Arthur B. Siri, Inc. v. Bridges

SCHOTTKY, J.

L. V. Bridges has appealed from a judgment in favor of Arthur B. Siri, Inc., a California corporation, which judgment determined that the corporation has a valid lien on certain real property owned by Bridges and which ordered that the lien be foreclosed.

In February 1956, Bridges entered into a contract with defendants Gerhardt and Trotman whereby the .former agreed to sell certain real property for $24,000, and Gerhardt and Trotman, who were building contractors, agreed to subdivide the property, grade and surface the streets, and build a home on.each of the 12 lots. It was also agreed that as each lot was sold Bridges would execute a grant deed to Gerhardt and Trotman and place the deed in escrow with instructions that the deed be delivered upon payment of $2,000. The agreement also provided that Gerhardt and Trotman would have immediate possession of the property and that they would have until September 1957 to complete the construction and sale of the homes.

The property was wooded and the second growth timber was sold to a lumber company who had the timber removed. These operations commenced between March 1st and March 15, 1956. On March 19, 1956, Bridges obtained actual notice that the property was being logged, and on March 26, 1956, he posted a notice of nonresponsibility. A copy of this notice was recorded the following day. Prior to the start of the logging operations Gerhardt and a surveyor did certain survey work on the property.

On May 30, 1956, Gerhardt and Trotman entered into a contract with Arthur B. Siri, Inc., respondent herein, whereby respondent agreed to clear and grade the land and construct streets, curbs and sidewalks. Neither respondent nor its

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employees had actual notice of the notice of nonresponsibility. Respondent performed his contract and did some additional work. On January 17, 1957, respondent recorded its verified claim of lien, and on April 17, 1957, this action was commenced. Gerhardt was adjudicated a bankrupt and respondent was listed as a creditor in the bankruptcy proceedings so no judgment was entered against Gerhardt.

The court determined that Siri had a lien under the provisions of section 1184.1 of the Code of Civil Procedure; that the notice of nonresponsibility was ineffectual to prevent the lien from attaching to the land; that Siri had a lien in the amount of $22,423.20 plus interest and costs; and that it was entitled to a judgment in the aforementioned amount, plus attorney fees against Trotman for $2,500. This appeal by Bridges followed. Siri has cross-appealed because the attorney fees were not also made a lien on the land.