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July 14, 2007

Case Review - Mechanic's Lien vs. Tort & Breach of Contract

The Missouri Supreme Court held in George Weis Co. v. Stratum Design-Build, Inc. that a plaintiff seeking relief under breach of contract or tort against persons or entities and not real property does not have to join  suit with other claimants seeking to recover on a lien against the property under section 429.300, RSMo.

George Weis Co. (Weis) was a drywall subcontractor on a construction project  where  Stratum Design-Build, Inc. was the general contractor.  Weis was not paid for its work and sued the general contractor and others.  Based upon motions filed by the defendants, the trial court dismissed Weis' petition for lack of subject matter jurisdiction, stating that section 429.300 required that Weis raise its claims by intervening in a prior mechanic's liens brought by other subcontractors.

The Supreme Court held that the mechanic's lien statutes apply to claims against property, not persons.  The purpose of section 429.300 is to enforce multiple mechanic's lien claims filed against the same real property and to adjudicate the rights claimed under the statutes in the property.  Section 429.300 only requires that all mechanic's lien claimants bring their claims in a single action and it does not require Weis to join in the mechanic's lien action because it was not bringing a lien action against the property.  It reversed the trial court's judgment and remanded the case.

Source:  George Weis Co. v. Stratum Design-Build, Inc., SC88194, 07/06/2007

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Thanks for the info. Keep it up.

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