Falkner v. Stubbs
| Docket Number: | 2010-CT-01664-SCT Linked Case(s): 2010-CA-01664-COA ; 2010-CA-01664-COA ; 2010-CT-01664-SCT ; 2010-CT-01664-SCT |
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| Supreme Court: | Opinion Link Opinion Date: 08-22-2013 Opinion Author: Chandler, J. Holding: Court of Appeals affirmed; Circuit court affirmed in part, reversed in part and remanded. |
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| Court of Appeals: |
Opinion Link Opinion Date: 03-06-2012 Opinion Author: Ishee, J. Holding: AFFIRMED IN PART, AND REVERSED AND REMANDED IN PART |
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| Additional Case Information: |
Topic: Real property - Breach of contract - Enforcement of contractor's lien - Prejudgment interest - Section 87-7-3 - Section 75-17-1 - Unliquidated claim - Attorney's fees - Section 85-7-181 - Section 85-7-151 Judge(s) Concurring: Waller, C.J., Dickinson and Randolph, P.JJ., Lamar, Kitchens, Pierce, King and Coleman, JJ. Procedural History: Bench Trial Nature of the Case: CIVIL - REAL PROPERTY Writ of Certiorari: Granted |
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| Trial Court: |
Date of Trial Judgment: 09-01-2010 Appealed from: Chickasaw County Circuit Court Judge: Henry L. Lackey Disposition: JUDGMENT OF $60,723.53 GRANTED IN FAVOR OF APPELLEE Case Number: H-2001-95 |
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| Note: | John Stubbs's motion for rehearing is granted. The original opinion is withdrawn, and this opinion is substituted therefor. Affirmed in Part and Reversed in Part and Remanded. The original Court of Appeals opinion can be found at http://courts.ms.gov/Images/Opinions/CO74753.pdf | |
| Party Name: | Attorney Name: | |||
| Appellant: | William Martin Falkner and wife, Valerie J. Falkner |
JOHN P. FOX |
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| Appellee: | John E. Stubbs, Jr. d/b/a Mississippi Polysteel | GENE BARTON |
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Synopsis provided by:  If you are interested in subscribing to the weekly synopses of all Mississippi Supreme Court and Court of Appeals hand downs please contact Tammy Upton in the MLI Press office. |
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| Topic: | Real property - Breach of contract - Enforcement of contractor's lien - Prejudgment interest - Section 87-7-3 - Section 75-17-1 - Unliquidated claim - Attorney's fees - Section 85-7-181 - Section 85-7-151 |
| Summary of the Facts: | The motion for rehearing is granted, and this opinion is substituted for the original opinion. Martin Falkner and John Stubbs orally agreed that Stubbs would construct a basement for the Falkners’ planned log-cabin home at a total cost of $25,000. Stubbs completed the basement and received full compensation for that work. After he completed the basement, the Falkners asked Stubbs to help them build additional portions of the home “step by step.” There was no written agreement about the scope of work or the price. Stubbs provided no invoices or statements during the time he worked on the house, but he received periodic advances or “draws” from the Falkners to cover his expenses. When the length and costs of the project surpassed the Falkners’ expectations, the Falkners told Stubbs to stop work. Stubbs filed a construction lien on the Falkners’ home and sued the Falkners for outstanding construction costs. The circuit court awarded Stubbs the value of “his services, the services of his workmen, travel expense and materials purchased by Plaintiff for the dwelling,” with Stubbs’s and his workmen’s hourly labor and travel rates determined on a quantum meruit basis. In addition, the circuit court awarded Stubbs prejudgment and post-judgment interest at the rate of eight percent each, along with the cost of Stubbs’s attorney’s fees, which totaled nearly $20,000. The Court of Appeals upheld the circuit court’s judgment with the exception of the award of attorney’s fees and prejudgment interest. The Supreme Court granted certiorari. |
| Summary of Opinion Analysis: | Issue 1: Prejudgment interest Stubbs argues the award of prejudgment interest was justified under section 87-7-3, which allows for interest penalties for late payments to a contractor who has made improvements to real estate. The circuit court appears to have relied on section 75-17-1, which provides for eight percent interest on all contracts absent a written provision otherwise. Under previous case law, an award of prejudgment interest under section 75-17-1 would be improper where a claim for damages is unliquidated. While a judge has discretion to award prejudgment interest, no award of prejudgment interest may rationally be made where the principal amount has not been fixed prior to judgment. Neither section 75-17-1 nor section 87-7-3 mentions whether monies owed contractors must be liquidated in order for the grant of prejudgment interest to apply. However, the same considerations which preclude a recovery of prejudgment interest for unliquidated amounts owed under section 75-17-1 apply to section 87-7-3. Therefore, Stubbs must show that his claims against the Falkners were liquidated prior to the judgment in order to recover prejudgment interest under either statute. Where there is a bona fide dispute as to the amount of damages as well as the responsibility for the liability, a claim is unliquidated and prejudgment interest is unavailable. Because the amount of Stubbs’ claim was unliquidated at the time payment was due, he is not entitled to prejudgment interest. Issue 2: Attorney’s fees Relying on section 85-7-181, Stubbs argues that he is entitled to reasonable attorney’s fees. While the statute does provide for attorney’s fees, it is inapplicable to this case. Stubbs’ claim involves a dispute directly between a contractor and a project owner. Section 85-7-181 was designed to provide a remedy for subcontractors. Stubbs styled his initial construction lien against the Falkners’ home under section 85-7-181, rather than under the contractor’s lien statutes contained in sections 85-7-131 through 85-7-157. Attorney’s fees are available under section 85-7-151. Even though Stubbs brought this action to enforce his contractor’s lien, the circuit court entered judgment for breach of contract only and made no provision for the sale of the Falkners’ property to satisfy the judgment. Having recovered only damages owed under a breach of contract, Stubbs is not entitled to the attorney’s fees provided for under section 85-7-151 in an action to enforce a contractor’s lien. |
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