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Baltimore Contractors, Inc. vs. Thomas H. Dupree, individually and as trustee, & others

Massachusetts Supreme Judicial Court1967-02-16
352 Mass. 83

Summary

Holding. The court reversed the trial judge's overruling of the defendants' demurrers and sustained the demurrers, thereby dismissing the bill against the mortgage assignee. The trial court was permitted to allow Baltimore to amend its bill within ninety days to establish its right to compensation against the remaining defendants through an appropriate remedy.

Baltimore Contractors brought an equity action seeking to enforce a statutory lien for construction work performed on a residential property owned by the Duprees. The parties' contract included provisions allowing the owners and architect to order changes, and Baltimore alleged that 127 changes were made during construction, resulting in additional costs and delays. Baltimore filed a notice of contract on April 8, 1965, while work was ongoing, but the notice contained language stating the contract would be completed "before end of 460 calendar days after receipt of notice to proceed given on June 28, 1963, but contract not yet completed due to Owner changes." The defendants demurred, arguing Baltimore failed to establish its right to a statutory lien and that the bill lacked sufficient factual support.

The central issue was whether Baltimore's notice of contract satisfied the statutory requirements under the applicable law. The statute required that a notice specify the date on which the contract was to be completed. Because Baltimore's notice used indefinite language regarding the completion date—attributing the delay to owner changes without establishing a fixed completion date—the notice did not comply with statutory mandates. The court emphasized that strict compliance with statutory notice requirements is necessary to perfect a lien right, and the vague language in Baltimore's notice made it impossible to ascertain the actual completion date.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether a statutory lien notice satisfied statutory requirements when it failed to specify a definite contract completion date
  • The necessity of strict compliance with statutory notice provisions to perfect a construction lien
  • Effect of owner-ordered changes on the contractor's obligation to establish a completion date in the notice of contract

Procedural posture

The trial judge overruled the defendants' demurrers to the plaintiff's bill in equity and stayed proceedings, reporting the issue to the appellate court for determination of the propriety of that disposition.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

Kirk, J.

The judge, having overruled the defendants’ demurrers to the plaintiff’s (Baltimore) bill in equity to enforce a lien under G-. L. c. 254, § 5, stayed all proceedings and reported for our determination the question of the propriety of his disposition of the demurrers.

In summary Baltimore’s bill alleges that on or about June 28, 1963, it entered into a written contract with the Duprees as individuals for the erection of an apartment building on land owned by the Duprees at 1010 Memorial Drive, Cambridge. The contract provided that work was to be “substantially completed within 460 calendar days after receipt of notice to proceed.” It authorized the owners and the architect to order extra work or to make changes in the work to be done. The contract provided that claims for extension of time were to be adjusted at the time of ordering the changes. Baltimore was entitled to time extensions for any delays caused by the owners, the architect or unavoidable causes. The architect was to decide what were reasonable times of extension for completion. His decisions were subject to binding arbitration.

Further allegations are that during the construction, the owners and architect made a total of 127 changes in the contract. The changes resulted in substantial additional costs to Baltimore and required substantial additional time to complete the contract. The owners and architect unreasonably delayed in furnishing details, directions and drawings, and in making decisions on claims relating to the execution of the work and the interpretation of documents. Many of the ordered changes were on a “time and material” basis, making it impossible to determine the completion date until the work was completed. As to other changes, the architect, notwithstanding Baltimore’s request, “arbitrarily and capriciously” refused to grant any time extensions.

On April 8, 1965, while the work was still in progress, Baltimore filed a notice of contract. This was the only notice of contract filed by Baltimore. The final recital in the notice read: ‘ ‘ Said contract to be completed before end of 460 calendar days after receipt of notice to proceed given on June 28, 1963, but contract not yet completed due to Owner changes.” On the date of filing, the Duprees were owners of record of 1010 Memorial Drive, subject to two mortgages held by The First National Bank of Boston. On July 30,1965, the Duprees, subject to encumbrances of record, transferred ownership of the property to themselves as trustees of Ten Ten.

Baltimore also alleges that it completed its contract, together with all changes, on August 31, 1965, when it was owed the sum of $1,140,399.25 for labor and material furnished under the contract. On September 1, 1965, Baltimore filed a statement of claim for that amount as required by G. L. c. 254, <§, 8, and The First National Bank of Boston assigned its first mortgage to N. E. Mutual. The second mortgage held by The First National Bank of Boston was subsequently discharged.

The defendants’ principal grounds of demurrer are (1) Baltimore has failed to establish its right to a statutory lien, and (2) the bill does not set forth facts sufficient to warrant relief. The validity of the demurrers may be disposed of on the first ground.

The requisites for the establishment of a statutory lien have been fully stated and need not be repeated. The terms of the statute are clear, are not open to misapprehension and their purpose is plain. Pratt & Forrest Co. v. Strand Realty Co. of Lowell, 233 Mass. 314, 317-318. Strict compliance with the statutory terms is necessary. Street Lumber Co. v. Sullivan, 201 Mass. 484. Pratt & Forrest Co. v. Strand Realty Co. of Lowell, 233 Mass. 314, 318. Adams & Powers Co. v. Seder, 257 Mass. 453. Valentine Lumber & Supply Co. v. Thibeault, 336 Mass. 411, 413. General Laws c. 254, § 2, prescribes the form of notice. One essential requirement is that the notice set out that the “Said contract is to he completed on or before .” Under Gr. L. c. 254, § 2, responsibility for compliance with its terms devolves upon any person who, being entitled to file the notice, files it.

The single question presented is whether the notice filed on April 8, 1965, complied with the requirements of Gr. L. c. 254, § 2. By reason of the indefinite words, “but contract not yet completed due to Owner changes,” the notice affords no method by which the date of completion of the contract may be ascertained. The notice as filed, therefore, did not comply with Gr. L. c. 254, § 2. It follows that the demurrers should have been sustained on the first ground.

The interlocutory decrees overruling the demurrers must be reversed, and decrees are to be entered sustaining them. A decree dismissing the bill as against N. E. Mutual is to be entered. In the Superior Court leave to amend the bill within ninety days after rescript may be granted to Baltimore so that it may by appropriate remedy establish its right to compensation against the remaining defendants.

So ordered.