Opinion ID: 901890
Heading Depth: 1
Heading Rank: 4

Heading: Issue II: Whether Par Golf's Lien Was Timely

Text: [¶ 19.] The circuit court concluded that Par Golf's lien was filed within 120 days of its last performance of work on the project. There are no disputes of fact regarding the completion of work, Par Golf's return to the project, and the date of filing the lien. Therefore, this issue presents a question of law and we review the circuit court's conclusions of law de novo. Hanson v. Vermillion Sch. Dist. No. 13-1, 2007 SD 9, ¶ 24, 727 N.W.2d 459, 467. [¶ 20.] There is no dispute that Par Golf completed its work in August 2005, and filed its mechanic's lien on January 17, 2006. Therefore, unless the time for filing was extended, Par Golf's lien claim was untimely because it was not filed within 120 days of completion of work. See SDCL 44-9-16 (providing that a lien must be filed within 120 days after doing the last of such work, or furnishing the last item of such skill, services, material, or machinery). See also F.H. Peavey & Co. v. Whitman, 82 S.D. 367, 369, 146 N.W.2d 365, 366 (1966) (providing that a mechanic's lien absolutely terminates unless such filing is made within the prescribed time). Par Golf contends that its filing was extended because it returned to the project on September 23-24, 2005, pursuant to Bodell's request, to repair the irrigation system, which had been damaged by vandalism. [¶ 21.] Defendants disagree, arguing that this repair work did not extend the time for filing a mechanic's lien. Defendants rely on Thorson v. Pfeifer, 82 S.D. 313, 316, 145 N.W.2d 438, 439-40 (S.D. 1966). Thorson adopted the rule that: [A]fter the installation of fixtures, machinery, or attachments in a building, services in the form of examination or regulation of, or repairs to, such fixtures, machinery, or attachments, performed by the seller or the one making the installation, should not be regarded as a part of the act of sale or installation, so as to make the time within which to file a mechanic's lien based on such original act run from the time of performance of such additional services. Id. (emphasis added). [¶ 22.] The circuit court acknowledged this rule, but concluded that Par Golf's repair work extended the time to file the lien. The court reasoned that although Par Golf's return to the project involved repair work, it was not unsolicited, trifling, or done for the purpose of extending the time to file a lien. The court stated: Par Golf's lien was filed within 120 days of the last item of work performed on the property. This was repair work required by Bodell and/or Wal-Mart. It did not involve unsolicited or trifling work performed for the purpose of extending the period of limitation for filing a lien claim. Although we agree that the requested repair work was requested and was not trifling or performed for the purpose of extending the period of limitation, we disagree that this repair extended the time to file the lien. [¶ 23.] As previously noted, Thorson adopted the general rule that once a project is completed, repair work should not be regarded as a part of the act of sale or installation when computing the time to file a mechanic's lien. 82 SD at 316, 145 N.W.2d at 439-40. Further, in an earlier case, we explained that when the contractor returns to a project, in order for the mechanic's lien to include all of the services provided by [the contractor] on the contract, the [latest] work ... would have to be part of the [contractor's] continuing obligation under the contract. Wefel v. Harold J. Westin and Assoc., Inc., 329 N.W.2d 624, 626-27 (S.D.1983). [7] [¶ 24.] In this case, the repair work did not extend the time for filing because, even if Par Golf's repair was solicited and non-trifling, the repair was not a part of Par Golf's continuing obligation under the contract for which it sought a lien. On the contrary, the repair was requested and performed only because of a fortuitous and independent act of vandalism that arose after Par Golf had completed its work under its subcontract. Because Par Golf had no continuing obligation under the subcontract to repair the vandalism, the circuit court erred in concluding that the requested repair extended Par Golf's time to file its lien. Because Par Golf's repair work did not extend the time to file the lien for work performed pursuant to the subcontract, only that portion of Par Golf's lien claim for the September 23-24 repair work ($1,245) was timely. We reverse the remainder of the court's $20,252.52 judgment.