TAMARAC VILLAGE, INC., APPELLANT,
v.
BATES & DALY CO., A FLORIDA CORPORATION, APPELLEE

Fla. 4th DCA | 1977-06-17
No. 75-1796
ALDERMAN, J., and DURANT, N. JOSEPH, Jr., Associate Judge, concur.
348 So. 2d 23 Florida District Court of Appeal, Fourth District (1977) Positive Treatment
Cited by 14 cases

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Holding

The court held that payments made by the owner before recording a notice of commencement and payments made to complete construction without a notice of recommencement were improper, creating a surplus fund from which the lienholder could recover.


Headnotes

[1] Payments made by an owner to a general contractor before recording a notice of commencement are improper payments under the Mechanics' Lien Law.

[2] An owner's failure to record a notice of recommencement after a general contractor abandons a project renders payments made to complete the construction improper.

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Facts & Procedural History

The owner made payments to the general contractor before recording a notice of commencement and later completed construction after the contractor aban…

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Opinion of the Court
DOWNEY, Judge.

DOWNEY, Judge.

We have for review a final summary judgment for appellee, Bates & Daly Co., foreclosing its mechanic’s lien against appellant, Tamarac Village, Inc., the owner of the real property in question.

The primary issue on appeal is whether the owner may claim as proper payments a) certain payments it made to the general contractor before the owner recorded a notice of commencement and before appellee began to furnish any labor and material under appellee’s subcontract, and b) payments it made to complete the construction without recording a notice of recommencement after the general contractor had abandoned the construction project.

The following is the pertinent chronology of events:

a) On August 27, 1973, Tamarac, as owner, contracted with a general contractor to improve its property;

b) between September 10, 1973, and October 12, 1973, Tamarac paid the contractor a total of $15,315.08;

c) on October 16, 1973, Tamarac recorded its Notice of Commencement;

d) between October 26, 1973, and November 1,1973, Bates furnished labor and materials to the improvement to the extent of $1,762.52;

e) on November 23, 1973, the general contractor abandoned the job;

f) on November 30, 1973, Bates served notice to owner upon Tamarac;

g) on December 3,1973, Bates recorded its claim of lien.

After the general contractor abandoned the contract, Tamarac had the construction completed at a cost of $64,963.36. Tamarac paid $100,226.56 toward the improvement, or $20,501.56 in excess of the adjusted contract price of $79,725.00.

Several of the critical events which must be kept in mind are:

1) Tamarac paid $15,315.08 to the general contractor prior to recording its notice of commencement;

2) Bates served its notice of intention to claim a lien pursuant to Section 713.06(2)(a) within 45 days of the time it commenced its work but 7 days after the general .contractor abandoned the contract;

3) Tamarac had the construction completed, but it did not record a notice of recommencement as required by Section 713.07(4), Florida Statutes (1973).

The circuit court entered summary judgment in which it found that:

“counsel for each of the parties having agreed that there is no genuine issue of material fact, and that therefore the Court can and should now decide this cause as a matter of law, the Court finds that there was a failure on the part of the Defendant-Owner to timely file a Notice of Commencement, prior to the Owner making some payment under the contract, and the Court further finding that there was a failure on the part of Defendant-Owner to file a Notice of ReCommencement, therefore, a surplus of funds has been created from which the Plaintiff is entitled to recover on its lien in the amount of $1,762.52.”

The court thereupon adjudged that Bates was entitled to have Tamarac’s property sold to satisfy Bates’s lien claim (plus interest, costs, and attorney’s fees).

On appeal, Tamarac contends that: (a) since Bates did not commence work until after Tamarac had paid the general contractor $15,315.08, those payments were not improper, even though they were made before Tamarac recorded its notice of commencement; (b) even if the $15,315.08 payments were improper, Bates still cannot recover because the reasonable cost of completion exceeded the contract price and therefore there was no surplus fund to satisfy Bates’s claim of lien; and (c) since Bates, contrary to the requirements of Section 713.06(2)(a), did not serve its Notice to Owner before the general contractor .aban doned the job, the lien is unenforceable. We disagree with all of Tamarac’s contentions.

If an owner fulfills all the duties the Mechanics’ Lien Law places upon him, his liability for all mechanics’ lien claims cannot exceed the contract price.1 See Alton Towers, Inc. v. Coplan Pipe & Supply Co., 262 So. 2d 671 (Fla.1972), and Section 713.06(1), Florida Statutes (1973). However, if the owner makes improper payments, then he has failed to comply with the Mechanics’ Lien Law, and his liability for mechanics’ lien claims may exceed the contract price. See, e. g., Renuart Lumber Yards v. Stearn, 95 So. 2d 517 (Fla.1957).

We hold that the payments Tamarac made before it recorded its notice of commencement were improper payments under Section 713.06(3)(a), Florida Statutes (1973). In addition, we hold that Tamarac’s failure to file a notice of re-commencement as required by Section 713.07(2), Florida Statutes (1973), rendered the payments Tama-rac made to complete the project also improper payments. See Melnick v. Reynolds Metals Company, 230 So. 2d 490 (Fla. 4th DCA 1970), and Bill Ader, Inc. v. Maule Industries, Inc., 230 So. 2d 182 (Fla. 4th DCA 1969). Thus, Tamarac could not deduct the pre-notice of commencement payments of $15,315.08, nor the reasonable cost of completion, from the adjusted contract price. Accordingly, there remained in Ta-marac’s hands improperly paid portions of the adjusted contract price sufficient to satisfy appellee’s lien.

For the foregoing reasons the judgment appealed from is affirmed.

AFFIRMED.

ALDERMAN, J., and DURANT, N. JOSEPH, Jr., Associate Judge, concur. . See Section 713.01(3), Florida Statutes (1973) for the definition of “contract price”.


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Citator

Cited By

  • Cont'l Concrete, Inc. v. Lakes AT LA PAZ III Ltd. P'ship, 758 So. 2d 1214 (Fla. 4th DCA 2000)
    …payments” defense. This defense provides that where “an owner fulfills all the duties the Mechanics’ Lien Law places upon him, his liability for all mechanics’ lien claims cannot exceed the contract price.” Tamarac Village, Inc. v. Bates & Daly Co., 348 So. 2d 23, 25 (Fla. 4th DCA 1977) (citation omitted). La Paz alleged that it fulfilled all the responsibilities placed upon it by law by making “proper payments” to the general contractor, ultimately paying out over $975,000.00 for a project with a direct con…
  • Wool Wholesale Plumbing Supply, Inc. v. Abdo, 365 So. 2d 216 (Fla. 4th DCA 1978)
    …under § 713.13, Fla.Stat. (1975). It is clear that these payments, rendered improper by § 713.06(3)(a), Fla.Stat. (1975), may be reached in a foreclosure action notwithstanding an untimely notice to owner. Tamarac Village, Inc. v. Bates & Daly Co., 348 So. 2d 23 (Fla. 4th DCA 1977); Westinghouse Electric Supply Co. v. Midway Shopping Mall, Inc., 277 So. 2d 809 (Fla. 3rd DCA 1973); 1800 North Federal Corp. v. Westinghouse Electric Supply Co., 224 So. 2d 384 (Fla. 4th DCA 1969); Crane Co. v. Fine, 221 So. 2d…
  • Porter Lumber Co., Inc. v. TIM Kris, Inc., 530 So. 2d 398 (Fla. 4th DCA 1988)
    …hich remained after payments to Kris and the reasonable costs of completion were deducted from the contract price. Pursuant to Alton Towers, Inc. v. Coplan Piper & Supply Co., 262 So. 2d 671 (Fla. 1972) and Tamarac Village, Inc. v. Bates & Daly Co., 348 So. 2d 23 (Fla. 4th DCA 1977), Porter contends that it was entitled to the more favorable calculation because Phoenix MacNab did not comply with the mechanics’ lien law. We affirm the final judgment based on the lower court’s conclusion that Phoenix MacNab c…
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