SRS Distrib., Inc. v. Axis Alliance, L.L.C.
153 N.E.3d 953
Ohio Ct. App.2020Background
- SRS (Midwest Roofing Supply) furnished roofing materials to Axis (subcontractor) for improvements to the "School of Advertising" property in Sept–Nov 2017 and claims a balance was owed on an unrelated account.
- SRS recorded a mechanic’s lien affidavit on January 18, 2018 that stated the last date materials were furnished was 11/03/2017 (making the filing 76 days later).
- Ferguson (prime contractor) obtained a bond from Ohio Farmers Insurance Company (OFIC) to discharge the lien; OFIC was the surety on the bond substituted by court order.
- OFIC moved for summary judgment arguing the lien affidavit was untimely under R.C. 1311.06(B)(3) (must be filed within 75 days from last furnishing) and that a defective lien cannot support a claim against the bond.
- SRS conceded the affidavit showed 11/03/2017 but submitted an affidavit saying that date was a clerical error and the true last furnishing was 11/07/2017 (within 75 days), arguing substantial compliance and remedial construction should validate the lien.
- The trial court granted OFIC summary judgment, holding strict compliance is required to create a lien and parol evidence cannot cure a facially untimely affidavit; SRS appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether substantial compliance/remedial construction may cure a defective affidavit of mechanic’s lien (misstated last-furnishing date) so a lien is created | SRS: statute is remedial and courts may apply substantial compliance; true last date was 11/07/2017, so lien was timely | OFIC: lien-creation provisions must be strictly construed; affidavit shows 11/03/2017 so filing was untimely and lien never attached | Court: strict compliance required to create a lien; substantial compliance insufficient; lien invalid |
| Whether parol evidence (post-filing affidavit) may be used to correct the facially defective lien affidavit date | SRS: McSparron affidavit shows clerical error and Axis requested delivery 11/07/2017 — evidence cures the mistake | OFIC: courts must examine the face of the affidavit; parol evidence cannot alter the recorded affidavit’s dates | Court: parol evidence cannot cure a facially untimely affidavit; subsequent affidavit cannot create a lien |
Key Cases Cited
- Robert V. Clapp Co. v. Fox, 124 Ohio St. 331 (mechanics'-lien statutes are in derogation of common law and must be strictly construed as to whether a lien attaches)
- Crock Construction Co. v. Stanley Miller Constr. Co., 66 Ohio St.3d 588 (clarifies interplay of strict construction for lien creation and liberal/remedial construction after lien exists)
- Hoppes Builders & Dev. Co. v. Huron Builders, Inc., 118 Ohio App.3d 210 (reiterates that strict compliance is required for creation of a mechanics' lien)
- Burroughs Framing Specialists, Inc. v. 505 W. Main St., LLC, 18 N.E.3d 1253 (Sixth Dist. applying substantial-compliance analysis to cure clerical date errors — declined by this court as conflicting authority)
- Zivich v. Mentor Soccer Club, Inc., 82 Ohio St.3d 367 (summary-judgment standard cited for procedural posture)