STOCK BUILDING SUPPLY LLC V DWIGHT E PARSLEY
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STATE OF MICHIGAN
COURT OF APPEALS
STOCK BUILDING SUPPLY, L.L.C.,
FOR PUBLICATION
January 25, 2011
9:10 a.m.
Plaintiff/Counter-DefendantAppellee,
v
PARSLEY HOMES OF MAZUCHET HARBOR,
L.L.C., DWIGHT E. PARSLEY, ULTIMATE
WOODWORKS, DOAN COMPANIES,
BELLAGIO TILE CENTER, INC., ARLINGTON
TRANSIT MIX, INC., KELLEY & SONS
HEATING & COOLING, INC., LA FATA
CABINETS, INC., MIDWEST STAIRS, INC.,
FOX BROTHERS COMPANY, ATOM, INC.,
STERLING BANK & TRUST, DAVE’S
PAINTING AND WALLPAPER, INC., and
STATE OF MICHIGAN DEPARTMENT OF
LABOR & ECONOMIC GROWTH,
Defendants,
and
FOX BROTHERS COMPANY,
Cross-Plaintiff/Third-Party Plaintiff,
v
PARSLEY HOMES OF MAZUCHET HARBOR,
L.L.C., DWIGHT E. PARSLEY, STATE OF
MICHIGAN DEPARTMENT OF LABOR &
ECONOMIC GROWTH, DOAN COMPANIES,
ARLINGTON TRANSIT MIX, INC., KELLEY &
SONS HEATING & COOLING, INC., LA FATA
CABINETS, INC., ATOM, INC., and STERLING
BANK & TRUST,
Cross-Defendants,
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No. 294098
Macomb Circuit Court
LC No. 2007-003240-CH
2007-003241-CH
and
D. E. PARSLEY BUILDER, INC.,
Third-Party Defendant,
and
STATE OF MICHIGAN DEPARTMENT OF
LABOR & ECONOMIC GROWTH ,
Cross-Plaintiff,
v
PARSLEY HOMES OF MAZUCHET HARBOR,
L.L.C., PARSLEY HOMES OF SPRING ARBOR,
L.L.C., PARSLEY HOMES, L.L.C., MAZUCHET
HARBOR, L.L.C., DWIGHT E. PARSLEY, and D.
E. PARSLEY BUILDER, INC.,
Cross-Defendants,
and
MIDWEST STAIRS, INC.,
Counter-Plaintiff/Cross-Plaintiff,
v
STOCK BUILDING SUPPLY, L.L.C., PARSLEY
HOMES OF MAZUCHET HARBOR, L.L.C.,
DWIGHT E. PARSLEY, ULTIMATE
WOODWORKS, DOAN COMPANIES,
BELLAGIO TILE CENTER, INC., ARLINGTON
TRANSIT MIX, INC., KELLEY & SONS
HEATING & COOLING, INC., LA FATA
CABINETS, INC., FOX BROTHERS
COMPANY, ATOM, INC., STERLING BANK &
TRUST, DAVE’S PAINTING AND
WALLPAPER, INC., and STATE OF
MICHIGAN DEPARTMENT OF LABOR &
ECONOMIC GROWTH,
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Counter-Defendant/CrossDefendants,
and
ARLINGTON TRANSIT MIX, INC.,
Cross-Plaintiff/ Third-Party
Plaintiff,
v
PARSLEY HOMES OF MAZUCHET HARBOR,
L.L.C., DWIGHT E. PARSLEY, ULTIMATE
WOODWORKS, MIDWEST STAIRS, INC.,
DOAN COMPANIES, BELLAGIO TILE
CENTER, INC., KELLEY & SONS HEATING &
COOLING, INC., LA FATA CABINETS, INC.,
FOX BROTHERS COMPANY, ATOM, INC.,
STERLING BANK & TRUST, DAVE’S
PAINTING AND WALLPAPER, INC., and
STATE OF MICHIGAN DEPARTMENT OF
LABOR & ECONOMIC GROWTH,
Cross-Defendants,
and
TRACEY SMITH, DOUGLAS SMITH, ALFRED
J. GREIN, LORI GREIN, and CCO MORTGAGE
CORP.,
Third-Party Defendants,
and
LA FATA CABINETS, INC.,
Counter-Plaintiff/Cross-Plaintiff,
v
STOCK BUILDING SUPPLY, L.L.C., PARSLEY
HOMES OF MAZUCHET HARBOR, L.L.C.,
DWIGHT E. PARSLEY, ULTIMATE
WOODWORKS, MIDWEST STAIRS, INC.,
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DOAN COMPANIES, BELLAGIO TILE
CENTER, INC., KELLEY & SONS HEATING &
COOLING, INC., FOX BROTHERS COMPANY,
ATOM, INC., STERLING BANK & TRUST,
DAVE’S PAINTING AND WALLPAPER, INC.,
and STATE OF MICHIGAN DEPARTMENT OF
LABOR & ECONOMIC GROWTH,
Counter-Defendant/CrossDefendants,
and
WEIMER PLUMBING, INC.,
Intervening Counter-Plaintiff/CrossPlaintiff/Third-Party PlaintiffAppellant,
v
STOCK BUILDING SUPPLY, L.L.C., PARSLEY
HOMES OF MAZUCHET HARBOR, L.L.C.,
DWIGHT E. PARSLEY, ULTIMATE
WOODWORKS, MIDWEST STAIRS, INC.,
DOAN COMPANIES, BELLAGIO TILE
CENTER, INC., ARLINGTON TRANSIT MIX,
INC., KELLEY & SONS HEATING &
COOLING, INC., LA FATA CABINETS, INC.,
FOX BROTHERS COMPANY, ATOM, INC.,
STERLING BANK & TRUST, DAVE’S
PAINTING AND WALLPAPER, INC., and
STATE OF MICHIGAN DEPARTMENT OF
LABOR & ECONOMIC GROWTH,
Counter-Defendant/CrossDefendants,
and
CONCRETE PROS INC., and E. A. PICKERING
PAINTING, INC.,
Third-Party Defendants,
and
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RIGHI CONSTRUCTION COMPANY,
Intervening Cross-Plaintiff,
v
TRACEY SMITH, DOUGLAS SMITH,
PARSLEY HOMES OF MAZUCHET HARBOR,
L.L.C., PARSLEY HOMES OF SPRING ARBOR,
L.L.C., DWIGHT E. PARSLEY, and STATE OF
MICHIGAN DEPARTMENT OF LABOR &
ECONOMIC GROWTH,
Cross-Defendants,
and
E. A. PICKERING PAINTING, INC.,
Counter-Plaintiff/CrossPlaintiff/Third-Party Plaintiff,
v
STOCK BUILDING SUPPLY, L.L.C., PARSLEY
HOMES OF MAZUCHET HARBOR, L.L.C.,
PARSLEY HOMES, L.L.C., MAZUCHET
HARBOR, L.L.C., D. E. PARSLEY BUILDER,
INC., DWIGHT E. PARSLEY, ULTIMATE
WOODWORKS, DOAN COMPANIES,
ARLINGTON TRANSIT MIX, INC., KELLEY &
SONS HEATING & COOLING, INC., LA FATA
CABINETS, INC., FOX BROTHERS
COMPANY, ATOM, INC., STERLING BANK &
TRUST, STATE OF MICHIGAN
DEPARTMENT OF LABOR & ECONOMIC
GROWTH, WEIMER PLUMBING, INC.,
ALFRED J. GREIN, LORI GREIN, and
CONCRETE PROS INC.,
Counter-Defendant/CrossDefendants,
and
-5-
MARBLE & GRANITE WORKS, INC., DENNIS
STROUP, THEUT PRODUCTS and UNITED
CONCRETE WALLS,
Third-Party Defendants,
and
UNITED CONCRETE WALLS,
Counter-Plaintiff/CrossPlaintiff/Third-Party Plaintiff,
v
STOCK BUILDING SUPPLY, L.L.C., PARSLEY
HOMES OF MAZUCHET HARBOR, L.L.C.,
PARSLEY HOMES, L.L.C., MAZUCHET
HARBOR, L.L.C., D. E. PARSLEY BUILDER,
INC., DWIGHT E. PARSLEY, ULTIMATE
WOODWORKS, DOAN COMPANIES,
ARLINGTON TRANSIT MIX, INC., KELLEY &
SONS HEATING & COOLING, INC., LA FATA
CABINETS, INC., FOX BROTHERS
COMPANY, ATOM, INC., STERLING BANK &
TRUST, STATE OF MICHIGAN
DEPARTMENT OF LABOR & ECONOMIC
GROWTH, WEIMER PLUMBING, INC.,
ALFRED J. GREIN, LORI GREIN, CONCRETE
PROS INC., E. A. PICKERING PAINTING, INC.,
and CCO MORTGAGE CORP.,
Counter-Defendant/CrossDefendants,
and
MARBLE & GRANITE WORKS, INC., DENNIS
STROUP, and THEUT PRODUCTS,
Third-Party Defendants,
and
KELLEY & SONS HEATING & COOLING,
INC.,
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Counter-Plaintiff/CrossPlaintiff/Third-Party Plaintiff,
v
STOCK BUILDING SUPPLY, L.L.C., PARSLEY
HOMES OF SPRING ARBOR, L.L.C., PARSLEY
HOMES, L.L.C., DOAN COMPANIES,
ARLINGTON TRANSIT MIX, INC., LA FATA
CABINETS, INC., FOX BROTHERS
COMPANY, ATOM, INC., STERLING BANK &
TRUST, WEIMER PLUMBING, INC.,
CONCRETE PRO’S INC., BELLAGIO TILE
CENTER, INC., E. A. PICKERING PAINTING,
INC., and UNITED CONCRETE WALLS,
Counter-Defendant/CrossDefendants,
and
LINCOLN BRICK & SUPPLY COMPANY, S &
D CONSTRUCTIONS, L.L.C., MASON
WINDOWS UNLIMITED, PATRICK M. ROSS,
TM WOOD PRODUCTS MANUFACTURING,
INC., and PARSLEY HOMES OF BRADBURY,
L.L.C.,
Third-Party Defendants,
and
COMMUNITY CENTRAL BANK,
Third-Party Defendant-Appellee.
Before: O’CONNELL, P.J., and SAAD and BECKERING, JJ.
BECKERING, J.
Intervening plaintiff Weimer Plumbing, Inc. (Weimer), appeals as of right from the trial
court’s order dismissing its construction lien on lot 47 Mazuchet Harbor, commonly known as
39836 Mazuchet Drive, Harrison Township (lot 47), as invalid. We affirm.
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I
This action arises from plumbing work Weimer performed on lot 47, for which it was not
paid. Weimer is seeking priority of its construction lien over the interests of Stock Building
Supply, LLC (Stock), who filed the initial complaint in this case after defendant Dwight E.
Parsley and six companies he created failed to pay multiple subcontractors for work performed
on various new residential real properties that were being built for sale throughout Macomb
County.
In August 2005, Weimer submitted a plumbing proposal for lot 47 to Parsley Homes of
Mazuchet Harbor (the general contractor) for the rough and finish plumbing for the unit.
Weimer’s proposal was accepted and Weimer pulled a permit for plumbing work at lot 47 on
August 29, 2005. Weimer performed underground and rough plumbing work on August 31,
2005, and received payment for these services. Weimer performed finish plumbing work at lot
47 on August 4, 2006 and/or September 29, 2006. According to the plumbing selection sheet for
lot 47, Weimer’s finish work included installing the kitchen sink, garbage disposal and faucet,
one standard bathtub with shower and faucet, one whirlpool bathtub with shower and faucet,
three toilets, four bathroom sinks with faucets, a hot water heater, a laundry tub, and a laundry
water box. On August 5, 2006, Weimer sent its final invoice to the general contractor.
On December 20, 2006, Weimer repaired a leak at the kitchen sink. Then, after a sales
agent noticed water on the floor in one of the home’s bathrooms, Weimer repaired a small leak in
the whirlpool tub and replaced the ball and cock assembly of a toilet on May 29, 2007. Weimer
identified this work in its answers to discovery requests as “Warranty Service Calls.” There is
no evidence that Weimer sent an invoice for its repair work.
On July 27, 2007, Stock filed the initial complaint in this case, which included a lien for
foreclosure count on lot 47, but it did not name Weimer as a defendant. On August 23, 2007,
Weimer filed its claim of lien on lot 47 for $9,646. On October 22, 2007, Stock obtained a
default judgment against the general contractor for failure to plead or otherwise defend.
Subsequently, on November 5, 2007, the parties stipulated to allow Weimer to file a complaint as
an intervening plaintiff, file cross complaints, and add defendants. Weimer’s complaint included
a lien for foreclosure count on lot 47. As of October 24, 2008, the parties agreed that Stock had
obtained a sheriff’s deed and the redemption period was over, making Stock the current owner of
lot 47.
With respect to Weimer’s foreclosure lien on lot 47, the trial court found that Weimer had
completed its construction work in either August 2006 or September 2006. As such, the court
ruled that Weimer’s construction lien was invalid because it was not filed within 90 days of its
completion of the original installation work.
II
On appeal, Weimer argues that, contrary to the trial court’s ruling, its May 29, 2007
repair work constituted an “improvement” under the Construction Lien Act and, therefore, it had
90 days from that date in which to file its lien. Accordingly, Weimer asserts that the filing of its
lien on August 23, 2007 was timely. We disagree.
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Questions regarding the interpretation and application of statutes, including the
Construction Lien Act, are reviewed de novo on appeal. Solution Source, Inc v LPR Assoc Ltd
Partnership, 252 Mich App 368, 372; 652 NW2d 474 (2002). The Construction Lien Act is a
remedial statute that sets forth a comprehensive scheme aimed at protecting “the rights of lien
claimants to payment for expenses and . . . the rights of property owners from paying twice for
these expenses.” Id. at 373-374. It is to be liberally construed “to secure the beneficial results,
intents, and purposes” of the act. MCL 570.1302(1).
Section 111(1) of the Construction Lien Act, MCL 570.1101 et seq., provides:
[n]otwithstanding section 109, the right of a contractor, subcontractor, laborer, or
supplier to a construction lien created by this act shall cease to exist unless, within
90 days after the lien claimant’s last furnishing of labor or material for the
improvement, pursuant to the lien claimant’s contract, a claim of lien is recorded
in the office of the register of deeds for each county where the real property to
which the improvement was made is located. A claim of lien shall be valid only
as to the real property described in the claim of lien and located within the county
where the claim of lien has been recorded. [MCL 570.1111(1) (emphasis added).]
The Construction Lien Act defines an “improvement” as
the result of labor or material provided by a contractor, subcontractor, supplier, or
laborer, including, but not limited to, surveying, engineering and architectural
planning, construction management, clearing, demolishing, excavating, filling,
building, erecting, constructing, altering, repairing, ornamenting, landscaping,
paving, leasing equipment, or installing or affixing a fixture or material, pursuant
to a contract. [MCL 570.1104(5).]
According to MCL 570.1111(1) and MCL 570.1104(5), a repair completed pursuant to a
contract is an “improvement” and the last furnishing of an improvement commences the 90-day
filing period. Thus, for example, where a contractor is specifically hired to repair an aspect of
the property, such as a nonworking door or a leaky roof, that contractor is making an
“improvement” to the property for which the contractor is entitled to claim a lien. However, as
this Court held, in Woodman v Walter, 204 Mich App 68; 514 NW2d 190 (1994), the
performance of “warranty work” to correct deficiencies in work performed, or defects in fixtures
installed, by the contractor does not constitute an “improvement” under the Construction Lien
Act because “[i]t does not confer any value beyond the value furnished at the time the initial
installation work was completed.” Id. at 69. Therefore, in such situations, “[t]he ninety-day
filing period commences on the date of completion of the original installation work and is not
extended by the later performance of warranty work.” Id. at 70. The distinguishing factor
between a repair constituting an improvement to the real property, which allows for the
commencement of the 90-day filing period, and warranty work, which does not allow for the
recommencement of the 90-day filing period, is whether the work in question conferred any
value beyond the value furnished by the completion of the original work.
As per its contract, Weimer was to furnish rough and finish plumbing for the home being
constructed on lot 47. As previously noted, this was to include the kitchen sink, garbage disposal
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and faucet, standard bathtub with shower and faucet, whirlpool bathtub with shower and faucet,
three toilets, four bathroom sinks with faucets, a hot water heater, a laundry tub, and a laundry
water box. The record shows that Weimer’s finish plumbing work was completed by September
29, 2006. Therefore, as of that date, the home at lot 47 was improved with these presumably
fully functioning fixtures.
Weimer returned to lot 47 on December 20, 2006 to repair a leak at the kitchen sink.
Then, on May 29, 2007, Weimer returned again to fix a leak on the whirlpool tub and to change
the ball and cock assembly on the bathroom toilet, which it described as a “Warranty Service
Call.” Weimer contends that its subsequent work was done at the request of the builder and was
not concocted by it merely to extend the lien filing time. Weimer also indicates that
subcontractors are expected to make these kinds of repairs when requested by the general
contractor.
Weimer’s May 2007 repair work did not “confer any value beyond the value furnished at
the time the initial installation work was completed.” Woodman, 204 Mich App at 69. The May
2007 work was not an addition to the original agreement, nor was it in furtherance of the original
agreement. Rather, it was performed because the original work had minor deficiencies that
needed to be corrected. Weimer suggests that its service work conferred a benefit on the general
contractor by providing functional indoor plumbing for the new homeowner, and thus, that this
work qualifies as an improvement under the Construction Lien Act. However, Weimer’s May
2007 repair work did not add any value to the original contract because it merely provided that
which was originally contracted for – namely, fully functional and properly functioning
plumbing fixtures in a new house. Presumably, but for the general contractor calling Weimer
because of minor deficiencies in its work, Weimer never would have provided service to lot 47
in May 2007, because it had completed its finish plumbing work by September 2006.
Additionally, Weimer’s suggestion that the original contract was not completed because
the general contractor never inspected the plumbing work or paid Weimer is misplaced. The
correct inquiry to determine when the 90-day filing period commences is when the work is
completed, not when the work is inspected or paid for. See MCL 570.1111(1); MCL
570.1104(5); Woodman, 204 Mich App at 69-70. Weimer’s work in May 2007 was warranty
work, and pursuant to Woodman, it did not allow the 90-day filing period to recommence.
Weimer’s 90-day period for filing its lien for plumbing work performed on lot 47 commenced by
September 29, 2006. Weimer did not file its lien until August 23, 2007. Plainly, Weimer’s lien
was untimely, and therefore, invalid. Consequently, the trial court properly dismissed Weimer’s
lien on lot 47.
Weimer also relies upon J Propes Electric v DeWitt-Newton, 97 Mich App 295, 300; 293
NW2d 801 (1980), for the proposition that the correct inquiry here is whether the subsequent
work was done in good faith performance to complete the contract or merely as an opportunity to
revive an untimely claim of lien. However, Weimer’s reliance on J Propes is misplaced. At
issue in J Propes, was whether “assorted electrical services . . . and general clean-up work”
provided by the electrical subcontractor at the request of the general contractor approximately
two months after the electrical contractor substantially completed its contracted for work on the
project started the 90-day time period for the filing of a lien. This Court concluded that the trial
court did not err by concluding that 90-day period commenced on the date the follow-up repair
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work was performed. This Court observed that the work was needed after the construction
project was secured for the winter and that it was part of the electrical contractor’s contract for
services. Id. at 298, 300. Here, as previously discussed, Weimer completed its contract with the
general contractor in September 2006. The work Weimer returned to perform in May 2007 was
not part of its contract. Rather, it was work necessitated by defects in the fixtures installed or
deficiencies in the initial installation work performed by Weimer. Therefore, under Woodman,
the correct inquiry is whether the May 2007 work constituted an “improvement” to the property,
or was warranty work. See MCL 570.1111(1); MCL 570.1104(5); Woodman, 204 Mich App at
69-70. For the reasons set forth above, the trial court correctly determined that the May 2007
work performed by Weimer was warranty work. Therefore, the trial court did not err by
determining that Weimer’s lien on lot 47 was invalid.
Finally, to the extent that Weimer’s brief to this Court might be read to suggest that this
Court could apply the substantial compliance provision, set forth in MCL 570.1302(1),1 to
Weimer’s claim of lien, the Construction Lien Act’s 90-day filing requirement for claims of lien
is not subject to a substantial compliance interpretation. Central Ceiling & Partition, Inc v Dep’t
of Commerce, 249 Mich App 438, 445; 642 NW2d 397 (2002). Rather, “[t]he ninety-day
deadline means precisely ninety days.” Id.
Affirmed.
/s/ Jane M. Beckering
/s/ Peter D. O’Connell
/s/ Henry William Saad
1
MCL 570.1302 (1) provides:
[t]his act is declared to be a remedial statute, and shall be liberally construed to
secure the beneficial results, intents, and purposes of this act. Substantial
compliance with the provisions of this act shall be sufficient for the validity of the
construction liens provided for in this act, and to give jurisdiction to the court to
enforce them.
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