Opinion ID: 877417
Heading Depth: 1
Heading Rank: 4

Heading: the validity of plaintiff's mechanics' lien

Text: Upon their election to repair, the landlords became bound under the lease agreement to make such repairs as necessary to provide the tenant with suitable premises to operate his business. The landlords willfully abrogated their duty under this contract when they refused to complete the repairs. This refusal compelled the tenant to complete the repairs himself, and he did so with the knowledge and consent of the landlords. These facts establish an implied contract between the parties. An implied contract is sufficient to support a valid mechanics' lien. M & R Const. Co. v. Shea (1979), Mont., 589 P.2d 138, 36 St.Rep. 37. (See also cases cited therein.) This Court has noted that a mechanics' lien ... is a creature of statute, remedial in nature, with its foundation in equity and natural justice, not contract. Beck v. Hanson (1978), Mont., 589 P.2d 141, 144. The equities were clearly in favor of the tenant. The landlords willfully breached their promise to repair, and they were fully aware that the tenant was then compelled to complete the work. After the tenant had completed the repairs, the landlords then attempted, contrary to the terms of the lease, to drastically increase the rental payments. That can hardly be classified as fair dealing. In denying the mechanics' lien, however, the trial court relied on a clause in the lease which required the tenant to pay and discharge any liens filed against the premises. That clause required the tenant: 1. To pay and discharge promptly, all liens and obligations of any nature and kind whatsoever which may attach to or be imposed upon said premises, or to said leasehold, created or incurred by said Lessees, to pay all reasonable costs, attorney's fee and expenses that shall be made and occurred by the Lessors in enforcing the covenants of the agreements in this lease. (Emphasis added.) The clear intent of this clause is to prohibit the tenant from having work done which would result in a lien filed against the premises, or to pay the liens if filed. But here it was the landlords who initiated the repairs. The landlords, by electing to repair the premises after the fire, created or incurred the obligation to complete such repairs. The tenant was compelled to do the work when the landlords failed to complete it after electing to repair the premises under the fire clause in the lease. The trial court also noted several alleged technical defects in the mechanics' lien. Specifically, the trial court referred to the fact that the lien was filed by Bruce A. Kosena whereas this action was filed by Bruce A. Kosena, d/b/a The Pub. This is an inconsequential technical discrepancy, and it will not invalidate an otherwise valid lien. The lien statute must be interpreted liberally to protect the right of the lien. Morrison-Maierle Inc. v. Selsco (1980), Mont., 606 P.2d 1085, 37 St.Rep. 299; Fausett v. Blanchard (1969), 154 Mont. 301, 463 P.2d 319. Furthermore, the fact that some of the items claimed in the lien may not be lienable does not invalidate the entire lien. Smith v. Gunniss (1944), 115 Mont. 362, 144 P.2d 186; Caird Engineering Works v. Seven-Up Gold Mining Co. (1940), 111 Mont. 471, 111 P.2d 267. The landlords' conduct throughout this transaction is inexcusable. Their willful breach of an obligation to repair the premises, and their ratification of the significant repairs made by the tenant, is alone a sufficient legal basis for the filing of a mechanics' lien. Further, their totally unjustified demand for drastically increased rental payments after the completion of the repairs presents an even stronger equitable basis to uphold the lien. The tenant is entitled to a mechanics' lien in the full amount of the value of any permanent repairs that were the duty of the landlords to provide.