Kane v. Hozz

DEVINE, J. The question is whether appellant’s alleged cause of action on a mechanic’s lien is barred by the statute of limitations.

Facts.

Appellant is a civil engineer. He performed engineering services for the subdivision of a parcel of land for one Saunders, who was the owner, valued at $4,289.05, of which $1,850.59 is unpaid. Appellant has judgment against Saunders, who is not a party to this appeal. He sought judgment enforcing a mechanic’s lien against the proceeds of a sale under a deed of trust, but did not succeed because of the limitations statute.

The work was commenced January 7, 1956, and was completed September 30, 1958. Mechanic’s lien was filed October 30, 1958. Suit to foreclose the lien was filed December 18, 1958. Saunders was named defendant in the action, but respondents were not. Respondents were named for the first time in litigation relevant to appellant’s claim in a cross-complaint to a quiet title action, on January 25, 1962, about three and a half years after completion of the work. On March 20, 1962, appellant filed a complaint, essentially the same as his earlier cross-complaint, against respondents.

Respondents’ first connection with the property on which appellant’s engineering work was done was on April 27, 1956, when they became beneficiaries on a deed of trust from Saunders to secure a note in amount of $54,250.06. Respondents made a loan to Saunders for $50,000 to provide funds for building of a street, the loan being concluded on December 4, 1956. On December 23,1958, respondents caused notice of default by Saunders to be recorded, and they bought the property at a trustee’s sale on April 23, 1959, on a credit bid of $50,341.93. They sold the property to persons who are not parties to this litigation later in 1959 for $42,000.

These facts, found by the trial court, are not presently challenged: (1) When respondents took their deed of trust in April, 1956, they knew that engineering services were being rendered to Saunders for the benefit of the property, but they [77]did not know who was rendering them. They learned that the person was appellant on August 10, 1956. They did not know whether or not appellant had been paid for his services until recordation of the notice of default on December 23, 1958. (2) Respondents had lent $50,000 and the costs of sale were $495. From Saunders they were repaid $17,366.99, and from the sale of the property, $42,000, a total of $59,366.99 But this sum ($9,366.99 in excess of the original outlay) does not include interest. Interest at 10 percent, as provided in the note, would amount to more than the $9,366.99.