Opinion ID: 2089638
Heading Depth: 2
Heading Rank: 2

Heading: Ryan's Alternative Arguments

Text: Ryan argues that even if we do not accept the court of appeals' joint-venture theory of service, we can nonetheless uphold that court's decision. Ryan contends that, contrary to the court of appeals' and district court's conclusions, it did serve JAG within the one-year time limit imposed by the lien statutes and therefore made JAG a party to its lien action. Alternatively, Ryan asserts that JAG waived its jurisdictional defense through its participation in this case. Both lower courts stated, without analysis, that Ryan did not serve JAG individually within the one-year time limit imposed by section 514.12, subd. 3. Because the lower courts decided that Ryan effectively served JAG, they did not address the waiver argument.
Ryan first argues that it satisfied the one-year time limit and properly commenced its action because it filed its summons and complaint within one year of December 16, 1997, its last day of work as listed on its lien statement. In making this argument, Ryan asserts that the fundamental requirement of section 514.12 is not the serving of the complaint, but the filing of the complaint. Ryan acknowledges that provisions that create a mechanics' lien are strictly construed. It argues, however, that the one-year service limit of section 514.12, subd. 3, is an enforcement provision to be liberally construed. We disagree. The requirements for the attachment and creation of a mechanics' lien are to be strictly construed. Dolder v. Griffin, 323 N.W.2d 773, 780 (Minn.1982). After a lien is created, however, we liberally construe the lien statutes as remedial acts. Id. The one-year limitation of the lien statutes is no ordinary statute of limitations; it puts a limit to the life and duration of the lien. Bauman v. Metzger, 145 Minn. 133, 138, 176 N.W. 497, 499 (1920). The statutes require that not only filing a complaint, but also making the defendant-landowner a party to the suit accomplished by serving the defendant-landowner with the summonsmust be done within one year. Minn.Stat. § 514.12, subd. 3; see Smith v. Hurd, 50 Minn. 503, 507, 52 N.W. 922, 922 (1892) (holding, in the context of a mechanics' lien action, that as to each defendant a lien action is commenced and is pending only from the time of service of the summons on him  [6] (emphasis added)). If these requirements are not met, the lien and any cause of action flowing therefrom cease to exist at the end of the year. Bauman, 145 Minn. at 138, 176 N.W. at 499. Contrary to Ryan's argument, then, we conclude that the one-year time limit on service, like the one-year time limit on filing the complaint, is not merely an enforcement provision of the statute but rather is a requirement for the creation of a lien action and must be strictly construed. Here, although Ryan filed its complaint within one year from its last day of work, it did not serve JAG within that one year. Therefore, Ryan's lien action against JAG ceased to exist one year from Ryan's last day of work. See, e.g., Thompson Yards, Inc. v. Standard Home Bldg. Co., 161 Minn. 143, 146-47, 201 N.W. 300, 302 (1924) ([O]ne is not a party to an action until he is in a position to be bound by the judgment therein. That does not come about until the court acquires jurisdiction of his person by the service on him of the summons or by his voluntary appearance.); Smith, 50 Minn. at 507, 52 N.W. at 922 ([W]hen [a lien] action is commenced as to any defendant there must be an existing cause of action against him, and the right to a remedy upon it.); Steinmetz v. St. Paul Trust Co., 50 Minn. 445, 447, 52 N.W. 915, 915 (1892) (Of course, no judgment to enforce a lien against the land could be rendered unless the owner is made a party by being brought into the action.); see also Guillaume & Assocs., Inc. v. Don-John Co., 336 N.W.2d 262, 264 (Minn.1983) (We have strictly interpreted the time limitations [of the lien statutes] insofar as they determine when a lien is established and when it terminates.). Ryan's second argument is that it satisfied the service requirements of section 514.12, subd. 3, because it served JAG within one year from its last day of work. Ryan claims that even though its lien statement and complaint list December 16, 1997, as its last day of work, its actual last day of work at the Fairway Hills property was September 13, 1998. By serving JAG on August 2, 1999, Ryan argues that it achieved service within the one-year limit. Applying the strict construction standard that we have determined is appropriate for the one-year time limit of section 514.12, we conclude that Ryan's argument is defeated by the plain language of that section. The statute requires that the complaint be filed, and that service be made, within one year after the date of the last item of the claim as set forth in the recorded lien statement.  Minn.Stat. § 514.12, subd. 3 (emphasis added). The statute expressly creates a one-year time limit that begins to run on the last day of work a lienholder records in the lien statement. This conclusion is supported not only by the plain language of section 514.12, subd. 3, but also by strong policy considerations: It has been the policy of our statutes creating mechanic's liens to fix a definite time when such liens should terminate, to the end that those interested in the property, or dealing with it, might know with certainty when it was free from such claims   . Bauman, 145 Minn. at 140, 176 N.W. at 500. For these reasons, we hold that the one-year time limit set forth in Minn.Stat. § 514.12, subd. 3, begins to run on the last day of work as listed in the recorded lien statement. Accordingly, Ryan had until December 16, 1998, to serve JAG and thus its August 1999 service was untimely.
Ryan argues that even if we determine that it did not satisfy the one-year service requirement, we can still uphold the court of appeals' decision because JAG effectively waived its jurisdictional defense through its participation in the case. In JAG's answers to Ryan and GMH, JAG affirmatively raised a defense based on lack of personal jurisdiction. However, Ryan accurately points out that a party can waive a jurisdictional defense. See Miss. Valley Dev. Corp. v. Colonial Enters., Inc., 300 Minn. 66, 73, 217 N.W.2d 760, 764 (1974). Ryan directs our attention to the following actions by JAG as support for its waiver argument: (1) JAG waited seven months after answering before it moved for summary judgment based on lack of personal jurisdiction; (2) JAG served discovery on parties in the interim; (3) JAG attended depositions and noticed depositions on the merits of the claims; (4) JAG attended court-ordered mediation; and (5) JAG filed a motion [7] in June 1999 to compel discovery responses and request reimbursement of costs and fees. We recently revisited the issue of when waiver may result even after a party raises a personal jurisdiction defense. Patterson, 608 N.W.2d at 864. In Patterson, we explained that simple participation in [a lawsuit] does not, standing alone, amount to waiver of a jurisdictional defense. Rather, it is the failure to provide the court an opportunity to rule on the defense before affirmatively invoking the court's jurisdiction on the merits of the claim that leads to waiver. Id. at 868. Here, JAG moved for summary judgment on the merits, but also asked for dismissal based on lack of personal jurisdiction. Where a party simultaneously invokes the court's jurisdiction on the merits and asks the court to rule on a jurisdictional defense, waiver will not result unless other circumstances clearly demonstrate the party's acquiescence to the court's jurisdiction. Id. at 869 (stating that failure to move for dismissal based on a personal jurisdiction defense, before or contemporaneously with a motion for summary judgment on the merits, results in waiver of that defense). Such circumstances are not present in this case. Thus, JAG did not waive its jurisdictional defense.