263 P.3d 77
Ariz. Ct. App.2011Background
- Williamsons move into Residence in 2000 and later quit-claim to them as Trustees of Williamson Family Trust (2004 Deed).
- August 2005 deed again conveys Residence to Williamson as Trustees; beneficiary disclosure referenced but not attached.
- June 2005 contract with Freedom Architectural Builders to add to Residence; Freedom hires PVOrbit for doors and hardware.
- PVOrbit invoices in March 2007; Freedom abandons project by July 2007; Williamsons pay additional $30,398.59 to complete.
- PVOrbit records lien August 2007; Williamsons sue PVOrbit for violation of § 33-420; lawsuits consolidated with Freedom’s bankruptcy.
- Trial court granted summary judgment to Williamsons; PVOrbit appeals seeking reversal on ownership, penalties, and unjust enrichment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether title holder is a natural person under § 33-1002.A.2 | PVOrbit: trust holds title, not Williamson. | Williamsons: trustees hold title and thus qualify as owner-occupants. | Trust does not hold title; Williamsons as Trustees hold title; owner-occupant applies. |
| Whether penalties under § 33-420 may attach when lien may be invalid | PVOrbit lacked knowledge that owner-occupant defense applies; no penalty. | Williamsons: PVOrbit knew or should have known lien was improper. | Material issue of fact on knowledge to know; summary judgment improper. |
| Whether the unjust enrichment claim can be resolved on summary judgment | PVOrbit contends genuine disputes about payment for doors/inputs. | Williamsons paid substantial sums; others disputed but no bar to claim. | Genuine issues of material fact about payment for PVOrbit goods; remanded. |
Key Cases Cited
- Coventry Homes, Inc. v. Scottscom P'ship, 155 Ariz. 215 (Ariz. 1987) (defines 'reason to know' and applies Restatement guidance)
- Performance Funding, L.L.C. v. Ariz. Pipe Trade Funds, 203 Ariz. 21 (Ariz. App. 2002) (deals with summary judgment standards and related factual disputes)
- A M Leasing, Ltd. v. Baker, 163 Ariz. 194 (Ariz. App. 1989) (unjust enrichment analysis in contractor cases)
- Flooring Systems, Inc. v. Radisson Group, Inc., 160 Ariz. 224 (Ariz. 1989) (profiling when unjust enrichment may apply and burden of proof)
- Dunlap Investors Ltd. v. Hogan, 133 Ariz. 130 (Ariz. 1982) (trust title vs. equitable title ownership framework)