Sukut Construction, Inc. v. Rimrock CA

199 Cal. App. 4th 817, 131 Cal. Rptr. 3d 874, 2011 Cal. App. LEXIS 1252
CourtCalifornia Court of Appeal
DecidedSeptember 30, 2011
DocketNo. D057774
StatusPublished
Cited by3 cases

This text of 199 Cal. App. 4th 817 (Sukut Construction, Inc. v. Rimrock CA) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sukut Construction, Inc. v. Rimrock CA, 199 Cal. App. 4th 817, 131 Cal. Rptr. 3d 874, 2011 Cal. App. LEXIS 1252 (Cal. Ct. App. 2011).

Opinion

[822]*822Opinion

O’ROURKE, J.

Construction, Inc. (Sukut), appeals from a summary adjudication of its cause of action for foreclosure of a mechanic’s lien. The court ruled in favor of Otay Valley Quarry LLC (Otay) and Rimrock CA LLC (Rimrock), the owner and operator, respectively, of Otay Valley Quarry (Quarry), located in Chula Vista, California. Sukut contends that Quarry is a “mine” and the hard rock products extracted from it are “minerals” within the meaning of the Public Resources Code; therefore, Sukut was entitled to record and enforce a mining lien under Civil Code1 section 3060. Sukut alternatively contends it could enforce a conventional mechanic’s lien under section 3110. Based on our conclusion the quarry at issue here was not a mine within the meaning of section 3060 and, further, that under the doctrine of judicial estoppel Sukut is barred from arguing it was entitled to enforce a mechanic’s lien, we affirm the judgment.

FACTUAL AND PROCEDURAL BACKGROUND

Sukut alleged in its complaint a cause of action for foreclosure of a mechanic’s lien against Rimrock, Otay and Doe defendants, and alleged causes of action for breach of contract, common counts and enforcement of promissory note against Rimrock and Doe defendants. Sukut attached to the complaint a copy of a promissory note in which Rimrock agreed to pay Sukut $1,562,744.30 plus interest approximately four months later. Sukut also attached to the complaint a copy of a mechanic’s lien it had recorded in September 2008, which states that Rimrock owed Sukut $1,562,744.30 plus interest, because Sukut had completed “surface mining [of] aggregate materials” at Quarry.

It is undisputed that between March 2007 and April 2009, Rimrock operated Quarry, which produced rock aggregate that is used in construction for, among other things, road base, asphalt, concrete and pipe bedding. The rock is extracted by explosives and taken directly from the ground surface; the quarry operation removes, and lowers, the top surface of the ground.

Rimrock moved for summary adjudication, which the trial court granted on grounds there was no triable issue of material fact that the quarry was not a mine. The court stated, “[Sukut] filed a mechanic’s lien to secure payment for ‘surface mining [of] aggregate materials.’ Although the lien does not state what code section the lien is based on, in its opposition to [Rimrock’s] demurrer, Sukut argued it has a mining lien pursuant to [section 3060].” Citing the Public Resources Code and relevant case law, the court concluded, “Although [823]*823a quarry may be a surface mine, the quarry here was not a mine. [Rimrock] was breaking up and removing hard rock. There is no evidence that minerals were extracted therefrom.” The cause of action for foreclosure of a mechanic’s lien was accordingly dismissed with prejudice.

In a stipulated judgment, Sukut was awarded $1,954,812.30 for its breach of contract cause of action, computed as follows: the principal sum of $1,562,744.30, plus interest in a sum of $321,539, plus $70,529 in attorney fees. Sukut’s causes of action for common counts and enforcement of promissory note were dismissed with prejudice.

DISCUSSION

Sukut contends, “If [Quarry] is a mine under California law, the activities of Sukut would clearly entitle Sukut to record and enforce a mining lien under [section 3060].” The parties agree this case turns on the statutory definition of a “mining claim” as used in section 3060, and rely on the definitions of “mine” and “minerals” in Public Resources Code sections 2200 and 2005 respectively.

Standard of Review

We review both questions of law and an order granting summary adjudication de novo. (United Rentals Northwest, Inc. v. Snider Lumber Products, Inc. (2009) 174 Cal.App.4th 1479, 1484 [95 Cal.Rptr.3d 471]; Miller v. Department of Corrections (2005) 36 Cal.4th 446, 453 [30 Cal.Rptr.3d 797, 115 P.3d 77].) We review questions of statutory interpretation “seeking, as always, to ascertain the Legislature’s intent so as to give effect to the law’s purpose.” (In re Corrine W. (2009) 45 Cal.4th 522, 529 [87 Cal.Rptr.3d 691, 198 P.3d 1102]; see Elsner v. Uveges (2004) 34 Cal.4th 915, 927 [22 Cal.Rptr.3d 530, 102 P.3d 915].) “We begin with the statute’s plain language, as the words the Legislature chose to enact are the most reliable indicator of its intent. [Citation.] But if ‘the text alone does not establish the Legislature’s intent clearly, we must turn to other sources for insight ....’” (In re Corrine W., at p. 529.)

If “statutory text is susceptible of more than one reasonable interpretation, we will consider ‘ “a variety of extrinsic aids, including the ostensible objects to be achieved, the evils to be remedied, the legislative history, public policy, contemporaneous administrative construction, and the statutory scheme of which the statute is a part.” ’ ” (Elsner v. Uveges, supra, 34 Cal.4th at p. 929; see Hughes v. Board of Architectural Examiners (1998) 17 Cal.4th 763, 775-776 [72 Cal.Rptr.2d 624, 952 P.2d 641].) “Ultimately we choose the construction that comports most closely with the apparent intent of the [824]*824lawmakers, with a view to promoting rather than defeating the general purpose of the statute.” (Allen v. Sully-Miller Contracting Co. (2002) 28 Cal.4th 222, 227 [120 Cal.Rptr.2d 795, 47 P.3d 639].)

Applicable Law

“ ‘Mechanics’ liens are entirely of statutory creation, and the statute must be looked to both for the right to the lien and the mode by which it can be enforced. The right to a mechanic’s lien depends upon a compliance with the statute, and in order that a valid lien may arise and be enforced, the claimant must strictly, or at least substantially, observe and comply with the provisions of the statute, none of which may be regarded as unessential.’ ” (Holm v. Bramwell (1937) 20 Cal.App.2d 332, 334 [67 P.2d 114].)

Section 30602 states: “Any person who performs labor in any mining claim or claims, or in or upon any real property worked as a mine, either in the development thereof or in working thereon by the subtractive process, or furnishes materials to be used or consumed therein, has a lien upon the same and the works owned and used by the owners for milling or reducing the ores from the same, for the value of the work or labor done or materials furnished by each respectively . . . .”

More than a century ago, the California Supreme Court clarified the definition of a “mining claim” as used in former section 1183, the predecessor statute to section 3060: “A ‘mining claim,’ as the term is used in the statutes of the United States, is that portion of a vein or lode and of the adjoining surface, or of the surface and subjacent material, to which a claimant has acquired the right of possession by virtue of a compliance with the laws of the United States and the local rules and customs of miners.

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

Related

In re Crescent Associates, LLC
C.D. California, 2021
Precision Framing Systems Inc. v. Luzuriaga
California Court of Appeal, 2019
Precision Framing Sys. Inc. v. Luzuriaga
251 Cal. Rptr. 3d 858 (California Court of Appeals, 5th District, 2019)

Cite This Page — Counsel Stack

Bluebook (online)
199 Cal. App. 4th 817, 131 Cal. Rptr. 3d 874, 2011 Cal. App. LEXIS 1252, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sukut-construction-inc-v-rimrock-ca-calctapp-2011.