Skidmore v. Eby

1953 NMSC 098, 262 P.2d 370, 57 N.M. 669
CourtNew Mexico Supreme Court
DecidedOctober 20, 1953
Docket5582
StatusPublished
Cited by12 cases

This text of 1953 NMSC 098 (Skidmore v. Eby) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Skidmore v. Eby, 1953 NMSC 098, 262 P.2d 370, 57 N.M. 669 (N.M. 1953).

Opinion

BRAND, District Judge.

Suit was brought by Cowan Lumber Company to foreclose a materialman’s lien against property owned by the defendant, Eby, the lumber company having furnished building materials for the construction of a residence on his land. Imboden and Parks were made defendants, since the materials were ordered by and charged to them, they having been the contractors erecting the structure for Eby.

The defendant, Eby, a rancher living at Faywood,'New Mexico, decided to build a home at Silver City. On March 12, 1946, he entered into a contract with Imboden, Parks, and one B. B. Smith, whereby the contractors agreed to furnish all material and labor for a six-room house with two baths, according to plans and specifications, for the sum of $11,140. In the contract was an unusual provision to the effect that Eby was to advance contractors $2,000 at the time of signing the agreement. Im-boden and Parks had been making concrete blocks and had applied for a contractor’s license, which had not then been obtained, and Smith executed the contract with them to lend validity to the transaction, since he did have a contractor’s license. By June 26, 1946, however, the contractors had ceased work on the house due to lack of funds or credit with which to proceed, and Eby went into a second contract, with Im-boden and Parks only, having induced them to go ahead with the job, and advanced them $500 with which to purchase materials. It was distinctly agreed that the second contract in no way altered the original one except as to such advancement. In February, 1947, Imboden and Parks severed relations and Imboden attempted to carry on the work alone, but prior to December 12, 1947, again suspended operations and left Silver City to obtain employment. He was again, however, persuaded by Eby to return and resume work on the building and a third agreement was then executed between the two. It recited, among other things, that more than eighteen months had elapsed since the original contract and that the dwelling had not been completed and that differences had arisen as to the amount due Imboden. Certain extras and alterations were incorporated in this contract, the payments to contractor being raised to cover, such items, and Imboden agreed to complete the house on or before January 26, 1948, and -further bound himself to hold Eby harmless from any and all bills and accounts for materials and labor expended. It was again provided that all of the provisions of the original contract of March 12, 1946, should remain in force and effect except as changed by this one. Imboden substantially -completed the house in December, 1948, having been delayed further by his financial difficulties. During the entire period of construction, almost all of the materials used had been purchased from plaintiff, partially on order from Eby and partially by Imboden, and charged, some to Eby and some to- Imboden. A lien was filed by the lumber company against the Eby property in January, 1949, for materials furnished the contractors between May, 1947, and November, 1948, and for which Eby refused to pay.

At the time of making the second contract, Eby posted on the premises the statutory notice of non-liability, and the Court found that he had informed Mr. Skidmore, partner in the Co-wan Lumber Company, at that time, that he was not to- be charged thereafter with any materials delivered to Imboden and Parks unless authorized by him to do so-, and that in the event he delivered materials without such authority, the lumber company would have to look to the contractors for payment. It is admitted that the charges included in the lien were for materials sold and delivered to the contractors for the Eby job after the notice was posted and the verbal instructions given, and there is no controversy over the amounts charged in the lien or that the materials were used in the construction. The items forming the basis of the lien were not ordered or authorized by Eby, and, altogether, Eby paid to the contractors and their material furnishers and laborers an amount in excess of the contract price. The Court found that the notice of non-liability was properly and timely posted and served to protect the owner against the attachment of the lien; that the delivery of the materials by the lumber company which had not been authorized by the owner relieved him of responsibility to pay therefor and gave it no right to- a lien upon the property; that there existed a contract between the owner and the lumber company whereby the owner was not bound to pay for materials unless expressly ordered or the delivery thereof authorized by him; that the contractors had breached their agreement with the owner on or before the date of the execution of the third contract (December 12, 1947) and that this constituted an abandonment or termination of the contract equivalent to completion of the structure, so as to' start the running of the period in which liens could be filed; that since the lien was not filed within 120 days thereafter, it was filed too late. The complaint was therefore dismissed and this appeal followed.

Appellants, plaintiffs below, attack the judgment under five points, which will be considered in order, the first being that the posting of a notice of non-liability by an owner of land who has contracted for the erection of a structure thereon is ineffective to prevent the attachment of liens for materials sold the contractor for use in the improvement. 36 Am.Jur., Mechanic’s Liens, Sec. 121, p. 87 states:

“Who May Invoke Protection of Statute. — An owner of land who employs a building contractor to erect improvements thereupon cannot, by posting a notice of nonresponsibility, prevent the attachment of a lien against the land in favor of laborers or mate-rialmen employed by the contractor.”,

and the text goes on to say, that only in Oregon have the Courts apparently limited this principle, citing 123 A.L.R. 36. Our pertinent statutes read:

N.M.Stat.1941 Annotated. “63-202. Labor and materials furnished — Liens —Definition of agent of owner.— Every person performing labor upon, or furnishing materials to be used in the construction, alteration or repair of any mining claim, building, wharf, bridge, ditch, flume, tunnel, fence, machinery, railroad, wagon road or aqueduct to create hydraulic power, or any other structure, or who performs labor in any mining claim, has a lien upon the same for the work or labor done or materials furnished by each respectively, whether done or furnished at the instance of the owner of the building or other improvement, or his agent, and every contractor, subcontractor, architect, builder, or other person having charge of any mining, or of the construction, alteration or repair, either in whole or in part, of any building or other improvement, as aforesaid, shall be held to be the agent of the owner for the purposes of this article.”
“63-210. Construction with knowledge of owner subjects land to lien— Notice by ozvner of non-responsibility.

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Bluebook (online)
1953 NMSC 098, 262 P.2d 370, 57 N.M. 669, Counsel Stack Legal Research, https://law.counselstack.com/opinion/skidmore-v-eby-nm-1953.