District Court in South Carolina Holds Subcontractor for Underground Utility Work Not Entitled to Statutory Lien Applicable to Erection, Alteration or Repairs of Buildings; IRS Takes Priority

Bell South Communications, Inc. dba Southern Bell Telephone and Telegraph Co. v. Dekalb Concrete Pro
1995 U.S. Dist. LEXIS 11443 (D.S.C. July 27, 1995)

BellSouth Telecommunications, Inc. (“Southern Bell”) initiated interpleader proceedings to determine which one of three Defendants held priority in the debt owed by Southern Bell to the fourth Defendant, Kelly Green, Inc. (“Kelly Green”). Each of the three Defendants were creditors to Kelly Green. In June of 1993, Southern Bell contracted Kelly Green to perform miscellaneous work connected with burying underground telephone cable. Kelly Green, in turn, subcontracted a portion of the work to Defendant Dekalb Concrete Products, Inc. (“Dekalb”). Shortly thereafter, Kelly Green failed to pay Dekalb, Defendant, Internal Revenue Service (“IRS”) for employment related taxes and Defendant King & Vernon, P.A. (“King & Vernon) for legal services rendered.

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District Court in Michigan Holds that Manufacturer of Water Treatment Equipment May Have Action Upon Implied Contract Against Owner’s Engineer for Costs of Redesign and Modification of Equipment to Make Treatment System Work

M.A. Mortenson Co. v. City of Grand Rapids,
1995 U.S. Dist. LEXIS 11626 (W.D. Mich. July 27, 1995)

For the construction of a water filtration system, the City of Grand Rapids (“Grand Rapids”), as the owner of the project, contracted with, inter alia, Greeley and Hansen to provide engineering services, and Envirex, Inc. (“Envirex”) for flocculation and sedimentation equipment (the “equipment”). After delivery and installation, the equipment allegedly did not work properly, and it sustained stress related damage. Several claims ensued.

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Wisconsin Court of Appeals Holds that Filing of Mechanics Lien Claim Without Adequate Investigation as to Timeliness Can Subject Attorneys to Liability for Slander of Title

Tym v. Ludwig,
1995 Wisc. App. LEXIS 974 (Wisc. Ct. App. Aug. 9, 1995)

Slander of Title – Lawyer who filed a mechanics’ lien against a homeowner’s property on behalf of contractor that constructed the home was not entitled to summary judgment on homeowner’s slander of title claim because the record had not been sufficiently developed regarding the issue of whether the lawyer had a reasonable ground or believing the truth of the facts pleaded in the mechanics’ lien claim.

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