Sundance Mechanical & Utility Corp. v. Atlas, 21159

• Decision Date: 09 August 1994
• Docket Number: No. 21159,21159
• Citation: 118 N.M. 250,1994 NMSC 84,880 P.2d 861
• Parties: SUNDANCE MECHANICAL & UTILITY CORPORATION, a New Mexico corporation, Plaintiff-Appellant, v. Marvin F. ATLAS and Carole J. Atlas, husband and wife, et al., Defendants-Appellees.
• Court: New Mexico Supreme Court

Page 861

880 P.2d 861 118 N.M. 250 SUNDANCE MECHANICAL & UTILITY CORPORATION, a New Mexico
corporation, Plaintiff-Appellant,
v.
Marvin F. ATLAS and Carole J. Atlas, husband and wife, et
al., Defendants-Appellees. No. 21159. Supreme Court of New Mexico. Aug. 9, 1994.
Rehearing Denied Sept. 9, 1994.

Page 863

[118 N.M. 252] Paul S. Wainwright, P.A., Paul S. Wainwright, Albuquerque, for appellant.

Threet & King, Martin E. Threet, Robert G. Kavanagh, Albuquerque, for appellees.

OPINION

BACA, Justice.

Plaintiff-Appellant, Sundance Mechanical & Utility Corporation ("Sundance"), appeals from the district court's decision concluding that Defendants-Appellees, Marvin and Carole Atlas (the "Atlases"), were entitled to the benefit of NMSA 1978, Section 48-2-10.1(A) (Repl.Pamp.1987) (mandating the conditions for discharge of a materialman's lien). On appeal we decide whether the district court erred when it determined that the Atlases were entitled to the benefit of Section 48-2-10.1(A). We review this case under SCRA 1986, 12-102(A)(1) (Repl.Pamp.1992), and reverse.

I.

This lawsuit arises out of a house-building contract between the Atlases and Robert Eden, doing business as R.J. Eden Construction Company ("Eden"). On November 19, 1985, the Atlases entered into a contract with Eden for the construction of a residence on certain real property owned by the Atlases. The original contract payment amount was $331,554.09. The contract required Eden to furnish labor, services, and materials for construction of the house.

On December 31, 1985, Eden, acting as general contractor, entered into a written contract with Sundance that, in essence, called for Sundance to perform certain subcontract work on the Atlases' house. Between September 2, 1986, and October 13, 1986, Eden and Sundance performed work on the residence. On October 13, 1986, before construction was completed, the Atlases terminated Eden's contract as general contractor and began personally supervising the construction of the residence. Between September 19, 1986, and June 18, 1987, the Atlases paid various subcontractors and suppliers $43,412.20 for work performed and materials supplied.

Sundance completed its work on the residence on October 30, 1986. At this time Eden owed Sundance $14,637.80 for the work performed. On October 31, 1986, Sundance filed a claim of lien against the Atlases in the County Clerk's office in Bernalillo County. On February 17, 1987, the Atlases paid Sundance $3,000 to reduce the claim of lien to $11,637.80.

On March 19, 1987, Sundance filed a complaint for debt and money due and sought to foreclose its claim of lien against the Atlases' residence. On June 12, 1987, Sundance filed a motion for summary judgment with respect to certain counts in its complaint. The district court granted Sundance's motion on March 9, 1988, and awarded Sundance a judgment against the real property of Eden and the Atlases in the amount of $18,557.39. The court also ordered foreclosure of Sundance's lien and appointed a special master to sell the property. On March 10, 1988, and March 18, 1988, the Atlases paid Sundance a total of $18,557.39 to satisfy the judgment. Sundance accepted this amount as payment in full and subsequently filed a satisfaction and release of judgment.

On March 21, 1988, despite having paid the judgment amount, the Atlases filed a pro se motion to set aside the judgment in favor of...