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Electric Supply Co. v. Great Amer. Ins. Co.

Citations: 973 So. 2d 827; 2007 La. App. LEXIS 2228; 2007 WL 4324805Docket: 42,727-CA

Court: Louisiana Court of Appeal; December 11, 2007; Louisiana; State Appellate Court

Narrative Opinion Summary

In this case, Electric Supply Company, Inc. (Plaintiff-Appellant) sought to recover payment for electrical materials supplied to a subcontractor, EDCO, Inc., for a public works project. The plaintiff filed a lien against Great American Insurance Company, Inc. and Don Barron Contractor, Inc. (Defendant-Appellees) after nonpayment. The defendants moved to cancel the lien, arguing noncompliance with La. R.S. 38:2242(F), which mandates notice of nonpayment to the general contractor and owner before filing a lien. The trial court sided with the defendants, nullifying the lien due to the plaintiff's failure to provide timely notice, as required by statute. The appeal focused on the interpretation of the statutory notice requirements. Louisiana law mandates strict adherence to lien statutes, and the court reinforced that public works liens cannot be placed on public property without prior notice, underscoring the legislative intent to protect parties involved in public projects. The appellate court affirmed the trial court's decision, emphasizing that the notice of nonpayment must be sent within a specific timeframe to preserve the right to file a lien. Consequently, the plaintiff's lien was extinguished, with costs awarded to the defendants.

Legal Issues Addressed

Distinction between Notices under La. R.S. 38:2242 and La. R.S. 38:2247

Application: The notice required under La. R.S. 38:2242(F) is distinct from the notice under La. R.S. 38:2247, which pertains to preserving the right of action against the contractor or surety.

Reasoning: This notice differs from the notice required for materialmen under Subsection (F) of La. R.S. 38:2242, which is intended for the owner and contractor to maintain the right to file a claim.

Lien Extinguishment for Non-Compliance

Application: Failure to comply with the notice requirement results in the extinguishment of the lien, as ruled by the trial court.

Reasoning: The trial court ruled in favor of the defendants, extinguishing Electric Supply's lien and ordering it to pay costs and attorney fees.

Notice Requirement under La. R.S. 38:2242(F)

Application: The court emphasized that a materialman must send notice of nonpayment to both the general contractor and owner to retain the right to file a lien on public property.

Reasoning: Subsection (F) specifies that a materialman must send notice of nonpayment to both the general contractor and owner to retain the right to file a lien on the property.

Timeliness of Notice under La. R.S. 38:2242(F)

Application: The court clarified that notice must be sent within seventy-five days from the end of the month when materials were delivered, regardless of the 45-day statutory lien period.

Reasoning: Certified mail sent to the last known addresses of the general contractor and owner, regardless of delivery status, fulfills the notice requirement within seventy-five days from the end of the month when materials were delivered.