Opinion ID: 1190817
Heading Depth: 1
Heading Rank: 2

Heading: Materialman's Lien

Text: The well-established rule in Idaho is that materialman lien statutes are to be liberally construed so as to effect their objects and to promote justice. Chief Industries Inc. v. Schwendiman, 99 Idaho 682, 685, 587 P.2d 823, 826 (1978); Ross v. Olson, 95 Idaho 915, 917, 523 P.2d 518, 520 (1974); Pierson v. Sewell, 97 Idaho 38, 41, 539 P.2d 590, 593 (1975). The purpose of these statutes is to compensate persons who perform labor upon or furnish material to be used in construction, alteration or repair of a structure. Pierson at 41, 539 P.2d at 593; Boise Payette Lumber Co. v. Weaver, 40 Idaho 516, 234 P. 150 (1925). As a materialman's lien is a creature of statute, at least a substantial compliance with the requirements of the lien statutes is necessary for creation of a valid lien. Chief Industries Inc. at 685, 587 P.2d at 826; Layrite Prod. Co. v. Lux, 86 Idaho 477, 388 P.2d 105 (1964). The evidence shows that Barber's claim of lien, which was filed pursuant to I.C. § 45-501 et. seq., accurately described the property which was subject to the lien, was filed within the statutorily required ninety-day period since the furnishing of the last item of material or labor, and accurately reflected the owners of the property subject to the lien as Frank and Carol Honorof. In our opinion, Barber has substantially complied with the statutory requirements to create a valid lien. Honorof argues that the claim of lien had a fatally defective description as to the dollar amount of the lien, and, therefore, there can be no valid lien and no foreclosure proceedings based upon a defective notice of claim. They assert that Barber's claim of lien is invalid because it claimed an amount owing of $12,602.60, whereas the complaint seeking foreclosure was filed in the amount of $11,675.60, and the judgment ultimately awarded by the trial court upon which foreclosure was ordered was for $8,291.00. However, they fail to cite any legal authority to support this theory. The fact that the amount on the notice of claim and the amount prayed for in the foreclosure complaint differ is not enough to render the lien invalid. The record shows that Barber contacted Honorof and made him aware that the $12,602.60 figure on the notice of claim was an error and attempted to correct this by filing the complaint seeking foreclosure in the amount of $11,675.60, a figure Barber believed to be correct. When this case went to trial, however, it was held that $11,675.60 was not reasonable. The court felt that fair and reasonable compensation for the work performed was Barber's out-of-pocket expenses plus a reasonable hourly rate, not $.90 per square foot as he had charged; thus, he was awarded $8,291.00, instead of the $11,675.60 claimed. Whereas the general purpose of I.C. § 45-501 et seq. is to compensate persons who perform labor and/or furnish materials for construction projects, the specific purpose of the claim of lien is to give notice and to provide the contractor with security until he is able to be compensated for his services. Compare Guyman v. Anderson, 75 Idaho 294, 271 P.2d 1020 (1954) (stating that the lien is not provided as a penalty, but rather as security). As stated earlier, substantial compliance with the lien statutes is all that is required, not absolute accuracy. Chief Industries, Inc. v. Schwendiman, 99 Idaho 682, 685, 587 P.2d 823, 826 (1978). That is not to say that contractors are free to abuse the statutes by claiming an amount known to greatly exceed that which is truly owing. Such is not the case here, as Barber made a good faith effort to comply with the lien statutes. Therefore, in the absence of oppression or some other circumstances which would justify a court of equity denying foreclosure, there is no reason it should not be granted, even though Barber failed to establish his right to the full $11,675.60 and was ultimately awarded a lesser amount. Guyman, 75 Idaho at 296, 271 P.2d at 1022.