ÿWPCW …# VUNa %¯ 0(µU<Ýw@ 4Y m 0Á| 0D=  0J‰ 0TÓ 0^' 0h… 0rí 0|_ 0†Û 0a 1uñ U,f 0d’U,öU>"B)`DC‰ AMÌU*.C`q D3Ñv~vÓ‚ 0@U B• AO²Æ 0DÇ D/  B:˜HP LaserJet 4Si/4SiMX PS 600dpiPSCRIPTÀäÌÀÀÌÀä0 (ÈhH  Z ‹6Times New Roman RegularX($¡¡-šBu Z‹$Arrus BT Roman [U E!"D#U$î%Ó€1yJÚ (%Ã$3|x1(q(2Ô°$¤¤Ý ƒ!ÝÝ  ÝÑ°°ÑÒ°ÒÒ„°ÒÓ  ÓÔ€XäEXXXÔà ` àòòÚ  Ú0Ú  Úóó(#Ã$òòÚ  Ú0Ú  Úóó2 ÿÿ0Indent1Ô2ÔÔ3  Ô2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)< Œ 9p`(ModernP ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ< Œ 9p`(Monaco< Œ 9p`(&Times New Roman% Line 7 d$$$$7Border 1dd€-%Cþÿ << Gÿÿ< Œ 9p`(Arial $Ý ƒ!ÝÑ  ÑÑ#€d#ÑÔ€ÔÔ€#ÔÝ  ÝÔ€'ÔÔ€'ÔÓ  ÓÔ YYY ÔFILEDÔ€'XÔÌÌò òAugust€16,€1996ÌÌCecil€Crowson,€Jr.ÌÔ€'ôÔAppellate€Court€Clerkó ó VÝ ƒ!ÝÑ  ÑÑ#€d#ÑÔ€ÔÔ€#ÔÝ  ÝÝ ƒ $ÝÒ  ÒÒ „ ÒÓ  ÓÔ€Ôà àòòÚ  ÚÚ  ÚóóÝ  ÝIn€addition€to€the€defendants„appellees,€the€suit€named€NationalÏEquity€Corporation,€Cordova€Bank€and€Trust€Company,€and€David€F.ÏLeake,€Trustee,€as€defendants.€€The€suit€was€dismissed€as€toÏdefendants,€Cordova€Bank€and€Leake,€and€plaintiff€was€awarded€a€moneyÏjudgment€against€National€Equity.€€The€judgment€against€NationalÏEquity€is€not€involved€in€this€appeal.ÌKKKK'ÿÿdxdPtPtHHÚ(ÿáÿâùFG(üHHØ(d'`Styl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃÐ ÐÐHHÐÐ  ÐÐ2ÐÐÿÿ¸æ$ÿÐÐHHÐÐÐÐÐÐÐÐ  ÐÐ ÐÐ ÐÑÑÑGenevaÑÑ ÑÑ € ÑÑ<Px–ÈÑÒÒÒ443!#4ÒÒ$ *$ÒÒ$*$ÒÒ ÿKK ÒÒ  Geneva ÒÒ  Geneva ÒÓ.,ÓÓÓÓ6ÓÓ ÓßßßßßßßßßßßßßßßßßßÑMonacoÑÑ ÑÒ  BA Op Monaco ÒÒ  BA Op Monaco Ò("ÿÿ$££Ò  ÒÒ  Ò d€-‚ƒCþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5($$””ò òÚ  Ú1Ú  Úó ó„„'÷ÿ dxdüÿP PdÝ ƒ!ÝÔ . ÔÔ€ÔÓ&€""X„d&ÓÑ#€""Xd#ÑÔ€#ÔÝ  ÝÑ7€õWXXdìdÈ7ÑÑ  ÑÔ€ÔÓ  ÓÑ  ÑÑ\R AØ'\ÑÒ  ÒÒ „ Òà@ àIN€THE€COURT€OF€APPEALS€OF€TENNESSEEÌà@ àWESTERN€SECTION€AT€JACKSONÌà àà à€€Ï________________________________________________ÌÌò òOWEN€LUMBER€&€MILLWORK,€INC.,€ó óÌÌà àPlaintiff„Appellant,Ìà àà àà àà àà àà àà àShelby€Chancery€No.€103564„1ÌÙ€€ÙÙ€€ÙßL€&(%;+'h|ùç` ¤ `€€LßVs.à àà àà àà àà àà àà àC.A.€No.Ï02A01„9506„CH„00125ÌÌò òNATIONAL€EQUITY€CORPORATION,ÌGREGG€P.€HUGGINS,€MICHELLE€W.€ÌHUGGINS,€NATIONAL€MORTGAGE€ÌCOMPANY,€DELTA€TITLE€COMPANY,ÌCORDOVA€BANK€&€TRUST€COMPANY,Ìand€DAVID€F.€LEAKE,€TRUSTEE,€ó óÌÌà àDefendants„Appellees.Ì___________________________________________________________________________ÌÌà@ àFROM€THE€SHELBY€COUNTY€CHANCERY€COURTÌà@ àTHE€HONORABLE€NEAL€SMALL,€CHANCELLORÌÌÌÌà@ àAlbert€G.€McLean,€McLean€&€Stark€of€MemphisÌà@ àFor€AppellantÌÌà@ àAlex€C.€Elder€of€Bourland,€Heflin,€Alvarez,€Holley€&€MinorÌà@ àof€Memphis,€For€AppelleesÌÌÌÌÌÌÌÌÌà@ àò òòòVACATED€AND€REMANDEDó óóóÌÌà@ àOpinion€filed:ÌÌÌÌÌà àà àà àà àà àà àà àò òW.€FRANK€CRAWFORD,Ìà àà àà àà àà àà àà àPRESIDING€JUDGE,€W.S.ÌÌCONCUR:ÌÌALAN€E.€HIGHERS,€JUDGEÌÌHOLLY€KIRBY€LILLARD,€JUDGEó óÌ›Ñ7€õWXXdìXXdì7ÑÑ  ÑÓÓà àThis€appeal€involves€a€suit€to€enforce€a€materialmenððs€lien.€ÏPlaintiff,€Owen€Lumber€and€Millwork,€Inc.,€appeals€from€the€order€of€theÏchancery€court€which€granted€defendants,€Gregg€P.€Huggins,€Michelle€W.ÏHuggins,€National€Mortgage€Co.,€and€Delta€Title€Company,€Trustee,× ƒ) ××  ×Ïsummary€judgment,€and€which€denied€its€motion€for€summary€judgment.Ìà àThe€material€facts€are€not€in€dispute.€€National€Equity€CorporationÏis€a€general€contractor€and€homebuilder€in€the€Memphis€and€ShelbyÍCounty€area.€€In€October,€1992,€National€Equity€acquired€title€to€theÏfollowing€described€property:ÌÓÓà8 àà8 àLot€83,€Walnut€Run€Subdivision,€First€Addition,ÏPhase€7,€as€shown€on€plat€of€record€in€Plat€BookÏ138,€Page€97,€in€the€Registerððs€Office€of€ShelbyÏCounty,€Tennessee,€to€which€plat€reference€isÏhereby€made€for€a€more€particular€description,Ïbeing€part€of€the€property€acquired€by€NationalÏEquity€Corporation€by€Warranty€Deed€of€record€atÏInstrument€No.€DC„9768,€Registerððs€Office€ofÏShelby€County,€Tennessee.€€Said€property€has€aÏstreet€address€of€8514€Shingle€Oaks€Drive,ÏCordova,€Tennessee€38018.ÌÌÓÓà àNational€Equity€began€construction€of€a€single€family€dwelling€onÏthe€property€which€was€and€is€now€designated€as€8514€Shingle€OaksÏDrive,€Cordova,€Tennessee,€38018.€€For€the€period€of€time€beginning€inÏFebruary,€1993,€and€ending€April€23,€1993,€the€plaintiff€furnishedÏlumber€and€other€building€materials€to€National€Equity€for€use€in€theÏconstruction€of€said€dwelling.€€National€Equity€completed€theÏconstruction€of€this€dwelling€on€a€date€no€earlier€than€August€27,€1993,Ïand€the€Shelby€County€Department€of€Code€Enforcement€finally€approvedÏthe€construction€under€the€building€permit€on€September€9,€1993.€€Ìà àAt€the€time€the€construction€was€completed,€National€EquityÏowed€plaintiff€for€the€lumber€and€building€materials€furnished€for€theÍconstruction€of€the€dwelling,€plus€service€charges,€the€sum€ofÏ$12,098.13.€€Ìà àBy€warranty€deed€dated€September€22,€1993,€and€recorded€onÏSeptember€23,€1993,€at€12:23€p.m.,€in€the€Shelby€County€RegisterððsÏOffice,€National€Equity€Corporation€conveyed€the€above„describedÏproperty€to€Gregg€P.€Huggins€and€wife,€Michelle€W.€Huggins.€€Mr.€and€Mrs.ÏHuggins€then€executed€the€deed€of€trust€conveying€the€subject€propertyÏto€Delta€Title€Company€as€trustee€for€National€Mortgage€Company.Ìà àOn€September€23,€1993,€at€3:59€p.m.,€approximately€three€andÏone„half€hours€after€the€recording€of€the€warranty€deed€from€NationalÏEquity€to€Mr.€and€Mrs.€Huggins,€plaintiff€recorded€a€notice€of€mechanicsððÏand€materialmenððs€lien€in€the€Shelby€County€Registerððs€Office€claimingÏa€lien€for€the€balance€due€of€$12,098.13.€€à àOn€November€17,€1993,Ïplaintiff€filed€the€complaint€in€the€instant€case€for€enforcement€of€itsÏlien€rights.€€After€an€answer€was€filed,€both€defendants€and€plaintiffÏmoved€for€summary€judgment.€€The€trial€court€denied€plaintiffððs€motionÏfor€summary€judgment€and€granted€summary€judgment€to€theÏdefendants.€€Plaintiff€has€appealed€and€the€only€issue€on€appeal€isÏwhether€the€trial€court€erred€in€granting€defendantsðð€motion€forÍsummary€judgment€and€denying€plaintiffððs€motion€for€summaryÏjudgment.Ìà àA€material€supplier€has€no€right€to€a€lien€except€as€provided€byÏstatute,€and€the€statute€must€be€strictly€construed.€€ò òòòSee€Nanz€v.ÏCumberland€Gap€Park€Co.ó óóó,€103€€Tenn.€299,€52€S.W.€999€(1899).€€Ìà àDefendants€contend€that€plaintiff€had€no€lien€or€right€of€lien€atÏthe€time€it€filed€the€notice€of€mechanicsðð€and€materialmenððs€lien€in€theÏregisterððs€office.€€They€assert€that€when€plaintiffððs€notice€was€filed,Ïthe€warranty€deed€from€National€Equity€to€Mr.€and€Mrs.€Huggins€had€beenÏrecorded€and€that€pursuant€to€the€provisions€of€T.C.A.€€ðð€66„11„146€(a)Ï(1)(2),€any€lien€rights€that€plaintiff€had€were€cut€off.€€T.C.A.€€ðð€66„11„146€(a)(2)€states:ÌÓÓà8 àà8 àò ò66„11„146.€€Residential€real€property€„ÏRight€of€lien.€„ó ó€(a)(1)€As€used€in€thisÏsubsection,€ð ðresidential€real€propertyðð€means€aÏbuilding€consisting€of€one€(1)€dwelling€unit€inÏwhich€the€owner€of€the€real€property€intends€toÏreside€or€resides€as€the€ownerððs€principal€placeÏof€residence,€including€improvements€to€or€onÏthe€parcel€of€property€where€such€residentialÏbuilding€is€located,€and€also€means€a€buildingÏconsisting€of€two€(2),€three€(3)€or€four€(4)Ïdwelling€units€where€the€owner€of€the€realÏproperty€intends€to€reside€or€resides€in€one€(1)Ïof€the€units€as€the€ownerððs€principal€place€ofÍresidence,€including€improvements€to€or€on€theÏparcel€of€property€where€such€residentialÏbuilding€is€located.ÌÌà8 àà8 à(2)€Notwithstanding€any€other€provision€of€lawÏto€the€contrary,€except€as€provided€in€subsectionÏ(b),€on€individual€contracts€to€improveÏresidential€real€property,€a€lien€or€right€of€lienÏupon€such€property€shall€exist€only€in€favor€ofÏthe€general€contractor€who€enters€into€suchÏcontract€with€the€owner€of€such€property€or€theÏownerððs€agent.€€No€lien,€except€the€generalÏcontractorððs€lien,€shall€exist€upon€such€propertyÏunder€such€contract€in€favor€of€a€subcontractor,Ïmaterialman,€mechanic,€laborer,€founder,Ïmachinist,€or€any€other€person€who€does€theÏwork€or€any€part€of€the€work,€or€furnishes€theÏmaterials€or€any€part€of€the€materials,€or€putsÏthereon€any€fixtures,€machinery€or€materials,Ïordered€by€or€through€such€persons.ÌÌÓÓà àDefendantsðð€reliance€on€T.C.A.€€ðð€66„11„146€(a)(1)(2)€isÏmisplaced.€€T.C.A.€€ðð€66„11„146€(b)(1)(2)€is,€along€with€other€pertinentÏmechanicsðð€and€materialmenððs€lien€statutes,€controlling.€€T.C.A.€€ðð€66„11„146€(b)(1)(2)€provides:ÌÓÓà8 àà8 à(b)(1)€As€used€in€this€subsection,€ð ðresidentialÏreal€propertyðð€means€improvements€to€or€on€aÏparcel€of€property€upon€which€a€building€isÏconstructed€or€is€to€be€construed€consisting€ofÏone€(1)€dwelling€unit€intended€as€the€principalÏplace€of€residence€of€a€person€or€family.ÌÌà8 àà8 à(2)€When€the€owner€of€residential€real€propertyÏand€the€general€contractor€are€one€and€the€sameÏperson,€or€such€an€individual€controls€entitiesÏowning€such€property€and€general€contractingÏbusiness,€on€individual€contracts€to€improveÏresidential€real€property,€a€lien€or€right€of€lienÏupon€such€property€shall€exist€only€in€favor€ofÏthe€general€contractor,€subcontractors€of€theÏgeneral€contractor,€and€suppliers€who€contractÏwith€the€general€contractor.€€No€lien€in€favor€ofÏthe€subcontractor€or€such€suppliers€shall€existÏon€such€real€property€from€and€after€the€date€theÏgeneral€contractor€pays€the€subcontractor€orÏsupplier€for€services€performed€or€materialÏdelivered€by€that€supplier€or€subcontractor.€€NoÏlien,€except€as€provided€in€this€subsection,€shallÏexist€upon€such€property€under€such€contract€inÏfavor€of€a€materialman,€mechanic,€laborer,Ïfounder,€machinist€or€any€other€person€who€doesÏthe€work€or€any€part€of€the€work,€or€furnishesÏthe€materials€or€any€part€of€the€materials,€orÏputs€thereon€any€fixtures,€machinery€orÏmaterials,€ordered€by€or€through€such€persons.ÌÌÓÓà àIn€the€case€before€us,€it€is€uncontroverted€that€when€plaintiffÏsold€the€materials€to€National€Equity,€National€Equity€was€the€owner€ofÏthe€residential€real€property€as€defined€in€(b)(1)€and€was€also€theÏgeneral€contractor€and€builder€of€the€improvements€on€the€property.€ÏT.C.A.€€ðð€66„11„146€(b)(2)€specifically€establishes€a€lien€in€favor€ofÏthe€supplier€who€contracts€with€the€general€contractor€who€is€also€theÍowner.€€Plaintiffððs€lien€rights€became€fixed€when€the€supplies€wereÏdelivered€to€the€premises€since€the€lien€rights€are€established€from€theÏð ðdate€of€visible€commencement€of€operation.ðð€€T.C.A.€€ðð€66„11„104Ï(1993).€€Plaintiff€in€the€case€before€us€filed€the€notice€of€lien€withinÏninety€days€after€completion€of€the€structure€and€thus€preserved€itsÏlien€pursuant€to€the€provisions€of€T.C.A.€€ðð€66„11„112€(1993).€€HavingÏproperly€filed€the€notice€of€lien€within€the€ninety€day€period,Ïplaintiffððs€lien€has€precedence€over€conveyances€made€within€ninetyÏdays€after€the€date€of€completion.€€T.C.A.€€ðð€66„11„117€(1993).€€Ìà àThe€lien€statutes€must€be€construed€together.€€To€give€theÏstatutes€the€construction€proposed€by€defendants€would€negate€theÏprotection€the€statutes€intended€to€provide.€€Defendants€argue€that€uponÏcompletion€the€owner/contractor€can€eradicate€all€mechanicððs€andÏmaterialmenððs€liens€by€conveying€the€property.€€This€is€simply€not€theÏcase.€€Although€we€believe€the€lien€statutes€referred€to€above€to€makeÏit€quite€clear€that€defendantsðð€assertion€is€misguided,€the€legislatureððsÏpassage€of€T.C.A.€€ðð€66„11„143,€removed€any€doubt€that€might€haveÏexisted.€€T.C.A.€€ðð€66„11„143,€as€pertinent€to€the€discussion€of€theÏissues€before€us,€provides:ÌÓÓà8 àà8 àò ò66„11„143.€€Protection€from€unregisteredÏliens€„€Notice€of€completion€afterÏimprovements€„€Expiration€of€certain€lienÏrights.€„ó ó€(a)€In€order€to€be€protected€from€lienÏclaims€which€have€not€previously€beenÏregistered€as€provided€in€€ðððð€66„11„111,€66„11„112,€and€66„11„117,€the€owner€or€purchaserÏof€improved€real€property€may,€upon€completionÏof€the€improvement€or€the€demolition€thereof,Ïregister€in€the€office€of€the€register€of€deeds€inÏthe€county€where€the€real€property€or€anyÏaffected€part€thereof€is€located€a€notice€ofÏcompletion,€or€the€owner€or€purchaser€mayÏrequire€a€person€or€organization€with€whom€theÏowner€or€purchaser€has€contracted€for€theÏimprovements€or€demotion€to€do€so€uponÏcompletion€of€the€structure€or€improvement€orÏdemolition.ÌÌà àà àà àà à*à àà à*à àà à*ÌÌà8 àà8 à(d)(1)€Any€person€claiming€a€lien€for€labor€orÏmaterials€upon€the€property€described€in€theÏnotice€of€completion€who€has€not€previouslyÏregistered€such€personððs€contract€as€provided€in€Ïðð€66„11„111€or€registered€a€sworn€statementÏas€provided€in€€ðð€66„11„112€or€€ðð€66„11„117Ïshall€send€by€registered€or€certified€mailÏwritten€notice€addressed€to€the€person,€firm€orÏorganization€and€at€the€address€designated€inÏthe€notice€of€completion€for€receiving€notice€ofÏclaims,€stating€the€amount€of€the€claim€andÏcertifying€that€the€claim€does€not€include€anyÏamount€owed€to€the€claimant€on€any€other€job€orÏunder€other€contract.ÌÌÓÓà àThe€statute€makes€it€quite€clear€that€an€unregistered€lien€is€validÏas€to€subsequent€purchasers€of€the€property€if€the€requirements€of€theÏvarious€statutes€are€met€and€provides€an€expedited€procedure€toÏprotect€innocent€purchasers.€€Since€defendants€did€not€avail€themselvesÏof€the€protection€afforded€by€T.C.A.€€ðð€66„11„143,€they€are€not€in€aÏposition€to€complain.€€They€knew€they€were€purchasing€newÏconstruction,€and€that€the€seller€was€not€only€the€owner€of€the€propertyÏbut€was€also€the€builder€of€the€improvements€on€the€property.€€When€theÏpurchasers€chose€to€purchase€the€property€within€ninety€days€ofÏcompletion€and€the€mortgagee€chose€to€lend€money€for€the€purchase€ofÏthe€property€when€none€of€them€availed€themselves€of€the€protectionÏafforded€by€T.C.A.€€ðð€66„11„143,€they€acted€at€their€peril.€€It€is€clearÏfrom€the€applicable€statutes€that€plaintiff€had€a€lien€and€took€theÏproper€steps€as€required€by€the€statute€to€protect€and€enforce€the€lien.€€Ìà àAccordingly,€the€order€of€the€trial€court€granting€summaryÏjudgment€to€defendants€is€vacated,€and€summary€judgment€is€granted€toÏplaintiff.€€The€case€is€remanded€to€the€trial€court€for€entry€of€anÏappropriate€order€establishing€the€amount€of€the€lien€and€for€the€saleÏof€the€property€to€enforce€the€lien.€€Costs€of€this€appeal€are€assessedÍagainst€the€appellees.ÌÓÓà àà àà àà àà àà àà à_________________________________Ìà àà àà àà àà àà àà àò òW.€FRANK€CRAWFORD,Ìà àà àà àà àà àà àà àPRESIDING€JUDGE,€W.S.ó óÌò òCONCUR:ÌÌó ó_________________________________Ìò òALAN€E.€HIGHERS,€JUDGEó óÌÌ_________________________________Ìò òHOLLY€KIRBY€LILLARD,€JUDGEó ó̜ԀÔÔ€Ô