RONALD MCPHERSON, APPELLANT,
v.
JEFFREY AND FLORA REDDING, APPELLEES
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McPherson appeals a judgment imposing a $60,000 equitable lien on his property in favor of the Reddings, who made improvements to his land without his consent after he rejected their purchase agreement. The court reversed, holding that the Reddings had knowledge of McPherson's ownership when they continued improvements and were entitled to a lien only for the initial three-month period before learning of the rejected agreement.
The Reddings are not entitled to an equitable lien for improvements made after they learned McPherson owned the property and rejected the agreement. An equitable lien requires the person making improvements to act in good faith under a mistake as to title, but the Reddings had full knowledge of McPherson's ownership when they continued their work. At most, they may claim a lien only for the three-month period (April-June 1964) before the rejection was communicated. Additionally, McPherson, as the legal title holder, is entitled to the $8,325 condemnation proceeds.
[1] An equitable lien arises when a person in good faith, under a mistake as to title, makes improvements or incurs expenses that permanently benefit another's property.
[2] No equitable lien is created where expenditures are made with full knowledge of the true state of the title.
Previewing 2 of 5 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“An equitable lien on the property benefited arises where a person in good faith and under a mistake as to the condition of the title makes improvements, renders services, or incurs expenses that are permanently beneficial to another's property. There is no such lien where expenditures are made with knowledge of the real state of the title.”
Establishes the legal standard for equitable liens, requiring both good faith and mistake as to title.
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Join FLexlaw to unlock all legal intelligenceIn April 1964, McPherson listed his property for sale with Tripp & Snyder realty and departed for France. The Reddings responded to an advertisement, …
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PER CURIAM.
Defendant, Ronald McPherson, appeals a final judgment granting plaintiffs a $60,000 lien upon his real property.
In April 1964 Ronald McPherson listed his property for sale with Tripp & Snyder real estate brokers and then departed for France. Tripp & Snyder placed an advertisement for the sale of the property in the newspaper. Plaintiff-appellees responded, offered to purchase the property for $4,500 and executed an agreement for deed whereby they would pay $200 down and $40 per month. The agreement and plaintiffs’ check for $200 were forwarded to McPherson in France. Plaintiffs, without the consent or knowledge of McPherson but with the approval of Tripp & Snyder, proceeded to clear the land and bring in 350 tons of fill to establish a worm farm. In June, McPherson returned to Tripp & Snyder plaintiffs’ check and the agreement for deed unsigned. Plaintiffs refused to accept their returned check and continued to work their worm farm. Tripp & Snyder for several years unsuccessfully attempted to persuade McPherson to consummate the transaction. During this entire period McPherson paid the taxes on the property. Upon returning to Florida in the winter of 1972, McPherson discovered the plaintiffs and the worm farm and informed them that they were on his property. Plaintiffs filed the instant complaint to impress an equitable lien upon McPherson’s property which they claim was benefited by converting it to a worm farm.
While this suit was pending, a portion of the land was condemned and the State of Florida paid $8,325 as compensation for the land acquisition. This sum was awarded to the plaintiffs.
After a final hearing on plaintiffs’ complaint, the trial judge entered the herein appealed judgment impressing a $60,000 lien on McPherson’s property.
On appeal, McPherson first contends that plaintiffs are not entitled to an equitable lien on his property inasmuch as the requisite elements for such a .lien are absent.
An equitable lien on the property benefited arises where a person in good faith and under a mistake as to the condition of the title makes improvements, renders services, or incurs expenses that are permanently beneficial to another’s property. There is no such lien where expenditures are made with knowledge of the real state of the title. Johns v. Gillian, 134 Fla. 575, 184 So. 140 (1938); Dewing v. Nelson & Co., Fla.App.1960, 117 So. 2d 744; Stevens v. Crowder, Fla.App. 1973, 273 So. 2d 793.
When Tripp & Snyder on June 24, 1974 tendered back to plaintiffs their check for $200 and informed them that McPherson did not sign the agreement for deed, it was clear that title to the property remained in McPherson. Nevertheless, with full knowledge of the real state of the title, plaintiffs insisted upon retaining possession and continued to make improvements upon the property. Thus, plaintiffs are not entitled to a lien for improvements beyond the date that McPherson’s rejection was communicated to them by Tripp & Snyder. At most, plaintiffs are entitled to equitable lien for the three month period, April-June 1974.
Appellant secondly argues that he is entitled to the sum of $8,325, the condemnation proceeds awarded in the eminent domain action. We agree.
Appellant being the undisputed legal title holder of the property which was condemned, the trial judge erroneously ordered that the $8,325 condemnation proceeds be released to the plaintiffs.
Accordingly, the final judgment appealed is reversed and the cause remanded for further proceedings not inconsistent herewith.
It is so ordered.
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Jeovany Torres v. Reimondez, 979 So. 2d 1074 (Fla. 3d DCA 2008)…r imposing an equitable lien, we find that the circuit court was correct in determining that an equitable lien was not warranted under the facts of this case. See Della Ratta v. Della Ratta, 927 So. 2d 1055 (Fla. 4th DCA 2006); McPherson v. Redding, 323 So. 2d 687 (Fla. 3d DCA 1975); Imler Earthmovers, Inc. v. Schatten, 240 So. 2d 76 (Fla. 1st DCA 1970). Affirmed.…
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McPHERSON v. Jeffery and Flora Redding, 357 So. 2d 737 (Fla. 3d DCA 1978)…table lien on property owned by McPherson. Plaintiffs’ amended complaint and defendant’s counterclaim thereto emanate from the order on mandate of the trial court which followed our opinion in a prior appeal in this cause. See McPherson v. Redding, 323 So. 2d 687 (Fla. 3d DCA 1975). Plaintiffs’ original complaint was to impress a lien. Defendant answered and counterclaimed alleging among other things, that plaintiffs were trespassers and thus, should be required to remove themselves from the property and to…
Authorities Cited
- Johns v. Gillian, 134 Fla. 575 (Fla. 1938)
- Dewing v. Nelson & Co., Inc., 117 So. 2d 744 (Fla. 2d DCA 1960)
- Stevens v. Crowder, 273 So. 2d 793 (Fla. 3d DCA 1973)