Skillstaff of Colorado, Inc. v. Centex Real Estate Corp.

973 P.2d 674, 1998 Colo. J. C.A.R. 2408, 1998 Colo. App. LEXIS 130, 1998 WL 251479
CourtColorado Court of Appeals
DecidedMay 14, 1998
Docket97CA0085
StatusPublished
Cited by5 cases

This text of 973 P.2d 674 (Skillstaff of Colorado, Inc. v. Centex Real Estate Corp.) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Skillstaff of Colorado, Inc. v. Centex Real Estate Corp., 973 P.2d 674, 1998 Colo. J. C.A.R. 2408, 1998 Colo. App. LEXIS 130, 1998 WL 251479 (Colo. Ct. App. 1998).

Opinion

Opinion by

Judge TAUBMAN.

In this action to foreclose on a mechanic’s lien claimed on property owned by defendant, Centex Real Estate Corporation, (Cen-tex), plaintiff, Skillstaff of Colorado, Inc. (Skillstaff), appeals the summary judgment entered dismissing its claim. We affirm.

Centex, the owner and general contractor for a housing development, entered into an agreement with a framing company, OMJR, Inc. (OMJR). By the agreement, OMJR became a framing subcontractor for residences being built by Centex.

Thereafter, OMJR entered into an agreement with Skillstaff, a temporary personnel agency, under which Skillstaff was to provide laborers to OMJR. It is undisputed that the work performed by the laborers furnished to OMJR by Skillstaff benefited the real estate, and Centex paid OMJR for work performed. However, OMJR failed to pay Skillstaff. Nevertheless, Skillstaff paid its laborers their salary and thereafter filed the notice of mechanic’s lien at issue here.

I.

Skillstaff contends that the trial court erred as a matter of law in concluding that it could not enforce a mechanic’s lien against Centex. More specifically, Skillstaff argues that the trial court erred in determining that Kern v. Guiry Brothers Wall Paper Co., 60 Colo. 286, 153 P. 87 (1915) is dispositive. We disagree.

Summary judgment is a drastic remedy and should be granted only upon a clear showing that there are no genuine issues of material fact and that the moving party is entitled to judgment as a matter of law. Churchey v. Adolph Coors Co., 759 P.2d 1336 (Colo.1988).

When reviewing a motion for summary judgment, we must give the nonmoving party the benefit of all favorable inferences that may be drawn from the facts. Holland v. Board of County Commissioners, 883 P.2d 500 (Colo.App.1994). Also, review of a judgment granting a motion for summary judgment is de novo. Aspen Wilderness Workshop, Inc. v. Colorado Water Conservation Board, 901 P.2d 1251 (Colo.1995).

The mechanics’ lien statute should be construed in a liberal and comprehensive manner in favor of lien claimants, but it must be strictly construed in determining whether the right to a lien exists. Chambers v. Nation, 178 Colo. 124, 497 P.2d 5 (1972).

The purpose of the mechanics’ lien statute is to protect those persons performing labor, but it does not extend to those who merely furnish labor, as explained below, for the benefit of a contractor. Kern v. Guiry Brothers Wall Paper Co., supra.

The Kem court, interpreting a predecessor statute to § 38-22-101(1), C.R.S.1997, held, in circumstances similar to those present here, that the trial court erred in allowing a lien against property owned by Kern, for labor furnished by the Wall Paper Company to another party, Blume. More specifically, Blume entered into a contract with Kern to decorate his residence. Thereafter, Blume entered into a contract with the Wall Paper Company, whereby the Wall Paper Company agreed to supply Blume with labor and material for the Kern project. Blume personally supervised the work, performed some of the actual labor, completed his contract, and collected from Kern the full contract price. Blume, however, did not pay the Wall Paper Company for either the labor or materials pursuant to the agreement.

Here, the trial court concluded that Kem was dispositive of Skillstaff s claim for a mechanic’s lien. We agree with the trial court.

As in Kem, here, as subcontractor, OMJR entered into an agreement with Skillstaff to supply labor. Further, like the subcontractor in Kern, OMJR received full payment from the contractor, Centex, but did not hon- or its agreement with Skillstaff. Also, as in Kern, the persons who provided the labor were paid the full amount of their wages.

*676 Under these circumstances, as the Kern court concluded:

The mechanics’ lien act is equitable in nature, and should be liberally construed, but cannot by construction be extended to cases not within its provisions. Its purpose is to protect persons performing labor, but it does not extend to those who merely furnish labor for the benefit of the contractor.

Kern v. Guiry Brothers Wall Paper Co., supra, 60 Colo. at 286, 153 P. at 87.

Notwithstanding Skillstaffs contention to the contrary, we do not read Kern as establishing a distinction between those who “furnish” labor and those who “perform” labor. Rather, the Kern court, in concluding that the Wall Paper Company was not entitled to a mechanic’s lien, distinguished between those who furnish labor pursuant to a contract to do “some particular part of the work” and those who merely furnish labor for the benefit of the contractor. Kern v. Guiry Brothers Wall Paper Co., supra, 60 Colo. at 286, 153 P. at 87. Thus, those individuals who physically provide labor in the construction of a building may assert mechanics’ liens, while those who provide laborers to a subcontractor without assuming any responsibility for performing the work on the project may not. This reading is consistent with subsequent case law. See C & W Electric, Inc. v. Casa Dorado Corp., 34 Colo.App. 117, 523 P.2d 137 (1974) (right to lien must be created at the time or before labor is furnished, not afterward).

Skillstaff relies on 3190 Corp. v. Gould, 163 Colo. 356, 431 P.2d 466 (1967). The opinion in that case does not mandate a different result. There, the owner of an apartment building, after exhausting his financial resources, conveyed property still under construction to a trustee. Unlike the circumstances here, the plaintiffs in 3190 Corporation purchased material and furnished labor to finish construction on the building by agreement with the trustee. Upon a challenge to the plaintiffs’ standing to assert the mechanic’s lien, the supreme court concluded that the plaintiffs were entitled to a mechanic’s lien against the property because they were contractors actually in the business of construction and, therefore, within the class of persons defined by the statute.

T.K. Kobayashi v. Meehleis Steel Co., 28 Colo.App. 327, 472 P.2d 724 (1970), also relied on by Skillstaff, likewise does not require a contrary result.

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973 P.2d 674, 1998 Colo. J. C.A.R. 2408, 1998 Colo. App. LEXIS 130, 1998 WL 251479, Counsel Stack Legal Research, https://law.counselstack.com/opinion/skillstaff-of-colorado-inc-v-centex-real-estate-corp-coloctapp-1998.