249 A.3d 976
Pa.2021Background
- Parties: Terra Firma Builders, LLC (contractor) filed a mechanics’ lien and breach-of-contract claims against William and Melanie King (owners) arising from incomplete backyard construction begun June 2012.
- Procedural history: TF filed an initial lien in Feb. 2013 and filed an affidavit of service; it voluntarily discontinued that claim on Apr. 23, 2013, then refiled a lien on Apr. 29, 2013 but did not file the required affidavit of service for the refiled claim.
- The Kings answered the refiled claim in May 2013 and litigated the merits for years; TF initiated enforcement proceedings in Feb. 2015 and the actions proceeded to trial(s), with the Kings prevailing on the merits.
- In June 2018 (while post-trial motions were pending) the Kings petitioned to strike TF’s lien for failure to file the affidavit of service required by Section 502 of the Mechanics’ Lien Law; the trial court granted the petition and struck the lien.
- The Superior Court reversed, holding the Kings waived the defect by not filing Section 505 preliminary objections during the enforcement proceedings; the Pennsylvania Supreme Court granted review and reversed the Superior Court, holding the unperfected lien was invalid and the owners did not waive the defense.
Issues
| Issue | Plaintiff's Argument (Terra Firma) | Defendant's Argument (Kings) | Held |
|---|---|---|---|
| Whether an owner must file Section 505 preliminary objections before or during lien enforcement proceedings to preserve a challenge to lien perfection (failure to file required affidavit under Section 502). | Kings waived the defect by answering and litigating the enforcement action, failing to raise preliminary objections; civil procedure rules and laches require earlier challenge. | Section 502’s affidavit requirement is mandatory; Section 505 expressly provides failure to object preliminarily does not waive the right to raise the same as a defense in subsequent proceedings. | The Supreme Court held the lien was unperfected (no affidavit) and Section 505 prevents waiver; the Kings’ late petition to strike was valid and the lien must be stricken. |
Key Cases Cited
- Regency Invs., Inc. v. Inlander Ltd., 855 A.2d 75 (Pa. Super. 2004) (service requirements under Mechanics’ Lien Law are strictly construed)
- Wyatt, Inc. v. Citizens Bank of Pa., 976 A.2d 557 (Pa. Super. 2009) (statutory schemes creating liens are to be strictly, narrowly construed)
- Samango v. Hobbs, 75 A.2d 17 (Pa. Super. 1950) (failure to comply with Mechanics’ Lien Law invalidates the lien)
- Day & Zimmermann, Inc. v. Blocked Iron Corp., 147 A.2d 332 (Pa. 1959) (failure to file required affidavit means lien was not properly perfected and defect is not curable)
- McCarthy v. Reese, 215 A.2d 257 (Pa. 1965) (mechanic’s lien rights are statutory and enforcement/defense must strictly follow statute)
- Rees, Weaver & Co. v. M.B.C. Paper Mill Corp., 406 A.2d 562 (Pa. Super. 1979) (court may strike lien after judgment where lien was not perfected)