Trace Construction, Inc. v. Dana Barros Sports Complex, LLC
459 Mass. 346
| Mass. | 2011Background
- Two adjoining parcels in Foxborough and Mansfield with a 70,000 sq ft building owned by Madigan; he leased to Dana Barros Basketball Camp (the Camp) and Dana Barros Sports Complex (the Complex) under a five-year lease starting Sept 1, 2004.
- Trace Construction and CB Seating provided work under contracts with the Complex; Anderson and Quinn Brothers were subcontractors.
- The Complex fell behind on payments; Trace and CB Seating filed mechanic's liens against the leasehold and Madigan's fee interest; Anderson and Quinn filed liens as subcontractors.
- Barros surrendered possession of the premises to Madigan in April 2006; Madigan continued to operate the facility and later leased to BOAH, LLC before trial.
- Trial court found valid liens on the Camp’s leasehold but not on Madigan’s fee interest; Appeals Court and this court review the scope of liens under G. L. c. 254, §§ 2, 4.
- Massachusetts Supreme Judicial Court held: contractors have valid liens on Madigan’s fee interest; any leasehold lien terminated upon surrender; subcontractors do not lien Madigan’s fee interest; no liens extend to individual improvements.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Do contractors have a lien on Madigan's fee interest under § 2? | Trace argues consent by Madigan to the Complex's contract validates the lien on the fee interest. | Madigan contends § 2 does not extend to his fee interest if consent is lacking or improperly understood. | Yes; contractors have a valid lien on Madigan's fee interest. |
| Does consent require written form to support a fee-interest lien under § 2? | Trace contends consent can be inferred from lease terms and conduct, not necessarily written. | Madigan argues consent must be explicit or limited to leasehold scenarios. | Consent can be established by conduct and lease terms; not restricted to written consent. |
| Do liens on the Camp's leasehold survive the surrender of the lease? | Trace/CB Seating contend leasehold liens attach to property while lease exists. | Madigan contends surrender terminates leasehold liens. | Lien on the leasehold terminates with the end of the lease upon surrender. |
| Do subcontractors have liens on Madigan's fee interest under § 4? | Quinn/Anderson assert § 4 liens extend to Madigan's fee interest. | Madigan argues § 4 only covers property owned by the party who entered the original contract (Complex), not Madigan's fee interest. | No; § 4 does not extend to Madigan's fee interest. |
| Do the alleged liens extend to individual improvements or only to real property? | Trace argues liens attach to real property including improvements under the statute. | Madigan argues the statute limits liens to real property as defined, not individual improvements. | Liens are tied to real property; liens do not extend to individual improvements beyond the property. |
Key Cases Cited
- National Lumber Co. v. United Cas. & Sur. Ins. Co., 440 Mass. 723 (Mass. 2004) (mechanic's lien statute requires strict compliance)
- Francis v. Sayles, 101 Mass. 435 (Mass. 1869) (consent requires more than awareness or inaction)
- Hayes v. Fessenden, 106 Mass. 228 (Mass. 1870) (consent not established by pre-deed possession alone)
- Roxbury Painting & Decorating Co. v. Nute, 233 Mass. 112 (Mass. 1919) (agreement to buy and renovate can constitute consent)
- Applebee's Northeast, Inc. v. Methuen Investors, Inc., 46 Mass. App. Ct. 777 (Mass. App. Ct. 1999) (cooperative surrender can reflect forfeiture grounds)