Brentwood Glass Company, Inc. v. Pal's Glass Service, Inc., Clayco, Inc., Cornerstone VI, LLC, St. Louis County, National City Bank of the Midwest, N.A., Paul M. Macon, UMB Bank, N.A., and Victor Zarilli
2016 Mo. LEXIS 278
Mo.2016Background
- St. Louis County adopted a financing/development plan for Six City Place, executed industrial revenue bonds, and entered a Lease Agreement with Cornerstone under which Cornerstone would construct the project "on behalf of the County" and act as the County's agent.
- Cornerstone deeded the fee to the County and was authorized to draw on the bonds; the Lease allowed certain assignments of the leasehold interest.
- Clayco was general contractor; Pal’s Glass was subcontractor to Clayco and subcontracted portions to Brentwood Glass. Brentwood Glass performed work and claims it was unpaid for work after January 12, 2007.
- Brentwood Glass served a 10-day notice of intent to lien on Cornerstone (not the County), then filed a mechanic’s lien naming Cornerstone as owner, claiming $1,061,464.08.
- Brentwood Glass sued on multiple counts including (1) mechanic’s lien against defendants (Count VIII) and (2) claim that the County failed to require a public works payment bond under section 107.170 (Count IX). The circuit court granted summary judgment to defendants; Brentwood appeals only Counts VIII and IX.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether mechanic’s lien can attach despite County ownership | Brentwood: lien can attach to Cornerstone’s leasehold interest; notice to Cornerstone suffices | Defendants: lien cannot attach to public entity property; notice/timeliness/statement deficient | Court: Lien cannot attach to County fee, but may be enforced against Cornerstone leasehold; reversed as to Cornerstone, affirmed as to County |
| Whether Brentwood gave timely notice under §429.100 | Brentwood: served 10-day notice on Cornerstone as owner/agent | Defendants: notice insufficient or untimely | Court: Notice to Cornerstone satisfied statutory requirement for leasehold claim; genuine issue of fact exists regarding timeliness of filing |
| Whether lien was timely filed (accrual date) under §429.080 | Brentwood: last work occurred in Feb 2007 (after Jan 12), so lien filed within 6 months | Defendants: last substantial work ended Jan 31, 2007; later dates are fabrication | Court: Date of last labor is factual; genuine fact issue exists so summary judgment improper |
| Whether lien statement was a "just and true account" under §429.080 | Brentwood: itemized statement; mistakes were honest/inadvertent; substantial compliance | Defendants: statement includes nonlienable items, inflated rates, and uncredited payments—intentional overstatement | Court: Material factual disputes about inclusion/intent; summary judgment improper on lien validity against Cornerstone |
| Whether §107.170 bond requirement applies and claimant can recover | Brentwood: Cornerstone was a "contractor" providing construction services to County; County should have required bond; plaintiff may amend to name officials | Defendants/County: Cornerstone did not "provide construction services" as contractor under §107.170; County immune and plaintiff sued wrong party | Court: Section 107.170 did not apply because Cornerstone was not a "contractor" under the statute; and Brentwood sued only the County (so sovereign immunity bars recovery); summary judgment affirmed on bond claim |
Key Cases Cited
- Bob DeGeorge Assocs., Inc. v. Hawthorn Bank, 377 S.W.3d 592 (Mo. banc 2012) (purpose and equitable nature of mechanic’s lien law)
- State ex rel. Springfield Underground, Inc. v. Sweeney, 102 S.W.3d 7 (Mo. banc 2003) (mechanic’s lien statutes construed liberally)
- Redbird Eng’g Sales, Inc. v. Bi-State Dev. Agency, 806 S.W.2d 695 (Mo. App. 1991) (mechanic’s liens cannot attach to property owned by a public entity)
- ITT Commercial Fin. Corp. v. Mid-Am. Marine Supply Corp., 854 S.W.2d 371 (Mo. banc 1993) (summary judgment de novo; standards for genuine dispute)
- Commercial Openings, Inc. v. Mathews, 819 S.W.2d 347 (Mo. banc 1991) (adequacy of subcontractor’s lien statement depends on detail to allow investigation)
- Sears, Roebuck & Co. v. Seven Palms Motor Inn, Inc., 530 S.W.2d 695 (Mo. banc 1975) (inclusion of nonlienable items does not vitiate lien if honest mistake without intent to defraud)