Reliable Constructors, Inc. v. CFJ Properties

Present: All the Justices

RELIABLE CONSTRUCTORS, INC.
OPINION BY JUSTICE LEROY R. HASSELL, SR.
v. Record No. 010535 March 1, 2002

CFJ PROPERTIES, ET AL.

FROM THE CIRCUIT COURT OF CAROLINE COUNTY
Horace A. Revercomb, III, Judge

In this appeal, we consider whether the circuit court

erred by invalidating a mechanic's lien without permitting the

lien claimant to present evidence that its inclusion of a fine

in the mechanic's lien memorandum was an error.

Reliable Constructors, Inc., a subcontractor, supplied

labor and materials for plumbing and mechanical work

associated with construction of a project located in Ruther

Glen, Virginia. The Oakmont Corporation was the general

contractor for the project, a travel plaza. CFJ Properties is

the owner of the real estate upon which the project was

constructed. Flying J, Inc., is CFJ's purported agent.

Wanda P. Souther, Reliable Constructors' corporate

secretary, signed a memorandum of mechanic's lien affidavit

that "CFJ Properties, Flying J Inc. is justly indebted to

[Reliable Constructors] in the sum of $330,846.02, for the

consideration stated in the foregoing memorandum [for
mechanic's lien claimed by subcontractor]." 1 Included within

the sum of $330,846.02 was an item identified as "PCO-30 VOSH

Department – Fine to RCI Handwash [-] $250.00." Reliable

Constructors admitted, in response to a request for admission,

that its claim for $250.00 represented reimbursement for a

fine that had been levied by the Virginia Department of Labor

and Industry's Occupational Safety and Health Enforcement

Division. Reliable Constructors failed to provide "hand wash"

facilities on site for its employees.

Reliable Constructors filed its bill of complaint to

enforce the mechanic's lien against the Oakmont Corporation,

CFJ Properties, and Flying J, Inc. The defendants filed

responsive pleadings and a motion to dismiss. They alleged in

their motion to dismiss that the mechanic's lien was invalid

and, therefore, unenforceable because the mechanic's lien

memorandum included a sum due for labor or materials furnished

more than 150 days prior to the last day on which labor was

performed or material was furnished to the job preceding the

filing of that memorandum in violation of Code § 43-4.

Specifically, the defendants alleged that "that portion of the

claim consisting of [the fine] was for labor supplied 212 days

1
The "foregoing memorandum" stated that the $330,846.02
was for "[l]abor and materials furnished for plumbing and
mechanical work associated with the construction of The Flying
J Travel Plaza." (Emphasis added).

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prior to the last day on which Reliable supplied labor to the

job."

The circuit court considered pleadings, exhibits,

memoranda submitted by counsel, and argument. The court

agreed with the defendants and entered a final order that

dismissed Reliable Constructors' bill of complaint to enforce

the mechanic's lien. Reliable Constructors appeals.

Reliable Constructors asserts in an assignment of error

that the circuit court "erred in ruling without hearing

evidence on the nature, timing, and details of the

administrative fine" levied by the Department of Labor and

Industry. Continuing, Reliable Constructors says that it

committed an error by including the fine in its mechanic's

lien memorandum and that pursuant to Code § 43-15, the circuit

court should not have invalidated the lien. The defendants do

not respond to Reliable Constructors' statutory argument.

Code § 43-15 states:

"No inaccuracy in the memorandum filed, or in
the description of the property to be covered by the
lien, shall invalidate the lien, if the property can
be reasonably identified by the description given
and the memorandum conforms substantially to the
requirements of §§ 43-5, 43-8 and 43-10,
respectively, and is not wilfully false."

We agree with Reliable Constructors that it was entitled to

present evidence to establish that its inclusion of the fine

constitutes an inaccuracy within the meaning of Code § 43-15

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and that the circuit court should not have invalidated the

lien on that basis. 2 The word "inaccuracy" is defined as: "the

condition of being inaccurate." Webster's Third New

International Dictionary 1139 (1986). The word "inaccurate"

is defined as: "not accurate: as . . . containing a mistake

or error: incorrect, erroneous." Id. We hold that the

circuit court should have permitted Reliable Constructors to

present evidence to establish that its inclusion of the fine

constituted an inaccuracy and that the inaccuracy was not

willfully false.

Accordingly, we will reverse the judgment of the circuit

court and remand this case for further proceedings.

Reversed and remanded.

2
In this appeal, there is no contention that Reliable
Constructors failed to comply with Code §§ 43-5, -8, and -10
which govern the sufficiency of the mechanic's lien
memorandum, affidavit, and notice.

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