FOR PUBLICATION
ATTORNEY FOR APPELLANT: ATTORNEY FOR APPELLEE:
KEITH FAFARMAN JOHN M. STUCKEY
Gambs Mucker & Bauman Stuart & Branigin, LLP
Lafayette, Indiana Indianapolis, Indiana
IN THE
COURT OF APPEALS OF INDIANA
JOHN CHO d/b/a ACE CONSTRUCTION )
& INTERIOR DESIGN, )
)
Appellant-Plaintiff, )
)
vs. ) No. 79A02-0305-CV-449
)
PURDUE RESEARCH FOUNDATION, )
)
Appellee-Defendant. )
APPEAL FROM THE TIPPECANOE SUPERIOR COURT NO. 1
The Honorable Donald C. Johnson, Judge
Cause No. 79D01-0108-CP-440
February 26, 2004
OPINION - FOR PUBLICATION
RILEY, Judge
STATEMENT OF THE CASE
Appellant-Plaintiff, John Cho (Cho) d/b/a Ace Construction & Interior Design (Ace Construction), appeals
the trial courts summary judgment in favor of Appellee-Defendant, Purdue Research Foundation (PRF).
We affirm.
ISSUES
Cho raises eight issues on appeal, which we consolidate and restate as follows:
Whether the trial court erred in determining that Ace Constructions mechanics lien was
invalid because PRF did not actively consent to the construction project;
Whether the trial court erred in determining as a matter of law that
the work performed by ACE Construction does not support a mechanics lien;
Whether the trial court erred in determining as a matter of law that
Ace Constructions mechanics lien was not filed in a timely manner and is
invalid; and
Whether the trial court erred in determining as a matter of law that
Ace Construction was not entitled to file a mechanics lien for the expenses
incurred in constructing the clean room.
FACTS AND PROCEDURAL HISTORY
On or about January 6, 2002, PRF
See footnote and Optolynx, Inc. (Optolynx) See footnote entered
into a Lease Agreement in which Optolynx leased from PRF 933 square feet
in Unit D1-100 Rooms D1-103, D1-104, D1-105, D1-106, and D1-107 in the Purdue
Technology Center (Technology Center) located at 3000 Kent Avenue, in West Lafayette, Indiana,
in the Purdue Research Park (the Leased Property). Article 11 of the
Lease Agreement expressly provided that Optolynx was not to make alterations, changes, improvements
or additions to the Leased Property without the prior written consent of PRF.
(Appellants App. p. 223).
After executing the Lease Agreement, Optolynx expressed an interest in leasing separate, additional
space amounting to eight thousand eight hundred eighty three square feet in units
E1-100 and E1-200 (additional space) of the Technology Center for the purpose of
constructing a clean room for the manufacture of computer chips. It is
undisputed that PRF was aware that Optolynx was developing plans for the construction
of a clean room in the additional space. It is further undisputed
that PRF did not participate in the following: 1) Optolynxs decision to
pursue the construction of a clean room; 2) Optolynxs determination of the work
that would be required in order to construct a satisfactory clean room; 3)
Optolynxs selection of a contractor to perform the work; or 4) Optolynxs negotiation
of an agreement with any prospective contractors. Greg Deason (Deason), the Director
of Research Park Development at PRF,See footnote advised Optolynx that PRF would agree to
the construction of a clean room in the additional space provided that PRF
and Optolynx were both able to reach an agreement on the terms of
a lease for the space.
On April 11, 2000, Cho d/b/a Ace Construction entered into a contract with
Optolynx to construct the clean room in a portion of the Technology Center.See footnote
Ace Construction specializes in the construction of clean rooms and generally constructs
four to five clean rooms per year. A clean room construction project
involves four phases: 1) design; 2) purchasing; 3) manufacturing; and 4) construction.
Under the terms of the contract between Ace Construction and Optolynx, Ace
Construction was to provide the design engineering, materials, and installation of the clean
room for a price of $810,000 subject to adjustments for changes in the
scope of work or in equipment specifications. Some of Ace Constructions obligations
under the contract were to be provided by Ace Constructions sub-contractors. Particularly,
the services provided by Ace Construction are described on page 10 of the
contract, as follows:
PROJECT MANAGEMENT
Trained Ace Construction personnel will professionally manage the OPTOLYNX, INC. project. Ace
Construction will procure required subcontracting services, and an experienced technical crew will perform
the turnkey installation.
(Appellants App. p. 242).
At the time the contract was executed, Optolynx paid Ace Construction $81,000.00 as
payment towards the contract price. However, Ace Construction has not received any
other amounts paid by Optolynx or any other individual or entity towards the
contract price. PRF did not participate in negotiating or drafting the contract
agreement between Optolynx and Ace Construction, and further did not sign or initial
the contract agreement. In fact, PRF was not provided with a copy
of the agreement or the details of the agreement between Ace Construction and
Optolynx until after Ace Construction recorded its Notice of Intention to Hold Lien
on September 18, 2000.
Nonetheless, Deason informed Optolynx on numerous occasions that it was not authorized to
begin construction of the clean room until PRF, as the landlord, had sufficient
opportunity to review the plans for the proposed clean room and assess the
potential impact the plans had on the other tenants and the Technology Center
as a whole. Further, Deason informed Optolynx that PRF would not approve
plans for the construction of a clean room in the Technology Center unless
and until Optolynx executed a lease for the space in which the proposed
clean room was to be constructed. Deason also informed Ace Construction that
before any construction activities could go forward, PRFs approval would be required.
On May 16, 2000, Ace Construction presented to Deason a written request allowing
them to remove some ceiling tile and grid and to erect metal studs
for partition walls inside the proposed clean room space. Although Ace Construction
requested that PRF approve both the demolition of the existing ceiling and the
installation of a metal frame, PRF approved only the minor demolition requested by
Ace Construction. Thus, PRF denied authorization of the other construction activities in
the additional space. PRF authorized Ace Construction to conduct the ceiling demolition
because of its optimism and belief that the clean room would eventually be
built. (Appellants App. p. 626). The ceiling demolition work involved removal
of the existing air conditioning ductwork, light fixtures, and wiring. Ace Construction
did not hire a subcontractor to do the ceiling demolition; instead, they performed
the work themselves. On or about May 18, 2000, the demolition work
was completed.
After the demolition was completed, Ace construction requested that PRF approve the plans
for construction of the clean room, sign the required local building permit applications,
and execute additional documents so that the plans for the clean room could
be submitted to the State of Indiana to secure a design release.
On July 18, 2000, the design plans were reviewed in a meeting attended
by representatives of Ace Construction, Optolynx, and PRF. During the meeting, Deason
communicated the technical concerns identified during the design review to Ace Construction.
Again, Deason informed Ace Construction that he had to be made aware of
all improvements that would be made in the facility.
PRF reviewed the plans submitted by Ace Construction with the intent that Ace
Construction would proceed with building the clean room. Nevertheless, Deason declined to
execute any construction related documents at the meeting and did not approve the
plans for the proposed clean room. Deason declined to execute any construction
related documents because Optolynx had not executed a lease with PRF for the
additional space where the clean room would be built. Eventually, negotiations between
PRF and Optolynx proved unsuccessful and no lease agreement for the additional space
for the clean room was ever executed or agreed upon.
Consequently, on September 7, 2000, Optolynx notified Ace Construction that Optolynx was terminating
the contract agreement to build the clean room. Following the execution of
the contract agreement and prior to its receipt of the termination notice, Ace
Construction expended a total of $371,543.75 for the work, labor performed and the
materials supplied and used on the real estate owned by PRF. Upon
receipt of Optolynxs termination notice, Ace Construction did not perform any further design
engineering for the clean room, purchase and/or start manufacture or acquisition of additional
materials, parts, or equipment, or engage in any further demolition or construction of
the clean room. However, Ace Construction was required to provide the following
services pursuant the contract agreement and its termination by Optolynx: 1) receive
and warehouse the materials purchased for use in the clean room; 2) return
materials purchased for use in the clean room, which were returnable; 3) complete
the manufacture of materials, parts, or equipment previously started; and 4) attempt to
sell or otherwise use special order materials purchased for use in the clean
room, which were not returnable. Ace Construction incurred an additional expense of
$11,942 in labor to complete these tasks.
On September 18, 2000, Ace Construction filed a Notice of Mechanics Lien with
the Tippecanoe County Recorders Office against PRF as owner of the real estate
and against Optolynx in the amount of $371, 543.75. On August 10,
2001, Ace Construction filed its Complaint to Foreclose the Mechanics Lien. On
October 19, 2001, PRF filed its Answer to Complaint to Foreclose Mechanics Lien,
Counterclaim of Purdue Research Foundation and Motion for Leave to Assert Crossclaim.
On October 25, 2001, the trial court granted PRFs Motion for Leave to
Assert Crossclaim. On December 6, 2001, Cho d/b/a Ace Construction filed its
Answer to Counterclaim of Purdue Research Foundation.
On December 11, 2002, Ace Construction filed its Motion for Summary Judgment, Designation
of Evidence, and Supporting Brief. On December 12, 2002, PRF filed its
Motion for Summary Judgment and Memorandum in Support of PRFs Motion for Summary
Judgment. On May 8, 2003, the trial court entered its order granting
PRFs Motion for Summary Judgment.
Ace Construction now appeals. Additional facts will be provided as necessary.
DISCUSSION AND DECISION
I.
Standard of Review
Summary judgment is appropriate if there is no genuine issue of material fact
and the moving party is entitled to judgment as a matter of law.
Ind. Trial Rule 56(C). In reviewing a decision upon a summary
judgment motion, we apply the same standard as the trial court. Miller
v. NBD Bank, N.A., 701 N.E.2d 282, 285 (Ind. Ct. App. 1998).
We do not reweigh the evidence designated by the parties. Turley v.
Hyten, 751 N.E.2d 249, 251 (Ind. Ct. App. 2001). Instead, we liberally
construe the evidence in the light most favorable to the non-moving party.
Schoknecht v. Hasemeier, 735 N.E.2d 299, 301 (Ind. Ct. App. 2000).
The moving party bears the burden of showing prima facie that there are
no genuine issues of material fact and that it is entitled to judgment
as a matter of law. Id. Once this burden has been
met, the non-moving party must respond by setting forth specific facts demonstrating a
genuine need for trial, and cannot rest upon the allegations or denials in
the pleadings. Id. We review only the designated evidentiary material in
the record, construing that evidence liberally in favor of the non-moving party, so
as not to deny that party its day in court. Id.
II. PRFs Active Consent
First, Cho argues that the trial court erred in finding that PRF did
not actively consent to the construction project performed by Ace Construction for the
improvement of the real estate owned by PRF. Specifically, Cho asserts that
PRF was actively involved in the design and construction of the clean room.
As a result, Cho contends that the trial court erred in concluding
that Ace Construction does not have a valid mechanics lien against PRF due
to lack of active consent.
Conversely, PRF contends that they were not actively involved in Chos design of
the proposed clean room for Optolynx. Rather, PRF asserts that Optolynx determined
to build the clean room in the Technology Center. PRF maintains that
they did not have a role in selecting Ace Construction to manage the
design or construction of the clean room and that they were not involved
in negotiating the contract agreement between Ace Construction and Optolynx. Consequently, PRF
argues that the trial court correctly determined that Aces mechanics lien was invalid
because PRF did not actively consent to the work performed by Ace Construction.
Mechanics liens were unknown at common law and are purely creatures of statute.
Stern & Son, Inc. v. Gary Joint Venture, 530 N.E.2d 306, 207
(Ind. Ct. App. 1988). As a consequence, mechanics liens can only exist
when the claimant has complied with the applicable statutory steps. Id.
The courts generally have followed a strict construction in terms of adherence to
the requirements for creating a lien, and a rule of liberal application of
the remedial aspects of the mechanics lien statutes. Id.; Mid America Homes,
Inc. v. Horn, 272 Ind. 171, 396 N.E.2d 879,881 (Ind. 1979).
Indianas mechanics lien statute is found at Indiana Code section 32-28-3-1. Before
a mechanics lien can attach to real estate, the statutes absolute first requirement
is that the landowner consented to the improvements on which the lien is
based. Stern & Son, Inc., 530 N.E.2d at 207. This consent
must be more than inactive or passive consent and the lien claimants burden
to prove active consent is especially important when the improvements are requested by
someone other than the landowner. Id. This emphasis is due to
the fact that without the landowners active consent, a lien claimant can only
maintain a lien to the extent of his customers interest in the land.
Id. Additionally, it has long been the rule that a person
about to improve real estate must take notice of the extent of his
customers rights in the land and of the rights of those in possession.
Id.
In the present case, Cho argues that PRF actively consented to Ace Constructions
actions based on three facts: 1) the lease between PRF and Optolynx
called for improvements made; 2) PRF was actively involved in the clean room
design and construction project; and 3) PRF insisted on approving and reviewing the
design plans for the clean room.
Indiana case law makes clear that a lease calling for improvements, even very
detailed improvements, will not prove the sort of active consent needed to maintain
a mechanics lien. Id.; Gardner v. Sullivan Mfg. Co., 133 N.E. 31,
33-4 (Ind. 1921). In this case, PRFs employee, Deason, acknowledges that he
reviewed the plans for the clean room. He focused solely on the
technical matters, and how the construction would impact the other tenants in the
Technology Center. However, the record clearly shows that Deason continuously informed Ace
Construction that PRFs approval was mandatory and necessary. In fact, PRFs approval
was required before any construction could begin. Further, the record discloses that
PRF never gave its approval for construction of the clean room to Ace
Construction. Most importantly, PRF and Optolynx never executed any type of lease
agreement covering the real estate where the clean room would be built.
In any event, while these facts certainly establish that PRF was aware of
the construction, this awareness nevertheless does not establish the sort of active consent
needed to maintain a mechanics lien. Id.; see also Woods v. Deckelbaum
et al., 244 Ind. 260, 266-67, 191 N.E.2d 101,103-04 (Ind. 1963). Here,
PRF was not involved in the negotiating of the contract agreement between Ace
Construction and Optolynx relating to the management of the design and construction of
the clean room. The record also indicates that it was Optolynx, not
PRF, who contracted to build a clean room in the Technology Center.
The exact nature and content of the owners active consent in this context
will vary from case to case. See Stern & Son, Inc., 530
N.E.2d at 309.However, case law makes clear that the focus is not solely
on the degree of the owners active participation in the decisions and the
actual construction. Id. Instead, the focus is also on how closely
the improvements in question resemble a directly bargained-for benefit. Id. Here,
PRF did not receive a direct benefit from the improvements constructed by Ace
Construction, namely, the minor demolition work of which it approved. Rather, the
record reveals that PRF incurred an additional expense of nearly $10,000 to replace
the ceiling in the additional space, which Ace Construction had removed. As
a result, we find that there was no bargaining between PRF and Ace
Construction, not to mention a bargained for benefit. Id.
Accordingly, we conclude that there is no genuine issue of material fact on
this issue. See T.R. 56(C). Consequently, we find that the trial
court did not err in finding that PRF did not actively consent to
the construction work performed by Ace Construction. See Stern & Son. Inc.,
530 N.E.2d at 307. As a result, we find that the trial
court did not err in granting PRFs Motion for Summary Judgment on this
issue.
III. Mechanics Lien
Next, Cho alleges that the trial court erred in determining as a matter
of law that the work performed by ACE Construction does not support a
mechanics lien. In particular, Cho argues that the trial court erred in
finding that the work Ace Construction performed was management or supervisory services and
therefore did not support the filing of a mechanics lien. Cho also
alleges that the trial court erred in determining that the equipment and materials
procured by Ace Construction do not support a mechanics lien. Additionally, Cho
asserts that the trial court erred in determining that because the employees of
Ace Construction are not registered engineers in the State of Indiana, they were
not entitled to the protections provided under the statue.
A. Ace Constructions Construction Management Services
First, Cho alleges that the trial court erred in determining that the work
performed by Ace Construction consisted of project management services and, therefore, was non-lienable.
As mentioned above, a mechanics lien was a remedy unknown at common
law and is purely a statutory creation. Stern & Son, Inc., 530
N.E.2d at 207; Murdock Const. Management, Inc. v. Eastern Star Missionary Baptist Church,
Inc., 766 N.E.2d 759, 762 (Ind. Ct. App. 2002). Because the mechanics
lien is purely a creature of statute, the burden is on the party
asserting the lien to bring itself clearly within the strictures of the statute.
Murdock Const. Management, Inc., 766 N.E.2d at 762. The legislature expressly
sets forth those persons entitled to a mechanics lien. Id.
Specifically, Indiana Code section 32-28-3-1, states, in pertinent part:
Sec.1. (a) A contactor, a subcontractor, a mechanic, a lessor leasing construction
and other equipment and tools, whether or not an operator is also provided
by the lessor, a journeyman, a laborer, or any other person performing labor
or furnishing materials or machinery, including the leasing of equipment or tools, for:
the erection, alteration, repair, or removal of:
a house, mill, manufactory or other building;
* * *
may have a lien as set forth in this section.
Furthermore, Ind. Code § 32-28-11-1 was enacted following Beeson v. Overpeck, 112 Ind.App.
195, 44 N.E.2d 195 (Ind. 1942), to codify the expansion of those persons
entitled to the mechanics lien to include registered professional engineers, registered land surveyors,
and registered architects. See Murdock Const. Management, Inc., 766 N.E.2d at 762.
The list in these two statutes is exclusive, i.e., unless Ace Construction
falls within one or more of these listed categories, it is not entitled
to the benefits of the mechanics lien statute. Id. Thus, Cho
must show that under a proper construction of the mechanics lien statute, a
construction manager acting as it did in this case may acquire a mechanics
lien. See id.
Cho argues that Ace Construction qualifies as a laborer or persons performing labor
or furnishing materials as those terms and that phrase are used in the
mechanics lien statute. PRF counters that Ace Construction provided only supervisory or
management services, and thus, is not entitled to the benefits of the statute.
In determining whether Ace Constructions services are the type of labor or materials
that are lienable under the mechanics lien statute, we conclude that the supreme
court opinion, Premier Inc. v. Suites of America, Inc., 644 N.E.2d 124 (Ind.
1994), addressing the issue of mechanics liens where supervisory services are involved, is
of controlling authority. In Premier, the developer, Premier Investments, entered into a
contract with Howard Johnson Franchise Systems, Inc. (Howard Johnson) under which Premier Investments
agreed to develop certain real estate into a hotel. The contract required
Premier Investments to develop plans, specifications and construction budgets, and otherwise be responsible
for the construction, equipping, staffing, and opening of the hotel. Id. at
125-26. Specifically, Premier Investments obtained the necessary zoning and building approvals, bid
the project and hired the general contractor, monitored the construction on a day-to-day
basis, made sure that the owner was not paying for any materials that
were not on site and that the materials on site were to be
used in the construction of the hotel. Id. Furthermore, Premier Investments
coordinated with the architects, recommended and authorized design and construction changes. Id.
at 126. The agreement was a classic turn-key arrangement where developer, using
financing provided by the owner, would deliver to the owner a completed hotel
ready to turn the key and begin business. Id.
Soon after ownership of the property was conveyed from Howard Johnson to Fairfield
Development IV, Inc. (Fairfield), Fairfield ceased construction. Premier Investments then filed a
Sworn Statement and Notice of Intention to Hold Mechanics Lien. Id.
Subsequently, ownership was conveyed to Suites of America, Inc., pursuant to an order
by the Bankruptcy Court. At trial, Suites of America, Inc., filed a
Motion for Partial Summary Judgment contending that Premier Investments did not have a
valid mechanics lien. This court reversed the trial courts grant of partial
summary judgment in favor of Suites of America, Inc., determining that Premier Investments
mechanics lien was void as a matter of law. The supreme court
granted transfer. The decision of the court of appeals was vacated, and
the supreme court affirmed the trial courts grant of partial summary judgment in
favor of Suites of America, Inc. The court concluded that in narrowly
construing the statute, Premier Investments was not included in the categories of persons
entitled to a mechanics lien, as purely supervisory services do not constitute labor
under the mechanics lien statute. Id.
According to the instant record, Ace Construction performed on-site supervision and coordination of
the work, arranged for delivery and storage, protection and security for the materials,
systems, and equipment used for the clean room, as well as site clean-up.
The record reveals that Ace Construction also used its construction skill and
expertise in developing plans and specifications used in the construction and supervision of
the construction. We fail to see any meaningful distinction between the purely
supervisory duties performed by Ace Construction and those performed by the developer in
Premier.
Nonetheless, Cho argues that since Ace Construction completed the minor demolition work, as
approved by PRF, they performed more than supervisory and management services. However,
as discussed above, PRF approved the demolition work because it was minor in
scope and nature and in the long run PRF incurred an additional expense
because of the work. Moreover, the contract agreement between Optolynx and Ace
Construction explicitly provided that Ace Construction would professionally manage the project and, further,
Ace Construction would procure required subcontracting services, and an experienced technical crew to
perform the turnkey installation. Therefore, consistent with the supreme courts holding in
Premier, we conclude that Ace Construction is not a laborer within the meaning
of the mechanics lien statue. See Premier, 644 N.E.2d at 129-30.
Accordingly, in narrowly construing the mechanics lien statute, we conclude that Ace Constructions
claim seeks compensation for supervisory services that are not covered under the statute.
See Murdock Const. Management, Inc., 766 N.E.2d at 765. Consequently, we
find that the trial court did not err in concluding that Ace Constructions
services were management services and therefore do not support a mechanics lien.
B. Equipment and Materials Procured by Ace Construction
Next, Cho asserts that the trial court erred in determining that the materials
ordered, but not delivered or installed on PRFs property, cannot be a component
of Aces Mechanics lien. In particular, Cho contends that Ace Construction purchased
custom equipment and materials for the clean room that could not be returned
to the vendor; as a result, Ace Construction claims that they should be
entitled to a mechanics lien. On the contrary, PRF maintains that the
equipment and materials procured by Ace Construction, but not installed, do not support
a mechanics lien.
The statutory and common law requirements as to such materials which must be
furnished are that: (1) the materials must be sold to the property
owner or his agent for that purpose; (2) the materials must be furnished
for the purpose of being used in constructing the particular improvement; (3) the
improvement must have been authorized by or consented to by the property owner;
and (4) the materials must have actually been used in the construction.
Stanray Corp. v. Horizon Const., Inc., 342 N.E.2d 164, 653 (Ind. Ct. App.
1976). As to when such materials are furnished, we mean simply that
they have been ordered for and delivered to such person. Id.
In the instant case, the record shows that the equipment and materials that
Ace Construction purchased for the construction of the clean room were never delivered
nor installed in the Technology Center. The record reveals that PRF never
took possession of the materials and equipment. Furthermore, the record is devoid
of evidence that PRF specifically requested Ace Construction to purchase any of the
equipment or materials for the Technology Center.
Moreover, as we have determined above, PRF did not give Ace Construction its
approval to begin the construction work. The record clearly shows that PRF
continuously informed Ace Construction that PRFs approval of the design was required before
Ace Construction could begin building the clean room. However, due to PRFs
concerns about the design plan that were conveyed to Ace Construction and most
importantly, due to the fact that Optolynx and PRF could not reach an
agreement on the lease for the clean room space, Ace Construction did not
have the authority to begin purchasing materials to construct the clean room.
Indiana law places a burden upon a mechanics lienholder who seeks to foreclose
such a lien to show that the purported lien meets all statutory requirements
necessary to its creation. Gooch v. Hiatt, 337 N.E.2d 585, 587 (Ind.
Ct. App. 1975). In light of the above, we find that Cho
has not satisfied these requirements. See id.; see also Stanray Corp., 342
N.E.2d at 653. Consequently, we hold that the trial court did not
err in finding that Ace Construction cannot maintain a mechanics lien for the
value of the materials and equipment purchased but not installed or delivered to
PRF.
C. Professional Engineering Services
Cho also contends that the trial court erred in determining that Ace Construction
cannot maintain a mechanics lien against PRF for the professional engineering services rendered
to Optolynx. In response, PRF claims that the trial court correctly determined
that the lien rights available under Ind. Code § 32-38-11-1 are not available
to Ace Construction since they are not registered or licensed engineers in the
State of Indiana.
Indiana Code section 32-28-11-1, provides:
Registered professional engineers, registered land surveyors, and registered architects may secure and enforce
the same lien that is now given to contractors, subcontractors, mechanics, journeymen, laborers,
and materialmen under IC 32-28-3 and any statues that supplement IC 32-38-4.
Although Cho acknowledges that the employees of Ace Construction are not registered engineers
in the State of Indiana he, nevertheless, maintains that since the employees are
registered in the State of California, the statue is extended to them.
We disagree with Cho. As previously mentioned, because the mechanics lien is
purely a creature of statute, the burden is on the party asserting the
lien to bring itself clearly within the strictures of the statute. See
Murdock Const. Management, Inc., 766 N.E.2d at 762. Ind. Code § 24-31-1-21
provides for engineers registered in other states to become registered in Indiana only
upon application to, and approval of, the State Board of Registration for Professional
Engineers. See Ind. Code § 23-31-1-21. Thus, upon doing business in
the State of Indiana, Ace Construction was required to register and comply with
the requirements as set forth in Ind. Code § 23-31-1-21, to be afforded
the protections under the statutes. However, the record is devoid of evidence
that Ace Construction completed these requirements.
Therefore, we find that the term registered engineer as used in Ind. Code
§ 32-38-11-1 is limited to engineers registered to practice in Indiana by the
State Board of Registration for Professional Engineers. See I.C. § 23-31-1-21.
We further conclude that the statute must be narrowly construed in determining those
persons entitled to its protection. See Premier Investments, 644 N.E.2d at 130.
If the legislature intending developers, in the same position as Ace Construction,
to be entitled to a mechanics lien for their services, it must expressly
so provide. See id.
IV. Untimely Filed Mechanics Lien
Further, Cho argues that the trial court erred in finding that Ace Constructions
mechanics lien was not filed in a timely manner. In particular, Cho
maintains that Ace Construction provided labor and materials for the clean room within
the 90-day period prior to filing its notice of mechanics lien. Consequently,
Cho contends that the filing of the mechanics line was timely.
Indiana Code section 32-8-3-3, provides, in pertinent part:
Except as provided in subsection b, a person who wishes to acquire a
lien upon any property, whether the claim is due or not, must file
in duplicate a sworn statement and notice of the persons intention to hold
a lien upon the property for the amount of the claim:
in the recorders office of the county; and
not later than ninety (90) days after performing labor or furnishing materials or
machinery described in section 1 of this chapter.
Here, the record shows that Ace Construction completed the minor demolition work of
the ceiling and grid that PRF approved of on May 18, 2000.
However, the record discloses that Ace Construction did not file its mechanics lien
until September 17, 2000. Thus, the filing of Ace Constructions mechanics lien
was after the 90-day time period as required by Indiana Code section 32-8-3-3.
Nonetheless, Cho argues that Ace Construction provided labor and materials for the clean
room up to and beyond Optolynxs contract termination notice of September 7, 2000.
As a result, Cho claims to have timely filed its mechanics lien.
We find that Chos argument without merit. Particularly, as this court
previously determined, Cho was not entitled to a mechanics lien on the work
performed or materials purchased due to lack of approval by PRF. Accordingly,
we find that the trial court correctly determined that Ace Constructions mechanics lien
was invalid because it was not timely filed.
V. Expenses Incurred
Lastly, Cho argues that the trial court erred in determining that Ace Construction
cannot maintain a mechanics lien for the costs and expenses incurred in connection
with building the clean room. However, Cho is merely restating his previous
arguments for our review. As determined above, Ace Construction is not entitled
to recoup these expenses because: 1) Ace Constructions services are classified as
management not labor services and 2) PRF did not get a directly bargained-for
benefit from the work performed by Ace Construction; rather, PRF incurred an additional
cost from the work that Ace Construction performed. See Premier Inv., 644
N.E.2d at 126; see Stern & Son, Inc, 530 N.E.2d at 309.
Furthermore, because we previously held that Ace Construction cannot maintain a mechanics lien
for the materials and equipment purchased without the consent of PRF, we also
find that Ace Construction is not entitled to a mechanics lien for the
costs and expenses they incurred in connection with the unauthorized purchase of these
items.
Accordingly, we find that there is no genuine issue of material fact appropriate
for trial regarding Ace Constructions mechanics lien for the expenses they incurred.
See T.R. 56(C). Consequently, we find that the trial court did not
err in granting summary judgment in favor of PRF on this issue.
CONCLUSION
Based on the foregoing, we conclude that the trial court properly denied Chos
Motion for Summary Judgment. Therefore, we affirm the trial courts grant of
summary judgment in favor of PRF.
Affirmed.
SULLIVAN, J., and FRIEDLANDER, J., concur.
Footnote:
PRF is an Indiana corporation located in West Lafayette, Indiana, and
the sole and exclusive holder of fee simple title to the Purdue Technology
Center. PRF leased space in that facility to Optolynx, Inc. and others.
None of PRFs tenants in the Purdue Technology Center have an ownership
interest in the property.
Footnote: Optolynx is an Indiana corporation and a former tenant in the
Purdue Technology Center.
Footnote: Deasons responsibilities at PRF included development of PRFs real estate and
lease issues with tenants, including tenant improvements.
Footnote: Ace Construction has been engaged in commercial and residential construction since
1992. Although Ace Construction is not incorporated, Chos title is President.
In April of 2000, Ace Construction had about seven employees, namely: Cho, President
and Project Manager; James Seo (Seo), Chip Engineer; Tony Cho, Manufacturing Manager; Brad
Cho, Office Manager; Samuel Cho, Clean Room Specialist; Chong Kim, Clean Room Specialist;
and Joshua Kim, Purchasing Manager.