Opinion ID: 1686104
Heading Depth: 1
Heading Rank: 5

Heading: Equitable Mechanic's Lien Action

Text: Finally, Lafarge claims that the trial court erred in denying its motion to compel arbitration because Missouri's equitable lien statutes do not bar enforcement of the arbitration provision. Sections 429.270 to 429.340 govern the enforcement and adjudication of the rights of multiple lienholders in an equitable action. McCarney, 866 S.W.2d at 891-892. The purpose of an equitable mechanics' lien action is to enforce multiple mechanics' lien claims filed against the same real estate and to adjudicate the rights claimed under all conflicting liens, encumbrances, or other interests in the property. Mabin Const. Co., v. Historic Constructors, Inc., 851 S.W.2d 98, 100 (Mo.App. 1993). An equitable mechanic's lien action may only be brought when more than one mechanic's lien is filed against the property. Section 429.330. When an equitable action is commenced, it shall be exclusive of other remedies for the enforcement of mechanic's liens. Section 429.290. Finally, section 429.300 provides in pertinent part: [A]ll other suits that may have been brought on any mechanic's lien claim or demand shall be stayed and no further prosecuted, and the parties in any such other suit shall be made parties to such equitable action as in the foregoing sections provided.... After the institution of such equitable action no separate suit shall be brought upon any mechanic's lien or claim against said property, or any of it, but the rights of all persons shall be adjusted, adjudicated and enforced in such equitable suit. Thus, once an equitable mechanic's lien action is brought, it is the exclusive method of litigating liens and other claims pertaining to particular property. Meiners Co. v. Clayton Greens Nursing Ctr., 645 S.W.2d 722, 724 (Mo. App.1982). The equitable mechanic's lien action does not, however, preclude the enforcement of the parties' arbitration agreement to resolve the underlying disputes. See Silver Dollar City, Inc. v. Kitsmiller Constr. Co., 874 S.W.2d 526, 535 (Mo.App. 1994); McCarney, 866 S.W.2d at 892. [3] While an equitable mechanic's lien action is the exclusive method of litigating liens and other claims regarding property, arbitration is a proceeding separate from litigation based upon its underlying purpose of encouraging dispute resolution without resort to the courts. McCarney, 866 S.W.2d at 892. To characterize it as a form of litigation, rather than as an alternative to litigation, is contrary to its nature and is an unreasonable construction of equitable mechanic's lien statutes. Id. Thus, the arbitration agreement between Lafarge and DIG is enforceable regardless of whether multiple mechanic's liens exist creating a basis for an equitable mechanic's lien action. See Silver Dollar City, 874 S.W.2d at 535; McCarney, 866 S.W.2d at 892. The trial court erred in denying Lafarge's motion to compel arbitration between Lafarge and DIG. That part of the trial court's judgment is, therefore, reversed, and the case is remanded to the trial court to compel arbitration of those claims.