Utah Court of Appeals

What happens when a mechanic's lien is invalid but not wrongful? Total Restoration v. Merritt Explained

2017 UT App 162
No. 20160374-CA
August 24, 2017
Affirmed in part and Reversed in part

Summary

Total Restoration recorded a mechanic’s lien for flood-remediation work that was previously determined to be invalid but not wrongful. The trial court denied Total Restoration’s request for attorney fees and awarded costs to the homeowners under appellate rule 34.

Analysis

Background and Facts

In 2008, Vernon and Sandra Merritt’s home suffered flood damage when a sprinkler system pipe burst. Total Restoration Inc. performed flood-remediation work but was never paid. The company recorded a mechanic’s lien against the property and sued to foreclose. The Merritts counterclaimed for breach of contract, wrongful lien, and abuse of lien right.

Key Legal Issues

The primary issues were whether Total Restoration could recover attorney fees under the Wrongful Lien Act when its lien was invalid but not wrongful, and whether the Merritts properly claimed costs under Utah Rule of Appellate Procedure 34. A prior appeal had already established that the lien was invalid because flood-remediation work is not lienable under Utah’s mechanic’s lien statute.

Court’s Analysis and Holding

The Court of Appeals clarified that the Wrongful Lien Act creates three distinct categories. First, valid liens entitle the lien claimant to potential attorney fees. Second, wrongful liens entitle the petitioner to attorney fees. Third, liens that are invalid but not wrongful—as in this case—entitle neither party to attorney fees, with each side bearing its own costs. The court found Total Restoration’s lien was not wrongful because it was recorded before controlling precedent established that basic flood-remediation work was not lienable. However, the court reversed the costs award to the Merritts because they failed to file their bill of costs within the required 15-day deadline after remittitur.

Practice Implications

This decision provides important clarity for practitioners handling mechanic’s lien disputes. When challenging liens under the Wrongful Lien Act, attorneys must carefully distinguish between invalidity and wrongfulness. A lien may be technically invalid under current law while still being reasonable when recorded, preventing a finding of wrongfulness. Additionally, strict compliance with procedural deadlines remains critical—the 15-day deadline for filing costs under Rule 34 is not merely aspirational but mandatory for recovery.

Original Opinion

Link to Original Case

Case Details

Case Name

Total Restoration v. Merritt

Citation

2017 UT App 162

Court

Utah Court of Appeals

Case Number

No. 20160374-CA

Date Decided

August 24, 2017

Outcome

Affirmed in part and Reversed in part

Holding

A mechanic’s lien that is invalid but not wrongful does not entitle either party to attorney fees under the Wrongful Lien Act, creating a third category where each side bears its own fees.

Standard of Review

Correctness for questions of statutory interpretation and procedural rule interpretation

Practice Tip

When challenging mechanic’s liens under the Wrongful Lien Act, carefully distinguish between invalidity and wrongfulness, as only wrongful liens entitle petitioners to attorney fees.

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