtained against Brian Homes for its failure to pay Lawson for the materials and labor she had supplied to Brian Homes during the construction of the residence on Lot 35. In Davis, supra, our Supreme Court reviewed the proper method by which a materialman can perfect a full-price lien pursuant to the statutes.

"`The lien . . . "is a creation of law and not of contract" and the lien must be perfected by compliance with statutory requirements. Furthermore, "a valid contract of purchase is the prerequisite, and the materialman must establish the same with the owner or proprietor, or his agent, as those terms are employed in the statute." With reference to the contractual prerequisite, two bases of liability are provided by the statute, "One that written notice had been given, followed by mere silence of the owner (we think that this would create an implied contract, assuming that the materials were furnished); the other, a positive assent constituting the owner the purchaser of the material" (an express contract).'"

Davis, 592 So.2d at 206 (quoting Buettner Bros. v. Good Hope Missionary Baptist Church, 245 Ala. 553, 557, 18 So.2d 75, 78 (1944)). Our Supreme Court then noted that the text of the statute clearly requires that in order to procure a full-price lien the materialman must give notice to the owner in writing of its intent to claim a lien before any material or labor is furnished. See Davis, 592 So.2d at 206-07 (citing § 35-11-210, Ala.Code 1975). In Davis, our Supreme Court noted that the fact that written notice was not given until after some of the material or labor had been supplied prevented Gobble-Fite from perfecting a full-price lien.

Similarly, in this case, Lawson was able to show that she did indeed provide flooring, lighting, and installation services, and thus, as noted by the dissenting judges, Lawson may have demonstrated the existence of an implied contract.

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Cite This Page — Counsel Stack

Bluebook (online)
982 So. 2d 1091, 2006 WL 3457616, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saunders-v-lawson-alacivapp-2006.