Vision 2007, LLC v. Lexstar Development & Construction Co.
2011 WY 84
Wyo.2011Background
- Vision contracted with Lexstar to build a Campbell County hotel; after 17 months Vision terminated the contract and Lexstar filed a lien for about $430,338.
- Lexstar filed a lien statement on July 9, 2009 asserting March 10, 2009 as the last date of work.
- Lexstar filed a corrected lien on August 18, 2009 to reflect March 19, 2009 as the last date, with an affidavit explaining the correction.
- Vision petitioned to strike under Wyoming statute § 29-1-311, which the district court denied, holding Vision did not prove Lexstar knew the lien was groundless or false.
- The Wyoming Supreme Court held the burden lies with the lien claimant under § 29-1-311(b), affirmed the district court’s denial based on Lexstar’s evidence, and declined to strike the liens under the expedited procedure.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Timeliness of lien statements under § 29-1-311(b) | Vision argues the original lien was groundless due to timeliness. | Lexstar contends the dates were either typographical errors or corrected in good faith. | Original lien not knowingly groundless; corrected lien not clearly erroneous. |
| Adequacy of itemization under § 29-1-301 | Vision contends lack of itemized description warrants strike. | Lexstar argues itemization concerns belong to foreclosure, not § 29-1-311(b). | Issue reserved for foreclosure; § 29-1-311(b) not for testing itemization. |
| Untimeliness on its face as a basis to strike | Vision asserts the lien statements were untimely. | Lexstar asserts timeliness issues are governed by § 29-1-311(b) standards. | Untimeliness alone not dispositive; relief requires knowledge at filing. |
| Burden of proof under § 29-1-311(b) | Vision argues the district court misallocated the burden to Vision. | Lexstar contends petitioner bears the burden to show groundlessness. | Burden on lien claimant; error by district court was harmless. |
Key Cases Cited
- Opportunity Knocks Enterprises, LLC v. Shannon Elec., Inc., 236 P.3d 255 (Wyo. 2010) (burden on lien claimant; limited § 29-1-311(b) relief)
- Phelan v. Cheyenne Brick Co., 188 P. 354 (Wyo. 1920) (date inaccuracies not fatal if not prejudicial)
- Mullinnix LLC v. HKB Royalty Trust, 126 P.3d 909 (Wyo. 2006) (standards for reviewing factual findings; deference to trial court)
- Cook v. Eddy, 193 P.3d 705 (Wyo. 2008) (de novo review of conclusions of law; statutory construction)