Butler Supply, Inc. v. Coon's Creek Inc., WD56721

• Citation: 999 S.W.2d 748
• Decision Date: 07 September 1999
• Docket Number: WD56721
• Parties: Butler Supply, Inc., a Corporation, Respondent, v. Coon's Creek, Inc., a Corporation, Defendant, LaPlata State Bank, Appellant. WD56721 Missouri Court of Appeals Western District 0
• Court: Missouri Court of Appeals

Butler Supply, Inc., a Corporation, Respondent v Coon's Creek, Inc., a Corporation, Defendant, LaPlata State Bank, Appellant

WD56721

Missouri Court of Appeals Western District

09/07/99

Appeal From: Circuit Court of Macon County, Hon. James P. Williams

Counsel for Appellant: Seth D. Shumaker

Counsel for Respondent: Garry Seltzer

Opinion Summary: LaPlata State Bank appeals the judgment of the trial court granting Butler Supply Company a mechanic's lien with priority over the interests of LaPlata on the real property at issue in the case. On appeal, LaPlata contends that the trial court erred in finding that Butler's mechanic's lien takes priority over the deeds of trust granted to LaPlata because the deeds of trust were recorded prior in time to the date on which Butler's mechanic's lien arose and because the trial court failed to make the findings necessary to award Butler's mechanic's lien priority over its deeds of trust.

Division Three holds: The trial court did not err in finding that Butler's mechanic's lien takes priority over LaPlata's deeds of trust, both as to the land and the improvements. LaPlata's deeds of trust were not purchase money deeds of trust to secure the repayment of funds used to purchase the land. Butler's mechanic's lien attached prior to LaPlata's interests--with the commencement of work on the property.

Smith and Howard, JJ., concur.

Robert G. Ulrich, Judge

LaPlata State Bank appeals the judgment of the trial court granting Butler Supply Company a mechanic's lien with priority over the interests of LaPlata on the real property at issue in the case. On appeal, LaPlata contends that the trial court erred in finding that Butler's mechanic's lien takes priority over the deeds of trust granted to LaPlata because the deeds of trust were recorded prior in time to the date on which Butler's mechanic's lien arose and because the trial court failed to make the findings necessary to award Butler's mechanic's lien priority over its deeds of trust. The judgment of the trial court is affirmed.

FACTS

Coons' Creek, Inc. acquired the real property at issue in this case by warranty deed on March 12, 1997. LaPlata State Bank provided Coons' Creek a loan in the amount of $100,000 on April 15, 1997, that was secured by a deed of trust on the land. LaPlata recorded the deed of trust with the Macon County Recorder on April 17, 1997. An initial advance on the loan was granted on April 15, 1997, in the amount of $21,489.48 to provide for work "previously performed" on the property. The balance of the loan was provided for completion of construction of the structure on the land and for the purchase of inventory and fixtures. On September 15, 1997, LaPlata granted a second loan to Coons' Creek in the amount of $25,000.00 for the purpose of business improvements and the installation of a sign. LaPlata secured the second loan by taking a second deed of trust on the property that was recorded on September 29, 1997. Butler Supply supplied materials to Coons' Creek for construction of improvements on the property from October 6, 1997, through October 18, 1997.

Butler filed its mechanic's lien claim in the circuit court on January 30, 1998. On March 12, 1998, Butler filed a petition to enforce a mechanic's lien on the property. Thereafter, the circuit court rendered a judgment awarding Butler a mechanic's lien on the property with priority as to the land and its improvements over the interests of LaPlata. This appeal followed.¹

POINT ON APPEAL

In its sole point on appeal, LaPlata contends that the trial court erred in finding that Butler Supply's mechanic's lien takes priority over its deeds of trust because LaPlata's deeds were recorded prior in time to the date on which Butler's mechanic's lien arose and because the trial court failed to make the findings necessary to give Butler's mechanic's lien priority over its deeds of trust.

Appellate review of a court-tried case is governed by Murphy v. Carron, 536 S.W.2d 30, 32 (Mo. banc 1976). The judgment of the circuit court will be affirmed on appeal unless there is no substantial evidence to support it, it is against the weight of the evidence, or it erroneously declares or applies the law. Id. Where, as here, neither party requested that the court issue findings of fact or conclusions of law, all fact issues are presumed to be in accord with the judgment, and the judgment of the trial court will be affirmed under any reasonable theory that may be supported by the evidence. Westinghouse Elec. Co. v. Vann Realty Co., 568 S.W.2d 777, 781 (Mo. banc 1978); American Family Mut. Ins. Co. v. Fehling, 970 S.W.2d 844, 855 (Mo. App. W.D. 1998).

Sections 429.050 and 429.060² govern the issue of priority of mechanic's liens. Section 429.050 provides that mechanic's liens shall attach to the improvements constructed in preference to any prior lien. Section 429.050; Dave Kolb Grading, Inc. v. Lieberman Corp., 837 S.W.2d 924, 934 (Mo. App. E.D. 1992); Glasco Elec. Co. v. Best Elec. Co. 751 S.W.2d 104, 111 (Mo. App. E.D. 1988). Section 429. 060 provides that mechanic's liens shall be preferred, as to land as well as the improvements, to all other encumbrances subsequent to the commencement of the improvements. Section 429.060; Dave Kolb Grading, 837 S.W.2d at 934; Glasco, 751 S.W.2d at 111. This concept is known as the "first spade rule." Dave Kolb Grading, 837 S.W.2d at 934. Under section 429.060 and the first spade rule, mechanic's liens attach with the first delivery of material or commencement of work....