Vintage Construction, Inc. v. Feighner
2017 MT 109
| Mont. | 2017Background
- Myers ( homeowner and attorney ) hired Vintage to finish construction after a prior contractor quit; parties had no fully signed contract but Vintage’s written estimate ($398,880.46) and oral agreements (including a 10% contractor fee) framed the deal.
- Vintage began work Feb 28, 2013; by Sept 2013 Vintage provided a $91,107.50 completion estimate to Myers and U.S. Bank based on subcontractor bids; a subcontractor (Sisson) later produced a lower bid that proved insufficient and then walked off the job.
- Myers hired another mason (Brawley) who completed stonework using a pallet of Bighorn stone Vintage had paid for; Myers withheld $4,310 paid to Brawley and $2,973 (cost of the pallet) and disputed a 10% fee on Leonardi’s driveway work.
- Myers’ counterclaims alleging defective masonry and remediation costs were hampered by his failure to timely disclose experts and damage amounts; the district court excluded or limited expert testimony and found Myers failed to prove damages.
- The district court found Vintage’s lien was properly filed but declined to permit foreclosure or award attorney’s fees because of Myers’ dissatisfaction with some masonry work; however the court awarded Vintage $8,317 in contractual damages (10% on Leonardi work, $4,310 withheld payment, and $2,973 for the stone pallet).
- On appeal the Montana Supreme Court affirmed the damages award, affirmed dismissal of Myers’ counterclaims, but reversed and remanded the lien-foreclosure/attorney’s-fees denial, holding the lien covered work substantially completed and attorney’s fees are mandatory for an established lien.
Issues
| Issue | Vintage's Argument | Myers' Argument | Held |
|---|---|---|---|
| Whether district court properly awarded contractual damages to Vintage | Vintage: estimate + parties’ conduct established contract terms (including 10% fee) and Vintage was owed withheld sums and cost of stone | Myers: driveway/stone purchases were outside contract or Vintage breached so Myers could deduct costs | Affirmed — substantial evidence supported award of $8,317 (10% fee on Leonardi, $4,310, $2,973) |
| Whether Vintage could foreclose its construction lien and recover attorney’s fees under § 71-3-124, MCA | Vintage: lien statutes require work be completed or substantially completed and lienable materials incorporated — not subjective satisfaction; an established lien mandates attorney’s fees | Myers: poor/unsatisfactory masonry work defeats foreclosure and fees | Reversed — lien covered work/materials substantially completed (including stone pallet); attorney’s fees are mandatory for established liens and must be awarded |
Key Cases Cited
- dck Worldwide Holdings v. CH SP Acquisition, LLC, 380 Mont. 215, 355 P.3d 724 (Mont. 2015) (construction-lien statutory interpretation and remedial purpose)
- Mt. W. Bank, N.A. v. Cherrad, 369 Mont. 492, 301 P.3d 796 (Mont. 2013) (standard for reviewing district-court factual findings and damages)
- Johnston v. Palmer, 337 Mont. 101, 158 P.3d 998 (Mont. 2007) (definition of substantial evidence and appellate review limits)
- Lewistown Miller Constr. Co. v. Martin, 363 Mont. 208, 271 P.3d 48 (Mont. 2011) (statutory mandate to award attorney’s fees for an established construction lien)
- LHC, Inc. v. Alvarez, 337 Mont. 294, 160 P.3d 502 (Mont. 2007) (presumption materials delivered to site were incorporated into improvement)
- Gwynn v. Cummins, 333 Mont. 522, 144 P.3d 82 (Mont. 2006) (lien arises upon completion or substantial completion)
- Van Stone v. Stillwell & Bierce Mfg. Co., 142 U.S. 128 (U.S. 1891) (use of materials and labor gives rise to lien under statute)