Canam Systems, Inc. v. Lake Buchanan Development Corp.

Decision Date22 August 1979
Docket NumberNo. 78-1008,78-1008
Citation375 So.2d 582
PartiesCANAM SYSTEMS, INC., a Delaware Corporation, Appellant-Cross-Appellee, v. LAKE BUCHANAN DEVELOPMENT CORPORATION and United General Corporation, Appellees-Cross-Appellants, v. UNITED BUILDING SYSTEMS, INC., Paul L. Hennes, Individually, Howard N. Rose, Individually, Samuel Gartner, Individually and Aetna Insurance Company, a foreign insurer, Appellees. /NT 4-8.
CourtFlorida District Court of Appeals

Irby G. Pugh, Orlando, for appellant-cross-appellee.

Harlan Tuck, of Giles, Hedrick & Robinson, Orlando, for appellees-cross-appellants.

LETTS, GAVIN K., Associate Judge.

Two Claims of Lien filed under the Mechanics' Lien Statute were transferred to bond within a few days after recordation. Less than two weeks later, the mechanics' lienor filed suit to foreclose his liens but failed to name as defendants, either the surety, or the principals on the bond, until he attempted to do so some 3 years later. In granting a motion to dismiss with prejudice, the trial court noted inter alia that suit against the surety and its principals should have been commenced within one year from the date the lien was recorded. We agree and affirm.

Section 713.24(4), Florida Statutes (1973) provides:

If no proceeding to enforce a transferred lien shall be commenced within the time specified in § 713.22 or if it appears that the transferred lien has been satisfied of record, the clerk shall return said security upon request of the person depositing or filing the same, or the insurer.

In turn, Section 713.22(1), Florida Statutes (1973) provides:

Duration of lien. No lien provided by part I of this chapter shall continue for a longer period than 1 year after the claim of lien has been recorded, unless within that time an action to enforce the lien is commenced in a court of competent jurisdiction.

In the case at bar, no attempt was made to pursue the security of the transferred lien for more than three (3) years after recordation of the claim and the trial court's ruling therefore was obviously correct. The appellants cite American Fire and Casualty Company v. Davis Water & Waste Industries, 358 So.2d 225 (Fla. 4th DCA 1978) as authority for the proposition that the surety and the principals on the bond need not be joined within one (1) year of filing of the claim of lien. However we distinguish that case from the one now before us, because in American Fire the suit was filed Before the...

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4 cases
  • Hutnick v. U.S. Fidelity & Guaranty Co.
    • United States
    • California Supreme Court
    • December 1, 1988
    ...640, 642; American Fire & Cas. Co. v. Davis Water & Waste (Fla.App.1978) 358 So.2d 225, 227; see also, Canam Systems v. Lake Buchanan Dev. Corp. (Fla.App.1979) 375 So.2d 582, 583.) The analysis of these sister state decisions is sound. In seeking to enforce their mechanics' lien first again......
  • Pappalardo v. Gordon F. Buck, P.E., 94-2619
    • United States
    • Florida District Court of Appeals
    • August 9, 1995
    ...a bond to which there has been a transfer from lien must be made a party to be held personally liable. Canam Sys., Inc. v. Lake Buchanan Dev. Corp., 375 So.2d 582 (Fla. 5th DCA 1979), cert. denied, 386 So.2d 634 (Fla.1980); Vic Tanny of Florida, Inc. v. Fred McGilvray, Inc., 348 So.2d 648 (......
  • Cool Guys, LLC v. Jomar Props., LLC
    • United States
    • Florida District Court of Appeals
    • March 7, 2012
    ...courts reaching a different result where suit was brought after the lien was transferred to bond. See Canam Sys., Inc. v. Lake Buchanan Dev. Corp., 375 So. 2d 582 (Fla. 5th DCA 1979) (affirming dismissal of claims against surety and principal where lien was transferred to bond prior to fili......
  • Canam Systems, Inc. v. Lake Buchanan Development Corp.
    • United States
    • Florida Supreme Court
    • June 25, 1980

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