Case Name: CAROLINA BUILDING SERVICES' WINDOWS & DOORS, INC. v. BOARDWALK, LLC; Miller Building Corporation; Deborah C. Lee; Shannon W. Myers; John C. Czerwinski and wife, Jeanette M. Czerwinski; Manish G. Patel; Allen H. Van Dyke and wife, Perry G. Van Dyke; George Cornelson and wife, Kimberlye F. Cornelson; Afshin Ghazi; and Charles H. Huntley.
Court: Supreme Court of North Carolina
Jurisdiction: North Carolina
Decision Date: 2008-04-11
Citations: 658 S.E.2d 924
Docket Number: No. 444PA06.
Parties: CAROLINA BUILDING SERVICES' WINDOWS & DOORS, INC.
v.
BOARDWALK, LLC; Miller Building Corporation; Deborah C. Lee; Shannon W. Myers; John C. Czerwinski and wife, Jeanette M. Czerwinski; Manish G. Patel; Allen H. Van Dyke and wife, Perry G. Van Dyke; George Cornelson and wife, Kimberlye F. Cornelson; Afshin Ghazi; and Charles H. Huntley.
Judges: 
Reporter: South Eastern Reporter 2d
Volume: 658
Pages: 924–928

Head Matter:
CAROLINA BUILDING SERVICES' WINDOWS & DOORS, INC.
v.
BOARDWALK, LLC; Miller Building Corporation; Deborah C. Lee; Shannon W. Myers; John C. Czerwinski and wife, Jeanette M. Czerwinski; Manish G. Patel; Allen H. Van Dyke and wife, Perry G. Van Dyke; George Cornelson and wife, Kimberlye F. Cornelson; Afshin Ghazi; and Charles H. Huntley.
No. 444PA06.
Supreme Court of North Carolina.
April 11, 2008.
On discretionary review pursuant to N.C.G.S. § 7A-31 of the unanimous, unpublished decision of the Court of Appeals, 178 N.C.App. 561, 631 S.E.2d 893, 2006 WL 1984639 (2006), affirming orders entered on 28 March 2005 by Judge Larry Ford in Superior Court, Iredell County. Heard in the Supreme Court 13 September 2007.
Erwin and Eleazer, P.A., by L. Holmes Eleazer, Jr., Fenton T. Erwin, Jr., and Lex M. Erwin, Charlotte, for plaintiff-appellant.
Johnston, Allison & Hord, P.A., by Martin L. White and Greg C. Ahlum, Charlotte, for defendant-appellee Boardwalk, LLC; and Horack, Talley, Pharr & Lowndes, by D. Christopher Osborn, Charlotte, for defendant-appellees individual unit owners.

Opinion:
NEWBY, Justice.
This case presents the question of whether a default judgment in favor of an owner against a general contractor can form the basis for extinguishing a subcontractor's lien on property under N.C.G.S. § 44A-23. We hold a default judgment cannot be used for this purpose.
Before September 2001, Boardwalk, LLC ("Boardwalk") entered into a contract with Miller Building Corporation ("Miller") whereby Miller agreed to serve as the general contractor for Boardwalk's condominium project. In February 2002, well before completion of the project, Miller removed its personnel and equipment from the job site. Miller failed to fully pay its subcontractors, including Carolina Building Services' Windows and Doors, Inc. ("Carolina Building").
Carolina Building gave notice of a lien on funds to Boardwalk on 22 February 2002 and filed a subrogation lien on Boardwalk's property on 25 February 2002. On 24 April 2002, Carolina Building filed suit against Boardwalk and Miller asserting claims based on the liens, breach of contract against Miller, and quantum meruit. There is no dispute that Carolina Building furnished nearly $189,704.41 worth of materials to Miller, which were used on Boardwalk's property and for which Miller failed to pay. Miller never answered or appeared, and Carolina Building obtained an entry of default against Miller on 28 June 2002 and a default judgment on 10 December 2002.
Over two years later on 24 June 2004, Boardwalk filed a crossclaim against Miller alleging negligence and breach of contract. Again, Miller did not answer or appear. Boardwalk obtained an entry of default against Miller on 26 January 2005. Boardwalk then sought a default judgment in the amount of $185,420.38 against Miller. Carolina Building objected to the entry of that judgment. Boardwalk's motion for default judgment against Miller was consolidated with Boardwalk's and Carolina Building's cross-motions for summary judgment, and the matter was heard on 28 February and 1 March 2005.
Boardwalk presented affidavits asserting it incurred excess costs to complete the project thereby preventing Carolina Building from any monetary recovery against Boardwalk under the lien statutes. In opposition, Carolina Building presented an affidavit asserting Boardwalk completed the project for less than its contract price with Miller. The trial court concluded Carolina Building lacked standing to contest a default judgment in an action between Boardwalk and Miller and entered a default judgment against Miller on Boardwalk's cross-claim in the amount of $172,265.63, the difference asserted in Boardwalk's affidavits between the contract price and the cost to complete the project. Next, despite the competing affidavits presented by Boardwalk and Carolina Building, the trial court granted summary judgment for Boardwalk as to Carolina Building's claims, relying solely on the default judgment against Miller.
The Court of Appeals found the trial court did not err in holding Carolina Building lacked standing to object to Boardwalk's motion for default judgment against Miller. Carolina Bldg. Servs.' Windows & Doors, Inc. v. Boardwalk, LLC, 178 N.C.App. 561, 631 S.E.2d 893, 2006 WL 1984639, at *2-3 (July 18, 2006) (No. COA05-1030) (unpublished). As to Carolina Building's lien on funds, the Court of Appeals held summary judgment for Boardwalk was appropriate because both parties agreed that Boardwalk did not owe Miller any sum of money on 22 February 2002 (the date Boardwalk received notice of the lien on funds) and Boardwalk paid no funds to Miller after receiving Carolina Building's notice. Id., at *6. Finally, the Court of Appeals held that the trial court did not err in granting summary judgment in favor of Boardwalk as to Carolina Building's lien on real property because the lien was subrogated to Miller's rights and that the default judgment in favor of Boardwalk against Miller meant that Miller had no right to a lien against Boardwalk's real property. Id., at *7. On 25 January 2007, we allowed Carolina Building's petition for discretionary review as to the last issue addressed by the Court of Appeals: whether a default judgment for an owner against a general contractor who does not appear may be the basis for extinguishing a subcontractor's lien on the owner's real property. Carolina Bldg. Servs.' Windows & Doors, Inc. v. Boardwalk, LLC, 361 N.C. 218, 642 S.E.2d 245 (2007).
We decide this issue by examining the statutory scheme provided by the General Assembly in Chapter 44A. Recently, this Court dealt with a question concerning a lien on funds under N.C.G.S. § 44A-18 and 44A-20 and stated:
The materialman's lien statute is remedial in that it seeks to protect the interests of those who supply labor and materials that improve the value of the owner's property. A remedial statute must be construed broadly "in the light of the evils sought to be eliminated, the remedies intended to be applied, and the objective to be attained."
O & M Indus. v. Smith Eng'g Co., 360 N.C. 263, 268, 624 S.E.2d 345, 348 (2006) (citations omitted). Likewise, N.C.G.S. § 44A-23 is a remedial statute that must be construed broadly.
When certain notice and perfection requirements are met, a first tier subcontractor is subrogated to the claim of lien on real property of the contractor. N.C.G.S. § 44A-23(a) (1999). This is "a separate right of subrogation to the lien of the contractor who deals with the owner, distinct from the rights contained in N.C.G.S. § 44A-18," Elec. Supply Co. of Durham, Inc. v. Swain Elec. Co., 328 N.C. 651, 660, 403 S.E.2d 291, 297 (1991), meaning "the subcontractor may assert whatever lien that the contractor who dealt with the owner has against the owner's real property relating to the project," id. at 661, 403 S.E.2d at 297 (citing Powell & Powell v. King Lumber Co., 168 N.C. 632, 638, 84 S.E. 1032, 1035 (1915)).
In pertinent part, N.C.G.S. § 44A-23 states: "Upon the filing of the notice and claim of lien and the commencement of the action, no action of the contractor shall be effective to prejudice the rights of the subcontractor without his written consent." N.C.G.S. § 44A-23(a). The parties agree that Carolina Building properly filed a notice and claim of lien and properly commenced the action. It is also uncontested that Miller defaulted after Carolina Building commenced its action and that Carolina Building did not provide written consent allowing Miller's actions to prejudice its rights. However, the parties disagree whether Miller's default constituted an "action."
Carolina Building presented an affidavit that raised a genuine issue of material fact concerning Boardwalk's liability to Miller based on a lien against Boardwalk's real property. Rather than consider this affidavit, the trial court focused on the default judgment for Boardwalk against Miller. By its plain meaning, an action is "[a] thing done." Black's Law Dictionary 31 (8th ed. 2004). Thus, Miller's choice not to defend Boardwalk's claims constituted an "action" which prejudiced the rights of Carolina Building contrary to the statutory mandate of N.C.G.S. § 44A-23. Carolina Building should have an opportunity to present its evidence concerning the merits of recovery under its lien on real property.
The decision of the Court of Appeals is reversed as to the issue before this Court on discretionary review. The remaining issues addressed by the Court of Appeals are not before this Court, and its decision as to those issues remains undisturbed. This case is remanded to the Court of Appeals for further remand to the trial court for proceedings not inconsistent with this opinion.
REVERSED IN PART AND REMANDED.