Source: https://law.justia.com/cases/washington/supreme-court/1984/49934-9-1.html
Timestamp: 2019-04-26 04:42:35+00:00

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Justia › US Law › Case Law › Washington Case Law › Washington Supreme Court Decisions › 1984 › HEWSON CONSTRUCTION v. Reintree Corp.
HEWSON CONSTRUCTION, INC., Appellant, v. REINTREE CORPORATION, ET AL, Respondents.
Cogdill, Deno & Millikan, by James E. Deno, for appellant.
Casey, Pruzan & Kovarik, by John F. Kovarik, for *821 respondent Quadrant Corp.
Appellant Hewson Construction, Inc. (Hewson) seeks to recover costs incurred in the installation of sidewalks in a King County subdivision. On summary judgment motions, the trial court ruled Hewson has no liens against the benefited property and no claim as a beneficiary of a plat subdivision performance bond. We affirm these rulings. The trial court further ruled Hewson may not remove the sidewalks. We reverse this ruling and hold Hewson may remove the sidewalks after first offering to sell them to King County.
Having failed to obtain payment from Reintree, Hewson filed liens against lots in the subdivision. Hewson then *822 brought this action against Reintree, the developer; owners of lots in the subdivision; United Pacific Insurance Company, the bonding company; and King County. Hewson seeks to recover damages for Reintree's breach of contract, foreclose the liens, and recover as beneficiary of the bond.
Any person who, at the request of the owner of any real property, or his agent ... improves the same, or *823 any street or road in front of, or adjoining the same... has a lien upon such real property for the labor performed ... the materials furnished, or the equipment supplied for such purposes.
In arguing that an agency relationship existed between the property owners and Reintree, Hewson relies primarily on cases involving leases and executory contracts of sale. Where a lease or executory contract requires the lessee or vendee to improve the property, the work done will support a lien upon the interest of the lessor or vendor. E.g., Nelson v. Bailey, 54 Wn.2d 161, 165, 338 P.2d 757, 73 A.L.R.2d 1400 (1959); Newell v. Vervaeke, 189 Wash. 144, 63 P.2d 488 (1937). A lien will attach, however, only if the lessee or vendee has an obligation under the contract, rather than a privilege, to make improvements. Miles v. Bunn, 173 Wash. 303, 305, 22 P.2d 985 (1933). By requiring that improvements be made, the owner grants power to the lessee or vendee to act on the owner's behalf and consents to the formation of a principal-agent relationship, assuming liability for acts of the agent.
Hewson argues Reintree had a legal obligation to install the sidewalks because, at the time of purchase, Reintree advised purchasers that the required improvements would be made. Thus, by analogy to the lease and executory contract cases, Reintree's obligation to install improvements gave Reintree express authority to act as agent of the *824 property owners.
Local regulations shall provide that in lieu of the completion of the actual construction of any required improvements prior to the approval of a final plat, the ... county legislative body may accept a bond... providing for and securing to the municipality the actual construction and installation of such improvements ... The municipality is hereby granted the power to enforce bonds authorized under this section by all appropriate legal and equitable remedies.
*826 Hewson seeks to recover as a third party beneficiary of this bond, arguing that the purpose of the bond is to insure performance of plat obligations, including complete payment for improvements. Further, Hewson contends the trial court should have entered mandamus directing the County to foreclose the bond and pay Hewson. We do not agree. The parties entering into this surety agreement did not contract for the benefit of Hewson. Hewson's argument fails to recognize the limited function of the plat obligation bond.
 Applying these rules of construction to the provisions of RCW 58.17.130 and the sidewalk bond, we conclude the bonding company has no obligation to pay Hewson for the cost of sidewalk construction. The statute and bond contain no language granting suppliers or laborers rights to payment, but rather assure only "actual construction and installation" of improvements. The bonding company guaranteed only performance of the obligation, not payment of installers. "No one incurs a liability to pay a debt or perform a duty for another unless he expressly agrees to be so bound". A Stearns, Suretyship § 2.2 (5th ed. 1951). Such express agreement to pay Hewson is absent here.
Our conclusion that this statutory performance bond does not benefit Hewson is in accord with the interpretation of similar statutes by courts of other jurisdictions. *827 W.S. Dickey Clay Mfg. Co. v. Ferguson Inv. Co., 388 P.2d 300 (Okla. 1963); Evola v. Wendt Constr. Co., 170 Cal. App. 2d 21, 338 P.2d 498 (1959); see generally 4 R. Anderson, Zoning § 23.46 (2d ed. 1977); E. Yokley, Subdivisions § 59, at 315 (2d ed. 1981). These courts and commentators have noted that plat improvement bonds run solely to the obligee-municipality. The Washington statute gives only the municipality power to enforce plat obligation bonds; thus contractors such as Hewson have no right of action to enforce these bonds.
When, for any reason the title or interest in the land, upon which the property subject to the lien is situated cannot be subjected to the lien, the court may order the sale and removal from the land of the property subject to the lien to satisfy the lien.
The intention to dedicate shall be evidenced by the owner by the presentment for filing of a final plat or short plat showing the dedication thereon; and, the acceptance by the public shall be evidenced by the approval of such plat for filing by the appropriate governmental unit.
Since the sidewalks are not public property, they may be *829 subject to a lien, and the provisions of the removal statute are applicable. This statute has previously been applied where improvements were made upon public property at the instance of one owning less than a fee in the real estate. In Brown v. Hunt & Mottet Co., 111 Wash. 564, 191 P. 860 (1920), Hunt & Mottet erected buildings on the streets of Tacoma at the request of Northwest Peace Jubilee, an organization formed to stage a Fourth of July celebration. Subsequently, the Jubilee became insolvent and the buildings were removed and sold. Hunt & Mottet sought to recover the funds from the sale. The court noted that while the lands upon which the structures were erected were parts of the streets of Tacoma, upon which no lien could be asserted, the structures themselves were subject to lien under Rem. Rev. Stat. § 1146, now codified as RCW 60.04.170.
The decision of the trial court is affirmed in part and reversed in part. The cause is remanded for further proceedings *830 consistent with this opinion.
WILLIAMS, C.J., and ROSELLINI, UTTER, BRACHTENBACH, DOLLIVER, DORE, DIMMICK, and PEARSON, JJ., concur.

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