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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. by the time anybody gets to such files they will probably have been totally vacuumed anyways. they're pros at this at universities. anything to protect their incomes. Still, a laudable attempt. Let's go for throat though: how about the idea of unionizing football college football players so they can get a fair shake for their work? then if one of the players is a pain in the neck cut them loose instead of protecting them. if that kills the big programs, great, what do they have to do with learning anyways? nada. just another way for universities to rake in the billions even as they skate from paying taxes with their bogus "nonprofit" status.

  2. Um the affidavit from the lawyer is admissible, competent evidence of reasonableness itself. And anybody who had done law work in small claims court would not have blinked at that modest fee. Where do judges come up with this stuff? Somebody is showing a lack of experience and it wasn't the lawyers

  3. My children were taken away a year ago due to drugs, and u struggled to get things on track, and now that I have been passing drug screens for almost 6 months now and not missing visits they have already filed to take my rights away. I need help.....I can't loose my babies. Plz feel free to call if u can help. Sarah at 765-865-7589

  4. Females now rule over every appellate court in Indiana, and from the federal southern district, as well as at the head of many judicial agencies. Give me a break, ladies! Can we men organize guy-only clubs to tell our sob stories about being too sexy for our shirts and not being picked for appellate court openings? Nope, that would be sexist! Ah modernity, such a ball of confusion. https://www.youtube.com/watch?v=QmRsWdK0PRI

  5. LOL thanks Jennifer, thanks to me for reading, but not reading closely enough! I thought about it after posting and realized such is just what was reported. My bad. NOW ... how about reporting who the attorneys were raking in the Purdue alum dollars?

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