BEAVER INDUSTRIES, INC., A FLORIDA CORPORATION, APPELLANT,
v.
WESTLAKE DEVELOPMENT CORPORATION ET AL., APPELLEES

Fla. 2d DCA | 1980-03-21
No. 79-1459
GRIMES, C. J., and SCHEB, J., concur.
382 So. 2d 1233 Florida District Court of Appeal, Second District (1980) Positive Treatment
Cited by 2 cases

AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.

Synopsis

Beaver Industries, a subcontractor, appealed dismissal of its complaint against Westlake Development Corporation for payment under an indemnity contract. The key issue was whether recording a mechanic's lien constitutes "legal action" that would trigger a condition in the indemnity agreement requiring forbearance from legal action for thirty days.


Holding

The court held that recording a claim of lien is not "legal action." A claim of lien is a statutory prerequisite to bringing an action to enforce a mechanic's lien, but legal action commences when the complaint is filed in court, not when the lien notice is recorded. Therefore, Beaver Industries did not violate the conditional offer by filing its claim of lien within the thirty-day period.


Headnotes

[1] Recording a claim of lien under Section 713.08, Florida Statutes, does not constitute "legal action" within the meaning of an indemnity contract conditioned on the absenc…

[2] A statutory prerequisite to enforcing a mechanic's lien, such as filing a claim of lien, is distinct from the commencement of a legal action to foreclose the lien.

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Key Quotes

“The recording of a claim of lien pursuant to Section 713.08, Florida Statutes is a statutory prerequisite to the bringing of an action to enforce a statutory mechanic's lien. An action to foreclose a mechanic's lien commences, as with any other suit, when the complaint is filed in court, not when a subcontractor files a notice of intent to claim a lien with the owner.”

Establishes the key holding that recording a lien is a prerequisite, not the commencement of legal action itself.

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Facts & Procedural History

Beaver Industries was a subcontractor on a condominium development project seeking to recover unpaid balance from Westlake Development Corporation (ow…

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Opinion of the Court
OTT, Judge.

OTT, Judge.

Beaver Industries, Inc. appeals from a final judgment and from orders dismissing its first and second amended complaints with prejudice.

The primary issue raised by this appeal is whether the recording of a Claim of Lien under Section 713.08, Florida Statutes (1977), constitutes “legal action.”

Appellant, a subcontractor on a condominium development project, sought to recover from appellee, Westlake Development Corporation, as owner, the balance due to it from the general contractor. The court dismissed the complaint, ruling that the only meritorious count was that predicated on an indemnity contract contained in a letter from appellee to appellant dated July 17, 1974. In the letter, appellee guaranteed payment within thirty days of the balance due appellant from the general contractor, provided appellant did not take “legal action” to secure its account. The court declared that the condition was violated by appellant recording a claim of lien against appellee’s property within the thirty days. The amended complaint was dismissed on June 18,1979, with leave until June 22,1979 to amend.

On June 26, 1979, appellant filed its second amended complaint, realleging its claim under the indemnity contract with appellee. This complaint was dismissed with prejudice and final judgment was entered for appellee. The trial court cites two reasons for the dismissal with prejudice. First, it states that “[appellant’s] Second Amended Complaint was neither filed with the court nor served on the Defendant . by June 22, 1979, as required by the court’s order of June 18, 1979.” Second, that the court was “unable to find any additional meritorious claims not heretofore ruled upon by the court which would justify denial of the motion to dismiss.” We do not agree that dismissal with prejudice was proper on either of these grounds and therefore we reverse.

Under the indemnification contract with appellee, appellant promised forebearance from “legal action” for a thirty-day period. The indemnity contract was dated July 17,1974. On August 5,1974, appellant filed its claim of lien for the unpaid balancé of its contract. The foreclosure complaint was not filed until August 4, 1975.

We hold that, under the facts involved herein, the filing of a claim of lien is not “legal action.” The recording of a claim of lien pursuant to Section 713.08, Florida Statutes is a statutory prerequisite to the bringing of an action to enforce a statutory mechanic’s lien. An action to foreclose a mechanic’s lien commences, as with any other suit, when the complaint is filed in court, not when a subcontractor files a notice of intent to claim a lien with the owner. Corry Construction Co. v. Hector Construction Companies, Inc., 363 So. 2d 1125 (Fla. 1st DCA 1978). Thus, appellant did not violate the conditional offer by filing its claim of lien.

We further hold that the late filing of the Second Amended Complaint by four days, standing alone, does not warrant dismissal with prejudice under the circumstances present here.

Accordingly, the final judgment and orders appealed from are reversed and the cause is remanded for further proceedings consistent with this opinion.

GRIMES, C. J., and SCHEB, J., concur.


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Citator

Cited By

  • Araujo-Sanchez v. Amoon, 513 So. 2d 1307 (Fla. 3d DCA 1987)
    …ience to the court, we conclude that the trial court abused its discretion in dismissing the third amended complaint as being untimely filed. D’Best Laundromat, Inc. v. Janis, 508 So. 2d 1325 (Fla. 3d DCA 1987); Beaver Indus, v. Westlake Dev. Corp., 382 So. 2d 1233 (Fla. 2d DCA 1980); In re Ulm’s Estate, 345 So. 2d 1099 (Fla. 2d DCA 1977); English v. Hecht, 189 So. 2d 366 (Fla. 3d DCA), cert. denied, 194 So. 2d 619 (Fla.1966); see also Gibraltar Serv. Corp. v. Lone & Assocs., Inc., 488 So. 2d 582 (Fla. 4th DCA…

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