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Companies can’t recover attorney fees from general contractor

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The judgments awarded against the general contractor in the construction of a Portage movie theater are supported by the evidence, the Indiana Court of Appeals affirmed Wednesday. But, the trial court should not have awarded the contractors who sued attorney fees under the mechanic’s lien statute.

Roncelli served as general contractor on the project, in which Goodrich leased property to construct the theatre. Roncelli hired as contractors Wilson Iron to provide the steel structure of the theater, Fostcorp to provide HVAC and Johnson Carpet to install carpet in the theater.

The roof framing plans did not use the industry standard symbol to depict that the joist girders would be modified to allow HVAC ductwork to pass through. Because the hourglass mark used on the plans was meaningless to Wilson Iron, it ignored it and created standard joist girders. Because of the joist issues, Fostcorp had to modify its plans to install the HVAC. There were also issues involving the ordering and installation of the carpet.

All of these issues led Wilson Iron, Fostcorp and Johnson Carpet to file mechanic’s liens for unpaid work. The trial court ultimately awarded more than half a million dollars to Fostcorp against Roncelli, plus nearly $100,000 in attorney fees; more than $400,000 to Wilson Iron against Roncelli, plus nearly $300,000 in attorney fees; and more than $55,000, plus pre-judgment interest in favor of Johnson Carpet against the general contractor.

Roncelli appealed, which the Court of Appeals affirmed, except with respect to the award of attorney fees. The purpose of the mechanic’s lien statutes is to make a property owner an involuntary guarantor of payments for the reasonable value of improvements made to real estate by labor or materials furnished by laborers or materialmen, Judge Margret Robb wrote in Goodrich Quality Theaters, Inc. and Roncelli, Inc. v. Fostcorp Heating and Cooling, Inc., Wilson Iron Works, Inc., Johnson Carpet, Inc., d/b/a Johnson Commercial Interiors, 64A03-1308-PL-318.

“As Roncelli is not the owner of the real estate or the structure, a mechanic’s lien cannot be enforced against it and subsequent attorney fees under that code provision are inapplicable,” she wrote. “Therefore, each award of attorney fees based on Indiana Code section 32-28-3-14 against Roncelli must (be) reversed.”
 

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  1. Good riddance to this dangerous activist judge

  2. What is the one thing the Hoosier legal status quo hates more than a whistleblower? A lawyer whistleblower taking on the system man to man. That must never be rewarded, must always, always, always be punished, lest the whole rotten tree be felled.

  3. I want to post this to keep this tread alive and hope more of David's former clients might come forward. In my case, this coward of a man represented me from June 2014 for a couple of months before I fired him. I knew something was wrong when he blatantly lied about what he had advised me in my contentious and unfortunate divorce trial. His impact on the proceedings cast a very long shadow and continues to impact me after a lengthy 19 month divorce. I would join a class action suit.

  4. The dispute in LB Indiana regarding lake front property rights is typical of most beach communities along our Great Lakes. Simply put, communication to non owners when visiting the lakefront would be beneficial. The Great Lakes are designated navigational waters (including shorelines). The high-water mark signifies the area one is able to navigate. This means you can walk, run, skip, etc. along the shores. You can't however loiter, camp, sunbath in front of someones property. Informational signs may be helpful to owners and visitors. Our Great Lakes are a treasure that should be enjoyed by all. PS We should all be concerned that the Long Beach, Indiana community is on septic systems.

  5. Dear Fan, let me help you correct the title to your post. "ACLU is [Left] most of the time" will render it accurate. Just google it if you doubt that I am, err, "right" about this: "By the mid-1930s, Roger Nash Baldwin had carved out a well-established reputation as America’s foremost civil libertarian. He was, at the same time, one of the nation’s leading figures in left-of-center circles. Founder and long time director of the American Civil Liberties Union, Baldwin was a firm Popular Fronter who believed that forces on the left side of the political spectrum should unite to ward off the threat posed by right-wing aggressors and to advance progressive causes. Baldwin’s expansive civil liberties perspective, coupled with his determined belief in the need for sweeping socioeconomic change, sometimes resulted in contradictory and controversial pronouncements. That made him something of a lightning rod for those who painted the ACLU with a red brush." http://www.harvardsquarelibrary.org/biographies/roger-baldwin-2/ "[George Soros underwrites the ACLU' which It supports open borders, has rushed to the defense of suspected terrorists and their abettors, and appointed former New Left terrorist Bernardine Dohrn to its Advisory Board." http://www.discoverthenetworks.org/viewSubCategory.asp?id=1237 "The creation of non-profit law firms ushered in an era of progressive public interest firms modeled after already established like the National Association for the Advancement of Colored People ("NAACP") and the American Civil Liberties Union ("ACLU") to advance progressive causes from the environmental protection to consumer advocacy." https://en.wikipedia.org/wiki/Cause_lawyering

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