Acoustic Specialties v. Wallace A. Wright

The instant appeal arises out of two separate actions for materialmen's liens, pursuant to I.C. §§ 45-501 et seq. Acoustic Specialties, Inc., brought its action to foreclose its claim of lien against Wallace A. Wright, Jr., Willard R. Wood, and W. Coy Wood, doing business as Hilton Inn, and R.K. & A. Jones, Inc. Similarly, Granite Mill and Fixture Company brought its action to foreclose its claim of lien against the same defendants. During the course of the proceedings in the two actions, W.H.W. Management, Inc., intervened in both actions as the lessee of the real property upon which Acoustic Specialties and Granite Mill and Fixture sought to foreclose their respective claims of lien and as the party which contracted with R.K. & A. Jones for the construction work giving rise to the two claims. W.W.H. Management interposed certain defenses to the two causes of action and cross claimed against R.K. & A. Jones in both actions. Both Acoustic Specialties and Granite Mill and Fixture obtained garnishee judgments against Wright, Wood and Wood and their partnership enterprise doing business as the Hilton Inn, and ultimately judgments of foreclosure on their respective claims of lien were granted by the district court. The district court, in so ordering, also awarded interest and costs to both plaintiffs and awarded $10,000.00 in attorney fees to Acoustic Specialties and $6,000.00 in attorney fees to Granite Mill and Fixture. The district court stated that the payment of attorney fees, interest and costs could be obtained through the foreclosure on the real property of Wright, Wood and Wood. Thereafter, Wright, Wood and Wood, doing business as Hilton Inn, and W.H.W. Management appealed from the judgments of foreclosure and awards of interest and attorney fees. We affirm. Wright, Wood and Wood own certain real property in Pocatello upon which is located their partnership enterprise, the Hilton Inn. The real property is leased to W.H.W. Management, which also manages the Hilton Inn. The hotel complex was constructed by R.K. & A. Jones, pursuant to a contract it entered into with W.H.W. Management. Acoustic Specialties and Granite Mill and Fixture were subcontractors on the project for R.K. & A. Jones. Pursuant to their contracts with R.K. & A. Jones, both subcontractors furnished materials and supplies to the general contractor. Upon completion of the construction of the Hilton Inn, R.K. & A. Jones was unable to pay $51,840.33 of the contract price to Acoustic Specialties and was also unable to pay $31,862.54 of the contract price to Granite Mill and Fixture. Representatives of R.K. & A. Jones told both subcontractors that the reason for nonpayment was because R.K. & A. Jones had not received payments from W.H.W. Management on behalf of the Hilton Inn.