Standard Water Control Systems, Inc. v. JonesAnnotate this Case
In this dispute over Contractor's attorney fees the Supreme Court affirmed the judgment of the district court finding that Homeowners waived their assertion that including attorney fees in a mechanic's lien foreclosure decree violated their homestead rights, holding that Homeowners needed to raise their homestead exemption before the district court entered the foreclosure decree.
This appeal stemmed from a judicial determination that Homeowners had to pay most of Contractor's unpaid bill and that Contractor was entitled to foreclosure of its mechanic's lien. Later, a revised decree was entered granting Contractor the right to foreclose a mechanic's lien against the property both for the principal amount due and for the attorney fees. When a second sheriff's sale of the residence was impending, Homeowners, for the first time, asserted that including attorney fees in the mechanic's lien foreclosure decree violated their homestead rights. The judicial court found a waiver by Homeowners. The Supreme Court affirmed, holding (1) attorney fees can be recovered in a mechanic's lien foreclosure action against the homestead; and (2) the district court correctly found that principles of res judicata and waiver barred Homeowners' assertion of a homestead exemption.