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Builder allowed to foreclose on lien

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The Indiana Court of Appeals found a Lake Superior judge erred in denying a construction company’s request to foreclose on a mechanic’s lien after the client withheld a final payment, claiming faulty work.

Quadri Enterprises LLC, owned by Dr. Kamartaj Quadri, hired Ponziano Construction Services to build a medical office on the site of a pre-existing structure in Crown Point. The contract called for Quadri to pay Ponziano $144,900. After executing the contract, the two agreed to an addendum to make changes to the original plan that added $500 to the contract.

Quadri agreed to pay Ponziano through a construction loan from Wells Fargo. It made the first two payments, but withheld the last payment because of concerns over quality of workmanship, including poor painting and countertop installation. Ponziano then filed a mechanic’s lien for $45,549.43 and filed a complaint alleging breach of contract and unjust enrichment and sought to foreclose on the lien and attorney fees. Quadri filed a counterclaim for breach of contract, slander of title, and breach of implied warranty of good workmanship.

The trial court awarded Ponziano $16,000 and attorney fees of $8,000. Ponziano appealed, arguing it is still owed $53,783 absent reduction. Quadri sought to reduce the amount owed by claiming damages due to delays in construction and defective work. But Dr. Kamartaj Quadri caused many of the delays by moving into the office before construction was complete and through her failure to file plans and designs with the state and city, Judge L. Mark Bailey wrote in Ponziano Construction Services, Inc. v. Quadri Enterprises, LLC, 45A05-1112-CC-661.

Quadri presented evidence that the cost of fixing the defective work was $4,800, so that’s the only amount the company is entitled to as a set-off. The appellate court found $48,983.43 to be the appropriate amount owed to Ponziano: the $145,400 contract price, less the $91,616.57 already paid, minus the set-off.

Because Quadri owes the builder $48,983.43, an amount in excess of the mechanic’s lien, Ponziano may foreclose on the entire amount of the lien, the judges held. They remanded with instructions to the trial court to enter judgment in favor of Ponziano for $48,483.43, order sale of the property subject to the $45,549.43 lien, and determine the existence, extent and outcome of a potential priority dispute between Ponziano and Wells Fargo.

The appellate court upheld the $8,000 in attorney fees, finding that Ponziano is only entitled to recover the fees relating to its action to foreclose on the mechanic’s lien.

 

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  1. Such things are no more elections than those in the late, unlamented Soviet Union.

  2. It appears the police and prosecutors are allowed to change the rules halfway through the game to suit themselves. I am surprised that the congress has not yet eliminated the right to a trial in cases involving any type of forensic evidence. That would suit their foolish law and order police state views. I say we eliminate the statute of limitations for crimes committed by members of congress and other government employees. Of course they would never do that. They are all corrupt cowards!!!

  3. Poor Judge Brown probably thought that by slavishly serving the godz of the age her violations of 18th century concepts like due process and the rule of law would be overlooked. Mayhaps she was merely a Judge ahead of her time?

  4. in a lawyer discipline case Judge Brown, now removed, was presiding over a hearing about a lawyer accused of the supposedly heinous ethical violation of saying the words "Illegal immigrant." (IN re Barker) http://www.in.gov/judiciary/files/order-discipline-2013-55S00-1008-DI-429.pdf .... I wonder if when we compare the egregious violations of due process by Judge Brown, to her chiding of another lawyer for politically incorrectness, if there are any conclusions to be drawn about what kind of person, what kind of judge, what kind of apparatchik, is busy implementing the agenda of political correctness and making off-limits legit advocacy about an adverse party in a suit whose illegal alien status is relevant? I am just asking the question, the reader can make own conclsuion. Oh wait-- did I use the wrong adjective-- let me rephrase that, um undocumented alien?

  5. of course the bigger questions of whether or not the people want to pay for ANY bussing is off limits, due to the Supreme Court protecting the people from DEMOCRACY. Several decades hence from desegregation and bussing plans and we STILL need to be taking all this taxpayer money to combat mostly-imagined "discrimination" in the most obviously failed social program of the postwar period.

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