In: Accounting
Fayette Country Club hired Bend Tarp and Liner to install a liner in a pond on its golf course. A day after the liner had been installed, the club pro discovered that a section of the pond wall had collapsed. As a result, the pond liner had torn and water escaped from the pond. The club pro believed that the water loss was due to the torn liner and Bend Tarp and Liner argued that the collapse of the wall was responsible for the tear. Fayette refused to pay Bend unless Bend agreed to repair the lining. Bend refused. Can Bend file a construction lien (mechanic’s lien) against the country club? Explain.
As per the facts of the case Fayette Country Club hired Bend Tarp and Liner to specifically install a liner in a pond. Their main job is limited to install the liner into the pond and whatever happens after the installation of the liner is not concerned to them. The club pro discovered that a section of pond wall had collapsed because of which the liner was torn and water escaped from the pond. Bend Tarp and Liner had nothing to do with the pond wall and had successfully finished their job once the liner was installed in the pond.
Once the job is successfully executed, it is the responsibility of the contractor to pay the workers as per the agreed terms and remuneration. The contractor cannot refuse the payment unless a specific clause of the job is not fulfilled. In the given case the workers were supposed to just install a liner in the pond and they have executed the same successfully. The wall of the pond collapsed the next day without any fault of the workers or due to installation of the liner. Therefore, Fayette cannot refuse the payment to the workers and they can file a construction lien against the country club.