Red Rooster Construction Co. v. River Associates, Inc.Red Rooster Construction Co. v. River Associates, Inc.
- Reporters:
- , ,
- Before:
- Borden
This appeal arises from an action brought by the plaintiff, Red Rooster Construction Company (Red Rooster), to foreclose a mechanic’s lien on the property of the defendant River Associates, Inc. The plaintiff appeals1 from the judgment of the trial court rendered in favor of the defendants River Associates, Inc. (River Associates), Connecticut Savings Bank (bank), and Connecticut Attorney’s Title Insurance Company (title company). The trial court concluded that the plaintiff’s mechanic’s lien was invalid.
Red Rooster claims that the trial court improperly concluded that: (1) the bank, as a mortgagee of the property, was an owner of the property pursuant to
The relevant facts are as follows. River Associates was the record owner of real property located in New Haven. River Associates entered into a contract with Red Rooster in which Red Rooster agreed, for the contract price of $3,376,985.14, to construct condominium units and commercial space on that property. Construction commenced on September 30, 1987.
On August 23, 1989, River Associates ordered Red Rooster to stop working because River Associates did not have sufficient capital to pay for the completion of the project. As of that date, River Associates owed Red Rooster $258,402.36 for work already completed. On September 25,1989, Red Rooster filed a certificate of mechanic’s lien on the land records to secure its claim. Red Rooster served a copy of the certificate on River Associates but did not serve a copy on the bank, an encumbrancer of the property by virtue of a mort
On October 16,1989, Red Rooster filed this complaint seeking to foreclose its mechanic’s lien. The complaint named River Associates and the bank as defendants.4 On the same date, Red Rooster recorded a notice of lis pendens on the land records and served River Associates and the bank with a copy of the complaint, the certificate of mechanic’s lien, and the notice of lis pendens. Pursuant to
After a court trial, the trial court requested the parties to file posttrial memoranda. Thereafter, having agreed with the claims asserted by the defendants in their posttrial briefs, the trial court concluded that Red Rooster’s mechanic’s lien was invalid because: (1) the bank, as a mortgagee of the property, was an “owner” of the property within the meaning of
I
Red Rooster first claims that the trial court improperly concluded that the bank, as a mortgagee of the property, was an owner of the property within the meaning of
Despite our title theory of mortgages, “[i]n substance and effect . . . and except for a very limited purpose, the mortgage is regarded as mere security . . . and the mortgagor is for most purposes regarded as the sole owner of the land . . . .” McKelvey v. Creevey, supra, 466-67. The mortgagee “has title and ownership enough to make his security available, but for substantially all other purposes he is not regarded as owner, but the mortgagor is so regarded, always subject of course to the mortgage.” Id., 468.
In light of our long use of the term owner to mean the mortgagor; see, e.g., State v. Stonybrook, Inc., supra; Leonard v. Bailwitz, supra; Waterbury Savings Bank v. Lawler, 46 Conn. 243, 245 (1878) (“the law is well settled that, except as between the immediate
Moreover, to deviate from a construction of the statute that accords the term “owner” its commonly approved usage would create an unnecessary conflict within the statutory scheme. A court should interpret a statutory scheme as a whole with a view toward reconciling its separate parts in order to render a reasonable overall interpretation. See, e.g., Ganim v. Roberts, 204 Conn. 760, 763, 529 A.2d 194 (1987).
The defendants rely on the canon of statutory construction that a court should avoid a statutory interpretation that places a statute in constitutional jeopardy. See, e.g., In re Valerie D., 223 Conn. 492, 514, 613 A.2d 748 (1992). Specifically, the defendants argue that, because the mortgagee has an interest in the property, the mortgagee is constitutionally entitled to notice of the filing of the lien particularly if, as in this case, the mechanic’s lien would take priority over the mortgagee’s interest.8 Consequently, the defendants argue, this canon compels the conclusion that the legislature intended the term “owner” to include the mortgagee. We are not persuaded.
The defendants have not cited a single appellate decision from any state, nor do we know of any, that has held a mechanic’s lien statute unconstitutional for failing to provide a mortgagee with notice of the filing of
The constitutional defect alleged by the defendants sweeps so broadly that it would necessarily compel a conclusion that those entitled to notice would include not only a mortgagee but also every other encumbrancer whose interest might be affected by the filing of the lien.10 Absent more authority and analysis than the defendants have provided, we are not inclined to impose such a constitutional requirement, nor have the defendants advanced any argument why a mortgagee’s interest is somehow constitutionally superior to that of other lien creditors, such as judicial lienors.
A rule requiring notice to all subsequent encumbrancers would defeat the important purpose of mechanic’s lien statutes to provide an inexpensive and simple method for material suppliers and contractors to secure the value of the services or materials that they have added to the property. If notice to all encumbrancers were required, a mechanic’s lienor would be required to incur the expense of hiring a lawyer to
II
Red Rooster next claims that the trial court improperly concluded that there was no evidence that it had recorded a notice of lis pendens within the one year requirement of
After the close of evidence, the trial court directed the parties to file posttrial memoranda. In their memorandum, the defendants claimed for the first time that the lien was invalid because Red Rooster had not pleaded or offered any evidence at trial that it had filed a notice of lis pendens on the land records within one year of the filing of the mechanic’s lien. In a written response to this claim, Red Rooster submitted a copy of the sheriff’s return of the lis pendens that demonstrated that a notice of the lis pendens had been recorded and served on all of the defendants. The record also contained a copy of the lis pendens and sheriffs return. Red Rooster also argued, in response to the defendants’ claim, that it had no obligation to plead and prove compliance with the filing requirement of
The trial court found that there was no evidence that Red Rooster had filed a lis pendens on the land rec
“‘A motion to open and vacate a judgment . . . is addressed to the [trial] court’s discretion, and the action of the trial court will not be disturbed on appeal unless it acted unreasonably and in clear abuse of its discretion. See Manchester State Bank v. Reale, 172 Conn. 520, 523-24, 375 A.2d 1009 (1979); State v. Fahey, 147 Conn. 13, 15, 156 A.2d 463 (1959). In determining whether the trial court abused its discretion, this court must make every reasonable presumption in favor of its action. State v. Bitting, 162 Conn. 1, 11, 291 A.2d 240 (1971); E. M. Loew’s Enterprises, Inc. v. Surabian, 146 Conn. 608, 612, 153 A.2d 463 (1959). Celanese Fiber, Division of Celanese of Canada, Ltd. v. Pic Yarns, Inc., [184 Conn. 461, 466-67, 440 A.2d 159 (1981)]. Acheson v. White, 195 Conn. 211, 214-15, 487 A.2d 197 (1985). Yanow v. Teal Industries, Inc., 196 Conn. 579, 583, 494 A.2d 573 (1985). . . .’ (Internal quotation marks omitted.)” Walton v. New Hartford, 223 Conn. 155, 169-70, 612 A.2d 1153 (1992). “Such discretion, however, imports something more than leeway in decision making and should be exercised in conformity with the spirit of the law and should not impede or defeat the ends of substantial justice.” Ducci Electrical Contractors, Inc. v. Department of Transportation, 28 Conn. App. 175, 182, 611 A.2d 891 (1992).
Following the court’s judgment for the defendants, Red Rooster, in its motion to open, again directed the trial court’s attention to the court’s file. Accordingly, the trial court could simply have referred to the file in order to determine the validity of the plaintiffs assertion. If the trial court were concerned with the accuracy of the documents in the file, then it could have asked the defendants whether they disputed the accuracy of the sheriff’s return. Under these circumstances, the trial court did not exercise its discretion in conformity with the spirit of the law or the notion of substantial justice. We conclude, therefore, that the trial court abused its discretion in refusing to open the judgment to consider the plaintiff’s evidence that the lis pendens had been filed in conformity with
Red Rooster finally claims that the trial court improperly concluded that the mechanic’s lien had not been sworn to by Red Rooster within the meaning of
The following facts are relevant to this claim. Red Rooster’s president, Jeremy Berkowitz, presented the certificate of mechanic’s lien to a notary public to be notarized. He signed the certificate in the notary’s presence and she then notarized the document. The notary did not administer an oral oath, nor did Berkowitz sign an oath. The notary’s signature on the certificate appears under the following passage: “On this . . . day . . . before me, Jeremy Berkowitz, president of Red Rooster Construction Company, Inc., personally appeared, and made solemn oath that the facts stated herein are true .... IN WITNESS WHEREOF, I hereto set my hand and seal this . . . day . . . .” Berkowitz’ signature does not follow any passage stating that it was his solemn oath that the facts stated in the certificate were true. His signature merely appears at the end of the body of the certificate stating the facts allegedly entitling him to a mechanic’s lien.
Although the term “ceremony” is not defined by statute, it is clear that some formality is essential. “[T]o make a valid oath, there must be, in some form, an unequivocal and present act by which the affiant consciously takes upon him or herself the obligation of an oath. . . . Stated otherwise, in order to have a valid statement under oath, the attention of the person to be sworn must be called to the fact that his or her statement is not a mere asseveration, but must be sworn to, and he or she must do some corporal act in recognition of this.” 58 Am. Jur. 2d 1056, Oath and Affirmation § 18 (1989), and cases cited therein.
We first note that we need not decide in this case whether the signing of a written statement by the actual claimant swearing that the facts in the document are true, without more, constitutes a sufficient ceremony for an oath. In the present case, Red Rooster’s president did not sign an oath that the facts contained in the certificate were true. Indeed, the notary was the only individual to sign a statement that even contained language approximating an oath. Moreover, her signed statement asserted only that Berkowitz had sworn that the facts contained in the certificate were true, an assertion that she later testified at trial was untrue.
To validate a mechanic’s lien certificate without any evidence that the claimant performed some act or form of ceremony indicating that the claimant consciously undertook the obligation of an oath “would invite confusion, delay and uncertainty into an area where certainty and complete compliance with the statutory requirements are of paramount importance to interested parties and the general public.” J. C. Penney Properties, Inc. v. Peter M. Santella Co., supra, 518. In light of the fact that (1) an oral oath was not administered, (2) Red Rooster’s president did not sign a statement swearing to the truth of the facts contained in the certificate, and (3) § 1-22 requires that some ceremony be performed in making an oath, the trial court properly concluded that the certificate was not “sworn to.”11 The lien is therefore invalid.
In this opinion the other justices concurred.
Notes
The plaintiff appealed from the judgment of the trial court to the Appellate Court, and we transferred the appeal to this court pursuant to
The complaint also named Kenneth Kraus, the president of River Associates, as a defendant. River Associates and Red Rooster later stipulated that, after a subsequent payment of $50,000 to Red Rooster, River Associates owed $208,402.36 on the contract. Pursuant to that stipulation, Red Rooster withdrew its action as to Kenneth Kraus.
River Associates ceased active participation in this case after the complaint had been amended and has not participated in this appeal. Hereinafter, we will refer to the bank and the title company as the defendants.
In concluding that an “owner” of a property under
Red Rooster began to provide material and services to River Associates on September 30, 1987. The bank received its interest pursuant to a mortgage deed recorded on February 4, 1988.
The defendants have directed our attention to a decision of the Superior Court, Satter, J., in which the mechanic’s lien was held to be unconstitutional because it does not give notice of the filing of the lien to the mortgagee. PDS Engineering & Construction, Inc. v. Double RS, Superior Court, judicial district of Hartford-New Britain at Hartford, Docket No. CV 90 03786845 (January 6, 1992) (5 Conn. L. Rptr. 306). That decision does not advance the appellees’ claim because: (1) the trial court later reversed itself and held that the mechanic’s lien statute is constitutional; and (2) we find the reasoning in the original opinion unpersuasive. We simply note that, in the original decision, the Superior Court’s extension of our previous decisions in Roundhouse Construction Corporation v. Telesco Masons Supplies Co., 168 Conn. 371, 362 A.2d 778, vacated on other grounds, 423 U.S. 809, 96 S. Ct. 20, 46 L. Ed. 2d 29 (1975), on remand, 170 Conn. 155, 365 A.2d 393, cert. denied, 429 U.S. 889, 97 S. Ct. 246, 50 L. Ed. 2d 172 (1976), and General Electric Supply Co. v. Southern New England Telephone Co., 185 Conn. 583, 441 A.2d 581 (1981), and the United States Supreme Court’s decision in Connecticut v. Doehr, 500 U.S. , 111 S. Ct. 2105, 115 L. Ed. 2d 1 (1991), was unwarranted by current law and the legal reasoning contained in those decisions.
The defendants’ argument, if taken to its logical conclusion, would also cast significant doubt on statutory schemes that grant federal, state or municipal tax liens priority over other encumbrances without notice of the filing of the tax liens to the subsequent encumbrancer. On the basis of the present briefing, we find unpersuasive an argument that casts such a wide shadow.
The plaintiff has cited cases from other jurisdictions that he argues support upholding the lien in this case. See People v. Walker, 347 Cal. App. 2d 554, 55 Cal. Rptr. 726, cert. denied, 389 U.S. 824, 88 S. Ct. 60, 19 L. Ed. 2d 77 (1967); HCI Corporation v. Voikos Construction Co., 581 A.2d 795 (Me. 1990); Blackburn v. Motor Vehicles Division, 576 P.2d 1267 (Or. App. 1978); State v. Lewis, 85 Wash. 2d 769, 539 P.2d 677 (1975). These decisions, however, are both factually and legally inapposite to the present case. None of the cases cites an applicable statute that requires, as in our state, some form of ceremony to be performed to effectuate a valid oath. Furthermore, in each case the party signed the document below a written statement that the document was under oath or that the party “swore to” the truth of the facts contained; see Blackburn v. Motor Vehicles Division, supra, 1270; State v. Lewis, supra, 771; an oral oath was actually administered; HCI Corporation v. Voikos Construction Co., supra, 797-98; or there was direct evidence by both the party and the notary that the party understood that he was under oath, and that the notary reminded the party that he was regarded as being under oath. People v. Walker, supra, 557. In the present case, the record is devoid of such facts.