Opinion ID: 2574927
Heading Depth: 1
Heading Rank: 5

Heading: RV's lien attaches to the improvements on the property

Text: ¶ 24 We must first determine the scope of RV's lien on the property. RV argues its lien attaches to BIA's interest in the improvements to the property, and the Haselwoods concede that RV may have a lien on the improvements on the property. The Court of Appeals held under RCW 60.04.051 and the concession agreement, RV Associates' lien could attach only to the improvements, not the underlying realty. Haselwood, 137 Wash.App. at 883, 155 P.3d 952. We agree. ¶ 25 RCW 60.04.021 provides any person furnishing labor, professional services, materials, or equipment for the improvement of real property shall have a lien upon the improvement for the contract price of labor, professional services, materials, or equipment furnished at the instance of the owner, or the agent or construction agent of the owner. The Court of Appeals correctly states that the attachment of a lien is limited to the interest of the person who requests the labor or materials, or that person's agent. Haselwood, 137 Wash.App. at 882, 155 P.3d 952 (citing W.T. Watts, Inc. v. Sherrer, 89 Wash.2d 245, 248, 571 P.2d 203 (1977)). This was codified in RCW 60.04.051, which provides [t]he lot, tract, or parcel of land which is improved is subject to a lien to the extent of the interest of the owner at whose instance, directly or through a common law or construction agent the labor, professional services, equipment, or materials were furnished. The extent of a lien under RCW 60.04.051 is based on the interest of the person regulating the services and materials. ¶ 26 Under the concession agreement between the City and BIA, the City retained ownership of the underlying land, while BIA owned the Arena and any improvements on the land for the duration of the agreement. When the concession agreement terminated, the improvements on the land would revert to the City. BIA never owned the land underlying the Arena. The most BIA could own, during the agreement, was the improvements to the land. Under RCW 60.04.051 and the concession agreement, RV's lien could reach only the improvements on the property, not the underlying property. ¶ 27 Washington courts have repeatedly held since 1931 public property cannot be subject to a mechanic's lien. Hall & Olswang v. Aetna Cas. & Sur. Co., 161 Wash. 38, 47, 296 P. 162 (1931); see Hewson Constr., Inc. v. Reintree Corp., 101 Wash.2d 819, 828-29, 685 P.2d 1062 (1984); 3A Indus., Inc. v. Turner Constr. Co., 71 Wash.App. 407, 411, 869 P.2d 65 (1993). RV has put forth no compelling reason to abandon this well-established principle, so we decline to do so. Since the underlying real property here is public land owned by the City, it is not subject to a lien. ¶ 28 RV's lien is limited to the improvements on the land, which constitute BIA's personal property, not the underlying real property owned by the City. We must next determine whether RV's lien has priority over the Haselwoods' deed of trust.