Valdez v. Diamond Shamrock Refining & Marketing Co.

842 S.W.2d 273, 36 Tex. Sup. Ct. J. 269, 1992 Tex. LEXIS 155, 1992 WL 353282
CourtTexas Supreme Court
DecidedDecember 2, 1992
DocketD-2100
StatusPublished
Cited by9 cases

This text of 842 S.W.2d 273 (Valdez v. Diamond Shamrock Refining & Marketing Co.) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Valdez v. Diamond Shamrock Refining & Marketing Co., 842 S.W.2d 273, 36 Tex. Sup. Ct. J. 269, 1992 Tex. LEXIS 155, 1992 WL 353282 (Tex. 1992).

Opinion

OPINION ON MOTION FOR REHEARING

MAUZY, Justice.

Petitioner’s motion for rehearing is granted; respondents’ motion for rehearing is overruled. The court’s opinion and judgment of October 7, 1992, are withdrawn, and this is now the opinion of the court.

This case involves the interpretation of the Texas Property Code as it applies to mechanic’s liens. 1 We hold that petitioner Valdez properly perfected his interest under the Code and is entitled to a lien on all of the property cited in his mechanic’s lien affidavit.

The parties stipulated to the material facts as set forth in affidavits and filed documents. Opus I, Ltd. (“Opus”), a Texas limited partnership, purchased a 7.9-acre tract of undeveloped land in Lewisville, Texas in the fall of 1985. Opus obtained the services of Ambassador Development Corporation (“Ambassador”) as general contractor to develop the land. Ambassador then subcontracted with Juan Valdez, d/b/a JV Construction Co. (“Valdez”), to pour and fabricate concrete. Valdez began work in February of 1986, finishing by August of 1986.

Valdez timely filed a mechanic’s lien affidavit to perfect his lien on September 16, 1986. 2 During the course of Valdez’s work, in June of 1986, Opus replatted the land into two separate tracts: a 7.1-acre tract — on which Valdez was working — and a still-undeveloped 0.8-acre tract. Opus then sold the 0.8-acre tract to Diamond Shamrock Refining and Marketing Company (“Diamond Shamrock”) on July 31,1986, and the deed was recorded in the clerk’s office of Denton County on August 7,1986.

Valdez sued Opus and Ambassador for payment, and obtained a judgment for $91,-011.46 and a lien covering the entire 7.9 acres. Unable to recover the amount of the judgment, Valdez took steps to bring about a sheriff’s sale for the entire lot. Diamond Shamrock objected, however, and obtained a temporary injunction blocking the sheriff’s sale as to Diamond Shamrock’s 0.8-acre portion.

At a trial without a jury, the trial court held that Valdez had not perfected its lien as to the 0.8-acre tract and permanently enjoined the sheriffs sale as to that portion of the property. The court of appeals” affirmed, holding that Diamond Shamrock was a good-faith purchaser for value without actual or constructive notice of Valdez’s right to assert a mechanic’s lien, and therefore Valdez did not have a perfected lien as to the 0.8-acre tract. 820 S.W.2d 955. Valdez argues that he fully complied *275 with the Property Code’s requirements and that his lien was indeed properly perfected for the land that includes the 0.8-acre tract.

I. Scope of Mechanic’s Lien

As stated in Texas Property Code section 53.022(c), a mechanic’s lien extends to the entire “lot” on which work is being performed. Although not defined in the statute, a “lot” usually refers to a parcel of land as marked on a plat or survey. See Black’s Law DICTIONARY 946 (6th ed. 1990). Diamond Shamrock argues, however, that the term “lot” has a unique meaning in the context of a mechanic’s lien. Diamond Shamrock asserts that the legislature did not envision that a city tract of the size here (7.9 acres) would come under the term “lot”; instead, a “lot” refers merely to the improvement and the land immediately surrounding the improvement. We disagree.

This court has long acknowledged that “the duty of courts [is] to construe a law as written ... and not look for extraneous reasons to be used as a basis for reading into a law an intention not expressed nor intended to be expressed therein.” See Government Personnel Mut. Life Ins. Co. v. Wear, 251 S.W.2d 525, 529 (Tex.1952). Here, insofar as the legislature has not specified a maximum size for a city “lot,” nor given any impermissible ratio for the size of an improvement to the size of the encumbered lot, we believe the plain language of the statute indicates that an entire undivided tract is a single lot.

Diamond Shamrock also argues that the 0.8-acre tract was a distinct “lot” as early as November 1985, when Opus entered into a loan agreement with Southwest Savings Association to help finance the construction project. In the agreement, the 0.8-acre tract was designated as a “release tract,” meaning that the tract could be sold separately without any penalty under the agreement. Diamond Shamrock thus contends that Opus intended that the tract be separate, and indeed treated the 7.1-acre tract and 0.8-acre tract distinctly.

On the issue of intent, Diamond Shamrock’s undisclosed intentions are irrelevant — what counts are public manifestations by which potential creditors will be put on notice. See Popplewell v. City of Mission, 342 S.W.2d 52, 56 (Tex.Civ.App.—San Antonio 1960, writ ref’d n.r.e.) (noting that all matters affecting land titles must be disclosed in public records). Moreover, even on the issue of how Opus actually treated the 0.8-acre tract, Diamond Shamrock’s contention fails. The financing agreement, which evidently was not included in the deed records, does not serve the same legal purposes of a duly recorded replatting, as was actually done in June of 1986. Valdez had no reason to believe anything other than that Opus owned the 7.9-acre tract as an undivided lot.

The most reasonable and pragmatic interpretation of the term “lot,” for purposes of section 53.022, is that it refers to a single tract of land as recorded in the county deed records. Accordingly, a properly perfected lien by Valdez would extend to the lot that existed when construction began 3 — the entire undivided 7.9 acres.

II. Perfection of Mechanic’s Lien

The requirements for perfecting a mechanic’s lien are set forth in sections 53.-051-.059 of the Texas Property Code. The step with which Diamond Shamrock has a complaint is whether Valdez properly complied with the notice provisions of section 53.056, which applies to a lien claimant who is not an original contractor. The section requires that the lien claimant give written notice of the unpaid balance to the owner of the property within a specified period of time. See Tex.Prop.Code § 53.056(b) (1984) (amended 1989). Diamond Shamrock claims that because it was the actual owner of the 0.8-acre tract at the time the mechanic’s lien affidavit was filed, Diamond Shamrock was entitled to notice of the claim to its property; thus, not having timely received notice, Diamond Shamrock asserts that Valdez’s mechanic’s lien cannot reach the 0.8-acre tract.

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842 S.W.2d 273, 36 Tex. Sup. Ct. J. 269, 1992 Tex. LEXIS 155, 1992 WL 353282, Counsel Stack Legal Research, https://law.counselstack.com/opinion/valdez-v-diamond-shamrock-refining-marketing-co-tex-1992.