Opinion ID: 2619544
Heading Depth: 1
Heading Rank: 3

Heading: Unreasonable Value

Text: These appellants argue that the court erred in finding the reasonable value of Martin and Luther's work in that the applied standards were wrong and further that the court completely overlooked pertinent uncontroverted evidence. Their argument is that in order for claimant to establish entitlement to a lien it was obliged to show it had actually improved the value of the property, the value of the lien being the reasonable value by which such improvements benefited the property citing Kaiser Aluminum & Chemical Sales, Inc., v. Hartford Accident & Indemnity Co., W.D.Mo., 117 F. Supp. 471, and Barker & Stewart Lumber Co. v. Marathon Paper Mills Co., 146 Wis. 12, 130 N.W. 866, 36 L.R.A.,N.S., 875. A careful analysis of these cases discloses no support for appellants' position therein. Of interest, however, are the following Missouri cases:    There is no contractual relationship between him [subcontractor] and the landowner. The landowner has never agreed to pay the subcontractor anything and is not personally indebted to him. It is only by reason of the mechanic's lien statute that the property may be subjected to the payment of the lien claim. In this situation the lien is not necessarily for the contract price but is only for the reasonable value of the labor and materials furnished. Kling v. Railway Construction Co., 7 Mo. App. 410. (Emphasis supplied.) Mississippi Woodworking Company v. Maher, Mo. App., 273 S.W.2d 753, 755.    generally    where the contract for construction of the building is for a sum in gross, the items of work and materials need not be filed; but these rulings do not apply where work has been done at the instance of a contractor.    The reason is, that where the contract is with the owner for a round sum of money, he can need no itemized account; but where the contract of the workman, though for a round sum, is not with the owner, but with a subcontractor, the contractor cannot bind the building for more than the materials furnished on the credit of the building are fairly worth, and it is therefore important that the owner should be informed as to the particulars of the demand, that he may inquire as to the justice of the claim.    (Emphasis supplied.) Kling v. Railway Construction Company of Carondelet, 7 Mo. App. 410, 411. The problem in this posture of the case is whether or not the trial court had before it substantial evidence to determine the reasonable value of the subcontractor's work. Monarch Lumber Company v. Wallace, 132 Mont. 163, 314 P.2d 884, dealing with a situation somewhat similar, holds that reasonable value of materials furnished is evidenced by sales slips which were original entries made at or near the time of the particular transactions and in the regular course of business and true statements of goods sold and delivered, saying, 314 P.2d at 887, The cases are in accord that such evidence is relevant and material and sufficient to make out a prima facie case of the reasonable value of the materials furnished. In Lenslite Co. v. Zocher, 95 Ariz. 208, 388 P.2d 421, 424, the court said, The billing price submitted    and the amounts paid are evidence of the costs and the reasonable value of the labor and materials which went into the job, and therefore, are admissible in evidence. The contract price is admissible on the issue of reasonable value and constitutes prima facie proof of the issue. Appellants are mistaken in their concept that in order to establish the lien the claimant must show the improvement in value of the premises to the owner. The owner is, of course, free to introduce evidence which will contradict plaintiff's prima facie evidence regarding labor and materials, and the function of the trial court was to determine the weight and sufficiency of such evidence in arriving at the amount of the lien. In that connection, we note the reference which appellants have made to the trial court's statement that on the basis of Routh v. State Highway Commission, Wyo., 402 P.2d 706, 712, it was not precluded from employing its knowledge and experience with respect to reasonable value. The record does not indicate that in this instance the court was compelled to rely upon its own knowledge or experience or actually did so rely thereon as a primary source of reasonable value, which would, of course, have been impermissible as indicated in Heal v. Stoll, 176 Wis. 137, 185 N.W. 242, on which the Routh case relied for authority, but the mentioned factors were available for the evaluation of evidence which had been presented to it. We deem the court to have had substantial evidence before it upon which it could predicate the reasonable value of the labor and materials for which the lien was adjudged.